91 the most important financial institution in the

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91. The most important financial institution in the financial system is ____. the central bank 92. The most important role of the Federal Reserve System when it was founded was _____. be the lender of last resort 93. Mutual funds offer investors all of the following benefits EXCEPT _____. Greater than average return 94. National banks are chartered by the _____. Office of the Comptroller of the Currency 95. The objective of a(n) ______ is an unbiased opinion of a firm's financial health and that it is adhering to standard accounting principles. audit 96. ______ occurs before the transaction has occured. Adverse selection 97. ____ occurs when people who do not pay for information take advantage of the information other people have paid for. The free-rider problem 98. One of the remedies to conflict of interest in auditing firms was the _______. Sorbanes-Oxley Act of 2002 99. One reason Reserve Requirements is the least used Monetary Policy is ____. It can cause liquidity problems for the banks 100. One reason the Federal Reserve System was set up in 12 regional Federal Reserve banks was to _____ make sure all regions of the country were represented in monetary policy deliberations 101. Other goals of Monetary Policy include _____. foreign exchange market stability
102. Pension plans specifying only what will be contributed to the plan is a(n) _____ plan. defined contribution 103. A person who has the responsibilty for accepting or rejecting the issuance of an insurance policy is an _____. underwriter 104. _____ policies have a constant premium but the amount of insurance coverage declines each year. Decreasing term 105. A prevalant feature of debt contracts for both households and businesses is ___. Collateral 106. The price of one country's currency in terms of another country's currency is the __. Foreign exchange rate 107. The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the _____. interest rate 108. Primary credit ____. is discount lending offered to banks at the discount rate 109. Property and Casualty insurance protects against harm from ___ and ______. theft, product failure 110. The reason people choose to buy insurance even if their expected loss is less than the premiums they will pay includes: _______. they are risk adverse 111. _____ refers to the management of the money supply. Monetary policy 112. ______ refers to the practice of allowing trades that are received after 4:00 PM to trade at the 4:00 PM price when they should be traded at the next day's price. Late Trading 113. Reinvestment risk is the risk that _____ a bond's future coupon payments may have to be invested at a rate lower than the bond's yield to maturity 114. A ______ requires a financial system that moves funds from savers to borrowers.. Vibrant Economy 115. The _____ says that when many people are insured, the probability distribution of the losses will assume a normal probability distribution.

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