TEST BANK
Financial Markets and Institutions
by Jeff Madura
12th Edition
N
U
R
SE
D
O
C
S
,Chapter 01: Role of Financial Markets and Institutions
1. Financial market participants who provide funds are called
a. deficit units.
b. surplus units.
c. primary units.
d. secondary units.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
N
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
U
DATE CREATED: 9/15/2016 6:38 AM
DATE MODIFIED: 9/16/2016 1:14 AM
R
2. Which of the following is NOT an issuer of bonds?
a. households
b. corporations
SE
c. the U.S. Treasury
d. government agencies
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
D
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
O
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
C
DATE CREATED: 9/16/2016 1:15 AM
DATE MODIFIED: 5/1/2018 11:55 AM
S
3. Behavioral finance
a. applies concepts from sociology and anthropology to the behavior of market participants.
b. studies the behavior of financial markets in response to changes in Federal Reserve policy.
c. applies psychology to financial decision making.
d. explains why markets are efficient.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 01: Role of Financial Markets and Institutions
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/16/2016 1:18 AM
DATE MODIFIED: 9/16/2016 1:21 AM
4. Those financial markets that facilitate the flow of short-term funds are known as:
a. money markets
b. capital markets
c. primary markets
N
d. secondary markets
ANSWER: a
POINTS: 1
U
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
R
LEARNING OBJECTIVES: FMAI.MADU.15.01.02
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.02
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
SE
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/16/2016 1:21 AM
DATE MODIFIED: 5/1/2018 11:56 AM
5. Funds are provided to the initial issuer of securities in the:
D
a. secondary market
b. primary market
c. deficit market
O
d. surplus market
ANSWER: b
POINTS: 1
C
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
S
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/16/2016 1:24 AM
DATE MODIFIED: 5/1/2018 12:26 PM
6. Which of the following is a capital market instrument?
a. a six-month certificate of deposit
b. a three-month Treasury bill
Copyright Cengage Learning. Powered by Cognero. Page 2
, Chapter 01: Role of Financial Markets and Institutions
c. a ten-year bond
d. an agreement for a bank to loan funds directly to a company for nine months
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.02
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
N
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 9/16/2016 1:27 AM
DATE MODIFIED: 9/16/2016 1:29 AM
U
7. Which of the following is a money market security?
a. Treasury note
b. municipal bond
R
c. mortgage
d. commercial paper
ANSWER: d
SE
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.02
D
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Comprehension
O
DATE CREATED: 9/16/2016 1:29 AM
DATE MODIFIED: 9/16/2016 1:31 AM
C
8. The creditors in the federal funds market are:
a. households
b. depository institutions
S
c. firms
d. government agencies
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.03
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
Copyright Cengage Learning. Powered by Cognero. Page 3
Financial Markets and Institutions
by Jeff Madura
12th Edition
N
U
R
SE
D
O
C
S
,Chapter 01: Role of Financial Markets and Institutions
1. Financial market participants who provide funds are called
a. deficit units.
b. surplus units.
c. primary units.
d. secondary units.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
N
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
U
DATE CREATED: 9/15/2016 6:38 AM
DATE MODIFIED: 9/16/2016 1:14 AM
R
2. Which of the following is NOT an issuer of bonds?
a. households
b. corporations
SE
c. the U.S. Treasury
d. government agencies
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
D
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
O
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
C
DATE CREATED: 9/16/2016 1:15 AM
DATE MODIFIED: 5/1/2018 11:55 AM
S
3. Behavioral finance
a. applies concepts from sociology and anthropology to the behavior of market participants.
b. studies the behavior of financial markets in response to changes in Federal Reserve policy.
c. applies psychology to financial decision making.
d. explains why markets are efficient.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 01: Role of Financial Markets and Institutions
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/16/2016 1:18 AM
DATE MODIFIED: 9/16/2016 1:21 AM
4. Those financial markets that facilitate the flow of short-term funds are known as:
a. money markets
b. capital markets
c. primary markets
N
d. secondary markets
ANSWER: a
POINTS: 1
U
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
R
LEARNING OBJECTIVES: FMAI.MADU.15.01.02
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.02
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
SE
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/16/2016 1:21 AM
DATE MODIFIED: 5/1/2018 11:56 AM
5. Funds are provided to the initial issuer of securities in the:
D
a. secondary market
b. primary market
c. deficit market
O
d. surplus market
ANSWER: b
POINTS: 1
C
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
S
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/16/2016 1:24 AM
DATE MODIFIED: 5/1/2018 12:26 PM
6. Which of the following is a capital market instrument?
a. a six-month certificate of deposit
b. a three-month Treasury bill
Copyright Cengage Learning. Powered by Cognero. Page 2
, Chapter 01: Role of Financial Markets and Institutions
c. a ten-year bond
d. an agreement for a bank to loan funds directly to a company for nine months
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.02
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
N
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 9/16/2016 1:27 AM
DATE MODIFIED: 9/16/2016 1:29 AM
U
7. Which of the following is a money market security?
a. Treasury note
b. municipal bond
R
c. mortgage
d. commercial paper
ANSWER: d
SE
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.02
D
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Comprehension
O
DATE CREATED: 9/16/2016 1:29 AM
DATE MODIFIED: 9/16/2016 1:31 AM
C
8. The creditors in the federal funds market are:
a. households
b. depository institutions
S
c. firms
d. government agencies
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.03
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
Copyright Cengage Learning. Powered by Cognero. Page 3
