ANNALS OF TECHNOLOGY
SMALLER
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BY MALCOLM GLADWELL
he best way to explore the mystery
of the Huggies Ultratrim disposable diaper is to unfold it and then cut it
in half, widthwise, across what is known
Chapter 13
The Foreign Exchange Market
T Multiple Choice Questions
1.
American firms became less competitive compared to foreign firms during the 1980s because
(a) the quality and productivity of American workers declined.
(b) foreign firms were younger t
Chapter 16
What Should We Do About Conflicts
of Interest in the Financial Industry?
T Multiple Choice Questions
1.
Economies of scope refer to cost savings that arise when the
(a) size of financial transactions increase.
(b) size of financial transactions
Chapter 15
Why Do Financial Institutions Exist?
T Multiple Choice Questions
1.
Of the following sources of external finance for American nonfinancial businesses, the least
important is
(a) loans from banks.
(b) stocks.
(c) bonds and commercial paper.
(d)
Chapter 21
The Mutual Fund Industry
T Multiple Choice Questions
1.
Mutual funds hold about _ of financial intermediaries total assets.
(a) one-sixth
(b) one-fourth
(c) one-half
(d) two-thirds
Answer: A
2.
_ intermediation means that small investors can po
Chapter 23
Investment Banks, Security Brokers
and Dealers, and Venture Capital Firms
T Multiple Choice Questions
1.
An investment bank is a financial institution that
(a) bundles small deposits into larger loans.
(b) helps corporations raise funds.
(c) ho
Chapter 20
Banking Regulation
T Multiple Choice Questions
1.
During the boom years of the 1920s, bank failures were quite
(a) uncommon, averaging less than 30 per year.
(b) uncommon, averaging less than 100 per year.
(c) common, averaging about 600 per ye
Chapter 22
Insurance Companies and Pension Funds
T Multiple Choice Questions
1.
The earliest form of insurance was _ insurance.
(a) life
(b) health
(c) automobile
(d) property and casualty
Answer: D
2.
The certainty equivalent for risk-averse people who b
Chapter 18
Commercial Banking Industry: Structure and Competition
T Multiple Choice Questions
1.
The modern commercial banking system began in America when the
(a) Bank of the United States was chartered in New York in 1801.
(b) Bank of North America was
Chapter 24
Risk Management in Financial Institutions
T Multiple Choice Questions
1.
Banks face the problem of _ in loan markets because bad credit risks are the ones most
likely to seek bank loans.
(a) adverse selection
(b) moral hazard
(c) moral suasion
Contents
Chapter 1
Why Study Financial Markets and Institutions?.1
Chapter 2
Overview of the Financial System .9
Chapter 3
What Do Interest Rates Mean and What Is Their Role in Valuation?.20
Chapter 4
Why Do Interest Rates Change?.34
Chapter 5
How Do Risk
Chapter 14
The International Financial System
T Multiple Choice Questions
1.
A central bank sale of _ to purchase _ in the foreign exchange market results in
an equal rise in its international reserves and the monetary base.
(a) foreign assets; domestic c
Chapter 11
The Stock Market
T Multiple Choice Questions
1.
(I) A share of common stock in a firm represents an ownership interest in that firm. (II) A share of
preferred stock is as much like a bond as it is like common stock.
(a) (I) is true, (II) false.
National
Innovation
Systems
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960,
and which came into force on 30th Sept
Quality
Management
CHAPTER OBJECTIVES
Introduce the quality gurus who have played a significant
role in the evolution of quality management and describe
their specific contributions.
Identify the different dimensions of quality for both goods
and servic
Chapter 1
Why Study Financial Markets and Institutions?
T Multiple Choice Questions
1.
Financial markets and institutions
(a) involve the movement of huge quantities of money.
(b) affect the profits of businesses.
(c) affect the types of goods and service
Chapter 2
Overview of the Financial System
T Multiple Choice Questions
1.
Every financial market performs the following function:
(a) It determines the level of interest rates.
(b) It allows common stock to be traded.
(c) It allows loans to be made.
(d) I
Chapter 4
Why Do Interest Rates Change?
T Multiple Choice Questions
1.
As the price of a bond _ and the expected return _, bonds become more
attractive to investors and the quantity demanded rises.
(a) falls; rises
(b) falls; falls
(c) rises; rises
(d) ri
Chapter 6
Are Financial Markets Efficient?
T Multiple Choice Questions
1.
How expectations are formed is important because expectations influence
(a) the demand for assets.
(b) bond prices.
(c) the risk structure of interest rates.
(d) the term structure
Chapter 9
The Money Markets
T Multiple Choice Questions
1.
Activity in money markets increased significantly in the late 1970s and early 1980s because of
(a) rising short-term interest rates.
(b) regulations that limited what banks could pay for deposits.
Chapter 8
Conduct of Monetary Policy: Tools, Goals, and Targets
T Multiple Choice Questions
1.
Assets on the Feds balance sheet include
(a) government securities and currency in circulation.
(b) discount loans and reserves.
(c) government securities and d
Chapter 10
The Bond Market
T Multiple Choice Questions
1.
Compared to money market securities, capital market securities have
(a) more liquidity.
(b) longer maturities.
(c) lower yields.
(d) less risk.
Answer: B
2.
(I) Securities that have an original mat
Chapter 7
Structure of Central Banks and the Federal Reserve System
T Multiple Choice Questions
1.
Americans fear of centralized power and their distrust of moneyed interests explains why the U.S.
did not have a central bank until the
(a) 17th century.
(b
Chapter 12
The Mortgage Markets
T Multiple Choice Questions
1.
Which of the following are important ways in which mortgage markets differ from the stock and
bond markets?
(a) The usual borrowers in the capital markets are government entities and businesse
Chapter 19
Savings Associations and Credit Unions
T Multiple Choice Questions
1.
Savings banks
(a) were first established in Scotland and England.
(b) were established to encourage saving by the poor.
(c) were very conservative with their funds, placing m
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