Exam 16: The Financial System

Which of these are short-term securities issued by the U.S.Treasury and backed by the full faith and credit of the U.S.government?

Any time an investor accumulates more than 5% of a company's outstanding stock,the SEC requires reports.

The financial system describes the process by which funds flow from savers to users.

For which type of bonds,interest is exempt from state income taxes?

Which of the following is defined as the use of material nonpublic information about a company to make investment profits?

Interest is always exempt from state income taxes in any type of bonds.

Which of the following is a net saver in the U.S.financial system?

Daily trading on the AMEX market is _____ shares.

A ______ is a time deposit at a financial institution,such as a commercial bank,savings bank,or credit union.

The chairman of the Federal Reserve Board can accelerate economic activity by lowering interest rates.What primary method does the Federal Reserve use to accomplish this?

Treasury bills have a minimum denomination of

Which of these is a collection of financial markets in which previously issued securities are traded among investors?

______ regulates both state and federally chartered commercial banks.

Which of the following is a depository financial institution?

The rate the Fed charges member banks for short-term loans is called the

A ______ is a nondepository financial institution that has the ability to provide higher returns,albeit with greater risk.

A ______ bond is a bond whose proceeds are to be used to pay for a project that will not produce any income.

Bonds with ratings of BBB and above are classified as

Bondholders are creditors,and therefore they have a claim on the firm's assets that must be satisfied before any claims of stockholders in the event of the firm's bankruptcy,reorganization,or liquidation.

Which of the following statements concerning the Fed is incorrect?