- Financial Markets And Institutions Class 1 (53.23 KiB) Viewed 41 times
financial markets and institutions class
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financial markets and institutions class
financial markets and institutions class
6. Money market instruments A) are usually sold in large denominations. B) have low default risk. C) mature in one year or less. D) are characterized by all answers. 7- A frequently used approximation for the yield to maturity on a long-term bond is the A) coupon rate. B) current yield. C) cash flow interest rate. D) real interest rate. CLO2 CLO2 8. The organization responsible for the conduct of monetary policy in Saudi Arabia is the A) Comptroller of the Currency. B) U.S. Treasury. C) SAMA. D) Bureau of Monetary Affairs CLOT 9- In which of the following situations would you prefer to lend? A) The interest rate is 9 percent and the expected inflation rate is 7 percent. B) The interest rate is 4 percent and the expected inflation rate is 1 percent. C) The interest rate is 13 percent and the expected inflation rate is 15 percent. D) The interest rate is 25 percent and the expected inflation rate is 50 percent CL02 10- When the lender and the borrower have different amounts of information regarding a transaction, is said to exist. A) asymmetric information B) adverse selection C) moral hazard D) fraud CLO 1 Page 3 of 7
6. Money market instruments A) are usually sold in large denominations. B) have low default risk. C) mature in one year or less. D) are characterized by all answers. 7- A frequently used approximation for the yield to maturity on a long-term bond is the A) coupon rate. B) current yield. C) cash flow interest rate. D) real interest rate. CLO2 CLO2 8. The organization responsible for the conduct of monetary policy in Saudi Arabia is the A) Comptroller of the Currency. B) U.S. Treasury. C) SAMA. D) Bureau of Monetary Affairs CLOT 9- In which of the following situations would you prefer to lend? A) The interest rate is 9 percent and the expected inflation rate is 7 percent. B) The interest rate is 4 percent and the expected inflation rate is 1 percent. C) The interest rate is 13 percent and the expected inflation rate is 15 percent. D) The interest rate is 25 percent and the expected inflation rate is 50 percent CL02 10- When the lender and the borrower have different amounts of information regarding a transaction, is said to exist. A) asymmetric information B) adverse selection C) moral hazard D) fraud CLO 1 Page 3 of 7