Exam 2: An Overview of the Financial System

Financial institutions that accept deposits and make loans are called ________ institutions.

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

Which of the following is NOT a contractual savings institution?

The regulatory agency that sets reserve requirements for all banks is

Conflicts of interest are a type of ________ problem that can happen when an institution provides multiple services.

An investment bank helps ________ issue securities.

Which of the following is an example of an intermediate-term debt?

The agency that was created to protect depositors after the banking failures of 1930-1933 is the

An investment intermediary that lends funds to consumers is

Assume that you borrow $2000 at 10% annual interest to finance a new business project.For this loan to be profitable,the minimum amount this project must generate in annual earnings is

U.S.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.

Long-term debt has a maturity that is

A liquid asset is

How do regulators help to ensure the soundness of financial intermediaries?

The primary assets of a finance company are

If Toyota sells a $1000 bond in the United States,the bond is a

________ are short-term loans in which Treasury bills serve as collateral.

A goal of the Securities and Exchange Commission is to reduce problems arising from

Increasing the amount of information available to investors helps to reduce the problems of ________ and ________ in the financial markets.

An example of the problem of ________ is when a corporation uses the funds raised from selling bonds to fund corporate expansion to pay for Caribbean cruises for all of its employees and their families.