Finance

Chapter 1
1. All money market instruments are short-term debt. T
2. Businesses are never DSUs.|
|  False|
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3. Denomination intermediation is best exemplified by
D.  offspring five $3,000 CDs and making one $15,000 loan.
4. Dealers bring buyer and marketer to bestowher; brokers make a market. cause F |
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5. There must(prenominal) be an equal number of DSUs and SSUs in a period.Answer |
Selected Answer: |  False|
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6. A household is an SSU when income for the period exceeds spending.|
Answer: |   authentic|
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7. A dealer offers to buy shares of IBM at $116 and sell to investors at $118. The bid isAnswer ?116|
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8. Intermediation, or ____ financing, involves ___ financial c altogether option(s) linking SSU and DSU.
 C.  indirect; two
9. Which of the following does non take deposits?|
Selected Answer:|  C. finance companies.|
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10. The money market provides liquidness; the capital market finances economic growth.|
Answer: |   neat|
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11. The only deposit-type institutions that do not operate for profit areAnswer B.  acknowledgment unions|
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12. An SSUsAnswer |
Selected Answer:|  C.  income for the period exceeds expenditures|
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13.



Surplus spending units (SSU) are as well as calledAnswer |
Selected Answer:|  B.  lenders.|
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14. All money market instruments are short-term debt. T
15. A household is an SSU when income for the period exceeds spending. T
16. Households are the major bug of funds to the financial system. T
17. An SSU must hold a claim until its scheduled maturity. F
18. Which sector has been most consistently in a surplus budget position?
Household
19. Profitability of financial intermediaries derives from all of the following except
government regulation of interest rates|
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20. A financial claim is an IOU from a deficit spending unit. T
21. disputation among financial intermediaries tends to force interest rates downward. T...If you want to get a full essay, order it on our website: Orderessay



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