Start
Q1
Question 1: In a financial market where information is symmetric:
The same information would be known by both parties in a transaction
One party to a transaction knows information the other party does not
The ability to obtain information is available to only one party
All of the given options
Q2
Question 2: Which of the following is NOT included in the assets of commercial banks?
Cash Items
Reserves
Securities
Bills payable
Q3
Question 3: An increase in wealth shifts the demand for bonds to the __________.
Left
Right
No change
All of the given options
Q4
Question 4: Which characteristic are common both in money and securities
Transfer of risk, store of value
Unit of account, mean of payment
Mean of payment, transfer of risk
Store of value, mean of payment
Q5
Question 5: A business cycle downturn shifts the bond supply to the:
Right
Left
No change
None of the given options
Q6
Question 6: If YTM equals the coupon rate the price of the bond is __________.
Greater than its face value
Lower than its face value
Equals to its face value
Insufficient information
Q7
Question 7: At which money aggregate definitions relation is stronger with inflation and growth
Q8
Question 8: Which of the following would probably NOT earn an A rating from Standard & Poor's:
30 years bond issued by the U.S. Treasury
New vegetarian fast-food chain
90 days T-Bills issued by the U.S. Treasury
Both 30 years bond and 90 days T-Bills issued by U.S. Treasury
Q9
Question 9: Time affects the value of which of the following?
Financial Instruments
Financial Markets
Financial Institutions
Central Banks
Q10
Question 10: When the auto manufacturing industry does poorly due to a recession this is an example of:
Idiosyncratic risk
Systematic risk
Risk premium
Unique risk