Finance Departmental Exam ACTUAL
UPDATED QUESTIONS AND CORRECT
ANSWERS
Introduction to Finance - CORRECT ANSWERS✅✅Placeholder
Financial Markets and Institutions - CORRECT ANSWERS✅✅the firms and regulatory
agencies that oversee our financial system
allows the purchase of bonds, stocks, foreign exchange, and derivatives
Wall Street, nyse
1) Every financial market performs the following function:
A) It determines the level of interest rates.
B) It allows common stock to be traded.
C) It allows loans to be made.
D) It channels funds from lenders-savers to borrowers-spenders. - CORRECT
ANSWERS✅✅D) It channels funds from lenders-savers to borrowers-spenders.
What is the primary function of large, diversified brokerage firms in the money market?
a. To sell money market securities to the Federal Reserve for its open market operations
b. To buy money market securities from corporations that need liquidity
c. To make a market for money market securities by maintaining an inventory from which to
buy or sell
d. To buy T-bills from the U. S. Treasury Department - CORRECT ANSWERS✅✅c. To
make a market for money market securities by maintaining an inventory from which to buy
or sell
All financial intermediary institutions in the intermediation market
a. buy primary securities and sell secondary securities
b. borrow short and lend long
c. borrow in small denominations and lend in large
, d. buy from brokers and dealers and sell to the public - CORRECT ANSWERS✅✅b.
borrow short and lend long
Which of the following are secondary markets?
A) The New York Stock Exchange
B) The U.S. government bond market
C) The over-the-counter stock market
D) The options markets - CORRECT ANSWERS✅✅E) All of the above
Commercial Banks - CORRECT ANSWERS✅✅Privately owned financial institutions that
accept demand deposits and make loans and provide other services for the public
What are Federal funds?
a. Treasury notes
b. Commercial bank deposits at the Federal Reserve
c. Federal Reserve assets
d. Vault cast of the Federal government - CORRECT ANSWERS✅✅b. Commercial bank
deposits at the Federal Reserve
Source of funds for banks - CORRECT ANSWERS✅✅1.Transaction Deposits
A deposit having immediate and full liquidity.
2. Saving Deposits
Deposits on which interest is paid.
3. Time Deposits
Deposits that cannot be withdrawn before a set date or completion of a time period.
4. Money Market Deposit Account
An deposit account that pays interest according to current interest rates in money market.
Broker - CORRECT ANSWERS✅✅executes orders on behalf of clients
full service, discount, and online
UPDATED QUESTIONS AND CORRECT
ANSWERS
Introduction to Finance - CORRECT ANSWERS✅✅Placeholder
Financial Markets and Institutions - CORRECT ANSWERS✅✅the firms and regulatory
agencies that oversee our financial system
allows the purchase of bonds, stocks, foreign exchange, and derivatives
Wall Street, nyse
1) Every financial market performs the following function:
A) It determines the level of interest rates.
B) It allows common stock to be traded.
C) It allows loans to be made.
D) It channels funds from lenders-savers to borrowers-spenders. - CORRECT
ANSWERS✅✅D) It channels funds from lenders-savers to borrowers-spenders.
What is the primary function of large, diversified brokerage firms in the money market?
a. To sell money market securities to the Federal Reserve for its open market operations
b. To buy money market securities from corporations that need liquidity
c. To make a market for money market securities by maintaining an inventory from which to
buy or sell
d. To buy T-bills from the U. S. Treasury Department - CORRECT ANSWERS✅✅c. To
make a market for money market securities by maintaining an inventory from which to buy
or sell
All financial intermediary institutions in the intermediation market
a. buy primary securities and sell secondary securities
b. borrow short and lend long
c. borrow in small denominations and lend in large
, d. buy from brokers and dealers and sell to the public - CORRECT ANSWERS✅✅b.
borrow short and lend long
Which of the following are secondary markets?
A) The New York Stock Exchange
B) The U.S. government bond market
C) The over-the-counter stock market
D) The options markets - CORRECT ANSWERS✅✅E) All of the above
Commercial Banks - CORRECT ANSWERS✅✅Privately owned financial institutions that
accept demand deposits and make loans and provide other services for the public
What are Federal funds?
a. Treasury notes
b. Commercial bank deposits at the Federal Reserve
c. Federal Reserve assets
d. Vault cast of the Federal government - CORRECT ANSWERS✅✅b. Commercial bank
deposits at the Federal Reserve
Source of funds for banks - CORRECT ANSWERS✅✅1.Transaction Deposits
A deposit having immediate and full liquidity.
2. Saving Deposits
Deposits on which interest is paid.
3. Time Deposits
Deposits that cannot be withdrawn before a set date or completion of a time period.
4. Money Market Deposit Account
An deposit account that pays interest according to current interest rates in money market.
Broker - CORRECT ANSWERS✅✅executes orders on behalf of clients
full service, discount, and online
