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FNCE 4102testbank-M.I very detailed questions with multiple choices(the best required revision questions)

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FNCE 4102testbank-M.I very detailed questions with multiple choices(the best required revision questions) TEST BANK| FNCE 4102testbank-M.I very detailed questions with multiple choices(the best required revision questions) CHAPTER 1 TRUE/FALSE QUESTIONS (T) 1. The purpose of the...

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  • November 5, 2024
  • 257
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • FNCE 4102
  • FNCE 4102
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TEST BANK| FNCE 4102testbank-
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M.I very detailed questions with multipl
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e choices(the best required revision que
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stions)

CHAPTER 1 ts



TRUE/FALSEtsQUESTIONS

(T) 1. Thet s purposet s oftsthet s financialt s systemt s ist s tot s bringtssaverst s andtsborrowerst s together.

(F) 2. Businessest s aret s nevert s DSUs.

(T) 3. At s financialtsclaimtsist s ants“IOU”tsfromtsatsdeficitt s spendingtsunit.

(T) 4. Investmentt s bankerst s helpt s DSUst s bringtsnewt s primaryt s securityt s issuest s tot s market.

(F) 5. Depositst s intsatscreditt s uniontsbytsatshouseholdtsaret s antsexamplet s oftsdirectt s finance.

(F) 6.
WhentsantsSSUtsownstsatsfinancialtsclaimtscreatedtsbytsfinancialtsintermediation,tsitstsresid
ualtsclaimtsistsagainsttsatsDSU.

(F) 7. Assetst s oftsfinancialt s intermediariest s includet s directt s financialt s claimst s only.

(F) 8. Financets companiest s taket s smallts consumertsdepositst s andtsmaket s larget s consumer
loans.

(T) 9. Liabilitiest s oftsfinancialt s intermediariest s aret s indirectt s financialt s claims.

(T) 10. Directt s financet s requirest s atsmoret s ortslesst s exactt s matchtsoftspreferences.

(F) 11. Theret s mustt s betsantsequaltsnumbertsoftsDSUst s andtsSSUsts intsatsperiod.

(T) 12. Everyt s financialt s claimtsappearst s ontstwot s balancet s sheets.

(T) 13.tsD Withoutt s at sfinancialt s sector,t s realt s investmentt s mustt s betsfinancedt s internallyt s byt sth
SU. e

(T) 14. Depositoryt s intermediariest s issuet s claimst s thatt s aret s fortsthet s mostt s partt s highlyt s liqu
id.
(T) 15. At s householdtsist s antsSSUtswhent s incometsfortsthet s periodts exceedst s spending.

(F) 16. AntsSSUtsmustt s holdtsatsclaimtsuntiltsitst s scheduledt s maturity.

(T) 17.
1

, FinancialtsclaimstsortssecuritiestsaretswrittentsfortsthetsmutualtsbenefittsoftsbothtsSS
UtsandtsDSU.

(F) 18.
DSUstsandtsSSUstsalwaystshavetssometscontacttswithtseachtsothertsintsfinancia
ltsmarkets.

(T) 19. Commercialt s bankst s lendtstotsbusinessest s intsdirectt s financialt s markets.

(F) 20. “Futurest s contract”t s andts“forwardt s contract”t s aret s interchangeablet s terms.

(T) 21. Mortgagest s aret s capitalt s markett s debtt s securities.




2

,(T) 22. Householdst s aret s thet s majortssourcet s oftsfundststotsthet s financialt s system.

(F) 23. Secondaryt s marketst s aret s importantt s becauset s theyt s providet s fundst s directlyt s tot s DSUs.

(F) 24.
Primarytsmarketstsoffertsliquiditytsandtswaystsfortsinvestorststotsaltertsthetsrisktsoftsthei
rtsportfolios.

(T) 25. ThetsNewt s YorktsStockt s Exchanget s ist santsexampletsoftsantsorganizedt s exchange.

(T) 26.
Thetsmoneytsmarkettsprovidestsliquidity;tsthetscapitaltsmarkettsfinancestseconomic
growth.
ts



(T) 27. Privatet s placementst s aret s thet s simplestt s formtsoftsdirectt s finance.

(T) 28.
Competitiontsamongtsfinancialtsintermediarieststendststotsforcetsinteresttsrate
stsdownward.

(T) 29. Moneytsmarketst s havet s atsgreatert s varietyt s oftsinvestorst s thant s borrowers.

(F) 30. Everyt s assett s ist s someonet s else’st s liability,t s butt s nott s everyt s liabilityt s ist s someonetselse’st s asset.

(T) 31. Allt s moneyt s markett s instrumentst s aret s short-termt s debt.

(T) 33. Thetsmoneytsmarkett s istsat s dealert s market,t s nottsantsexchange,t s andtshast snotsspecif
ic
location.

(T) 34. Moneytsmarkett s borrowerst s aret s smalltsintsnumbertscomparedtstotsmoneytsmarke
lenders. t

(T) 35. Thetsmoneytsmarkett s istsatsmarkett s wheret s liquidityt s istsboughttsandtssold.

(T) 36. Commercialtsbankst saret s thet s majort sissuert s andtsinvestort s oftsmoneytsmarket
securities.

() 37. Organizedt s exchangest s aret s lesst s “exclusive”t s thant s over-the-countert s markets.

(F) 38. Dealerst s bringt s buyert s andtssellert s together;t s brokerst s maketsatsmarket.

(F) 39. OTCtsmarketst s aret s nottsveryt s importantt s anyt smore.

(T) 40.
Whentsatsstocktsistslistedtsontsantsexchange,tsmemberstsmaytstradetsittsontsthetsfloorts
oftsthetsexchange.


MULTIPLEtsCHOICEtsQUESTIONS

(b) 1. AntsSSU’s
a. incometsandtsexpenditurest s fortsthet s periodtsaret s equal.
b. incometsfortsthet s periodtsexceedst s expenditures.
c. expenditurest s fort sthet s periodt s exceedt s receipts.

3

, d. spendingtsist s entirelyt s financedt s bytscreditt s cards

(c) 2. Whichtsoftsthet s followingtsist santsexamplet s oftsindirectt s financing?




4

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