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. Held ten years or more. They pay semiannual dividends and return of principal at maturity.
M1
role of money
T-Bonds
Use present value calculations
2. Yields similar for all maturities
Flat yield curves
hyperinflation
Downward
inflation
3. A share of ownership in a corporation
Why returns are more volatile for Long-Term bonds
Evolution of the Payment System
hyperinflation
common stock
4. Higher default risk compared to municipal Bonds
Money (money supply)
Certificate of Deposit
Corporate Bond Default risk
Downward
5. Fixed payment (incorporating part of the principal and interest payment) paid over a period of time
Coupon Bond
Fixed Payment-Loan
T-Bonds
The Liquidity Premium Modification
6. 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.
Tbonds
Price vs Yields to Maturity
Tnotes
Bd > Bs
7. 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.
Humped Yield Curves
The Liquidity Premium Modification
financial markets/institutions
Yield to Maturity for simple loans
8. Does not deal directly with the public and responsible for executing of the national monetary policy; implements policy by altering money supply and influencing bank behavior.
Why returns are more volatile for Long-Term bonds
Not constant
central bank
Kind of risk for a bond that's maturity equals the holding period
9. Lower excess demand and lower price will rise and interest rates will fall
Upward Slops
Bd > Bs
Use present value calculations
Short-Term Maturity
10. Short-Term Debt Instruments
Foreign Bonds
Money Market
Corporate Bond Default risk
Repo
11. At lower prices (higher i) - ceteris paribus - the quantity demanded of bonds is higher- an inverse relationship ' ' the quantity supplied of bonds is lower- a positive relationship.
federal funds rate
Ex Ante
Long-Term Maturities (Bond Market)
Supply and Demand for Bonds
12. Graphical relationship of the yield on bonds with differing terms to maturity but the same risk - liquidity and tax considerations.
Tbonds
Bd = Bs
Long-run Movements
Yield Curve
13. Rare
Downward Slopes
Interest rate
Capital Markets
Yield Curve
14. A rise in the price level causes the demand for money at each interest rates to increase and the demand curve to shift to the right.
function of financial markets
Price-level effect
Present Discount Value
Kind of risk for a bond that's maturity equals the holding period
15. Less than one year and service current liquidity needs
bond market (money markets)
Short-Term Maturity
Downward
bond
16. They have a higher interest-rate risk.
Forms of Commercial Papers
Why returns are more volatile for Long-Term bonds
Term structure theory
Fisher Effect
17. Comparing payoffs at different points in time
Use present value calculations
Higher Returns
Present Discount Value
Certificate of Deposit
18. Praises rising at a fast and furious pace
hyperinflation
Forms of Commercial Papers
federal funds rate
Hs a greater upward shift
19. For a commodity to function efficiently as money it must be...
Forms of Commercial Papers
easily standardized - widely accepted - divisible and not deteriorate quickly
Term Structure
common stock
20. Long-Term Debt and Equity Instruments
Higher Returns
Capital Markets
Income effect
Regulations increase information available to investors which does what?
21. What will investors expect for taking on higher default risk?
Yield on a Discount Basis
How Financial Markets promote economic efficiency
Intermediate-term Maturity (Capital Market)
Higher Returns
22. No interest- rate risk
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
23. 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.
OTC
Corporate Bonds
easily standardized - widely accepted - divisible and not deteriorate quickly
Income effect
24. Negotiable in secondary market and can also be resold in the secondary market. Minimum purchase of $100 -000 but the minimum in the secondary market is $2 -000 -000.
Certificate of Deposit
direct impact
increases in money supply causes
Repo
25. They channel funds from savers to investors - thereby promoting economic efficiency
Fixed Payment-Loan
Upward Slops
financial markets
Not constant
26. Currency + Traveler's Checks+ Demand Deposits + Other checkable deposits
Function of Financial Intermediaries
easily standardized - widely accepted - divisible and not deteriorate quickly
monetary policy
M1
27. Cost of borrowing money - expressed as a percentage of the amount borrowed per year.
Use present value calculations
interest rate
Income effect
bond
28. Allows transfer of funds from person or business without investment opportunities to one who has them - improves economic efficiency.
Coupon Bond
Kind of risk for a bond that's maturity equals the holding period
OTC
function of financial markets
29. Investors are concerned about the after tax return on bonds
banks and money supply
tax structure
Why Revisions are issued to money data
T-Bills
30. 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.
Flat yield curves
Income effect
business cycle
Use present value calculations
31. The total collection of pieces of property that serve to store value
Corporate Bonds
T-Bills
Wealth
Term Structure
32. What kind of movements should we pay attention to in money supply numbers?
Use present value calculations
Long-run Movements
interest rate
When real rate is high
33. Used to save purchasing power; most liquid of all assets but loses value during inflation
financial markets
Store of Value
Short-Term Maturity
central bank
34. The degree of uncertainty associated with the return on one asset relative to alternative assets.
increases in money supply causes
bond market (money markets)
Why returns are more volatile for Long-Term bonds
Risk
35. Purchase financial assets which lowers interest rates which stimulates business investment and consumer spending
Fiat Money
How do regulations ensure the soundness of Financial Intermediaries?
Money Market
indirect impact
36. The central bank
Price vs Yields to Maturity
who determines our money supply
interest rate
Corporate Bond Default risk
37. Precious Metals or another valueable commodity
Corporate Bond Default risk
Commodity Money
Bd > Bs
hyperinflation
38. A debt security that promises to make payments periodically for a specified period of time.
Money (money supply)
function of financial markets
Evolution of the Payment System
bond
39. Alters publics liquidity and influences spending through portfolio adjustment
Fisher Effect
Eurocurrency
unemployment rate
increases in money supply causes
40. The upward and downward movement of aggregate output produced in the economy.
easily standardized - widely accepted - divisible and not deteriorate quickly
business cycle
How do regulations ensure the soundness of Financial Intermediaries?
who determines our money supply
41. The percent of available labor force unemployed
financial markets
Capital Markets
unemployment rate
Slope upward
42. 30 year maturities but not since 2001
Long-Term Maturities (Bond Market)
Coupon Bond
Tbonds
Ex Post
43. Sold in a foreign country and denominated in that country's currency.
Evolution of the Payment System
Money Market
Corporate Bond Default risk
Foreign Bonds
44. Crucial role in creation of money
Federal Funds Market
How do regulations ensure the soundness of Financial Intermediaries?
banks and money supply
M1
45. Allowing consumers to time their purchases better.
How Financial Markets directly improve the well-being of consumers
Price-level effect
Fisher Effect
Mortgage-Backed Securities
46. A dollar paid to you one year from now is less valueable than a dollar paid to you today
Banker's Acceptance
role of money
Velocity
Present Discount Value
47. It determines the equilibrium interest rate in terms of the supply of land demanded for money . People store their wealth in money and bonds. If the market for money is in equilibrium (Ms=Md) then the bond markets are also in equilibrium (Bs=Bd)
financial markets/institutions
Keynesian Model
Price vs Yields to Maturity
Bd = Bs
48. Markets bonds - loans - and deposits denominated in the currency of a given nation but held and traded outside that nations borders.
Eurocurrency Market
Downward
Corporate Bonds
function of financial markets
49. One to Ten year maturities which fund long-term capital investments
Intermediate-term Maturity (Capital Market)
Why Revisions are issued to money data
Risk
Unit of Account
50. Take the form of promissory notes - drafts - checks - and CDs
Short-Term Maturity
foreign exchange market
Forms of Commercial Papers
M1
Sorry!:) No result found.
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests