CSU Fin 310 Final Exam Questions With
Complete Solutions
10. Obtaining funds through _______ is not a common way for banks to satisfy a
temporary deficiency of funds.
A) issuing bonds
B) the federal funds market
C) repurchase agreements
D) borrowing from the Federal Reserve
12. The Federal Reserve provides loans to banks in order to:
A) resolve permanent shortages of funds experienced by banks.
B) resolve temporary shortages of funds experienced by banks.
C) finance the shortages of funds of finance companies.
D) do none of these.
15. The main use of bank funds is for:
A) loans.
B) investment securities.
C) fixed assets.
D) repurchase agreements.
30. When banks obtain funds in the federal funds market, the providers of the
funds are:
A) other depository institutions.
B) nonfinancial corporations.
C) consumers.
D) the Federal Reserve.
Speculators in futures contracts that normally close out their futures positions on
the same day that the positions were initiated are referred to as
a. day traders.
b. hedgers.
c. closed-end traders.
d. position traders
, A call option is "out of the money" when the
a. market price of the underlying security exceeds the exercise price.
b. market price of the underlying security equals the exercise price.
c. market price of the underlying security is less than the exercise price.
d. premium on the option is less than the exercise price.
A put option is "in of the money" when the
a. market price of the security exceeds the exercise price.
b. market price of the security equals the exercise price.
c. market price of the security is less than the exercise price.
d. premium on the option is less than the exercise price.
Lower liquidity = higher return
Higher liquidity = lower return
The Chicago Board of Exchanges (CBOE) serves as a guarantor on option
contracts traded in the United States
a. True
b. False
1980 depositing institution deregulation act, monetary control act:
- Own interest rate to corporate loans? *
- Set own interest rates for deposit accounts?
-
How do banks increase capital ratio?
- Sell assets
40. The ____ index can be used to measure risk-adjusted performance of a stock
while controlling for the stock's beta.
a. Sharpe
b. Treynor
c. arbitrage
d. margin
41. The ____ index can be used to measure risk-adjusted performance of a stock
while controlling for the stock's volatility.
a. Sharpe
b. Treynor
c. arbitrage
d. margin
4. The practice of purchasing IPO stock at the offer price and selling the stock
shortly afterward is called
A. Flipping
Complete Solutions
10. Obtaining funds through _______ is not a common way for banks to satisfy a
temporary deficiency of funds.
A) issuing bonds
B) the federal funds market
C) repurchase agreements
D) borrowing from the Federal Reserve
12. The Federal Reserve provides loans to banks in order to:
A) resolve permanent shortages of funds experienced by banks.
B) resolve temporary shortages of funds experienced by banks.
C) finance the shortages of funds of finance companies.
D) do none of these.
15. The main use of bank funds is for:
A) loans.
B) investment securities.
C) fixed assets.
D) repurchase agreements.
30. When banks obtain funds in the federal funds market, the providers of the
funds are:
A) other depository institutions.
B) nonfinancial corporations.
C) consumers.
D) the Federal Reserve.
Speculators in futures contracts that normally close out their futures positions on
the same day that the positions were initiated are referred to as
a. day traders.
b. hedgers.
c. closed-end traders.
d. position traders
, A call option is "out of the money" when the
a. market price of the underlying security exceeds the exercise price.
b. market price of the underlying security equals the exercise price.
c. market price of the underlying security is less than the exercise price.
d. premium on the option is less than the exercise price.
A put option is "in of the money" when the
a. market price of the security exceeds the exercise price.
b. market price of the security equals the exercise price.
c. market price of the security is less than the exercise price.
d. premium on the option is less than the exercise price.
Lower liquidity = higher return
Higher liquidity = lower return
The Chicago Board of Exchanges (CBOE) serves as a guarantor on option
contracts traded in the United States
a. True
b. False
1980 depositing institution deregulation act, monetary control act:
- Own interest rate to corporate loans? *
- Set own interest rates for deposit accounts?
-
How do banks increase capital ratio?
- Sell assets
40. The ____ index can be used to measure risk-adjusted performance of a stock
while controlling for the stock's beta.
a. Sharpe
b. Treynor
c. arbitrage
d. margin
41. The ____ index can be used to measure risk-adjusted performance of a stock
while controlling for the stock's volatility.
a. Sharpe
b. Treynor
c. arbitrage
d. margin
4. The practice of purchasing IPO stock at the offer price and selling the stock
shortly afterward is called
A. Flipping
