Part 1

Position of Financial Markets and Establishments

1 . Economical market members who offer funds are called

A)deficit products.

B)surplus units.

C)primary units.

D)secondary devices.

2 . The main provider(s) of funds for the U. S i9000. Treasury is (are)

A)households and businesses.

B)foreign banks.

C)the National Reserve System.

D)foreign nonfinancial sectors.

3. The largest debt unit is (are)

A) households and businesses.

B) foreign banks.

C) the U. S i9000. Treasury.

D) foreign nonfinancial sectors.

some. Those financial markets that facilitate the flow of short-term money are referred to as

A) money markets.

B) capital markets.

C) primary markets.

D) secondary market segments.

5. Money are provided towards the initial company of securities in the

A)secondary market.

B)primary market.

C)deficit market.

D)surplus market.

6. Which of the following is a capital marketplace instrument?

A)a sixmonth DISC

B)a threemonth Treasury bill

C)a tenyear bond

D)an agreement for the bank to loan cash directly to a business for eight months.

7. Which in the following is known as a money market secureness?

A) Treasury note

B) municipal connection

C) home loan

D) commercial paper

eight. The most common buyers in National funds happen to be

A) homes.

B) depository institutions.

C) firms.

D) government agencies.

on the lookout for. Equity securities have a ________ predicted return than most long term debt investments, and they exhibit a _________ degree of risk.

A) larger; higher

B) lower; reduced

C) decrease; higher

D) higher; reduced

10. Money market securities generally have ______. В Capital market investments are typically likely to have a ______.

A)less liquidity; bigger annualized returning

B)more liquidity; lower annualized return

C)less liquidity; decrease annualized returning

D)more fluid; higher annualized return

eleven. If protection prices fully reflect all available data, the markets for these securities will be

A)efficient.

B)primary.

C)overvalued.

D)undervalued.

12. If perhaps markets are ______, buyers could use offered information overlooked by the industry to earn abnormally substantial returns.

A)perfect

B)active

C)inefficient

D)in sense of balance

13. In the event financial marketplaces are successful, this implies that investors can easily ignore the numerous investment tools available.

Phony

14. The Securities Act of 1933

A)required total disclosure of relevant financial data for publicly offered securities in the major market.

B)declared trading strategies to manipulate the prices of public second securities against the law.

C)declared misleading financial transactions for community primary securities illegal. D)required complete disclosure of relevant economical information to get securities traded...