1
TEST BANK FOR FINANCIAL MARKETS
AND INSTITUTIONS 8TH EDITION BY
ANTHONY SAUNDERS –CHAPTER 1-25
COVERED
1
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2
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TABLE OF CONTENT
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
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
CHAPTER 11: Commercial Banks
CHAPTER 12: Commercial Banks’ Financial Statements and Analysis
CHAPTER 13: Regulation of Commercial Banks
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
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
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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.
4
TEST BANK FOR FINANCIAL MARKETS
AND INSTITUTIONS 8TH EDITION BY
ANTHONY SAUNDERS –CHAPTER 1-25
COVERED
1
,2
2
, 3
TABLE OF CONTENT
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
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
CHAPTER 11: Commercial Banks
CHAPTER 12: Commercial Banks’ Financial Statements and Analysis
CHAPTER 13: Regulation of Commercial Banks
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
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
, 4
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.
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