Page 1
q
,1. Financial market participants who provide funds are called
q q q q q q q
a. deficit units. q
b. surplus units. q
c. primary units. q
d. secondary units. q
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03
q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02
q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/15/2016 6:38 AM q q
DATE MODIFIED:
q 9/16/2016 1:14 AM q q
2. Which of the following is NOT an issuer of bonds?
q q q q q q q q q
a. households
b. corporations
c. the U.S. Treasury
q q
d. government agencie q
s
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/16/2016 1:15 AM q q
DATE MODIFIED:
q 5/1/2018 11:55 AM q q
3. Behavioral finance q
a. applies concepts from sociology and anthropology to the behavior of market participants.
q q q q q q q q q q q
Page 2
q
, b. studies the behavior of financial markets in response to changes in Federal Reserve polic
q q q q q q q q q q q q q
y.
c. applies psychology to financial decision making.
q q q q q
d. explains why markets are efficient. q q q q
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/16/2016 1:18 AM q q
DATE MODIFIED:
q 9/16/2016 1:21 AM q q
4. Those financial markets that facilitate the flow of short-term funds are known as:
q q q q q q q q q q q q
a. money markets q
b. capital markets q
c. primary markets q
d. secondary markets q
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.02 q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/16/2016 1:21 AM q q
DATE MODIFIED:
q 5/1/2018 11:56 AM q q
5. Funds are provided to the initial issuer of securities in the:
q q q q q q q q q q
a. secondary market q
b. primary market q
c. deficit market q
d. surplus market q
ANSWER: b
POINTS: 1
Page 3
q
, DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03
q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02
q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/16/2016 1:24 AM q q
DATE MODIFIED:
q 5/1/2018 12:26 PM q q
6. Which of the following is a capital market instrument?
q q q q q q q q
a. a six-month certificate of deposit
q q q q
b. a three-month Treasury bill
q q q
c. a ten-year bond
q q
d. an agreement for a bank to loan funds directly to a company for nine month
q q q q q q q q q q q q q q
s
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q
KEYWORDS: Bloom's: Comprehension q
DATE CREATED:
q 9/16/2016 1:27 AM q q
DATE MODIFIED:
q 9/16/2016 1:29 AM q q
7. Which of the following is a money market security?
q q q q q q q q
a. Treasury note q
b. municipal bond q
c. mortgage
d. commercial paper q
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q
Page 4
q
q
,1. Financial market participants who provide funds are called
q q q q q q q
a. deficit units. q
b. surplus units. q
c. primary units. q
d. secondary units. q
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03
q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02
q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/15/2016 6:38 AM q q
DATE MODIFIED:
q 9/16/2016 1:14 AM q q
2. Which of the following is NOT an issuer of bonds?
q q q q q q q q q
a. households
b. corporations
c. the U.S. Treasury
q q
d. government agencie q
s
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/16/2016 1:15 AM q q
DATE MODIFIED:
q 5/1/2018 11:55 AM q q
3. Behavioral finance q
a. applies concepts from sociology and anthropology to the behavior of market participants.
q q q q q q q q q q q
Page 2
q
, b. studies the behavior of financial markets in response to changes in Federal Reserve polic
q q q q q q q q q q q q q
y.
c. applies psychology to financial decision making.
q q q q q
d. explains why markets are efficient. q q q q
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/16/2016 1:18 AM q q
DATE MODIFIED:
q 9/16/2016 1:21 AM q q
4. Those financial markets that facilitate the flow of short-term funds are known as:
q q q q q q q q q q q q
a. money markets q
b. capital markets q
c. primary markets q
d. secondary markets q
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.02 q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/16/2016 1:21 AM q q
DATE MODIFIED:
q 5/1/2018 11:56 AM q q
5. Funds are provided to the initial issuer of securities in the:
q q q q q q q q q q
a. secondary market q
b. primary market q
c. deficit market q
d. surplus market q
ANSWER: b
POINTS: 1
Page 3
q
, DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03
q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02
q q q q q
KEYWORDS: Bloom's: Knowledge q
DATE CREATED:
q 9/16/2016 1:24 AM q q
DATE MODIFIED:
q 5/1/2018 12:26 PM q q
6. Which of the following is a capital market instrument?
q q q q q q q q
a. a six-month certificate of deposit
q q q q
b. a three-month Treasury bill
q q q
c. a ten-year bond
q q
d. an agreement for a bank to loan funds directly to a company for nine month
q q q q q q q q q q q q q q
s
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q
STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q
KEYWORDS: Bloom's: Comprehension q
DATE CREATED:
q 9/16/2016 1:27 AM q q
DATE MODIFIED:
q 9/16/2016 1:29 AM q q
7. Which of the following is a money market security?
q q q q q q q q
a. Treasury note q
b. municipal bond q
c. mortgage
d. commercial paper q
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: q Multiple Choice q
HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q
Page 4
q
