CSU Fin 310 Final Exam UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (48)
10. Obtaining funds through _______ is not a common way A) Issuing bonds
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 B) Resolve temporary shortages of funds experienced by banks
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
A) loans.
B) investment securities.
C) fixed assets.
D) repurchase agreements.
, 30. When banks obtain funds in the federal funds market, A) other depository institutions
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 A) day traders
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 C) market price of the underlying security is less than the exercise price
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 C) market price of the security is less than the exercise price.
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 B) False
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
C
Terms in this set (48)
10. Obtaining funds through _______ is not a common way A) Issuing bonds
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 B) Resolve temporary shortages of funds experienced by banks
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
A) loans.
B) investment securities.
C) fixed assets.
D) repurchase agreements.
, 30. When banks obtain funds in the federal funds market, A) other depository institutions
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 A) day traders
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 C) market price of the underlying security is less than the exercise price
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 C) market price of the security is less than the exercise price.
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 B) False
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