FIN 350 Week 2 Quiz – Strayer NEW
Click on the Link Below to
Purchase A+ Graded Course Material
Chapter
1—Role of Financial Markets and Institutions
1. Financial
market participants who provide funds are called
|
a.
|
deficit units.
|
|
b.
|
surplus units.
|
|
c.
|
primary units.
|
|
d.
|
secondary units.
|
2. The
main provider(s) of funds to the U.S. Treasury is (are)
|
a.
|
households and businesses.
|
|
b.
|
foreign financial institutions.
|
|
c.
|
the Federal Reserve System.
|
|
d.
|
foreign nonfinancial sectors.
|
3. The
largest deficit unit is (are)
|
a.
|
households and businesses.
|
|
b.
|
foreign financial institutions.
|
|
c.
|
the U.S. Treasury.
|
|
d.
|
foreign nonfinancial sectors.
|
4. Those
financial markets that facilitate the flow of short-term funds are known as
|
a.
|
money markets.
|
|
b.
|
capital markets.
|
|
c.
|
primary markets.
|
|
d.
|
secondary markets.
|
5. Funds
are provided to the initial issuer of securities in the
|
a.
|
secondary market.
|
|
b.
|
primary market.
|
|
c.
|
deficit market.
|
|
d.
|
surplus market.
|
6. Which
of the following is a capital market instrument?
|
a.
|
a six-month CD
|
|
b.
|
a three-month Treasury bill
|
|
c.
|
a ten-year bond
|
|
d.
|
an agreement for a bank to loan funds directly to
a company for nine months
|
7. Which
of the following is a money market security?
|
a.
|
Treasury note
|
|
b.
|
municipal bond
|
|
c.
|
mortgage
|
|
d.
|
commercial paper
|
8. The
creditors in the federal funds market are
|
a.
|
households.
|
|
b.
|
depository institutions.
|
|
c.
|
firms.
|
|
d.
|
government agencies.
|
9. Equity
securities have a ____ expected return than most long-term debt securities, and
they exhibit a ____ degree of risk.
|
a.
|
higher; higher
|
|
b.
|
lower; lower
|
|
c.
|
lower; higher
|
|
d.
|
higher; lower
|
Comments
Post a Comment