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z z
Financial Markets And Institutions 8th Edition Anthony Saunders
z z z z z z z
Chapter 1 z
Student name:
z
1) What zfactors zare zencouraging zfinancial zinstitutions zto zoffer zoverlapping zfinancial
zservices zsuch zas z banking, z investment z banking, z brokerage, zetc.? 1.I. zRegulatory zchanges
zallowing z institutions zto zoffer z more z services
2.II. z Technological z improvements z reducing z the z cost z of z providing z financial z services
3.III. z Increasing z competition z from z full-service z global z financial z institutions
4.IV. z Reduction z in z the z need z to z manage z risk z at z financial z institutions
A) I z only
B) II z and z III z only
C) I, z II, z and z III z only
D) I, z II, z and z IV z only
E) I, z II, z III, z and z IV
2) IBM zcreates zand zsells zadditional zstock zto zthe zinvestment zbanker zMorgan zStanley.
zMorgan z Stanley z then z resells z the z issue z to z the z U.S. z public z through z its z mutual
z funds.
This z transaction z is z an z example z of z a(n):
A) primary z market z transaction.
B) asset z transformation z by z Morgan z Stanley.
C) money z market z transaction.
D) foreign z exchange z transaction.
E) forward ztransaction.
Version z 1 1
,3) IBM zcreates zand zsells zadditional zstock zto zthe zinvestment zbanker zMorgan zStanley.
zMorgan z Stanley z then z resells z the z issue z to z the z U.S. z public z through z its z mutual
z funds.
Morgan z Stanley z is z acting z as z a(n)
A) asset z transformer.
B) asset z broker.
C) government z regulator.
D) foreign z service z representative.
E) derivatives ztrader.
4) A zcorporation zseeking z to z sell znew z equity zsecurities z to z the z public z for z the z first z time
z in zorder z to z raise z cash z for z capital z investment z would z most z likely:
A) conduct z an z IPO z with z the z assistance z of z an z investment z banker.
B) engage z in z a z secondary z market z sale z of z equity.
C) conduct z a z private z placement z to z a z large z number z of z potential z buyers.
D) place z an z ad z in z the Wall z Street z Journal z soliciting z retail z suppliers z of z funds.
E) issue z bonds z with z the z assistance z of z a z dealer.
5) The zlargest z capital zmarket z security zoutstanding zin z2019 zmeasured zby zmarket zvalue
zwas:
A) securitized z mortgages.
B) corporate z bonds.
C) municipal z bonds.
D) Treasury z bonds.
E) corporate z stocks.
Version z 1 2
, 6) The z diagram z below z is z a z diagram z of z the:
A) secondary z markets.
B) primary z markets.
C) money z markets.
D) derivatives z markets.
E) commodities z markets.
7) and z allow za zfinancial zintermediary zto zoffer zsafe zliquid
z liabilities z such z as z deposits z while z investing z the z depositors' z money z in z riskier z illiquid
z assets.
A) Diversification; z high z equity zreturns
B) Price z risk; z collateral
C) Free z riders; z regulations
D) Monitoring; z diversification
E) Primary z markets; z foreign z exchange z markets
8) Depository z institutions z include:
A) banks z only.
B) thrifts z only.
C) finance z companies z only.
D) banks z and z thrifts.
E) All z of z these z choices z are z correct.
Version z 1 3
z z
Financial Markets And Institutions 8th Edition Anthony Saunders
z z z z z z z
Chapter 1 z
Student name:
z
1) What zfactors zare zencouraging zfinancial zinstitutions zto zoffer zoverlapping zfinancial
zservices zsuch zas z banking, z investment z banking, z brokerage, zetc.? 1.I. zRegulatory zchanges
zallowing z institutions zto zoffer z more z services
2.II. z Technological z improvements z reducing z the z cost z of z providing z financial z services
3.III. z Increasing z competition z from z full-service z global z financial z institutions
4.IV. z Reduction z in z the z need z to z manage z risk z at z financial z institutions
A) I z only
B) II z and z III z only
C) I, z II, z and z III z only
D) I, z II, z and z IV z only
E) I, z II, z III, z and z IV
2) IBM zcreates zand zsells zadditional zstock zto zthe zinvestment zbanker zMorgan zStanley.
zMorgan z Stanley z then z resells z the z issue z to z the z U.S. z public z through z its z mutual
z funds.
This z transaction z is z an z example z of z a(n):
A) primary z market z transaction.
B) asset z transformation z by z Morgan z Stanley.
C) money z market z transaction.
D) foreign z exchange z transaction.
E) forward ztransaction.
Version z 1 1
,3) IBM zcreates zand zsells zadditional zstock zto zthe zinvestment zbanker zMorgan zStanley.
zMorgan z Stanley z then z resells z the z issue z to z the z U.S. z public z through z its z mutual
z funds.
Morgan z Stanley z is z acting z as z a(n)
A) asset z transformer.
B) asset z broker.
C) government z regulator.
D) foreign z service z representative.
E) derivatives ztrader.
4) A zcorporation zseeking z to z sell znew z equity zsecurities z to z the z public z for z the z first z time
z in zorder z to z raise z cash z for z capital z investment z would z most z likely:
A) conduct z an z IPO z with z the z assistance z of z an z investment z banker.
B) engage z in z a z secondary z market z sale z of z equity.
C) conduct z a z private z placement z to z a z large z number z of z potential z buyers.
D) place z an z ad z in z the Wall z Street z Journal z soliciting z retail z suppliers z of z funds.
E) issue z bonds z with z the z assistance z of z a z dealer.
5) The zlargest z capital zmarket z security zoutstanding zin z2019 zmeasured zby zmarket zvalue
zwas:
A) securitized z mortgages.
B) corporate z bonds.
C) municipal z bonds.
D) Treasury z bonds.
E) corporate z stocks.
Version z 1 2
, 6) The z diagram z below z is z a z diagram z of z the:
A) secondary z markets.
B) primary z markets.
C) money z markets.
D) derivatives z markets.
E) commodities z markets.
7) and z allow za zfinancial zintermediary zto zoffer zsafe zliquid
z liabilities z such z as z deposits z while z investing z the z depositors' z money z in z riskier z illiquid
z assets.
A) Diversification; z high z equity zreturns
B) Price z risk; z collateral
C) Free z riders; z regulations
D) Monitoring; z diversification
E) Primary z markets; z foreign z exchange z markets
8) Depository z institutions z include:
A) banks z only.
B) thrifts z only.
C) finance z companies z only.
D) banks z and z thrifts.
E) All z of z these z choices z are z correct.
Version z 1 3
