1. Technology has helped to make possible which of the following innovations? AT
ID: 1092233 • Letter: 1
Question
1. Technology has helped to make possible which of the following innovations?
ATMs
credit cards
mortgage backed securities
all of the above
2. A decrease in the government budget deficit causes the _____ bonds to shift and equilibrium interest rates to _____.
demand for, fall
supply of, rise
demand for, rise
supply of, fall
3. The FDIC is intended to alleviate asymmetric information problems between:
politicians and regulators.
regulators and banks.
banks and the public.
the public and politicians.
4. Scholars like Barth, Caprio, and Levine argue that regulators should focus on improving the _____ of financial institutions.
liquidity
transparency
capital adequacy
None of the above.
5. The too big to fail policy exacerbates the moral hazard problem between:
regulators and banks.
banks and borrowers.
politicians and regulators.
the public and politicians.
6. Money is the only asset that acts as a
medium of exchange.
unit of account.
store of value.
all of the above.
7. Investors in collectible musical instruments must have a high tolerance for low
return.
risk.
liquidity.
none of the above.
8. Which of the following pieces of legislation made interstate banking legal?
Riegle-Neale
FIRREA
Gramm-Leach-Bliley
none of the above
9. ARMs:
force lenders to assume interest rate risk.
became more prevalent during the Great Inflation.
both of the above.
neither of the above.
10. A recession can result in higher equilibrium bond yields.
True
False
11. A two-year discount bond with face value $1,000 and price $950 has a yield of
4.9%.
5%.
5.3%.
none of the above.
A.ATMs
B.credit cards
C.mortgage backed securities
D.all of the above
Explanation / Answer
1 A
2 B
3 C
4 B
5 B
6 D
7 A
8 B
9 C
10 TRUE
11 C
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.