Currency includes

The total collection of pieces of property that serve to store value is a person's

________ is a flow of earnings per unit of time.

The difference between money and income is that

________ are the time and resources spent trying to exchange goods and services.

Which of the following statements best explains how the use of money in an economy increases economic efficiency?

All of the following are necessary criteria for a commodity to function as money EXCEPT

Bao Chan purchasing football tickets with a $100 bill is an example of the ________ function of money.

Apple notices that all of its products (iPhone, MacBook, iMac, Mac Mini,...) are on sale for $1,000. In this case money is functioning as a

If the price level doubles, the value of money

A fall in the level of prices

The payments system is

________ money could be used for some other purpose other than as a medium of exchange, for example, gold coins could be melted down and turned into gold jewelry.

Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money.

As a means of payment, coins have the major drawback that they

Of the following assets, the least liquid is

________ is the relative ease and speed with which an asset can be converted into a medium of exchange.

When we say that money is a stock variable, we mean that

Which of the following statements uses the economists' definition of money?

When economists say that money promotes ________, they mean that money encourages specialization and the division of labor.

If there are five goods in a barter economy, one needs to know ten prices in order to exchange one good for another. If, however, there are ten goods in a barter economy, then one needs to know ________ prices in order to exchange one good for another.

Ranking assets from most liquid to least liquid, the correct order is

Ranking assets from most liquid to least liquid, the correct order is

During hyperinflations

The evolution of the payments system from barter to precious metals, then to fiat money, then to checks can best be understood as a consequence of

Which of the following sequences accurately describes the evolution of the payments system?

Money reduces transaction costs, allowing people to specialize ________

In a barter economy the number of prices in an economy with N goods is

Increasing transactions costs of selling an asset make the asset

A hyperinflation is

An important characteristic of the modern payments system has been the rapidly increasing use of

An advantage of checks as a method of payment is that

When paper currency is decreed by governments as legal tender, legally it must be

Because inflation in Vietnam in 1986 sometimes exceeded 700% per year, one can conclude that the Vietnam economy suffered from

A person's rare book is part of her/his

Of money's three functions, the one that distinguishes money from other assets is its function as a

Every financial market has the following characteristic.

Well-functioning financial markets

Which of the following can be described as direct finance?

Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.

If the maturity of a debt instrument is less than one year, the debt is called

Long-term debt has a maturity that is

When I purchase ________, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.

When I purchase ________, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.

A financial market in which only short-term debt instruments are traded is called the ________ market.

Vietnam Treasury bills pay no interest but are sold at a ________. That is, you will pay a lower purchase price than the amount you receive at maturity.

Vietnam Treasury bills are considered the safest of all money market instruments in Vietnam financial market because there is a low probability of

Bonds that are sold in a foreign country and are denominated in the country's currency in which they are sold are known as

Bonds that are sold in a foreign country and are denominated in a currency other than that of the country in which it is sold are known as

The process of indirect finance using financial intermediaries is called

The time and money spent in carrying out financial transactions are called

A financial market in which previously issued securities can be resold is called a ________ market.

An important financial institution that assists in the initial sale of securities in the primary market is the

The higher a security's price in the secondary market the ________ funds a firm can raise by selling securities in the ________ market.

In a(n) ________ market, dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices.

Which of the following instruments are traded in a money market?

Equity and debt instruments with maturities greater than one year are called ________ market instruments.

Financial intermediaries provide customers with liquidity services. Liquidity services

The problem created by asymmetric information before the transaction occurs is called ________, while the problem created after the transaction occurs is called ________.

Adverse selection is a problem associated with equity and debt contracts arising from

An example of the problem of ________ is when a corporation uses the funds raised from selling bonds to fund corporate expansion to pay for its scandals.

________ are financial intermediaries that acquire funds by selling shares to many individuals and using the proceeds to purchase diversified portfolios of stocks and bonds.

The process where financial intermediaries create and sell low-risk assets and use the proceeds to purchase riskier assets is known as

Mortgage-backed securities are similar to ________ but the interest and principal payments are backed by the individual mortgages within the security.

