27) The central bank of the United States is the A) Federal Reserve B) Securitie

Question

27) The central bank of the United States is the A) Federal Reserve B) Securities and Exchange Commission C) Federal Deposit Insurance Corporation D) Department of the Treasury 28) The measure of money is the only definition of money that is gencrally accepted as a mcans of payment A) MI B) M2 C) M3 D) M4 29) A primary market is one in whiclh A) savers place funds in financial intermediaries B) financial intermediaries make loans C) existing securities can be bought and sold D) new securities are issued 30) The main difference between "stocks" and "bonds" is that A) The owner of the stock actually owns a part of the corporation, but the owner of the bond has loaned money to the corporation Both the owner of the stock and of the bond have loaned moncy to the corporation, but the stockholder is willing to wait for payments whereas the bondholder demands payments cach year Both the owner of the stock and of the bond are considered owners of the corporation but the stockholder receives interest only when the corporation is profitable whereas the bondholder receives interest even if the corporation is losing money The owner of the stock has loaned money to the corporation, but the owner of the bond B) C) D) ly owns a part of the corporation. 31) Asymmetric information means that A) All parties to a transaction have the same amount of information on the other party B) Information is expensive to obtain. C) One party to a transaction has relatively more information than another party D) Information is readily available for most parties concerned in a transaction. 32) A bank's net interest income is A) the same as net operating income B) the difference between interest on loans and interest expense C) the same as net operating income before expenses D) the difference between total interest income and interest expense

Explanation / Answer

The correct answers are:

27. The correct answer is A.

28. The correct answer is A.

29. The correct answer is D.

30. The correct answer is C.

31. The correct answer is C.

32. The correct answer is D.

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