TEST BANK
FINANCIAL MARKETS AND INSTITUTIONS 8TH EDITION
(MCGRAW HILL, 2021) BY ANTHONY SAUNDERS, MARCIA
MILLON CORNETT AND OTGO ERHEMJAMTS, ISBN NO;
9781260772401, ALL 25 CHAPTERS COVERED
1
,Test Bank for Financial Markets and Institutions 8th Edition (McGraw
Hill, 2021) by Anthony Saunders, Marcia Millon Cornett and Otgo
Erhemjamts, Isbn no; 9781260772401, all 25 Chapters Covered
TABLE OF CONTENTS
Part 1: Introduction and Overview of Financial Markets
✓ Chapter 1: Introduction
✓ Chapter 2: Determinants of Interest Rates
✓ Chapter 3: Interest Rates and Security Valuation
✓ Chapter 4: The Federal Reserve System, Monetary Policy, and Interest Rates
Part 2: Securities Markets
✓ Chapter 5: Money Markets
✓ Chapter 6: Bond Markets
✓ Chapter 7: Mortgage Markets
✓ Chapter 8: Stock Markets
✓ Chapter 9: Foreign Exchange Markets
✓ Chapter 10: Derivative Securities Markets
Part 3: Commercial Banks
✓ Chapter 11: Commercial Banks
✓ Chapter 12: Commercial Banks’ Financial Statements and Analysis
✓ Chapter 13: Regulation of Commercial Banks
2
, Part 4: Other Financial Institutions
✓ Chapter 14: Other Lending Institutions
✓ Chapter 15: Insurance Companies
✓ Chapter 16: Securities Firms and Investment Banks
✓ Chapter 17: Investment Companies
✓ Chapter 18: Pension Funds
✓ Chapter 19: Fintech Companies
Part 5: Risk Management in Financial Institutions
✓ Chapter 20: Types of Risks Incurred by Financial Institutions
✓ Chapter 21: Managing Credit Risk on the Balance Sheet
✓ Chapter 22: Managing Liquidity Risk on the Balance Sheet
✓ Chapter 23: Managing Interest Rate Risk and Insolvency Risk on the Balance Sheet
✓ Chapter 24: Managing Risk off the Balance Sheet with Derivative Securities
✓ Chapter 25: Managing Risk off the Balance Sheet with Loan Sales and Securitization
3
, Test Bank for Financial Markets and Institutions 8th Edition (McGraw
Hill, 2021) by Anthony Saunders, Marcia Millon Cornett and Otgo
Erhemjamts, Isbn no; 9781260772401, all 25 Chapters Covered
Chapter 1
1) What factors are encouraging financial institutions to offer overlapping financial
services such as banking, investment banking, brokerage, etc.? 1.I. Regulatory changes
allowing institutions to offer more services
2.II. Technological improvements reducing the cost of providing financial services
3.III. Increasing competition from full-service global financial institutions
4.IV. Reduction in the need to manage risk at financial institutions
A) I only
B) II and III only
C) I, II, and III only
D) I, II, and IV only
E) I, II, III, and IV
2) IBM creates and sells additional stock to the investment banker Morgan Stanley.
Morgan Stanley then resells the issue to the U.S. public through its mutual funds. This
transaction is an example of a(n):
A) primary market transaction.
B) asset transformation by Morgan Stanley.
C) money market transaction.
D) foreign exchange transaction.
E) forward transaction.
3) IBM creates and sells additional stock to the investment banker Morgan Stanley.
Morgan Stanley then resells the issue to the U.S. public through its mutual funds. Morgan
Stanley is acting as a(n)
A) asset transformer.
B) asset broker.
C) government regulator.
D) foreign service representative.
E) derivatives trader.
4) A corporation seeking to sell new equity securities to the public for the first time in
order to raise cash for capital investment would most likely:
4
FINANCIAL MARKETS AND INSTITUTIONS 8TH EDITION
(MCGRAW HILL, 2021) BY ANTHONY SAUNDERS, MARCIA
MILLON CORNETT AND OTGO ERHEMJAMTS, ISBN NO;
9781260772401, ALL 25 CHAPTERS COVERED
1
,Test Bank for Financial Markets and Institutions 8th Edition (McGraw
Hill, 2021) by Anthony Saunders, Marcia Millon Cornett and Otgo
Erhemjamts, Isbn no; 9781260772401, all 25 Chapters Covered
TABLE OF CONTENTS
Part 1: Introduction and Overview of Financial Markets
✓ Chapter 1: Introduction
✓ Chapter 2: Determinants of Interest Rates
✓ Chapter 3: Interest Rates and Security Valuation
✓ Chapter 4: The Federal Reserve System, Monetary Policy, and Interest Rates
Part 2: Securities Markets
✓ Chapter 5: Money Markets
✓ Chapter 6: Bond Markets
✓ Chapter 7: Mortgage Markets
✓ Chapter 8: Stock Markets
✓ Chapter 9: Foreign Exchange Markets
✓ Chapter 10: Derivative Securities Markets
Part 3: Commercial Banks
✓ Chapter 11: Commercial Banks
✓ Chapter 12: Commercial Banks’ Financial Statements and Analysis
✓ Chapter 13: Regulation of Commercial Banks
2
, Part 4: Other Financial Institutions
✓ Chapter 14: Other Lending Institutions
✓ Chapter 15: Insurance Companies
✓ Chapter 16: Securities Firms and Investment Banks
✓ Chapter 17: Investment Companies
✓ Chapter 18: Pension Funds
✓ Chapter 19: Fintech Companies
Part 5: Risk Management in Financial Institutions
✓ Chapter 20: Types of Risks Incurred by Financial Institutions
✓ Chapter 21: Managing Credit Risk on the Balance Sheet
✓ Chapter 22: Managing Liquidity Risk on the Balance Sheet
✓ Chapter 23: Managing Interest Rate Risk and Insolvency Risk on the Balance Sheet
✓ Chapter 24: Managing Risk off the Balance Sheet with Derivative Securities
✓ Chapter 25: Managing Risk off the Balance Sheet with Loan Sales and Securitization
3
, Test Bank for Financial Markets and Institutions 8th Edition (McGraw
Hill, 2021) by Anthony Saunders, Marcia Millon Cornett and Otgo
Erhemjamts, Isbn no; 9781260772401, all 25 Chapters Covered
Chapter 1
1) What factors are encouraging financial institutions to offer overlapping financial
services such as banking, investment banking, brokerage, etc.? 1.I. Regulatory changes
allowing institutions to offer more services
2.II. Technological improvements reducing the cost of providing financial services
3.III. Increasing competition from full-service global financial institutions
4.IV. Reduction in the need to manage risk at financial institutions
A) I only
B) II and III only
C) I, II, and III only
D) I, II, and IV only
E) I, II, III, and IV
2) IBM creates and sells additional stock to the investment banker Morgan Stanley.
Morgan Stanley then resells the issue to the U.S. public through its mutual funds. This
transaction is an example of a(n):
A) primary market transaction.
B) asset transformation by Morgan Stanley.
C) money market transaction.
D) foreign exchange transaction.
E) forward transaction.
3) IBM creates and sells additional stock to the investment banker Morgan Stanley.
Morgan Stanley then resells the issue to the U.S. public through its mutual funds. Morgan
Stanley is acting as a(n)
A) asset transformer.
B) asset broker.
C) government regulator.
D) foreign service representative.
E) derivatives trader.
4) A corporation seeking to sell new equity securities to the public for the first time in
order to raise cash for capital investment would most likely:
4
