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
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
Problem 1PS
Related questions
Question
Answer question 7
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
||
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education