7. The primary function of large diversified brokerage firms in the money market is to A. Sell money market securities to the Federal Reserve for its open market operations. B. Make a market for money market securities by maintaining an inventory from which to buy or sell. C. Buy money market securities from corporations that need liquidity. D. buy T-bills from the government

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Answer question 7
0 *4 56
11:07 O
C4G
FINAL TEST FIN435_C...ELANTAN_FEB 2022
This document c
You
NURUL AINA
+2
D. Financial markets.
2. Financial intermediation is the process that the financial intermediaries connect
by transferring funds from one side to another.
and
A. Banks and account holders
B. Investors and lenders
C. Borrowers and lenders
D. Borrowers and securities firms
3. Banks need to have enough capital because:
I. Balance the interest of depositors, creditors, shareholders and borrowers
II. Protect depositors and creditors from losses
III. Maintain general public confidence in the stability of the bank
IV. Provide funds for lending purposes
A. I only
B. I and Il only
C. I, II, and IV
D. I, II, IlI and IV
4. Financial markets and institutions
A. Involve the movement of huge quantities of money.
B. Affect the profits of businesses.
C. Affect the types of goods and services produced in an economy.
D. Do all of the above.
5. What is the meaning of "financing" in the financial market?
A. Sourcing funds
B. Advising an organization to raise charity funds
C. Converting the assets into cash
D. Investing in the securities market
6. Money market securities have all the following characteristics except they are not
A. short term
B. Money
C. Low Risk
D. Very Liquid
7.
The primary function of large diversified brokerage firms in the money market is to
A. Sell money market securities to the Federal Reserve for its open market operations.
B. Make a market for money market securities by maintaining an inventory from which
to buy or sell.
C. Buy money market securities from corporations that need liquidity.
D. buy T-bills from the government
8.
A futures contract is an agreement to trade an asset
A. in the future at a price determined today
B. today at a price prevailing at some future date
C. in the future at a price prevailing in the future
D. today at a price determined today
||
Transcribed Image Text:0 *4 56 11:07 O C4G FINAL TEST FIN435_C...ELANTAN_FEB 2022 This document c You NURUL AINA +2 D. Financial markets. 2. Financial intermediation is the process that the financial intermediaries connect by transferring funds from one side to another. and A. Banks and account holders B. Investors and lenders C. Borrowers and lenders D. Borrowers and securities firms 3. Banks need to have enough capital because: I. Balance the interest of depositors, creditors, shareholders and borrowers II. Protect depositors and creditors from losses III. Maintain general public confidence in the stability of the bank IV. Provide funds for lending purposes A. I only B. I and Il only C. I, II, and IV D. I, II, IlI and IV 4. Financial markets and institutions A. Involve the movement of huge quantities of money. B. Affect the profits of businesses. C. Affect the types of goods and services produced in an economy. D. Do all of the above. 5. What is the meaning of "financing" in the financial market? A. Sourcing funds B. Advising an organization to raise charity funds C. Converting the assets into cash D. Investing in the securities market 6. Money market securities have all the following characteristics except they are not A. short term B. Money C. Low Risk D. Very Liquid 7. The primary function of large diversified brokerage firms in the money market is to A. Sell money market securities to the Federal Reserve for its open market operations. B. Make a market for money market securities by maintaining an inventory from which to buy or sell. C. Buy money market securities from corporations that need liquidity. D. buy T-bills from the government 8. A futures contract is an agreement to trade an asset A. in the future at a price determined today B. today at a price prevailing at some future date C. in the future at a price prevailing in the future D. today at a price determined today ||
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