In the primary market- Select one: a. New securities are traded b. Funds flow from one owner to another c. Real assets are traded d. Existing securities are traded e. Only money market instruments are traded
Answer Option a. New securities are traded
Explanation
Primary market means newly issued shares are traded for example Initial public offer
In the primary market- Select one: a. New securities are traded b. Funds flow from one...
When companies need new funds for a project, they Select one: a. Sell bonds b. Sell shares of stock c. Borrow money from the Fed d. Both (a) and (b) are correct e. Both (b) and (c) are correct The most powerful policy making body of the Fed is the Select one: a. Governors of the Fed O b. Presidents of the Federal Reserve district banks c. U.S. Treasury d. Federal Open Market Committee (FOMC) Eurodollars are Select one: a....
16. Money market instruments issued by the U.S. Treasury are called (a) Treasury bills. (b) Treasury notes. (c) Treasury bonds. (d) Treasury strips. 17. The most influential participant(s) in the U.S. money market (a) is the Federal Reserve. (b) is the U.S. Treasury Department, (c) are the large money center banks. (d) are the investment banks that underwrite securities 18. Federal funds are (a) usually overnight investments. (b) borrowed by banks that have a deficit of reserves. (c) lent by...
1. Which of the following statements is true? A. Pension funds are like mutual funds that trade on exchanges. B. Life insurance companies typically underwrite corporation's initial public offering of stock. C. Commercial banks are where people usually have their checking and saving accounts. D. Investment banks specialize in mortgage lending. 2. Which of the following statements is true? A. Corn is an example of a physical asset. B. Money market instruments have original maturities greater than 1 year. C....
6) The higher a security's price in the secondary market the_ funds a firm can raise by selling 6) securities in the market. A) less; primary C) more; secondary B) more; primary D) less; secondary 7) U.S. Treasury bills are considered the safest of all money market instruments because there is a low 7) probability of A) defeat. B) default. C) demarcation. D) desertion. 8) , are far important for corporate finance than are 8) In the United States, loans...
What new securities are being sold to investment banks in a primary market? And what what type of securities are being exchanged in a secondary market? What does it mean when they say the corporation does not receive any money in a secondary market ?
Table shows the initial market for loanable funds in Econland. There is no Ricardo-Barro effect. If the government moves from a balanced budget to a surplus of $20 billion, the new equilibrium has a real interest rate of and quantity of loanable funds traded equal to Real interest rate Demand for Loanable Funds Supply of Loanable Funds (5 billions) (5 billions) 3% 160 40 4% 140 60 5% 120 80 100 100 80 120 8% 140 6% 7% A.5 percent;...
1.The Fed purchases $100,000 of U.S. government securities from One Bank. Assuming the desired reserve ratio is 10 percent, banks loan all excess reserves, and the currency drain is 20 percent, how much does the quantity of money increase? A. $1,000,000 B. $10,000,000 C. $1,100,000 D. $900,000 E. $100,000 2.A bank maximizes its stockholders' wealth by ______. A. colluding with other banks to keep interest rates high colluding with other banks to keep interest rates high B. lending for long...
A) index funds/ money market mutual funds/ sector funds B)esctor funds/index funds/money market mutual funds C) money market mutual funds/index funds/sector funds 6. Mutual funds by risk and return Risk and Return of Money Market Mutual Funds, Sector Funds, and Index Funds The following three fund types differ in general price volatility and potential for return money market mutual funds, sector funds, and index funds Label the graph that follows to show the relative volatility and potential return of these...
1) When the Fed purchases U.S. treasury securities, bank reserves will Select one: A. expand and the fed funds rate will rise. B. contract and the fed funds rate will rise. C. expand and the fed funds rate will fall. D. contract and the fed funds rate will fall. 2) Open market operations may be best described as the FOMCs buying or selling of Select one: A. U.S. government securities in the financial markets. B. foreign currencies in foreign exchange...
1. ____ are the primary assets of those savings institutions whose Total Assets are under $50 Billion. A. Mortgages B. Cash balances C. Investment securities D. Business loans E. Customer deposits 2. The predominant liabilities for savings institutions with less than $50 Billion in Total Assets are: A. commercial deposits B. wholesale money market notes and reserves at the Fed. C. transaction accounts, MMDAs and other savings deposits, and time deposits. D. money market mutual funds. E. FHLB borrowings....