Question 1

A financial market is

Accepted Answer

A) a place or a mechanism by which borrowers, savers, and financial intermediaries trade. 
B) an electronic means of transacting. 
C) a place where people engage in indirect finance. 
D) a secondary market. 
A) a place or a mechanism by which borrowers, savers, and financial intermediaries trade. 
B) an electronic means of transacting. 
C) a place where people engage in indirect finance. 
D) a secondary market.

Question 2

Most commonly, companies issue a(n) ______dividend.

Accepted Answer

A) quarterly 
B) semiannual 
C) annual 
D) monthly 
A) quarterly 
B) semiannual 
C) annual 
D) monthly

Question 3

In the United States, the biggest issuers of debt securities are

Accepted Answer

A) households. 
B) business firms. 
C) governments. 
D) financial intermediaries. 
A) households. 
B) business firms. 
C) governments. 
D) financial intermediaries.

Question 4

The market in which a security is sold from one investor to another is known as

Accepted Answer

A) the closed market. 
B) the primary market. 
C) the secondary market. 
D) the open market. 
A) the closed market. 
B) the primary market. 
C) the secondary market. 
D) the open market.

Question 5

Suppose the quantity demanded for a security is BD = 150 ? 0.1b,
And the quantity supplied of the security is
BS = 50 + 0.1b,
Where b is the price of the security in dollars.Suppose that the supply curve shifts to
BS = 75 + 0.1b.
The equilibrium price of the security

Accepted Answer

A) rises by $50. 
B) rises by $125. 
C) falls by $125. 
D) falls by $50. 
A) rises by $50. 
B) rises by $125. 
C) falls by $125. 
D) falls by $50.

Question 6

If the price of a share of Aqua Inc.increased from $40 to $44 over a year, the capital-gains yield per share was _____.

Accepted Answer

A) ​10 percent 
B) ​4 percent 
C) ​11 percent 
D) ​0.4 percent 
A) ​10 percent 
B) ​4 percent 
C) ​11 percent 
D) ​0.4 percent

Question 7

Which of the following will be included in the financial system of a country?

Accepted Answer

A) Labor Unions 
B) Banks 
C) ​Factor markets 
D) Markets for raw materials 
A) Labor Unions 
B) Banks 
C) ​Factor markets 
D) Markets for raw materials

Question 8

In the United States, the biggest issuers of equity securities are

Accepted Answer

A) households. 
B) business firms. 
C) governments. 
D) financial intermediaries. 
A) households. 
B) business firms. 
C) governments. 
D) financial intermediaries.

Question 9

The price of a stock at the beginning of a year is $50.There is a 70 percent chance of its price rising to $55 by the end of the year and a 30 percent chance of its price falling to $45.The stock will pay an amount of $2 at the end of the year.The current yield of the security is

Accepted Answer

A) ​4 percent 
B) ​5 percent 
C) ​70 percent 
D) ​30 percent 
A) ​4 percent 
B) ​5 percent 
C) ​70 percent 
D) ​30 percent

Question 10

A financial intermediary specializes in knowing about people who apply for loans.The intermediary knows how to evaluate credit histories and the probabilities that borrowers will repay.These facts are examples of which of the following functions of financial intermediaries?

Accepted Answer

A) Gathering information 
B) Helping savers diversify 
C) Pooling funds 
D) Taking short-term deposits in order to make long-term loans 
A) Gathering information 
B) Helping savers diversify 
C) Pooling funds 
D) Taking short-term deposits in order to make long-term loans

Question 11

Which of the following is NOT a financial intermediary?

Accepted Answer

A) A credit union. 
B) A life insurance company. 
C) A mutual fund. 
D) A labor union. 
A) A credit union. 
B) A life insurance company. 
C) A mutual fund. 
D) A labor union.

Question 12

The market for new securities is known as:

Accepted Answer

A) the closed market. 
B) the primary market. 
C) the secondary market. 
D) the open market. 
A) the closed market. 
B) the primary market. 
C) the secondary market. 
D) the open market.

