SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
DSST Money And Banking
Start Test
Study First
Subjects
:
dss
,
bankingt
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Allows transfer of funds from person or business without investment opportunities to one who has them - improves economic efficiency.
Function of Financial Intermediaries
How do regulations ensure the soundness of Financial Intermediaries?
function of financial markets
recession
2. Higher default risk compared to municipal Bonds
monetary policy
How do regulations ensure the soundness of Financial Intermediaries?
Corporate Bond Default risk
Interest rate
3. Less than one year and service current liquidity needs
Short-Term Maturity
central bank
Income effect
Together
4. Nominal interest rate is not adjusted for inflation.
easily standardized - widely accepted - divisible and not deteriorate quickly
Interest rate
Keynesian Model
Commodity Money
5. Lower the equilibrium price and interest rate.
Corporate Bonds
Wealth
Bd = Bs
Term Structure
6. Many lead to more employment and output
role of money
increasing money supply
Risk
The Preferred Habitat Approach
7. Paper currency - has no real value
Medium of Exchange
Ex Post
Fiat Money
T-Notes
8. Markets bonds - loans - and deposits denominated in the currency of a given nation but held and traded outside that nations borders.
Regulations increase information available to investors which does what?
Interest rate
Present Discount Value
Eurocurrency Market
9. A higher level of income causes the demand for money at each interest rate to increase and the demand curve to shift to the right.
financial markets
Income effect
Commodity Money
Certificate of Deposit
10. Allowing consumers to time their purchases better.
Evolution of the Payment System
Real Interest Rate
How Financial Markets directly improve the well-being of consumers
T-Bills
11. Fixed payment (incorporating part of the principal and interest payment) paid over a period of time
Capital Markets
Fixed Payment-Loan
Together
business cycle
12. Anything that is generally accepted in payment for goods or services or in the repayment of debts; a stock concept
bond market (money markets)
inflation
Supply and Demand for Bonds
Money (money supply)
13. Held ten years or more. They pay semiannual dividends and return of principal at maturity.
Why Revisions are issued to money data
Kind of risk for a bond that's maturity equals the holding period
Humped Yield Curves
T-Bonds
14. Yield to maturity; a measure of an interternporal price
Together
Interest rate
Upward Slops
central bank
15. The total collection of pieces of property that serve to store value
Real Interest Rate
Wealth
Short-Term Maturity
unemployment rate
16. The rate at which money circulates and the number of times the average dollar bill changes hands in a given time period
Slope upward
Velocity
bond market (money markets)
increases in money supply causes
17. A bank loan typically used by a company to finance storage or shipment of goods. This bank draft is like a check - and guarantees future payment. These securities are active in the Secondary Market
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
18. How interest rates on bonds of different maturities move over time
Eurocurrency Market
Together
central bank
T-Bonds
19. Praises rising at a fast and furious pace
Tbonds
hyperinflation
Certificate of Deposit
Price vs Yields to Maturity
20. They have a higher interest-rate risk.
Repo
Why returns are more volatile for Long-Term bonds
Income
Interest rate
21. Restrictions on Entry - Restrictions on Assets and Activities - Disclosure - Deposit Insurance - Limits on competition - and restriction on interest rates.
How do regulations ensure the soundness of Financial Intermediaries?
hyperinflation
banks and money supply
Not constant
22. Instrumental in moving funds between countries
Not constant
foreign exchange market
Real Interest Rate
Hs a greater upward shift
23. Determines interest rates
Real world obervations
business cycle
bond market (money markets)
T-Notes
24. A share of ownership in a corporation
financial markets/institutions
Velocity
banks and money supply
common stock
25. Rare
Why returns are more volatile for Long-Term bonds
Fiat Money
Downward Slopes
T-Notes
26. 4 -13 -26 -52 week maturities. Sold at zero coupon rates
Money (money supply)
Upward
Capital Markets
T-Bills
27. Yields similar for all maturities
Wealth
Flat yield curves
Price vs Yields to Maturity
T-Bonds
28. The market for loanable funds: (or equivalently - the market for bonds) determines R. One-for-One
indirect impact
Fisher Effect
Capital Markets
Flat yield curves
29. Prices of Long-Term securities are more volatile possibly suffer Capital Loss if owner needs to sell security prior to maturity. Prefer to hold Short-term securities for liquidity. Suggests Long term rates will always be higher than short term.
Discount (zero coupon) Bond
Why returns are more volatile for Long-Term bonds
The Liquidity Premium Modification
Yield to Maturity for simple loans
30. For a commodity to function efficiently as money it must be...
role of money
easily standardized - widely accepted - divisible and not deteriorate quickly
interest rate
bond
31. The over the counter market. Equity shares offered by companies that don't meet listing requirements for major stock exchanges - or choose not to be listed there - and instead are traded in decentralized markets.
Function of Financial Intermediaries
OTC
T-Notes
Long-run Movements
32. Seller will buy back the asset at a later date and typically at a higher price. These securities are usually government securities and are used by banks and Large Corporations.
Repo
monetary policy
Money (money supply)
Eurobond
33. It will shift it to the right.
T-Bills
What will an increase in the money supply engineered by the Federal Reserve do to the supply curve for money?
Interest rate
Use present value calculations
34. Purchase financial assets which lowers interest rates which stimulates business investment and consumer spending
Flat yield curves
bond market (money markets)
Why Revisions are issued to money data
indirect impact
35. Yield curves most always...
Bd = Bs
unemployment rate
M1
Slope upward
36. When bond is at par - the yield equals the coupon rate. The price and yield are negatively related. The yield greater than coupon rate when bond price is below par.
Price vs Yields to Maturity
Money (money supply)
Mortgage-Backed Securities
Bd < Bs
37. Influence on business cycle - inflation - interest rates
inflation
business cycle
monetary policy
Term structure theory
38. 2 -5 -10 year maturities
tax structure
Tnotes
Fiat Money
Yield on a Discount Basis
39. Long-Term debt instruments of Corporations which are held 2-30 years. These securities have excellent credit ratings and pay interest two times a year and pay at maturity. These can be redeemed for shares of stock.
role of money
business cycle
central bank
Corporate Bonds
40. Graphical relationship of the yield on bonds with differing terms to maturity but the same risk - liquidity and tax considerations.
Higher Returns
Term Structure
Yield Curve
Intermediate-term Maturity (Capital Market)
41. Used to measure value in the economy
Why Revisions are issued to money data
Mortgage-Backed Securities
business cycle
Unit of Account
42. Reduces adverse selection - moral hazard - and insider trading.
who determines our money supply
Regulations increase information available to investors which does what?
Velocity
Corporate Bonds
43. The higher the default risk means the yield curve...
Corporate Bond Default risk
Humped Yield Curves
Hs a greater upward shift
Eurocurrency
44. Short-Term Debt Instruments
Money Market
How do regulations ensure the soundness of Financial Intermediaries?
Slope upward
Term structure theory
45. The percent of available labor force unemployed
foreign exchange market
monetary policy
unemployment rate
Yield Curve
46. One to Ten year maturities which fund long-term capital investments
Income effect
bond
Intermediate-term Maturity (Capital Market)
foreign exchange market
47. Greater incentive to borrow and less to lend.
Tbonds
Medium of Exchange
T-Notes
When real rate is low
48. What will investors expect for taking on higher default risk?
Store of Value
Medium of Exchange
Repo
Higher Returns
49. Flow of earnings per unit of time
Yield to Maturity for simple loans
Downward
Income
Forms of Commercial Papers
50. A debt security that promises to make payments periodically for a specified period of time.
Store of Value
Expected Return
bond
Term structure theory