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Which of the following is NOT a financial instrument?

• A share of General Motors stock

• A tuition bill

• U.S. Treasury Bond

• A home insurance policy

The system of financial relations includes what stages?

• Financial intermediation

• Corporate Finance

• State financial

• All the answers above

Which of the following best expresses the proceeds a lender receives from a one-year simple loan when it is paid back?

• PV (1+i)

• PV/i

• PV+i

• FV/i

In , the financial relationship is

• The process of transferring funds

• Buying and selling process

• The process of consuming goods

• Production process

Net profit after taxes per dollar of equity capital is a basic measure of bank profitability called

• retum on assets.

• return on capital.

• retum on equity.

• return on investment.

A bank failure occurs whenever

• bank cannot satisfy of satisfy its oblig its obligations to pay its depositors and have enough reserves to meet its reserve requirements.

• a bank suffers a large deposit outflow

• a bank has to call in a large volume of loan

• a bank is not allowed to borrow from the Fed

The liquidity of an asset is:

• How easily the asset can be converted to money

• The possibility that the asset can be profitable

• How easily the asset can be converted into common stock

• The amount for which the property can be sold.

Exchange rates are determined in

• the money market

• the foreign exchange market

• the stock market.

• the capital market

Paper money today:

• Can be printed by commercial banks

• Account for a small proportion of the total means of payment

• It is allowed to exchange for gold according to the ratio prescribed by law

• Both A and B

Net profit after taxes per dollar of assets is a basic measure of bank profitability called

• return on assets

• retum on capital

• retum on equity

• return on investment