Question 13

Maturity is

Accepted Answer

A) the time until borrowed funds are repaid. 
B) the total interest accumulated on a financial security. 
C) a situation in which equity becomes worthless. 
D) the principal amount invested in a financial security. 
A) the time until borrowed funds are repaid. 
B) the total interest accumulated on a financial security. 
C) a situation in which equity becomes worthless. 
D) the principal amount invested in a financial security.

A financial market is

Most commonly, companies issue a(n) ______dividend.

In the United States, the biggest issuers of debt securities are

The market in which a security is sold from one investor to another is known as

Suppose the quantity demanded for a security is B_D = 150 ? 0.1b, And the quantity supplied of the security is B_S = 50 + 0.1b, Where b is the price of the security in dollars.Suppose that the supply curve shifts to B_S = 75 + 0.1b. The equilibrium price of the security

If the price of a share of Aqua Inc.increased from $40 to $44 over a year, the capital-gains yield per share was _____.

Which of the following will be included in the financial system of a country?

In the United States, the biggest issuers of equity securities are

The price of a stock at the beginning of a year is $50.There is a 70 percent chance of its price rising to $55 by the end of the year and a 30 percent chance of its price falling to $45.The stock will pay an amount of $2 at the end of the year.The current yield of the security is

A financial intermediary specializes in knowing about people who apply for loans.The intermediary knows how to evaluate credit histories and the probabilities that borrowers will repay.These facts are examples of which of the following functions of financial intermediaries?

Which of the following is NOT a financial intermediary?

The market for new securities is known as:

Maturity is

Money and the Financial System

Money and Payments

Present Value

The Structure of Interest Rates

Real Interest Rates

Stocks and Other Assets

How Banks Work

Governments Role in Banking

Economics Growth and Business Cycles

Modeling Money

The Aggregate-Demandaggregate-Supply Model

Modern Macroeconomic Models

Economic Interdependence

The Federal Reserve System

Monetary Control

Monetary Policy: Goals and Tradeoffs

Rules for Monetary Policy

Filters

Exam 2: The Financial System and the Economy

A financial market is

Most commonly, companies issue a(n) ______dividend.

In the United States, the biggest issuers of debt securities are

The market in which a security is sold from one investor to another is known as

Suppose the quantity demanded for a security is BD = 150 ? 0.1b, And the quantity supplied of the security is BS = 50 + 0.1b, Where b is the price of the security in dollars.Suppose that the supply curve shifts to BS = 75 + 0.1b. The equilibrium price of the security

If the price of a share of Aqua Inc.increased from $40 to $44 over a year, the capital-gains yield per share was _____.

Which of the following will be included in the financial system of a country?

In the United States, the biggest issuers of equity securities are

The price of a stock at the beginning of a year is $50.There is a 70 percent chance of its price rising to $55 by the end of the year and a 30 percent chance of its price falling to $45.The stock will pay an amount of $2 at the end of the year.The current yield of the security is

A financial intermediary specializes in knowing about people who apply for loans.The intermediary knows how to evaluate credit histories and the probabilities that borrowers will repay.These facts are examples of which of the following functions of financial intermediaries?

Which of the following is NOT a financial intermediary?

The market for new securities is known as:

Maturity is

Money and the Financial System

Money and Payments

Present Value

The Structure of Interest Rates

Real Interest Rates

Stocks and Other Assets

How Banks Work

Governments Role in Banking

Economics Growth and Business Cycles

Modeling Money

The Aggregate-Demandaggregate-Supply Model

Modern Macroeconomic Models

Economic Interdependence

The Federal Reserve System

Monetary Control

Monetary Policy: Goals and Tradeoffs

Rules for Monetary Policy

Filters

Suppose the quantity demanded for a security is B_D = 150 ? 0.1b, And the quantity supplied of the security is B_S = 50 + 0.1b, Where b is the price of the security in dollars.Suppose that the supply curve shifts to B_S = 75 + 0.1b. The equilibrium price of the security