PCT:ITB - CHAPTER 16

Which of the following statements concerning the Fed is incorrect? 

The difference between the value of what you own and what you currently owe is called ______.

Deposit insurance shifts most of the financial risk of bank failures from the depositors to __________.

A ______ is a time deposit at a financial institution, such as a commercial bank, savings bank, or credit union.

In the U.S. financial system, which of the following is a net saver?

The U.S. Department of Treasury sells what type of bonds?

The rate the Fed charges member banks for short-term loans is called the __________.

The two largest stock markets in the world are the _____ and the _____.

The process used by an insurance company to determine whom to insure and how much to charge is called __________.

When the Fed sells government securities, banks have __________ money to lend and economic growth __________.

___ are short-term securities issued by the U.S. Treasury and backed by the full faith and credit of the U.S. government

There are __________ Federal Reserve districts.

Treasury bills have a minimum denomination of _____.

Funds can be transferred between savers and users in two ways: ________________.

Which of the following is not one of the four major policy tools the Fed has for controlling the the supply of money

The _____ is a collection of financial markets in which previously issued securities are traded among investors. 

What type of financial institution raises money from investors by selling shares?

The ______ order is called instructs the broker to obtain the best possible price—the highest price when selling and the

Which of the following is a nondepository financial institution?

One of the most important variables that determine how much a person saves is ______.

_____ are short-term debt securities issued by governments, financial institutions, and corporations.

All of the following are included in M1 EXCEPT __________.

Other things being equal, as interest rate rises, the price of a bond ______.

Alex buys a money market instrument. It will mature within, at most, _____.

If the Fed reduced reserve requirements, ______.

The basic form of corporate ownership is embodied in _____.

Bonds with ratings of BBB and above are classified as _____.

Two factors determine the price of a bond: _____ and _____.

All of the following are types of securities EXCEPT ______.

Which of the following financial institutions is organized as a not-for-profit cooperative?

Two types of municipal bonds exist. What are they? 

Corporate bonds are a diverse group and often vary based on the _____ that backs it.

A(n) _____ helps underwrite equity and debt (bond) offerings and helps devise and implement financial strategies.

______ are creditors (an entity to whom a debt is owed) of a corporation or government body.

A ______ is a nondepository financial institution that has the ability to provide higher returns, albeit with greater ri

Which of the following policy tools does the Fed use most frequently?

_____ connect major brokerages and individual traders virtually using the Internet, so that trades can be made directly

If an individual owns 10% of the assets in a particular company, he or she becomes a(n) _____.

_ is short-term financing sold by corporations, such as Raytheon, that mature from 1 to 270 days from the date of issue

An owner of which form of stock would receive dividend payments first?