CSU Fin 310 Final Exam
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1. 10. Obtaining funds through _______ is not a common A) Issuing bonds
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
2. 12. The Federal Reserve provides loans to banks in B) Resolve temporary
order to: shortages of funds experi-
enced by banks
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 compa-
nies.
D) do none of these.
3. 15. The main use of bank funds is for: A) Loans
A) loans.
B) investment securities.
C) fixed assets.
D) repurchase agreements.
4. 30. When banks obtain funds in the federal funds mar- A) other depository insti-
ket, the providers of the funds are: tutions
A) other depository institutions.
B) nonfinancial corporations.
, CSU Fin 310 Final Exam
Study online at https://quizlet.com/_e9evkc
C) consumers.
D) the Federal Reserve.
5. Speculators in futures contracts that normally close A) day traders
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
6. A call option is "out of the money" when the C) market price of the un-
derlying security is less
a. market price of the underlying security exceeds the than the exercise price
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.
7. A put option is "in of the money" when the C) market price of the se-
a. market price of the security exceeds the exercise curity is less than the exer-
price. cise 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.
Study online at https://quizlet.com/_e9evkc
1. 10. Obtaining funds through _______ is not a common A) Issuing bonds
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
2. 12. The Federal Reserve provides loans to banks in B) Resolve temporary
order to: shortages of funds experi-
enced by banks
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 compa-
nies.
D) do none of these.
3. 15. The main use of bank funds is for: A) Loans
A) loans.
B) investment securities.
C) fixed assets.
D) repurchase agreements.
4. 30. When banks obtain funds in the federal funds mar- A) other depository insti-
ket, the providers of the funds are: tutions
A) other depository institutions.
B) nonfinancial corporations.
, CSU Fin 310 Final Exam
Study online at https://quizlet.com/_e9evkc
C) consumers.
D) the Federal Reserve.
5. Speculators in futures contracts that normally close A) day traders
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
6. A call option is "out of the money" when the C) market price of the un-
derlying security is less
a. market price of the underlying security exceeds the than the exercise price
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.
7. A put option is "in of the money" when the C) market price of the se-
a. market price of the security exceeds the exercise curity is less than the exer-
price. cise 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.
