Practice questions mid

Practice questions mid - 1203 AFE Practice Multiple Choice...

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1203 AFE – Practice Multiple Choice Questions – Mid Semester Exam 1. An SSU’s A. income and expenditures for the period are equal. B. income for the period exceeds expenditures. C. expenditures for the period exceed receipts. D. spending is entirely financed by credit cards 2. When the financial system has achieved a high degree of efficiency, A. Borrowers are able to finance at the highest possible cost. B. Surplus spending units are able to receive the lowest return on their savings. C. Transaction and intermediation costs are low. D. Lenders will have a limited choice of financial investments. 3. Financial institutions facilitate the flow of investment funds A. from savers to borrowers B. from SSUs to DSUs C. from the household sector to the business sector D. any of the above 4. A dealer offers to buy shares of IBM at $120 and sell to investors at $123. The “bid” is A. $120 B. $123 C. $3 D. none of the preceding 5. Most financial intermediaries: A. issue direct claims and purchase direct financial assets. B. issue indirect claims and purchase indirect financial assets.
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This note was uploaded on 06/09/2009 for the course ACCOUNTING 1203AFE taught by Professor Ms.mirellamalin during the Three '08 term at Griffith.

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Practice questions mid - 1203 AFE Practice Multiple Choice...

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