FINC 3310/LEAVELL - All Quizzes - Final Exam
Preparation || with 100% Errorless Answers.
The _____ uses Monetary Policy to help control the Money Supply. correct answers Fed
The price of one country's currency in terms of another's currency is the ___ rate. correct answers
foreign exchange
___ represents an ownership position in a corporation. correct answers Stock
A(n) _____ is an obligation of the borrower. correct answers bond
A(n) ___ functions as a middle man in the transfer of funds from lenders to borrowers. correct
answers financial intermediary
A(n) ___ is the cost of borrowing money. correct answers interest rate
If your country has a strong currency, it costs ____ to buy another country's goods. correct
answers less
Which of the following courses in a well rounded education are related to human behavior?
correct answers Psychology
______ is a place where financial assets are exchanged. correct answers foreign exchange
market, bond market & stock market
_____ is where the primary financial intermediary& conducts monetary policy. correct answers
Central Bank
Is everybody worse off when interest rates rise? correct answers No; savers earn more interest on
savings.
Common stock represents a[n] _______. correct answers ownership in a firm
A reason to study financial markets is ________. correct answers market activity affects personal
wealth & the behavior of business firm
Companies initially sell stock in the ______. correct answers primary market
An institution that borrows funds from people who have saved and makes loans to others is a(n)
________. correct answers financial intermediary
The government agency responsible for the conduct of monetary policy is the _______. correct
answers central bank
,How can a change in interest rates affect the profitability of financial institutions? correct
answers It affects the cost of acquiring funds & the income on loans.
What is the basic activity of banks? correct answers They use deposited funds to make loans &
accept deposits of funds.
Financial institutions that accept deposits and makes loans are _______. correct answers
commercial banks
A _______ is a claim on an issuer's future income or assets. correct answers Security
A type of Financial Intermediary is Contractual Savings Institution; an example is a _________.
correct answers pension fund
Diversification is investing in a collection of assets whose return do not always move together
and a(n) _____ is a collection of assets. correct answers portfolio
A[n] ______ is a debt and an example is corporate bonds. correct answers liability
_____ is uncertainty about return on assets correct answers Risk
Borrowers borrow directly from lenders in financial markets by _________. correct answers
selling financial instruments
______ is foreign currency deposited outside its home country and Eurodollars are US dollars
deposited in Berlin. correct answers Eurocurrency
If you expect that a company will go bankrupt next year, would you rather hold its bonds or its
equity? (first claim to assets) correct answers Bonds
The secondary market serves an important function by establishing price for _______. correct
answers securities
____ are financial markets in which only short-term debt instruments are traded correct answers
Money markets
_____ are markets in which longer-term debt instruments are traded. correct answers capital
markets
____ are markets in which dealers are at different locations. correct answers O-T-C market
_____ are markets where buyers and sellers meet in one central physical location. correct
answers exchanges
The ___ market is the most common way businesses receive their funds. correct answers debt
, _____ is a currency deposited in banks outside of the home country. correct answers
Eurocurrency
Channeling funds from savers to borrowers (investors) is more efficient using ____. correct
answers indirect finance transfers
In debt markets, a long term maturity would be ____. correct answers greater than 10 years
The _____ market provides liquidity by establishing a market where investors who bought
securities can sell them again. correct answers secondary
Debt is a contractual obligation and ____ has a residual claim on assets correct answers equity
A(n) ___ market is a financial market in which it is the only time a firm receives money when its
shares are sold to buyers. correct answers primary
A(n) ___ market is a financial market in which securities are debt and equity. correct answers
capital
______ was part of the problem leading to the Great Recession. correct answers Moral hazard
Courses tied to Unit 2/Chapter 2 include: correct answers English, Economics, Political Science
There is a(n) ______ relationship between bond value and the market interest rate [YTM].
correct answers inverse
With __________ , you would ask for your money before it is due. correct answers liquidity risk
In a _______, accrued interest plus part of the principal is made with each payment. correct
answers fully amortized loan
______ is the method of calculating the effective maturity on any debt instrument. correct
answers Duration
Which of the following are components in TVM to calculate the value of a financial asset?
correct answers Cash Flow, Interest, Time
With respect to cash flow, __________. correct answers a financial asset is only worth the cash it
pays you, cash is king
When calculating Present Value, you are calculating _________. correct answers what a
financial asset is worth
In bond calculations, Market Interest Rate is variable and is equal to the _______. correct
answers YTM
Preparation || with 100% Errorless Answers.
