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ISE Financial Markets and Institutions 8th Edition Anthony Saunders, Marcia Millon Cornett © 2022 Test bank

(2 customer reviews)

ISE Financial Markets and Institutions 8th Edition Anthony Saunders, Marcia Millon Cornett © 2022 Test bank

ISE Financial Markets and Institutions

( Test Bank)

ISE Financial Markets and Institutions 8th Edition Anthony Saunders, Marcia Millon Cornett © 2022 Test bank

Edition:8th Edition

Author Name:Anthony Saunders, Marcia Millon Cornett

contact:

Whatsapp +1 (949) 734-4773

 

for the Facebook page click here 

 

for more books  for  ( Test Bank and Solution Manual) click here

 

for the solution manual click here

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ISE Financial Markets and Institutions 8th Edition Anthony Saunders, Marcia Millon Cornett © 2022 Test bank

ISE Financial Markets and Institutions

( Test Bank)

ISE Financial Markets and Institutions 8th Edition Anthony Saunders, Marcia Millon Cornett © 2022 Test bank

Edition:8th Edition

Author Name:Anthony Saunders, Marcia Millon Cornett

contact:

Whatsapp +1 (949) 734-4773

 

for the Facebook page click here 

 

for more books  for  ( Test Bank and Solution Manual) click here

 

for the solution manual click here

sample free

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Student name:__________
1) What factors are encouraging financial institutions to offer overlapping financial services such as banking, investment banking, brokerage, etc.? 1.I. Regulatory changes allowing institutions to offer more services
2.II. Technological improvements reducing the cost of providing financial services
3.III. Increasing competition from full-service global financial institutions
4.IV. Reduction in the need to manage risk at financial institutions

A) I only
B) II and III only
C) I, II, and III only
D) I, II, and IV only
E) I, II, III, and IV

2) IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public through its mutual funds.

This transaction is an example of a(n):

A) primary market transaction.
B) asset transformation by Morgan Stanley.
C) money market transaction.
D) foreign exchange transaction.
E) forward transaction.

3) IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public through its mutual funds.

Morgan Stanley is acting as a(n)

A) asset transformer.
B) asset broker.
C) government regulator.
D) foreign service representative.
E) derivatives trader.

4) A corporation seeking to sell new equity securities to the public for the first time in order to raise cash for capital investment would most likely:

A) conduct an IPO with the assistance of an investment banker.
B) engage in a secondary market sale of equity.
C) conduct a private placement to a large number of potential buyers.
D) place an ad in the Wall Street Journal soliciting retail suppliers of funds.
E) issue bonds with the assistance of a dealer.

5) The largest capital market security outstanding in 2019 measured by market value was:

A) securitized mortgages.
B) corporate bonds.
C) municipal bonds.
D) Treasury bonds.
E) corporate stocks.

6) The diagram below is a diagram of the:

A) secondary markets.
B) primary markets.
C) money markets.
D) derivatives markets.
E) commodities markets.

7) _________ and __________ allow a financial intermediary to offer safe liquid liabilities such as deposits while investing the depositors’ money in riskier illiquid assets.

A) Diversification; high equity returns
B) Price risk; collateral
C) Free riders; regulations
D) Monitoring; diversification
E) Primary markets; foreign exchange markets

8) Depository institutions include:

A) banks only.
B) thrifts only.
C) finance companies only.
D) banks and thrifts.
E) All of these choices are correct.

9) Match the intermediary with the characteristic that best describes its function. 1.I. Provide protection from adverse events
2.II. Pool funds of small savers and invest in either money or capital markets
3.III. Provide consumer loans and real estate loans funded by deposits
4.IV. Accumulate and transfer wealth from work period to retirement period
5.V. Underwrite and trade securities and provide brokerage services
1.Thrifts
2.Insurers
3.Pension funds
4.Securities firms and investment banks
5.Mutual funds

A) 1, 3, 2, 5, 4
B) 4, 2, 3, 5, 1
C) 2, 5, 1, 3, 4
D) 2, 4, 5, 3, 1
E) 5, 1, 3, 2, 4

10) Secondary markets help support primary markets because secondary markets: 1.I. offer primary market purchasers liquidity for their holdings.
2.II. update the price or value of the primary market claims.
3.III. reduce the cost of trading the primary market claims.

A) I only
B) II only
C) I and II only
D) II and III only
E) I, II, and III

11) Financial intermediaries (FIs) can offer savers a safer, more liquid investment than a capital market security, even though the intermediary invests in risky illiquid instruments because:

A) FIs can diversify away some of their risk.
B) FIs closely monitor the riskiness of their assets.
C) the federal government requires them to do so.
D) FIs can diversify away some of their risk and closely monitor the riskiness of their assets.
E) FIs can diversify away some of their risk and the federal government requires them to do so.

12) Households are increasingly likely to both directly purchase securities (perhaps via a broker) and also place some money with a bank or thrift to meet different needs. Match the given investor’s desire with the appropriate intermediary or direct security.
1.I. Money likely to be needed within six months
2.II. Money to be set aside for college in 10 years
3.III. Money to provide supplemental retirement income
4.IV. Money to be used to provide for children in the event of death
1.Depository institutions
2.Insurer
3.Pension fund
4.Stocks or bonds

A) 2, 3, 4, 1
B) 1, 4, 2, 3
C) 3, 2, 1, 4
D) 1, 4, 3, 2
E) 4, 2, 1, 3

13) As of 2019, which one of the following derivatives instruments had the greatest amount of notional principal outstanding?

A) Futures
B) Swaps
C) Options
D) Bonds
E) Forwards

14) Which of the following is/are money market instrument(s)?

A) Negotiable CDs
B) Common stock
C) T-bonds
D) 4-year maturity corporate bond
E) Negotiable CDs, common stock, and T-bonds

15) The Securities Exchange Commission (SEC) does not:

A) decide whether a public issue is fairly priced.
B) decide whether a firm making a public issue has provided enough information for investors to decide whether the issue is fairly priced.
C) require exchanges to monitor trading to prevent insider trading.
D) attempt to reduce excessive price fluctuations.
E) monitor the major securities exchanges.

16) The most diversified type of depository institutions is:

A) credit unions.
B) savings associations.
C) commercial banks.
D) finance companies.
E) mutual funds.

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  1. Matthew (verified owner)

    finally, I can get A+

    Matthew

  2. Max (verified owner)

    Good thank you

    Max

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