1. Financial Markets and Institutions Madura 10th Edition Test BankFinancial Markets and Institutions Madura 10th Edition Test BankClick here to download the test bank INSTANTLY!!! http://solutionsmanualtestbanks. blogspot. com/2012/02/financial-markets-and-institutions_26. htmlName: Financial Markets and InstitutionsAuthor: MaduraEdition: 10thISBN-10: 0538482133Type: Test Bank- The test bank is what most professors use an a reference when makingexams for their students, which means there’s a very high chance thatyou will see a very similar, if not exact the exact, question in the test! This is a sample chapterChapter 1—Role of Financial Markets and Institutions1.
Financial market participants who provide funds are calleda. deficit units. b. surplus units. c. primary units. d. secondary units.
ANS: B PTS: 12. The main provider(s) of funds to the U. S.
Treasury is (are)a. households and businesses. b. foreign financial institutions.
c. the Federal Reserve System. d. foreign nonfinancial sectors. ANS: A PTS: 13.
The largest deficit unit is (are)a. households and businesses. b. oreign financial institutions. c. the U.
S. Treasury. d.
foreign nonfinancial sectors. ANS: C PTS: 14. Those financial markets that facilitate the flow of short-term funds are known as 2. Financial Markets and Institutions Madura 10th Edition Test BankFinancial Markets and Institutions Madura 10th Edition Test Banka. money markets. b. capital markets. c.
primary markets. d. secondary markets. ANS: A PTS: 15. Funds are provided to the initial issuer of securities in thea. secondary market. b.
rimary market. c. deficit market.
d. surplus market. ANS: B PTS: 16. Which of the following is a capital market instrument? a. a six-month CDb. a three-month Treasury billc.
a ten-year bondd. an agreement for a bank to loan funds directly to a company for nine monthsANS: C PTS: 17. Which of the following is a money market security? a. Treasury noteb.
municipal bondc. mortgaged. commercial paperANS: D PTS: 18. The creditors in the federal funds market area. households.
b. depository institutions. . firms. d. government agencies. ANS: B PTS: 19.
Equity securities have a ____ expected return than most long-term debt securities, and they exhibit a____ degree of risk. a. higher; higherb. lower; lowerc. lower; higherd. higher; lowerANS: A PTS: 110.
Money market securities generally have ____. Capital market securities are typically expected to havea ____. a. less liquidity; higher annualized returnb.
more liquidity; lower annualized returnc. less liquidity; lower annualized return