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WorksheetsFinancial Markets Quiz
Total questions: 25
Worksheet time: 13mins
Compared to future contracts, forward contracts involve an intermediary or exchange, rather than direct contact between buyer and seller
are not standardized
none of the above
have less formal markets
make delivery most often
involve an intermediary or exchange, rather than direct contact between buyer and seller
___________ allocates saving efficiently in an economy to ultimate users either for investment in real assets or for consumption
Market system
Economic system
Banking system
Financial system
Money system
Financial derivatives include
Shares
Stocks
Bonds
Forwards
Equity
Which of the following is true of restrictions on branch offices?
All of the above
National banks can establish branches in any state.
Branching laws are determined by each individual state.
Unit banking is more common on the West Coast.
Statewide branching is illegal in almost every state.
Which of the following is not a financial derivative?
Futures
Options
Forwards
Stock
None of the above
____________ represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend
financial asset
physical asset
fixed asset
none of these
all of rhe above
Which of the following is not a financial derivative?
Bond
Options
Forwards
Futures
None of the above
Which of the following is not a financial derivative?
T-bill
Options
Forwards
Futures
None of the above
Financial derivatives include
Equity
Stocks
Bonds
Shares
Options
____________Facilitate the transfer of funds from savers to the borrowers
secondary market
b. goods market
financial market
money market
e. consumer market
Which of the following is not a financial derivative?
Deposits
Options
Forwards
Futures
None of the above
Which of the following is not a financial derivative?
Equity
Options
Forwards
Futures
None of the above
Which of the following is not a financial derivative?
Bills
Options
Forwards
Futures
None of the above
Financial derivatives include
Options
Stocks
Bonds
Shares
Equity
Which of the following is not a financial derivative?
Options
Coupon bond
Forwards
Futures
None of the above
Which of the following is not a financial derivative?
Share
Options
Forwards
Futures
e. None of the above
178. If a bank has more rate-sensitive assets than rate-sensitive liabilities, then a(n) ________ in interest rates will ________ bank profits.
increase; increase
decline; increase
decline; not affect
increase; reduce
Which of the following has done the most to prevent bank failures?
Federal deposit insurance
Separation of investment and commercial banking
Bank examinations
All of the above
The term structure of interest rates shows
the pattern of interest rates over the long-term business cycle
All of the above
the relationship between maturity and yield for similar securities
security yields ranked by default risk structure
In the process of deposit deregulation in the early 1980's, banks were allowed to
pay explicit market rates on savings and time deposits and limited interest on checkable deposits
None of the above
pay below market explicit interest on savings and time deposits
offer checkable deposits that paid implicit interest only
A central bank sale of ________ to purchase ________ in the foreign exchange market results in an equal rise in its international reserves and the monetary base.
domestic currency; foreign assets
foreign assets; domestic currency
foreign assets; foreign currency
domestic currency; domestic assets
When does a negative yield curve tend to exist?
During a period of unemployment
During a period of inflation
During a period of deflation
All of the above
Compared to future contracts, forward contracts
involve an intermediary or exchange, rather than direct contact between buyer and seller
are not standardized
have less formal market
make delivery most often
Financial derivatives include
Futures
Stock
Bonds
Shares
Classical interest rate theory states that rising interest rates will
decrease the demand for money
all of the above
increase the quantity of saving
increase the demand for money
