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ECON 331 For 2024 February 25th Sunday test bank Chapter 8-17 actual expected exam questions and answers Money and Banking (Concordia University)$15.49
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ECON 331 For 2024 February 25th Sunday
test bank Chapter 8-17 actual expected exam
questions and answers Money and Banking
(Concordia University)
, Chapter -8
1. American businesses get their external funds primarily from
2. A) bank loans.
3. B) bonds and commercial paper issues.
4. C) stock issues.
5. D) loans from nonbank financial intermediaries.
2. Of the sources of external funds for nonfinancial businesses in the United States,
loans from banks and other financial intermediaries account for approximately of
the total.
1. A) 6%
2. B) 40%
3. C) 56%
4. D) 60%
3 Of the sources of external funds for nonfinancial businesses in the United States,
corporate bonds and commercial paper account for approximately of the total.
1. A) 5%
2. B) 10%
3. C) 32%
4. D) 50%
Answer:
C4
Of the following sources of external finance for American nonfinancial businesses,
the least important is
1. A) loans from banks.
2. B) stocks.
3. C) bonds and commercial paper.
4. D) loans from other financial intermediaries.
Answer:
B5
Of the sources of external funds for nonfinancial businesses in the United States,
stocks account for approximately of the total.
1. A) 2%
2. B) 11%
3. C) 20%
4. D) 40%
Answer:
B6
,Of the four sources of external funding for nonfinancial businesses, the least often used in
the
U.S. is
1. A) bank loans.
2. B) nonbank loans.
3. C) bonds.
4. D) stock.
7
Which of the following statements concerning external sources of financing for
nonfinancial businesses in the United States are TRUE?
1. A) Stocks are a far more important source of finance than are bonds.
2. B) Stocks and bonds, combined, supply less than one-half of the external
funds.
3. C) Financial intermediaries are the least important source of external
funds for businesses.
4. D) Since 1970, more than half of the new issues of stock have been
sold to American households.
8
Which of the following statements concerning external sources of financing for
nonfinancial businesses in the United States are TRUE?
1. A) Issuing marketable securities is the primary way that they finance their
activities.
2. B) Bonds are the least important source of external funds to finance their
activities.
3. C) Stocks are a relatively unimportant source of finance for their activities.
4. D) Selling bonds directly to the American household is a major source of
funding for American businesses.
9
With regard to external sources of financing for nonfinancial businesses in the United
States, which of the following are accurate statements?
1. A) Marketable securities account for a larger share of external business
financing in the United States than in Germany and Japan.
2. B) Since 1970, most of the newly issued corporate bonds and
commercial paper have been sold directly to American households.
3. C) Direct finance accounts for more than 50 percent of the external
financing of American businesses.
4. D) Smaller businesses almost always raise funds by issuing marketable
securities.
10
Nonfinancial businesses in Germany, Japan, and Canada raise most of their funds
1. A) by issuing stock.
2. B) by issuing bonds.
3. C) from nonbank loans.
4. D) from bank loans.
, Answer:
D 11
As a source of funds for nonfinancial businesses, stocks are relatively more important in
1. A) the United States.
2. B) Germany.
3. C) Japan.
4. D) Canada.
Answer:
D 12
Direct finance involves the sale to of marketable securities such as stocks and
bonds.
1. A) households
2. B) insurance companies
3. C) pension funds
4. D) financial intermediaries
Answer:
A 13
Regulation of the financial system
1. A) occurs only in the United States.
2. B) protects the jobs of employees of financial institutions.
3. C) protects the wealth of owners of financial institutions.
4. D) ensures the stability of the financial system.
Answer:
D 14
One purpose of regulation of financial markets is to
1. A) limit the profits of financial institutions.
2. B) increase competition among financial institutions.
3. C) promote the provision of information to shareholders, depositors and the
public.
4. D) guarantee that the maximum rates of interest are paid on deposits.
Answer:
C 15
Property that is pledged to the lender in the event that a borrower cannot make his or
her debt payment is called
1. A) collateral.
2. B) points.
3. C) interest.
4. D) good faith money.
Answer:
A 16
Collateralized debt is also know as
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