FIN 470 Final Exam UPDATED ACTUAL Questions and CORRECT Answers
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Course
FIN 470
Institution
FIN 470
FIN 470 Final Exam UPDATED ACTUAL
Questions and CORRECT Answers
Financial assets:
are of no value to anyone.
do not contribute to the country's productive capacity, either directly or indirectly.
directly contribute to the country's productive capacity.
contribute to the country's productive ...
FIN 470 Final Exam UPDATED ACTUAL
Questions and CORRECT Answers
Financial assets:
are of no value to anyone.
do not contribute to the country's productive capacity, either directly or indirectly.
directly contribute to the country's productive capacity.
contribute to the country's productive capacity, both directly and indirectly.
indirectly contribute to the country's productive capacity. - CORRECT ANSWER✔✔-
indirectly contribute to the country's productive capacity.
Financial assets indirectly contribute to the country's productive capacity because these assets
permit individuals to invest in firms and governments. This in turn allows firms and
governments to increase productive capacity.
The means by which individuals hold their claims on real assets in a well-developed economy
are:
,Financial assets allocate the wealth of the economy. Example: it is easier for an individual to
own shares of an auto company than to own an auto company directly.
In terms of total value, the most significant liability(ies) of U.S. nonfinancial businesses in
2018 was(were):
marketable securities.
trade debt.
bonds and mortgages.
bank loans.
other. - CORRECT ANSWER✔✔- other
According to the Economic Growth, Regulatory Relief and Consumer Protection Act of 2019
many larger banks are no longer considered
high risk
All of the options.
insurable
systematically important
insolvent - CORRECT ANSWER✔✔- systematically important
The material wealth of a society is a function of
,all real assets.
all financial and real assets.
all physical assets.
all financial assets. - CORRECT ANSWER✔✔- all real assets.
The material wealth of a society is a function of all real assets.
Investors trade previously issued securities in the ________ market(s).
primary
derivatives
primary and secondary
secondary - CORRECT ANSWER✔✔- secondary
Investors trade previously issued securities in the secondary market.
_______ are financial assets.
Machines
Bonds, machines, and stocks
Bonds
, Stocks
Bonds and stocks - CORRECT ANSWER✔✔- Bonds and Stocks
Machines are real assets; stocks and bonds are financial assets.
_______ are examples of financial intermediaries.
Investment companies
Commercial banks
Insurance companies
All of the options
Credit unions - CORRECT ANSWER✔✔- All of the options
All are institutions that bring borrowers and lenders together.
Mortgage-backed securities were created when ________ began buying mortgage loans from
originators and bundling them into large pools that could be traded like any other financial
asset.
GNMA
FNMA and FHLMC
FNMA
FHLMC
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