FIN310 FINAL EXAM ICLICKER AND SLIDE QUESTIONS AND
CORRECT ANSWERS 100% VERIFIED !!
Funds are provided to the initial issuer of securities in the ________. - (answer)Primary market
Which of the following is a money market security?
a. Treasury note
b. Municipal bond
c. Mortgage
d. Commercial paper - (answer)d. Commercial Paper
The Securities and Exchange Commission (SEC) was established by the:
a. Federal reserve Act
b. McFadden Act
c. Securities Exchange Act of 1934
d. Glass-Steagall Act
e. None are correct - (answer)c. Securities Exchange Act of 1934
The required return to implement a given business project will be ____ if interest rates are lower. This
implies that businesses will demand a ____ quantity of loanable funds when interest rates are lower.
a. Greater; lower
b. Lower; greater
c. Lower; lower
d. Greater; greater - (answer)b. Lower; greater
The federal government's demand for loanable funds is _____. If the budget deficit is expected to
increase, the federal government's demand for loanable funds would ____.
,FIN310 FINAL EXAM ICLICKER AND SLIDE QUESTIONS AND
CORRECT ANSWERS 100% VERIFIED !!
a. Interest-elastic; decrease
b. Interest-elastic; increase
c. Interest-inelastic; increase
d. Interest-inelastic; decrease - (answer)d. Interest-inelastic; decrease
The Fisher Effect states that the:
a. Nominal interest rate equals the expected inflation rate plus the real state of interest
b. Nominal interest rate equals the real rate of interest minus the expected inflation rate
c. Real rate of interest equals the nominal interest rate plus the expected inflation rate
d. Expected inflation rate equals the nominal interest rate plus the real rate of interest - (answer)a.
Nominal interest rate equals the expected inflation rate plus the real state of interest
Credit (default) risk is likely to be highest for:
a. Short-term Treasury securities
b. AAA corporate securities
c. Long-term Treasury securities
d. BBB corporate securities - (answer)d. BBB corporate securities
If shorter-term securities have annualized yields than longer-term securities, the yield curve:
a. Is horizontal
b. Is upward sloping
c. Is downward sloping
, FIN310 FINAL EXAM ICLICKER AND SLIDE QUESTIONS AND
CORRECT ANSWERS 100% VERIFIED !!
d. Cannot be determined unless we know additional information (such as the level of market interest
rates) - (answer)c. Is downward sloping
Which of the following is NOT an activity of Fed district banks?
a. Clearing checks
b. Replacing old currency
c. Providing loans to depository institutions
d. Acting as intermediary to match up lenders and borrowers in stock market - (answer)d. Acting as
intermediary to match up lenders and borrowers in stock market
Members of the FOMC serve 14-year nonrenewable terms
a. True
b. False - (answer)a. True
Each Federal Reserve district bank is responsible for reporting its regional conditions, and all of these
reports are consolidated to compose the Beige Book
a. True
b. False - (answer)a. True
When open market operations are used to ____ bank funds, the yield on debt instruments ____.
a. Reduce; decreases
b. Reduce; increases
c. Increase; increases
d. None of these are correct - (answer)b. Reduce; increases
CORRECT ANSWERS 100% VERIFIED !!
Funds are provided to the initial issuer of securities in the ________. - (answer)Primary market
Which of the following is a money market security?
a. Treasury note
b. Municipal bond
c. Mortgage
d. Commercial paper - (answer)d. Commercial Paper
The Securities and Exchange Commission (SEC) was established by the:
a. Federal reserve Act
b. McFadden Act
c. Securities Exchange Act of 1934
d. Glass-Steagall Act
e. None are correct - (answer)c. Securities Exchange Act of 1934
The required return to implement a given business project will be ____ if interest rates are lower. This
implies that businesses will demand a ____ quantity of loanable funds when interest rates are lower.
a. Greater; lower
b. Lower; greater
c. Lower; lower
d. Greater; greater - (answer)b. Lower; greater
The federal government's demand for loanable funds is _____. If the budget deficit is expected to
increase, the federal government's demand for loanable funds would ____.
,FIN310 FINAL EXAM ICLICKER AND SLIDE QUESTIONS AND
CORRECT ANSWERS 100% VERIFIED !!
a. Interest-elastic; decrease
b. Interest-elastic; increase
c. Interest-inelastic; increase
d. Interest-inelastic; decrease - (answer)d. Interest-inelastic; decrease
The Fisher Effect states that the:
a. Nominal interest rate equals the expected inflation rate plus the real state of interest
b. Nominal interest rate equals the real rate of interest minus the expected inflation rate
c. Real rate of interest equals the nominal interest rate plus the expected inflation rate
d. Expected inflation rate equals the nominal interest rate plus the real rate of interest - (answer)a.
Nominal interest rate equals the expected inflation rate plus the real state of interest
Credit (default) risk is likely to be highest for:
a. Short-term Treasury securities
b. AAA corporate securities
c. Long-term Treasury securities
d. BBB corporate securities - (answer)d. BBB corporate securities
If shorter-term securities have annualized yields than longer-term securities, the yield curve:
a. Is horizontal
b. Is upward sloping
c. Is downward sloping
, FIN310 FINAL EXAM ICLICKER AND SLIDE QUESTIONS AND
CORRECT ANSWERS 100% VERIFIED !!
d. Cannot be determined unless we know additional information (such as the level of market interest
rates) - (answer)c. Is downward sloping
Which of the following is NOT an activity of Fed district banks?
a. Clearing checks
b. Replacing old currency
c. Providing loans to depository institutions
d. Acting as intermediary to match up lenders and borrowers in stock market - (answer)d. Acting as
intermediary to match up lenders and borrowers in stock market
Members of the FOMC serve 14-year nonrenewable terms
a. True
b. False - (answer)a. True
Each Federal Reserve district bank is responsible for reporting its regional conditions, and all of these
reports are consolidated to compose the Beige Book
a. True
b. False - (answer)a. True
When open market operations are used to ____ bank funds, the yield on debt instruments ____.
a. Reduce; decreases
b. Reduce; increases
c. Increase; increases
d. None of these are correct - (answer)b. Reduce; increases
