FINA 3317 exam 2 | Questions with 100% Verified Answers |
Latest Update 2026/2027
Question: One way that Fed Funds differ from Repos is that:
Answer: Fed funds are unsecured while repos have collateral.
Question: Which of the following would normally have the shortest time to maturity? Commercial Paper T-Bills
Stocks Fed Funds Muni bonds
Answer: Fed Funds
Question: Which of the following is usually true about repos? Repos are usually rated BBB. Repos are issued by
the NYSE. Repos are usually secured with common stock as collateral. Repos usually have maturities shorter
than T-Notes. Repos are unsecured.
Answer: Repos usually have maturities shorter than T-Notes.
Question: Which of the following securities is not traded in secondary markets? Commercial paper Treasuries
Fed Funds Negotiable securities Corporate bonds
Answer: Fed Funds
Question: Which of the following securities is most likely to be directly held by an individual investor? Repos
Fed funds LIBOR Commercial paper Negotiable CDs
Answer: Negotiable CDs
Question: Which of the following describes a role of money market mutual funds (MMMFs) in financial markets?
MMMFs assist banks in making fed funds loans MMMFs set the LIBOR rate by making overnight loans in London
MMMFs buy commercial paper from US corporations MMMFs securitize home mortgages and issues
mortgagebacked bonds MMMFs issue T-bills on behalf of the US Treasury
Answer: MMMFs buy commercial paper from US corporations
Question: Which one is a "Summary Measure" of the market? Stock index Stock Bond Commodity ETF
Answer: Stock index
Question: A measure of liquidity in derivatives markets is: the net asset value (NAV) the yield to maturity Open
Interest Market capitalization implied volatility
Answer: Open Interest
Question: Which of the following do not quote bid and ask prices on the internet? ETFs Common Stock
Corporate bonds Call options Futures
Answer: Futures
Question: The underlying item for the "E-mini S&P500" in the WSJ quote above is a: ETF Bond Stock Commodity
Stock index
Answer: Stock index
Question: Which one is equivalent to the number of shares outstanding in the options market: Market
capitalization implied volatility Open Interest the net asset value (NAV) the yield to maturity
Answer: Open Interest
Latest Update 2026/2027
Question: One way that Fed Funds differ from Repos is that:
Answer: Fed funds are unsecured while repos have collateral.
Question: Which of the following would normally have the shortest time to maturity? Commercial Paper T-Bills
Stocks Fed Funds Muni bonds
Answer: Fed Funds
Question: Which of the following is usually true about repos? Repos are usually rated BBB. Repos are issued by
the NYSE. Repos are usually secured with common stock as collateral. Repos usually have maturities shorter
than T-Notes. Repos are unsecured.
Answer: Repos usually have maturities shorter than T-Notes.
Question: Which of the following securities is not traded in secondary markets? Commercial paper Treasuries
Fed Funds Negotiable securities Corporate bonds
Answer: Fed Funds
Question: Which of the following securities is most likely to be directly held by an individual investor? Repos
Fed funds LIBOR Commercial paper Negotiable CDs
Answer: Negotiable CDs
Question: Which of the following describes a role of money market mutual funds (MMMFs) in financial markets?
MMMFs assist banks in making fed funds loans MMMFs set the LIBOR rate by making overnight loans in London
MMMFs buy commercial paper from US corporations MMMFs securitize home mortgages and issues
mortgagebacked bonds MMMFs issue T-bills on behalf of the US Treasury
Answer: MMMFs buy commercial paper from US corporations
Question: Which one is a "Summary Measure" of the market? Stock index Stock Bond Commodity ETF
Answer: Stock index
Question: A measure of liquidity in derivatives markets is: the net asset value (NAV) the yield to maturity Open
Interest Market capitalization implied volatility
Answer: Open Interest
Question: Which of the following do not quote bid and ask prices on the internet? ETFs Common Stock
Corporate bonds Call options Futures
Answer: Futures
Question: The underlying item for the "E-mini S&P500" in the WSJ quote above is a: ETF Bond Stock Commodity
Stock index
Answer: Stock index
Question: Which one is equivalent to the number of shares outstanding in the options market: Market
capitalization implied volatility Open Interest the net asset value (NAV) the yield to maturity
Answer: Open Interest
