BUSN CH 10 Exam Questions and Answers Already Passed Latest Update

BUSN CH 10 Exam Questions and Answers Already Passed Latest Update Financial Markets - Answersmarkets that transfer funds from savers to borrowers Depository Institutions - Answersa financial intermediary that obtains funds by accepting checking and savings deposits and then lending those funds to borrowers Commercial Banks - AnswersWhat is the most common Depository Institution? Credit Union - Answersa depository institution that is organized as a cooperative, meaning that it is owned by its depositors Savings and Loan Associations - Answersa depository institution that has traditionally obtained most of its funds by accepting savings deposits, which have been used primarily to make mortgage loans Securities Broker - Answersa financial intermediary that acts as an agent for investors who want to buy and sell financial securities. Brokers earn commissions and fees for the services they provide Securities Dealer - Answersa financial intermediary that participates directly in securities markets, buying and selling stocks, and other securities for its own account Investment Banks - Answersa financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets Spread - Answersthe difference between the prices at which they buy and sell a security Federal Reserve Act of 1913 - Answersthe law that established the Federal Reserve System as the central bank of the United States Banking Act of 1933 - Answersthe law that established the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits. It also prohibited commercial banks from selling insurance or acting as investment banks Securities Act of 1933 - Answersthe first major federal law regulating the securities industry. It requires firms issuing new stock in a public offering to file a registration statement with the SEC Securities Exchange Act of 1934 - Answersa federal law dealing with securities regulation that established the Securities and Exchange Commission to regulate and oversee the securities industry Securities and Exchange Commission - Answersthe federal agency with primary responsibility for regulating the securities industry Insider Trading - Answersthe practice of using inside information to profit unfairly from trading in a company's securities, and the SEC has the power to prosecute for this Financial Services Modernization Act of 1999 - Answersan act that overturned the section of the Banking Act of 1933 that prohibited commercial banks from selling insurance or performing the functions of investment banks Capital Gain - Answersthe return on an asset that results when its market price rises above the price the investor paid for it Preferred Stock - Answersa type of stock that gives its holder preference over common stockholders in terms of dividends and claims on assets Common Stock - Answersthe basic form of ownership in a corporation