A debt instrument sold by a bank to its depositors that pays annual interest of a given amount and at maturity pays back the original purchase price is called

When secondary market buyers and sellers of securities meet in one central location to conduct trades the market is called a(n)

An important function of secondary markets is to

A corporation acquires new funds only when its securities are sold in the

Which of the following statements about the characteristics of debt and equities is TRUE?

Well-functioning financial markets benefit ________ by allowing them to time their purchases more efficiently.

The concept of ________ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today.

A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as a

A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a

A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a

A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid.

The ________ is the final amount that will be paid to the holder of a coupon bond.

A discount bond

The interest rate that equates the present value of payments received from a debt instrument with its value today is the

The present value of a fixed-payment loan is calculated as the ________ of the present value of all cash flow payments.

A discount bond is also called a ________ because the owner does not receive periodic payments.

The ________ is defined as the payments to the owner plus the change in a security's value expressed as a fraction of the security's purchase price.

The sum of the current yield and the rate of capital gain is called the

Prices and returns for ________ bonds are more volatile than those for ________ bonds, everything else held constant.

The nominal interest rate minus the expected rate of inflation

When the ________ interest rate is low, there are greater incentives to ________ and fewer incentives to ________.

es to ________ and fewer incentives to ________.

The ________ states that the nominal interest rate equals the real interest rate plus the expected rate of inflation.

The present value of an expected future payment ________ as the interest rate increases.

An increase in the time to the promised future payment ________ the present value of the payment.

A fully amortized loan is another name for

Which of the following are TRUE of fixed payment loans?

The dollar amount of the yearly coupon payment expressed as a percentage of the face value of the bond is called the bond's

A ________ is bought at a price below its face value, and the ________ value is repaid at the maturity date.

Economists consider the ________ to be the most accurate measure of interest rates.

Which of the following are TRUE for a coupon bond?

The ________ of a coupon bond and the yield to maturity are inversely related.

The price of a coupon bond and the yield to maturity are ________ related; that is, as the yield to maturity ________, the price of the bond ________.

The yield to maturity is ________ than the ________ rate when the bond price is ________ its face value.

What is the present value of $500.00 to be paid in two years if the interest rate is 5 percent?

If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate is

If a $1,000 face value coupon bond has a coupon rate of 3.75 percent, then the coupon payment every year is

A $1,000 face value coupon bond with a $60 coupon payment every year has a coupon rate of

If the amount payable in two years is $2,420 for a simple loan at 10 percent interest, the loan amount is

A $10,000 - 8 percent coupon bond that sells for $10,000 has a yield to maturity of

Which of the following bonds would you prefer to be buying?

Which of the following are TRUE concerning the distinction between interest rates and returns?

The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year is

The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year is

If the nominal rate of interest is 2 percent, and the expected inflation rate is -10 percent, the real rate of interest is

Which of the following $1,000 face-value securities has the highest yield to maturity?

The interest rate on a consol equals the

A consol paying $20 annually when the interest rate is 5 percent has a price of______________

A stockholderʹs ownership of a companyʹs stock gives her the right to

Stockholders are residual claimants, meaning that they

Periodic payments of net earnings to shareholders are known as

The value of any investment is found by computing the

In the one-period valuation model, the current stock price increases if

In the one-period valuation model, an increase in the required return on investments in equity

One of the assumptions of the Gordon Growth Model is that dividends will continue growing at ________ rate.

Using the one-period valuation model, assuming a year-end dividend of $0.11, an expected sales price of $110, and a required rate of return of 10%, the current price of the stock would be

Using the one-period valuation model, assuming a year-end dividend of $1.00, an expected sales price of $100, and a required rate of return of 5%, the current price of the stock would be

Using the Gordon growth formula, if D1 is $2.00, ke is 12% or 0.12, and g is 10% or 0.10, then the current stock price is

Using the Gordon growth formula, if D1 is $1.00, ke is 10% or 0.10, and g is 5% or 0.05, then the current stock price is

Using the Gordon growth model, if D1 is $.50, ke is 7%, and g is 5%, then the present value of the stock is

________ occurs when market participants observe returns on a security that are larger than what is justified by the characteristics of that security and take action to quickly eliminate the unexploited profit opportunity.

In a one-period valuation model, a decrease in the required return on investments in equity causes a(n) ________ in the ________ price of a stock.

________ and ________ may provide an explanation for stock market bubbles.