tb of 4090

tb of 4090 - • Question 1 1 out of 1 points When a...

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Unformatted text preview: • Question 1 1 out of 1 points When a depository institution offers a loan, it is acting as a creditor. Answer Selected Answer: True Correct Answer: True • Question 2 0 out of 1 points Assume that today, the annualized two-year interest rate is 12 percent, and the one-year interest rate is 9 percent. A three-year security has an annualized interest rate of 14 percent. What is the one-year forward rate two years from now? Answer Selected Answer: a. 12.67 percent Correct Answer: e. none of the above • Question 3 0 out of 1 points If markets are ____, investors could use available information ignored by the market to earn abnormally high returns. Answer Selected Answer: a. in equilibrium Correct Answer: b. inefficient • Question 4 1 out of 1 points If a security is undervalued, some investors would capitalize from this by purchasing that security. As a result, the security's price will ____, resulting in a ____ return for those investors. Answer Selected Answer: a. rise; higher Correct Answer: a. rise; higher • Question 5 1 out of 1 points Which of the following is a money market security? Answer Selected Answer: a. commercial paper Correct Answer: a. commercial paper • Question 6 1 out of 1 points Interest income from municipal bonds is exempt from state taxes but is subject to federal taxes. Answer Selected Answer: False Correct Answer: False • Question 7 0 out of 1 points The Securities Exchange Commission (SEC) was established by the Answer Selected Answer: a. Federal Reserve Act. Correct Answer: c. Securities Exchange Act of 1934. • Question 8 1 out of 1 points Common types of capital market securities include Treasury bills and commercial paper. Answer Selected Answer: False Correct Answer: False • Question 9 0 out of 1 points Commercial banks in aggregate have a lower value of assets than savings institutions. Answer Selected Answer: True Correct Answer: False • Question 10 1 out of 1 points When security prices fully reflect all available information, the markets for these securities are said to be efficient. Answer Selected Answer: True Correct Answer: True • Question 11 1 out of 1 points According to segmented markets theory, if investors have mostly long-term funds available and borrowers want short-term funds, this will place ____ pressure on the demand for short-term funds by borrowers and the yield curve will be ____ sloping. Answer Selected Answer: c. upward; downward Correct Answer: c. upward; downward • Question 12 1 out of 1 points Common types of capital market securities include Treasury bills and commercial paper. Answer Selected Answer: False Correct Answer: False • Question 9 0 out of 1 points Commercial banks in aggregate have a lower value of assets than savings institutions....
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tb of 4090 - • Question 1 1 out of 1 points When a...

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