Question 1

Which of the following is involved in direct finance?

Accepted Answer

A)  Securities dealers 
B)  Investment banks 
C)  Securities brokers 
D)  All of the above 
A)  Securities dealers 
B)  Investment banks 
C)  Securities brokers 
D)  All of the above B

Question 2

Deficit units that utilize indirect means of finance do so because

Accepted Answer

A)  Cost is lower 
B)  It's a matter of taste (preference) 
C)  Asymmetric information discourages investors (surplus units) from advancing funds to such units through direct means 
D)  There are SEC regulations 
A)  Cost is lower 
B)  It's a matter of taste (preference) 
C)  Asymmetric information discourages investors (surplus units) from advancing funds to such units through direct means 
D)  There are SEC regulations C

Question 3

The basic role of depository institutions is to

Accepted Answer

A)  Receive core deposits and make loans by addressing asymmetric information 
B)  Issue large CDs and buy stocks 
C)  Underwrite securities 
D)  Act as a broker 
A)  Receive core deposits and make loans by addressing asymmetric information 
B)  Issue large CDs and buy stocks 
C)  Underwrite securities 
D)  Act as a broker A

Question 4

The interests of the owners of a corporation are represented by

Accepted Answer

A)  The government 
B)  Managers 
C)  The board of directors 
D)  The invisible hand 
A)  The government 
B)  Managers 
C)  The board of directors 
D)  The invisible hand

Question 5

Which is a platform for secondary market trading of financial instruments?

Accepted Answer

A)  Specialist system 
B)  Over-the-counter system 
C)  Electronic communications networks (ECNs) 
D)  All of the above 
A)  Specialist system 
B)  Over-the-counter system 
C)  Electronic communications networks (ECNs) 
D)  All of the above

Question 6

Critical to a well-functioning financial system is

Accepted Answer

A)  A sound legal system 
B)  A sound payment system 
C)  Strong fiduciaries 
D)  All of the above 
A)  A sound legal system 
B)  A sound payment system 
C)  Strong fiduciaries 
D)  All of the above

Question 7

A fiduciary system

Accepted Answer

A)  Characterizes the financial system in the United States and elsewhere 
B)  Is a system based on trust 
C)  Is used for making payments 
D)  Both a and b 
A)  Characterizes the financial system in the United States and elsewhere 
B)  Is a system based on trust 
C)  Is used for making payments 
D)  Both a and b

Which of the following is involved in direct finance?

Deficit units that utilize indirect means of finance do so because

The basic role of depository institutions is to

The interests of the owners of a corporation are represented by

Which is a platform for secondary market trading of financial instruments?

Critical to a well-functioning financial system is

A fiduciary system

Introduction

The Special Role of Commercial Banks

Factors Affecting Yields

Principles of Portfolio Selection and Efficient Markets

The Money Market

The Bond Market

Securitization

The Mortgage Market

The Equity Market

Central Banking and the Federal Reserve

Monetary Policy: The Basics

Monetary Policy: Challenges Faced by Policymakers

Financial Crises

The Foreign Exchange Market and Exchange Rate Regimes

Depository Institutions

The Pricing of Financial Assets

Mutual Funds

Hedge, Venture Capital, and Private Equity Funds

Large Institutional Investors

Filters

Exam 2: Overview of the Financial System

Which of the following is involved in direct finance?

Deficit units that utilize indirect means of finance do so because

The basic role of depository institutions is to

The interests of the owners of a corporation are represented by

Which is a platform for secondary market trading of financial instruments?

Critical to a well-functioning financial system is

A fiduciary system

Introduction

The Special Role of Commercial Banks

Factors Affecting Yields

Principles of Portfolio Selection and Efficient Markets

The Money Market

The Bond Market

Securitization

The Mortgage Market

The Equity Market

Central Banking and the Federal Reserve

Monetary Policy: The Basics

Monetary Policy: Challenges Faced by Policymakers

Financial Crises

The Foreign Exchange Market and Exchange Rate Regimes

Depository Institutions

The Pricing of Financial Assets

Mutual Funds

Hedge, Venture Capital, and Private Equity Funds

Large Institutional Investors

Filters