The _____ uses Monetary Policy to help control the Money Supply. correct answers Fed
The price of one country's currency in terms of another's currency is the ___ rate. correct answers
foreign exchange
___ represents an ownership position in a corporation. correct answers Stock
A(n) _____ is an obligation of the borrower. correct answers bond
A(n) ___ functions as a middle man in the transfer of funds from lenders to borrowers. correct
answers financial intermediary
A(n) ___ is the cost of borrowing money. correct answers interest rate
If your country has a strong currency, it costs ____ to buy another country's goods. correct
answers less
Which of the following courses in a well rounded education are related to human behavior?
correct answers Psychology
______ is a place where financial assets are exchanged. correct answers foreign exchange
market, bond market & stock market
_____ is where the primary financial intermediary& conducts monetary policy. correct answers
Central Bank
Is everybody worse off when interest rates rise? correct answers No; savers earn more interest on
savings.
Common stock represents a[n] _______. correct answers ownership in a firm
A reason to study financial markets is ________. correct answers market activity affects personal
wealth & the behavior of business firm
Companies initially sell stock in the ______. correct answers primary market
An institution that borrows funds from people who have saved and makes loans to others is a(n)
________. correct answers financial intermediary
The government agency responsible for the conduct of monetary policy is the _______. correct
answers central bank
,How can a change in interest rates affect the profitability of financial institutions? correct
answers It affects the cost of acquiring funds & the income on loans.
What is the basic activity of banks? correct answers They use deposited funds to make loans &
accept deposits of funds.
Financial institutions that accept deposits and makes loans are _______. correct answers
commercial banks
A _______ is a claim on an issuer's future income or assets. correct answers Security
A type of Financial Intermediary is Contractual Savings Institution; an example is a _________.
correct answers pension fund
Diversification is investing in a collection of assets whose return do not always move together
and a(n) _____ is a collection of assets. correct answers portfolio
A[n] ______ is a debt and an example is corporate bonds. correct answers liability
_____ is uncertainty about return on assets correct answers Risk
Borrowers borrow directly from lenders in financial markets by _________. correct answers
selling financial instruments
______ is foreign currency deposited outside its home country and Eurodollars are US dollars
deposited in Berlin. correct answers Eurocurrency
If you expect that a company will go bankrupt next year, would you rather hold its bonds or its
equity? (first claim to assets) correct answers Bonds
The secondary market serves an important function by establishing price for _______. correct
answers securities
____ are financial markets in which only short-term debt instruments are traded correct answers
Money markets
_____ are markets in which longer-term debt instruments are traded. correct answers capital
markets
____ are markets in which dealers are at different locations. correct answers O-T-C market
_____ are markets where buyers and sellers meet in one central physical location. correct
answers exchanges
The ___ market is the most common way businesses receive their funds. correct answers debt
, _____ is a currency deposited in banks outside of the home country. correct answers
Eurocurrency
Channeling funds from savers to borrowers (investors) is more efficient using ____. correct
answers indirect finance transfers
In debt markets, a long term maturity would be ____. correct answers greater than 10 years
The _____ market provides liquidity by establishing a market where investors who bought
securities can sell them again. correct answers secondary
Debt is a contractual obligation and ____ has a residual claim on assets correct answers equity
A(n) ___ market is a financial market in which it is the only time a firm receives money when its
shares are sold to buyers. correct answers primary
A(n) ___ market is a financial market in which securities are debt and equity. correct answers
capital
______ was part of the problem leading to the Great Recession. correct answers Moral hazard
Courses tied to Unit 2/Chapter 2 include: correct answers English, Economics, Political Science
There is a(n) ______ relationship between bond value and the market interest rate [YTM].
correct answers inverse
With __________ , you would ask for your money before it is due. correct answers liquidity risk
In a _______, accrued interest plus part of the principal is made with each payment. correct
answers fully amortized loan
______ is the method of calculating the effective maturity on any debt instrument. correct
answers Duration
Which of the following are components in TVM to calculate the value of a financial asset?
correct answers Cash Flow, Interest, Time
With respect to cash flow, __________. correct answers a financial asset is only worth the cash it
pays you, cash is king
When calculating Present Value, you are calculating _________. correct answers what a
financial asset is worth
In bond calculations, Market Interest Rate is variable and is equal to the _______. correct
answers YTM
