ch09 - Financial Markets and Institutions, 6e...

Info iconThis preview shows pages 1–60. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Markets and Institutions, 6e (Mishkin/Eakins)  Chapter 9    1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Money  Markets 9.1 
Background image of page 2
Mul tiple  Cho ice
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1) 
Background image of page 4
Activity  in money markets increased significantly in the late 1970s and early 1980s because of  A) 
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
rising short - term interest rates.  B) 
Background image of page 6
regulations that  limited what banks could pay for deposits.  C) 
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
both A and B.  D) 
Background image of page 8
neither (a) nor  (b).  Answer:  
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question Status: 
Background image of page 10
Previous Edition 2) 
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Money  market securities have all the following characteristics except they are not  A) 
Background image of page 12
short term.  B) 
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
money.  C) 
Background image of page 14
low risk.  D) 
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
very liquid.  Answer:  
Background image of page 16
Question Status: 
Background image of page 17

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Previous Edition 3) 
Background image of page 18
Money  market instruments  A) 
Background image of page 19

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
are usually sold  in large denominations.  B) 
Background image of page 20
have low  default risk.  C) 
Background image of page 21

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
mature in one  year or less.  D) 
Background image of page 22
are  characterized by all of the above.  E) 
Background image of page 23

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
are  characterized by only A and B of the above.  Answer:  
Background image of page 24
Question Status: 
Background image of page 25

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Previous Edition 4) 
Background image of page 26
The  banking industry  A) 
Background image of page 27

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
should have an  efficiency  advantage in gathering information that would eliminate the need for the money markets.  B) 
Background image of page 28
exists primarily  to mediate the asymmetric information problem between saver - lenders and borrower - spenders.  C) 
Background image of page 29

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
is subject to  more regulations and governmental costs than are the money markets.  D) 
Background image of page 30
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/17/2011 for the course ECON 317 taught by Professor Guidry during the Spring '11 term at Nicholls State.

Page1 / 446

ch09 - Financial Markets and Institutions, 6e...

This preview shows document pages 1 - 60. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online