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Question # 1 of 20 ( Start time: 11:49:48PM )

Total Marks: 1

___________ include savings and time deposits and account for nearly two-thirds of allcommercial bank liabilities.

Select correct option:

Non transactions Deposits

Borrowings

Checkable Deposits

Discount loans

Which of the following would be considered characteristic of money?

Select correct option:

It is store of value

It pays a higher return than most assets

It is in fixed supply

It is legal tender everywhere in the world

If YTM equals the coupon rate the price of the bond is __________.

Select correct option:

Greater than its face value

Lower than its face value

Equals to its face value

Insufficient information

Question # 4 of 20 ( Start time: 11:52:18PM )

Total Marks: 1

In the simple model of multiple deposit creation in which banks do not hold excess reserves,the increase in checkable deposits equals the product of the change in reserves and the:

Select correct option:

Inverse of the excess reserve ratio

8/14/2019 Money and banking quiza

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The simple money multiplier

Inverse of the simple money multiplier

Discount rate

Which one the following is NOT the way to manage liquidity risk?

Select correct option:

By holding sufficient excess reserves

Through diversification

By adjusting assets

By adjusting liabilities

High-powered money less reserves equals:

Select correct option:

Required reserves

Currency in circulation

The monetary base

The non-borrowed monetary base

Question # 7 of 20 ( Start time: 11:53:34PM )

Total Marks: 1

In the United States, the central bank is responsible for:

Select correct option:

Oversee the stock exchanges

The conduct of monetary policy

Help finance government deficits

Both the conduct of monetary policy and help finance government deficits

Question # 8 of 20 ( Start time: 11:54:05PM )

Total Marks: 1

8/14/2019 Money and banking quiza

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The fact that common stockholders are residual claimants means:

Select correct option:

The stockholders receive their dividends before any other residuals are paid

The stockholders receive the remains after everyone else is paid

The stockholders are paid any past due dividends before other claims are paid

The common stockholders are responsible for all corporate debts

Question # 9 of 20 ( Start time: 11:54:57PM )

Total Marks: 1

Which of the following is the least liquid of all?

Select correct option:

Money

Bonds & stocks

Lands & buildings

None of the given options

Question # 10 of 20 ( Start time: 11:55:46PM )

Total Marks: 1

Excess reserve-to-deposit ratio is a factor that affects the quantity of money. This factor iscontrolled by which of the following?

Select correct option:

Central bank

Bank regulators

Commercial banks

Non bank public

Question # 11 of 20 ( Start time: 11:56:12PM )

Total Marks: 1

Which of the following represents the fishers equation?

Select correct option:

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Nominal interest rate = real interest rate + inflation

Nominal interest rate + inflation = real interest rate

Nominal interest rate = real interest rate - inflation

Nominal interest rate = real interest rate / inflation

Question # 12 of 20 ( Start time: 11:56:59PM )

Total Marks: 1

Bonds that are issued by Government are called _________.

Select correct option:

Government bond

Treasury bond

Corporate bond

Callable Bonds

Question # 13 of 20 ( Start time: 11:57:27PM )

Total Marks: 1

One reason given for more central bankers releasing their decisions publicly is:

Select correct option:

To give people time to understand it

Most people do not understand monetary policy so it really doesn't do any harm torelease the decisions publicly

If monetary policy is going to be stabilizing speculation about central bankers decisionsshould be minimized

So that central banks across the world can coordinate their policies

Question # 14 of 20 ( Start time: 11:57:57PM )

Total Marks: 1

The Segmented Markets Theory of term structure suggests that:

Select correct option:

Investors have strong preferences for bonds of a particular maturity

Investors have no preference for short-term bonds over long-term bonds, or vice versa

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Interest rates on long-term bonds strongly influence the demand for short-term bonds

Bonds of different maturities are perfect substitutes for each other

Question # 15 of 20 ( Start time: 11:58:24

PM ) Total Marks: 1

Which of the following are used to monitor and stabilize the economy?

Select correct option:

Stock exchanges

Commercial Banks

Central Banks

Financial institutions

Question # 16 of 20 ( Start time: 11:58:46PM )

Total Marks: 1

Banks can also borrow by using a repurchase agreement or repo, which is a short-term_____________.

Select correct option:

Discount loan

Collateralized loan

Personal loan

Corporate loan

Question # 17 of 20 ( Start time: 11:59:07PM )

Total Marks: 1

Expectation hypothesis focuses on which one of the following?

Select correct option:

Risk premium

Risk free interest rate

Yield to maturity

None of the given options

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Question # 18 of 20 ( Start time: 11:59:35PM )

Total Marks: 1

The GDP deflator is calculated as___________.

Select correct option:

Nominal GDP/Real GDP *100

Real GDP/Nominal GDP

Nominal GDP Real GDP

Real GDP Nominal GDP

Question # 19 of 20 ( Start time: 11:59:57PM )

Total Marks: 1

Which one of the following is the strategy of reducing overall risk by making two investments

which are totally independent of each other?

Select correct option:

Spreading the risk

Standard deviation

Hedging the risk

Variance

Question # 19 of 20 ( Start time: 11:59:57PM )

Total Marks: 1

Which one of the following is the strategy of reducing overall risk by making two investmentswhich are totally independent of each other?

Select correct option:

Spreading the risk

Standard deviation

Hedging the risk

Variance