Question 1

Which type of borrowers were least likely to default in their mortgage at the beginning of the financial crisis?

Accepted Answer

A) those with fixed-rate mortgages who made large down payments 
B) those with alt-A loans 
C) subprime borrowers 
D) those with adjustable-rate mortgages 
A) those with fixed-rate mortgages who made large down payments 
B) those with alt-A loans 
C) subprime borrowers 
D) those with adjustable-rate mortgages

Question 2

If a bank grants you a mortgage, the mortgage is

Accepted Answer

A) an asset to you as well as an asset to the bank. 
B) an asset to you, but a liability to the bank. 
C) a liability to you, but an asset to the bank. 
D) a liability to you as well as a liability to the bank. 
A) an asset to you as well as an asset to the bank. 
B) an asset to you, but a liability to the bank. 
C) a liability to you, but an asset to the bank. 
D) a liability to you as well as a liability to the bank.

Question 3

Financial securities that represent partial ownership of a corporation are known as

Accepted Answer

A) bonds. 
B) stocks. 
C) coupons. 
D) dividends. 
A) bonds. 
B) stocks. 
C) coupons. 
D) dividends.

Question 4

The process by which investment banks guarantee a certain price to a firm issuing stocks or bonds is known as:

Accepted Answer

A) underwriting 
B) securitization 
C) proprietary trading 
D) microlending 
A) underwriting 
B) securitization 
C) proprietary trading 
D) microlending

Which type of borrowers were least likely to default in their mortgage at the beginning of the financial crisis?

If a bank grants you a mortgage, the mortgage is

Financial securities that represent partial ownership of a corporation are known as

The process by which investment banks guarantee a certain price to a firm issuing stocks or bonds is known as:

Money and the Payments System

Interest Rates and Rates of Return

Determining Interest Rates

The Risk Structure and Term Structure of Interest Rates

The Stock Market, Information, and Financial Market Efficiency

Derivatives and Derivative Markets

The Market for Foreign Exchange

Transactions Costs, Asymmetric Information, and the Structure of the Financial System

The Economics of Banking

Investment Banks, Mutual Funds, Hedge Funds, and the Shadow Banking System

Financial Crises and Financial Regulation

The Federal Reserve and Central Banking

The Federal Reserves Balance Sheet and the Money Supply Process

Monetary Policy

The International Financial System and Monetary Policy

Monetary Theory I: The Aggregate Demand and Aggregate Supply Model

Monetary Theory II: The IS-MP Model

Filters

Exam 1: Introducing Money and the Financial System

Which type of borrowers were least likely to default in their mortgage at the beginning of the financial crisis?

If a bank grants you a mortgage, the mortgage is

Financial securities that represent partial ownership of a corporation are known as

The process by which investment banks guarantee a certain price to a firm issuing stocks or bonds is known as:

Money and the Payments System

Interest Rates and Rates of Return

Determining Interest Rates

The Risk Structure and Term Structure of Interest Rates

The Stock Market, Information, and Financial Market Efficiency

Derivatives and Derivative Markets

The Market for Foreign Exchange

Transactions Costs, Asymmetric Information, and the Structure of the Financial System

The Economics of Banking

Investment Banks, Mutual Funds, Hedge Funds, and the Shadow Banking System

Financial Crises and Financial Regulation

The Federal Reserve and Central Banking

The Federal Reserves Balance Sheet and the Money Supply Process

Monetary Policy

The International Financial System and Monetary Policy

Monetary Theory I: The Aggregate Demand and Aggregate Supply Model

Monetary Theory II: The IS-MP Model

Filters