Question 1

Which does not characterize a certificate of deposit (CD)?

Accepted Answer

A) A CD is sold at a discount. 
B) A CD is sold by a depository institution. 
C) A CD pays annual interest payments equal to a fixed percent of the original purchase price. 
D) At maturity, the original purchase price is returned. 
A) A CD is sold at a discount. 
B) A CD is sold by a depository institution. 
C) A CD pays annual interest payments equal to a fixed percent of the original purchase price. 
D) At maturity, the original purchase price is returned.

Question 2

Which of the following is false?

Accepted Answer

A) Financial forward agreements are transactions that are consummated today for the purchase or sale of financial instruments on a date in the future where the quantities and delivery dates are standardized. 
B) Financial futures can be used to hedge or speculate. 
C) The money market is where securities with original maturities of one year or less are traded. 
D) The spot market is the market for the purchase or sale of securities for immediate delivery. 
A) Financial forward agreements are transactions that are consummated today for the purchase or sale of financial instruments on a date in the future where the quantities and delivery dates are standardized. 
B) Financial futures can be used to hedge or speculate. 
C) The money market is where securities with original maturities of one year or less are traded. 
D) The spot market is the market for the purchase or sale of securities for immediate delivery.

Question 3

Money represents current purchasing power. Other financial claims represent

Accepted Answer

A) future purchasing power. 
B) other forms of money. 
C) current debt claims. 
D) future claims on money. 
A) future purchasing power. 
B) other forms of money. 
C) current debt claims. 
D) future claims on money.

Question 4

Treasury bills (T-bills) are initially sold

Accepted Answer

A) in the municipal securities market. 
B) in the secondary market. 
C) at a discount. 
D) in the capital market. 
A) in the municipal securities market. 
B) in the secondary market. 
C) at a discount. 
D) in the capital market.

Question 5

Treasury bills (T-bills) pay

Accepted Answer

A) a fixed amount at maturity and no explicit interest payments; T-bills sell at a discount. 
B) a fixed amount at maturity and explicit interest payments. 
C) a fluctuating amount at maturity and no explicit interest payments. 
D) a fluctuating amount at maturity and explicit interest payments. 
A) a fixed amount at maturity and no explicit interest payments; T-bills sell at a discount. 
B) a fixed amount at maturity and explicit interest payments. 
C) a fluctuating amount at maturity and no explicit interest payments. 
D) a fluctuating amount at maturity and explicit interest payments.

Which does not characterize a certificate of deposit (CD)?

Which of the following is false?

Money represents current purchasing power. Other financial claims represent

Treasury bills (T-bills) are initially sold

Treasury bills (T-bills) pay

Introduction and Overview

Money and Its Role in the Economy

The Overseer: the Federal Reserve System

Interest Rates and Bond Prices

The Structure of Interest Rates

Market Efficiency and the Flow of Funds Among Sectors

An Introduction to Financial Intermediaries and Risk

Commercial Banking Structure, Regulation, and Performance

Financial Innovation

Financial Instability and Strains on the Financial System

Regulation of the Banking System and the Financial Services Industry

The Debt Markets

The Stock Market

Securities Firms, Mutual Funds, and Financial Conglomerates

How Exchange Rates Are Determined

Forward, Futures, and Options Agreements

The International Financial System

The Fed, Depository Institutions, and the Money Supply Process

The Demand for Real Money Balances and Market Equilibrium

Financial Aspects of the Household, Business, Government, and Rest-Of-The-World Sectors

Aggregate Demand and Aggregate Supply

The Challenges of Monetary Policy

The Process of Monetary Policy Formation

Policy Implementation

Monetary Policy in a Globalized Financial System

Filters

Exam 4: Financial Markets, Instruments, and Market Makers

Which does not characterize a certificate of deposit (CD)?

Which of the following is false?

Money represents current purchasing power. Other financial claims represent

Treasury bills (T-bills) are initially sold

Treasury bills (T-bills) pay

Introduction and Overview

Money and Its Role in the Economy

The Overseer: the Federal Reserve System

Interest Rates and Bond Prices

The Structure of Interest Rates

Market Efficiency and the Flow of Funds Among Sectors

An Introduction to Financial Intermediaries and Risk

Commercial Banking Structure, Regulation, and Performance

Financial Innovation

Financial Instability and Strains on the Financial System

Regulation of the Banking System and the Financial Services Industry

The Debt Markets

The Stock Market

Securities Firms, Mutual Funds, and Financial Conglomerates

How Exchange Rates Are Determined

Forward, Futures, and Options Agreements

The International Financial System

The Fed, Depository Institutions, and the Money Supply Process

The Demand for Real Money Balances and Market Equilibrium

Financial Aspects of the Household, Business, Government, and Rest-Of-The-World Sectors

Aggregate Demand and Aggregate Supply

The Challenges of Monetary Policy

The Process of Monetary Policy Formation

Policy Implementation

Monetary Policy in a Globalized Financial System

Filters