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330 quiz1.07 - 4 Ownership claims on a company’s real...

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Oregon State University McMullen Department of Economics Fall 2007 Economics330 – Quiz # 1 1. Which of the following is NOT an instrument of the money market: a) Commercial paper b) U. S. Treasury Bills c) Corporate bonds d) Eurodollars 2. The largest debt market in the U.S. capital market is: a) The corporate bond market b) The U.S. government bond market c) The mortgage market d) The stock market Name the financial instrument described by the following definitions: 3. Short term loans from a corporation, state or local government, or other large entity that has idle funds, to a commercial bank, securities dealer, or other financial intermediary. The borrower provides collateral in the form of U.S. government securities. The corporation (or larger entity) purchases a block of such securities from the bank and the bank agrees to buy back these securities at a price which includes a rate of return for the loan.
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Unformatted text preview: 4. Ownership claims on a company’s real capital assets. 5. Short term loans, usually overnight, made by depository institutions using deposits they hold at the Federal Reserve. 6. A short term unsecured promissory note (IOU) issued by corporations to attract funds for day-to-day business activities. 1 7. Deposits in foreign banks or at U.S. banks located in foreign countries that are denominated in U.S. dollars rather than foreign currencies. 8. A long term loan to finance the purchase of real property, secured by a lien on that property. 9. Banks attract funds for loans by offering receipts for these types of deposits. They are issued in denominations of $100, 000 or more and can be traded prior to maturity. 10. Municipal bonds are issued by state and local governments to finance capital investment projects. What is the unique characteristic of municipal bonds? 2...
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330 quiz1.07 - 4 Ownership claims on a company’s real...

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