Test bank for Financial Markets & Institutions, 12th Edition by Jeff Madura Isbn No: 9781337099745, All Chapters ||Complete A+ Guide

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,1. Financial market participants who provide funds are called
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a. deficit units. w


b. surplus units. w


c. primary units. w


d. secondary units. w


ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: w Multiple Choice w


HAS VARIABLES:
w False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
w


NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
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STATE STANDARDS:
w United States - OH - DISC.FMAI.MADU.15.02 w w w w w


KEYWORDS: Bloom's: Knowledge w


DATE CREATED:
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DATE MODIFIED:
w 9/16/2016 1:14 AM w w




2. Which of the following is NOT an issuer of bonds?
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a. households
b. corporations
c. the U.S. Treasury
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d. government
agencies
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ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: w Multiple Choice w


HAS VARIABLES:
w False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
w


NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
w w w w


STATE STANDARDS:
w United States - OH - DISC.FMAI.MADU.15.02 w w w w w


KEYWORDS: Bloom's: Knowledge w


DATE CREATED:
w 9/16/2016 1:15 AM w w


DATE MODIFIED:
w 5/1/2018 11:55 AM w w




3. Behavioral finance w


a. applies concepts from sociology and anthropology to the behavior of market
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participants.
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, b. studies the behavior of financial markets in response to changes in Federal Reserve
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policy.
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c. applies psychology to financial decision making.
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d. explains why markets are efficient.
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ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: w Multiple Choice w


HAS VARIABLES:
w False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
w


NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
w w w w



STATE STANDARDS:
w United States - OH - DISC.FMAI.MADU.15.02 w w w w w


KEYWORDS: Bloom's: Knowledge w


DATE CREATED:
w 9/16/2016 1:18 AM w w


DATE MODIFIED:
w 9/16/2016 1:21 AM w w




4. Those financial markets that facilitate the flow of short-term funds are known as:
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a. money markets w


b. capital markets w


c. primary markets w


d. secondary markets w


ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: w Multiple Choice w


HAS VARIABLES:
w False
LEARNING OBJECTIVES: FMAI.MADU.15.01.02
w


NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.02
w w w w


STATE STANDARDS:
w United States - OH - DISC.FMAI.MADU.15.02 w w w w w


KEYWORDS: Bloom's: Knowledge w


DATE CREATED:
w 9/16/2016 1:21 AM w w


DATE MODIFIED:
w 5/1/2018 11:56 AM w w




5. Funds are provided to the initial issuer of securities in the:
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a. secondary market w


b. primary market w


c. deficit market w


d. surplus
market
w


ANSWER: b
POINTS: 1
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, DIFFICULTY: Easy




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