What agency has oversight of the U. S. stock market?

Securities and Exchange Commission (SEC)

What is the purpose of the Financial system?

Moving funds from those with extra funds to those with a need for funds

Which of the following is a reason that we have regulations in the Financial System?

All of these are valid reasons for regulation

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Markets Chapters 1 & 2

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Overview Chapters Review for SHSU FINC 3310 Markets and Institutions. This is for Dr. Sherrill's class.

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Questions 14

Answers

1
What do we call the ability to easily convert an asset to cash?
Equity
Liquidity
Capitalization
Profundity
2
What is in place to help prevent bank runs?
OCC
Federal Reserve
FDIC
SEC
3
Financial instruments that mature in more than 1 year are part of which market?
Capital Market
Hedge Market
Money Market
Derivative Market
4
What agency has oversight of the U. S. stock market?
Securities and Exchange Commission (SEC)
Federal Reserve System
Office ofthe Comptroller of the Currency (OCC)
Federal Deposit Insurance corporation (FDIC)
5
Why is regulation problematic?
It adds costs into the system
It strengthens our banks
It causes adverse selection problems
It ensures confidence
6
Which of the following is considered a Financial Institution?
Money Market
Pension Fund
Stock Market
Bond Market
7
What is the purpose of the Financial system?
Establishing a stock market
Moving funds from banks to customers
Moving funds from those with extra funds to those with a need for funds
Creating liquidity in the market
8
If you buy a bond, in which market are you participating?
Equity market
Money Market
Stock market
Debt market
9
Which type of asymmetric information occurs before the event?
Adverse Selection
Intermediation
Moral Hazard
Transaction costs
10
Which of the following is an example of DIRECT finance?
Buying a bond
Obtaining a home loan from a credit union
Obtaining a car loan from a bank
None of these are examples of direct finance
11
McDonalds issues a bond in Korea denominated in Canadian dollars, this is an example of ...
a derivative
a foreign bond
An equity play
a Eurobond
12
Which of the following is a reason that we have regulations in the Financial System?
Increase investor confidence
All of these are valid reasons for regulation
Ensure the soundness of financial institutions
Increase Information available to investors
13
If a company issues stock for the first time, in which market are they participating?
Liquidity market
Primary market
Secondary market
Debt market
14
What do we call it when one party has more information than the other?
Liquidation
Asymmetric information
Intermediation
Risk sharing

Markets Chapters 1 & 2 Flashcards | StudBud