1. Indirect transfer of funds will be possible only in a world with no financial intermediaries

A. True

B. False

2. If a bond is a premium bond, it implies that the

A. Coupon rate is below YTM

B. Coupon rate equals the YTM

C. Coupon rate exceeds the YTM

D. All of the above

3. Policymakers in the US and another European country have identified this particular part of the market as deserving special attention when it comes to allocation of funds for loans.

A. Stock market

B. Bond market

C. Residential real estate

D. All of the above

4. While the FED's conduct of monetary policy are primarily designed to impact the US economy, they can influence international developments.

A. True

B. False

5. What factors are encouraging financial institutions to offer overlapping financial services such as banking, investment banking, brokerage, etc?

i. Regulatory changes allowing institutions to offer more services

ii. Technological improvements reducing the cost of providing financial services

iii. Increasing competition from full service global financial institutions

iv. Reduction in the need to manage risk at financial institutions

A. i only

B. ii and iii only

C. i, ii, iii, and iv

D. i, ii, and iii only