Exam (elaborations)
Financial Markets And Institutions 8th Edition By Anthony Saunders
- Course
- Institution
- Book
Financial Markets And Institutions 8th Edition By Anthony Saunders
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Financial Markets And Institutions 8th Edition By Anthony Saunders
-
Financial Markets And Institutions 8th Edition By Anthony Saunders
-
TEST BANK FOR FINANCIAL MARKETS AND INSTITUTIONS 8TH EDITION ANTHONY SAUNDERS >> QUESTIONS AND ANSWERS | 2024 ALL CHAPTERS
Seller
Follow
kushboopatel6867
Content preview
TEST BANK For Financial Markets And Institutions 8th EditionBy Anthony Saunders
Money is anything accepted by anyone as payment for services or goods. -
ANSWER:True
Interest rates are determined in the bond markets. - ANSWER:True
A stock is a debt security that promises to make periodic payments for a specific
period of time. - ANSWER:False
Monetary policy affects interest rates but has little effect on inflation or business
cycles. - ANSWER:False
The government organization responsible for the conduct of monetary policy in the
United States is the U.S. Treasury. - ANSWER:False
Interest rates can be accurately described as the rental price of money. -
ANSWER:True
Holding everything else constant, as the dollar weakens vacations abroad become
less attractive. - ANSWER:True
In recent years, financial markets have become more stable and less risky. -
ANSWER:False
Financial innovation has provided more options to both investors and borrowers. -
ANSWER:True
A financial intermediary borrows funds from people who have saved. - ANSWER:True
From 2001 to 2008, the dollar depreciated substantially. - ANSWER:True
From 2007 to 2009, the U.S. economy was hit by the worst financial crisis since the
Great Depression. - ANSWER:True
Holding everything else constant, as the dollar strengthens foreigners will buy more
U.S. exports. - ANSWER:False
In a bull market stock prices are rising, on average. - ANSWER:True
In a bear market stock prices are rising, on average. - ANSWER:False
Financial institutions are among the largest employers in the country and frequently
pay very high salaries. - ANSWER:True
,Different interest rates have a tendency to move in unison. - ANSWER:True
Financial markets are what makes financial institutions work. - ANSWER:False
In recent years, financial markets have become more risky. However, only a limited
number of tools (such as derivatives) are available to assist in managing this risk. -
ANSWER:False
Although the internet has changed many aspects of our lives, it hasn't proven very
useful for collecting and/or analyzing financial and economic data. - ANSWER:False
Every financial market allows loans to be made. - ANSWER:True
Most people's involvement with the financial system is through financial
intermediaries rather than financial markets. - ANSWER:True
A critical function of financial markets is an efficient allocation of capital. -
ANSWER:True
The New York Stock Exchange is an example of a primary market. - ANSWER:False
Equity represents an ownership interest in a firm and entitles the holder to the
residual cash flows. - ANSWER:True
The capital market is a financial market in which only short-term debt instruments
(generally those with an original maturity of less than one year) are traded. -
ANSWER:False
Many common stocks are traded over the counter, although a majority of the largest
corporations have their shares traded at organized stock exchanges. - ANSWER:True
Many common stocks are traded at organized exchanges, although a majority of the
largest corporations have their shares traded over the counter. - ANSWER:False
Corporations that issue new securities to raise capital now conduct more of this
business in financial markets in Europe and Asia than in the U.S. - ANSWER:True
Currently, over 80% of the new issues in the international bond market are
Eurobonds. - ANSWER:False
American investors pay attention to only the Dow Jones Industrial Average. -
ANSWER:False
A bond denominated in euros and issued in a country that uses the euro as its
currency is an example of a Eurobond. - ANSWER:False
, An example of direct financing is if you were to lend money to your neighbor. -
ANSWER:True
Liquidity services are services that make it easier for customers to conduct financial
transactions. - ANSWER:True
A financial intermediary's risk-sharing activities are also referred to as asset
transformation. - ANSWER:True
The process of financial intermediation is also known as direct finance. -
ANSWER:False
Through economies of scale, financial intermediaries can lower the cost of
information production for each service by applying one information resource to
many different services. - ANSWER:True
Adverse selection refers to those with high credit risks, being most aggressive in their
search for funds. - ANSWER:True
A mutual fund is not a depository institution. - ANSWER:True
A pension fund is not a contractual savings institution. - ANSWER:False
"Thrift institutions" include savings and loan associations, mutual savings banks, and
credit unions. - ANSWER:True
The government agency that insures each depositor at a commercial bank, savings
and loan association, or mutual savings bank up to a loss of $100,000 per account
($250,000 for individual retirement accounts) is the Securities and Exchange
Commission (SEC). - ANSWER:False
In the U.S., financial intermediaries are restricted in what they are allowed to do and
what assets they can hold. - ANSWER:True
Unlike regulations in other countries, there are very few federal regulations
governing who is allowed to set up a financial intermediary. - ANSWER:False
A bond's current market value is equal to the present value of the coupon payments
plus the present value of the face amount. - ANSWER:True
Discounting the future is the procedure used to find the future value of a dollar
received today. - ANSWER:False
The current yield is the best measure of an investor's return from holding a bond. -
ANSWER:False
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kushboopatel6867. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76658 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now