FINC 3310/LEAVELL - All Quizzes - Final Exam Preparation

FINC 3310/LEAVELL - All Quizzes - Final Exam Preparation The _____ uses Monetary Policy to help control the Money Supply. - Fed The price of one country's currency in terms of another's currency is the ___ rate. - foreign exchange ___ represents an ownership position in a corporation. - Stock A(n) _____ is an obligation of the borrower. - bond A(n) ___ functions as a middle man in the transfer of funds from lenders to borrowers. - financial intermediary A(n) ___ is the cost of borrowing money. - interest rate If your country has a strong currency, it costs ____ to buy another country's goods. - less Which of the following courses in a well rounded education are related to human behavior? - Psychology ______ is a place where financial assets are exchanged. - foreign exchange market, bond market & stock market _____ is where the primary financial intermediary& conducts monetary policy. - Central Bank Is everybody worse off when interest rates rise? - No; savers earn more interest on savings. Common stock represents a[n] _______. - ownership in a firm A reason to study financial markets is ________. - market activity affects personal wealth & the behavior of business firm Companies initially sell stock in the ______. - primary market An institution that borrows funds from people who have saved and makes loans to others is a(n) ________. - financial intermediary The government agency responsible for the conduct of monetary policy is the _______. - central bank How can a change in interest rates affect the profitability of financial institutions? - It affects the cost of acquiring funds & the income on loans. What is the basic activity of banks? - They use deposited funds to make loans & accept deposits of funds.