Practice_Exam_I(1) - Practice Midterm Exam 1 ECO 21000 Money and Banking 25 September 2015 Part 1 Multiple Choice(50 Points 1 Every nancial market has

Practice_Exam_I(1) - Practice Midterm Exam 1 ECO 21000...

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Practice Midterm Exam 1 ECO 21000: Money and Banking 25 September 2015 Part 1: Multiple Choice (50 Points) 1. Every financial market has the following characteristic: A)It determines the level of interest rates.B)It allows common stock to be traded.C)It allows loans to be made.D)It channels funds from lenders-savers to borrowers-spenders. 2. Which of the following statements about the characteristics of debt and equities is true? 3. Secondary markets make financial instruments more A) solid. B) vapid. C) liquid. D) risky. 4. U.S. Treasury bills pay no interest but are sold at a.That is, you will pay a lowerpurchase price than the amount you receive at maturity. 1
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5. Economies of scale enable financial institutions to A) reduce transactions costs.
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  • Fall '15
  • eric
  • Interest Rates, percent coupon bond, Treasury bonds

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