ECON 3303 UTA Final Exam cumulative
review questions with correct answers
Financial Markets - CORRECT ANSWER✔✔-markets where financial
| | | | | | |
securities, such as stocks and bonds, are bought and sold
| | | | | | | | |
Security - CORRECT ANSWER✔✔-a claim on the issuer's future income
| | | | | | | | | |
or assets
|
Bond - CORRECT ANSWER✔✔-A financial security that represents a
| | | | | | | | |
promise to repay a fixed amount of funds over a specified period of time
| | | | | | | | | | | | |
Debt Market - CORRECT ANSWER✔✔-A market where bonds are
| | | | | | | | |
traded.
-IR is determined
| |
Common Stock - CORRECT ANSWER✔✔-A share of ownership in a
| | | | | | | | | |
corporation
-security claim on the earnings and assets of the corporation
| | | | | | | | |
,Aggregate output - CORRECT ANSWER✔✔-the economy's total
| | | | | | |
production of goods and services for a given time period
| | | | | | | | |
Business Cycles - CORRECT ANSWER✔✔-Upward/Downward movement
| | | | |
of aggregate output produced in the economy.
| | | | | | |
Monetary Policy - CORRECT ANSWER✔✔-FED's system of managing
| | | | | | | |
money and interest rates| | |
-money supply |
-MP tools: |
1) voting on open market operations
| | | | |
2) sets reserve requirements
| | | |
3) controls discount rate
| | |
Federal Reserve System (the Fed) - CORRECT ANSWER✔✔--U.S. central
| | | | | | | | |
bank
-Monetary Policy |
-consisting of the Board of Governors | | | | | |
-12 Federal Reserve Banks
| | |
-Federal open market committee (FOMC)
| | | |
-goals: priced ability & achieve full employment (dual mandate)
| | | | | | | |
, Business Cycle - CORRECT ANSWER✔✔--recession- 2 quarters
| | | | | |
-depression- 4 quarters | |
-contraction- 12 quarters | |
Negative Interest Rate - CORRECT ANSWER✔✔-borrowers get paid
| | | | | | | |
interest from lenders | |
Structure of Financial Markets - CORRECT ANSWER✔✔--Financial
| | | | | | |
market: direct |
-Financial intermediaries: indirect | |
-channeling from savers to borrowers | | | |
Primary markets - CORRECT ANSWER✔✔-markets in which corporations
| | | | | | |
raise capital by issuing new securities
| | | | | |
Secondary markets - CORRECT ANSWER✔✔-markets in which securities
| | | | | | | |
and other financial assets are traded among investors after they have
| | | | | | | | | | |
been issued by corporations.
| | |
-exchange: meet at one location | | | |
-OTC: various locations
| |
Money market - CORRECT ANSWER✔✔-short-term debts traded (less
| | | | | | | |
than a yr)
| |
review questions with correct answers
Financial Markets - CORRECT ANSWER✔✔-markets where financial
| | | | | | |
securities, such as stocks and bonds, are bought and sold
| | | | | | | | |
Security - CORRECT ANSWER✔✔-a claim on the issuer's future income
| | | | | | | | | |
or assets
|
Bond - CORRECT ANSWER✔✔-A financial security that represents a
| | | | | | | | |
promise to repay a fixed amount of funds over a specified period of time
| | | | | | | | | | | | |
Debt Market - CORRECT ANSWER✔✔-A market where bonds are
| | | | | | | | |
traded.
-IR is determined
| |
Common Stock - CORRECT ANSWER✔✔-A share of ownership in a
| | | | | | | | | |
corporation
-security claim on the earnings and assets of the corporation
| | | | | | | | |
,Aggregate output - CORRECT ANSWER✔✔-the economy's total
| | | | | | |
production of goods and services for a given time period
| | | | | | | | |
Business Cycles - CORRECT ANSWER✔✔-Upward/Downward movement
| | | | |
of aggregate output produced in the economy.
| | | | | | |
Monetary Policy - CORRECT ANSWER✔✔-FED's system of managing
| | | | | | | |
money and interest rates| | |
-money supply |
-MP tools: |
1) voting on open market operations
| | | | |
2) sets reserve requirements
| | | |
3) controls discount rate
| | |
Federal Reserve System (the Fed) - CORRECT ANSWER✔✔--U.S. central
| | | | | | | | |
bank
-Monetary Policy |
-consisting of the Board of Governors | | | | | |
-12 Federal Reserve Banks
| | |
-Federal open market committee (FOMC)
| | | |
-goals: priced ability & achieve full employment (dual mandate)
| | | | | | | |
, Business Cycle - CORRECT ANSWER✔✔--recession- 2 quarters
| | | | | |
-depression- 4 quarters | |
-contraction- 12 quarters | |
Negative Interest Rate - CORRECT ANSWER✔✔-borrowers get paid
| | | | | | | |
interest from lenders | |
Structure of Financial Markets - CORRECT ANSWER✔✔--Financial
| | | | | | |
market: direct |
-Financial intermediaries: indirect | |
-channeling from savers to borrowers | | | |
Primary markets - CORRECT ANSWER✔✔-markets in which corporations
| | | | | | |
raise capital by issuing new securities
| | | | | |
Secondary markets - CORRECT ANSWER✔✔-markets in which securities
| | | | | | | |
and other financial assets are traded among investors after they have
| | | | | | | | | | |
been issued by corporations.
| | |
-exchange: meet at one location | | | |
-OTC: various locations
| |
Money market - CORRECT ANSWER✔✔-short-term debts traded (less
| | | | | | | |
than a yr)
| |
