Ch 16: The Financial System(A+ Guaranteed answers)

The financial system is the process by which: correct answers funds are transferred from savers to borrowers. The majority of money in the financial system passes through financial _____. correct answers institutions and markets Net worth is determined by what you own in comparison to what you owe. correct answers True Generally, in the United States, businesses are net users and households are net savers. correct answers True Which of the following is NOT a type of securities? correct answers Cash funds A(n) ________ is an unsecured bond backed by the financial reputation of the issuing corporation. correct answers debenture Subprime mortgages that were packaged into pass-through securities should have been rated as: correct answers speculative grade bonds. Obligations on the part of the borrower to provide returns on funds invested or loaned. correct answers Securities Bondholders are _____ of a corporation. correct answers creditors To be labeled as a junk bond, a bond must have a Standard & Poor's rating at or below ______. correct answers BB Who benefits when a company is growing correct answers common stockholders Municipal bonds are issued by: correct answers state or local governments Securities sold by corporations are: correct answers commercial paper Treasury bills are sold with a maturity of 30, 90, 180, or 360 days and have a minimum denomination of $____. correct answers $1000 An IPO is a(n) _____. correct answers primary market offering Virtually all securities sold through open auctions are: correct answers U.S. Treasury securities. When a company offers stock for the first time: correct answers it is called an initial public offering (IPO).