,TEST BANK FORq q
Financial qMarkets qAnd qInstitutions q8th qEdition qAnthony qSaunders
Chapter q1
Student qname:
1) What qfactors qare qencouraging qfinancial qinstitutions qto qoffer qoverlapping qfinancial
qservices qsuch qas qbanking, qinvestment qbanking, qbrokerage, qetc.? q 1.I. qRegulatory qchanges
qallowing qinstitutions qto qoffer qmore qservices
2.II. qTechnological qimprovements qreducing qthe qcost qof qproviding qfinancial qservices
3.III. qIncreasing qcompetition qfrom qfull-service qglobal qfinancial qinstitutions
4.IV. qReduction qin qthe qneed qto qmanage qrisk qat qfinancial qinstitutions
A) I qonly
B) II qand qIII qonly
C) I, qII, qand qIII qonly
D) I, qII, qand qIV qonly
E) I, qII, qIII, qand qIV
2) IBM qcreates qand qsells qadditional qstock qto qthe qinvestment qbanker qMorgan qStanley.
qMorgan qStanley qthen qresells qthe qissue qto qthe qU.S. qpublic qthrough qits qmutual qfunds.
This qtransaction qis qan qexample qof qa(n):
A) primary qmarket qtransaction.
B) asset qtransformation qby qMorgan qStanley.
C) money qmarket qtransaction.
D) foreign qexchange qtransaction.
E) forward qtransaction.
Version q1 1
,3) IBM qcreates qand qsells qadditional qstock qto qthe qinvestment qbanker qMorgan qStanley.
qMorgan qStanley qthen qresells qthe qissue qto qthe qU.S. qpublic qthrough qits qmutual qfunds.
Morgan qStanley qis qacting qas qa(n)
A) asset qtransformer.
B) asset qbroker.
C) government qregulator.
D) foreign qservice qrepresentative.
E) derivatives qtrader.
4) A qcorporation qseeking qto qsell qnew qequity qsecurities qto qthe qpublic qfor qthe qfirst qtime qin
qorder qto qraise qcash qfor qcapital qinvestment qwould qmost qlikely:
A) conduct qan qIPO qwith qthe qassistance qof qan qinvestment qbanker.
B) engage qin qa qsecondary qmarket qsale qof qequity.
C) conduct qa qprivate qplacement qto qa qlarge qnumber qof qpotential qbuyers.
D) place qan qad qin qthe q q Wall qStreet qJournal qsoliciting qretail qsuppliers qof qfunds.
E) issue qbonds qwith qthe qassistance qof qa qdealer.
5) The qlargest qcapital qmarket qsecurity qoutstanding qin q2019 qmeasured qby qmarket qvalue
qwas:
A) securitized qmortgages.
B) corporate qbonds.
C) municipal qbonds.
D) Treasury qbonds.
E) corporate qstocks.
Version q1 2
, 6) The qdiagram qbelow qis qa qdiagram qof qthe:
A) secondary qmarkets.
B) primary qmarkets.
C) money qmarkets.
D) derivatives qmarkets.
E) commodities qmarkets.
7) and q allow qa qfinancial qintermediary qto qoffer qsafe qliquid
qliabilities qsuch qas qdeposits qwhile qinvesting qthe qdepositors' qmoney qin qriskier qilliquid qassets.
A) Diversification; qhigh qequity qreturns
B) Price qrisk; qcollateral
C) Free qriders; qregulations
D) Monitoring; qdiversification
E) Primary qmarkets; qforeign qexchange qmarkets
8) Depository qinstitutions qinclude:
A) banks qonly.
B) thrifts qonly.
C) finance qcompanies qonly.
D) banks qand qthrifts.
E) All qof qthese qchoices qare qcorrect.
Version q1 3
Financial qMarkets qAnd qInstitutions q8th qEdition qAnthony qSaunders
Chapter q1
Student qname:
1) What qfactors qare qencouraging qfinancial qinstitutions qto qoffer qoverlapping qfinancial
qservices qsuch qas qbanking, qinvestment qbanking, qbrokerage, qetc.? q 1.I. qRegulatory qchanges
qallowing qinstitutions qto qoffer qmore qservices
2.II. qTechnological qimprovements qreducing qthe qcost qof qproviding qfinancial qservices
3.III. qIncreasing qcompetition qfrom qfull-service qglobal qfinancial qinstitutions
4.IV. qReduction qin qthe qneed qto qmanage qrisk qat qfinancial qinstitutions
A) I qonly
B) II qand qIII qonly
C) I, qII, qand qIII qonly
D) I, qII, qand qIV qonly
E) I, qII, qIII, qand qIV
2) IBM qcreates qand qsells qadditional qstock qto qthe qinvestment qbanker qMorgan qStanley.
qMorgan qStanley qthen qresells qthe qissue qto qthe qU.S. qpublic qthrough qits qmutual qfunds.
This qtransaction qis qan qexample qof qa(n):
A) primary qmarket qtransaction.
B) asset qtransformation qby qMorgan qStanley.
C) money qmarket qtransaction.
D) foreign qexchange qtransaction.
E) forward qtransaction.
Version q1 1
,3) IBM qcreates qand qsells qadditional qstock qto qthe qinvestment qbanker qMorgan qStanley.
qMorgan qStanley qthen qresells qthe qissue qto qthe qU.S. qpublic qthrough qits qmutual qfunds.
Morgan qStanley qis qacting qas qa(n)
A) asset qtransformer.
B) asset qbroker.
C) government qregulator.
D) foreign qservice qrepresentative.
E) derivatives qtrader.
4) A qcorporation qseeking qto qsell qnew qequity qsecurities qto qthe qpublic qfor qthe qfirst qtime qin
qorder qto qraise qcash qfor qcapital qinvestment qwould qmost qlikely:
A) conduct qan qIPO qwith qthe qassistance qof qan qinvestment qbanker.
B) engage qin qa qsecondary qmarket qsale qof qequity.
C) conduct qa qprivate qplacement qto qa qlarge qnumber qof qpotential qbuyers.
D) place qan qad qin qthe q q Wall qStreet qJournal qsoliciting qretail qsuppliers qof qfunds.
E) issue qbonds qwith qthe qassistance qof qa qdealer.
5) The qlargest qcapital qmarket qsecurity qoutstanding qin q2019 qmeasured qby qmarket qvalue
qwas:
A) securitized qmortgages.
B) corporate qbonds.
C) municipal qbonds.
D) Treasury qbonds.
E) corporate qstocks.
Version q1 2
, 6) The qdiagram qbelow qis qa qdiagram qof qthe:
A) secondary qmarkets.
B) primary qmarkets.
C) money qmarkets.
D) derivatives qmarkets.
E) commodities qmarkets.
7) and q allow qa qfinancial qintermediary qto qoffer qsafe qliquid
qliabilities qsuch qas qdeposits qwhile qinvesting qthe qdepositors' qmoney qin qriskier qilliquid qassets.
A) Diversification; qhigh qequity qreturns
B) Price qrisk; qcollateral
C) Free qriders; qregulations
D) Monitoring; qdiversification
E) Primary qmarkets; qforeign qexchange qmarkets
8) Depository qinstitutions qinclude:
A) banks qonly.
B) thrifts qonly.
C) finance qcompanies qonly.
D) banks qand qthrifts.
E) All qof qthese qchoices qare qcorrect.
Version q1 3
