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GRT Quiz 3 questions with verified answers
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Exam of 4 pages for the course GRT at GRT (GRT Quiz 3 Exam)
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GRT Quiz 3Bank lines of credit are not needed to back issues of commercial paper by borrowers,
because in the history of commercial paper, no issue has defaulted. - answersfalse
A Repurchase Agreement or "Repo", is essentially a loan with the underlying security as
collateral. - answerstrue
Dividends are - answersNon-contractual payments from firms to shareholders
A Repurchase Agreement or "Repo", allows a bank to use someone else's funds,
without having to accept a deposit which would entail reserve requirements. -
answerstrue
Bankers' Acceptances are defined by the Federal Reserve as paper used to finance a
specified set of self-liquidating commercial transactions. - answerstrue
When a trade order is designated, "All or None", the modifier is meant to -
answersEnsure the order is executed in its entirety or not at all, although it may take
time to do so
The term, "Federal Funds" or Fed Funds, refers to excess reserves of members of
Federal Reserve System that can be loaned or "sold" to members that need reserves,
who borrow or "buy" Fed Funds. - answerstrue
A securities dealer can use Repurchase Agreements or "Repos" to lever the investment
returns on its portfolio much more than direct borrowing would allow. - answerstrue
The Fed Funds rate is quoted on a 360 day year. - answerstrue
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