322-2

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Author:
SAngell3
ID:
222403
Filename:
322-2
Updated:
2013-06-04 13:22:00
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322
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322-2
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  1. In 2008, the largest borrowers of money in descending order were corporations, the federal government, and local and state governments.  

    A) True  
    B) False
    B) False
  2. Today, electronic payments are increasing relative to check writing volume.  

    A) True  
    B) False
    A) True  
  3. The M2 measure of the U.S. money supply includes currency and coin held by the corporations.  

    A) True  
    B) False
    B) False
  4. Purchasing stocks and bonds through a broker is an example of direct finance.  

    A) True  
    B) False
    B) False
  5. Long-term borrowings in the money market are included in the M1 definition of the U.S. money supply.  

    A) True  
    B) False
    B) False
  6. Which of the following is not a financial asset?  

    A) Checking account
    B) Land  
    C) Insurance policy  
    D) Common stock  
    E) Bank loan  
    B) Land  
    (this multiple choice question has been scrambled)
  7. The smallest measure of the U.S. money supply that includes large ($100,000 +) size time deposits is known as:  

    A) M1.  
    B) M2.  
    C) M0.  
    D) L.  
    E) none of the above
    E) none of the above
  8. The importance of financial intermediaries, as well as their growth, has been reduced in recent years by:
     
    A) new forms of disintermediation.  
    B) C and D only
    C) the FDIC.  
    D) the Federal Reserve.  
    E) foreign banks.  
    A) new forms of disintermediation.
    (this multiple choice question has been scrambled)
  9. The prudent person rule:  

    A) limits the amount of borrowing a financial institution can do to a fixed percentage of liabilities.  
    B) limits the amount of lending a financial institution can do to a fixed percentage of liabilities.  
    C) sets the maximum quality of security an institution can buy based on that which an informed and careful investor would do.  
    D) sets the maximum quality security an institution can sell based on that which an informed careful investor would do.  
    E) none of the above
    E) none of the above
  10. Financial assets are ____, meaning they can be easily changed in form and substituted for other assets.  

    A) fungus  
    B) reversible  
    C) liquid  
    D) depreciable  
    E) none of the above
    E) none of the above

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