1. Which of the following is a reason Congress established
insurance funds for banks?
a. to prevent all future bank failures
b. to encourage depositors to withdraw their money from banks
c. to prevent banks and depositors from suing Congress for
losses
d. to save the banks from losses when depositors withdraw their
money
2. In an attempt to raise long-term funds, a company decides to
issue bonds to lenders. These bonds do not have fixed interest
payments, and the rate of interest changes depending on economic
conditions. The bonds issued by this company are examples of ___
bonds.
a. floating-rate
b. junk
c. secured
d. serial
e. debenture
3. Danielle is an investor who wants to sell her stocks and
bonds to other investors. Which of the following provides a
mechanism for her to buy and sell stocks and bonds?
a. prediction markets
b. securities markets
c. primary markets
d. futures markets
e. foreign-exchange markets
1. a. to prevent all future bank failures
This is the primary objective of introducing insurance for banks and the people depositing money in a bank should also feel safe and secure as well.
2. a. Floating rate
Such bonds generally do not possess a fixed interest rate instead the rate varies based on time and various other factors as well.
3. b. Securities markets
1. Which of the following is a reason Congress established insurance funds for banks? a. to...
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