1.

Indirect financing includes:

Select one:

a.

Purchasing stock, investing in a bank CD, and buying bonds

b.

Buying bonds, investing in a mutual fund, and investing in a bank CD

c.

Investing in a mutual fund, purchasing stock, and opening a bank savings account

d.

None of these answers are correct

2.

Which of the following is responsible for regulating derivatives?

Select one:

a.

Consumer Financial Protection Bureau

b.

Commodity Futures Trading Commission

c.

Federal Insurance Office

d.

Office of Credit Ratings

3.

Direct financing includes:

Select one:

a.

Buying bonds, investing in a mutual fund, and investing in a bank CD

b.

Purchasing stock, investing in a bank CD, and buying bonds

c.

Investing in a mutual fund, purchasing stock, and opening a bank savings account

d.

None of these answers are correct

4.

Which of the following statements is true regarding the U.S. banking system?

Select one:

a.

It provides investors a place to buy and sell financial securities

b.

It provides opportunities for the channeling of funds from depositors to borrowers

c.

It allows companies to raise new financing through issuing stocks and bonds

d.

Each of these answers is correct

5.

Which of the following statements is true regarding the Financial Stability Oversight Council (FSOC)?

I. It monitors risks that may have an impact on the U.S. financial system

II. Its members include heads of important federal financial agencies

III. It oversees both the Department of Treasury and the Federal Reserve

Select one:

a.

I only

b.

I and II only

c.

I and III only

d.

I, II, and III