1. Last National Bank has customer checking and savings accounts that average just over $1,000 each while making various loans that each average just over $50,000. This describes:

Group of answer choices

Money market transactions.

A. Interest rate risk.

B. Denomination intermediation.

C. Forward market transactions.

D. Secondary market transactions.

2. An indirect transfer would not include which of the following?

Group of answer choices

A. Mary lends George $100 who promises to repay when he receives his next paycheck.

B. Alice buys 100 mutual fund shares. The mutual fund uses her money to buy additional stocks for the fund.

C. Last National Bank accepts customer checking and savings accounts that average just over $1,000 each while making various loans that each average just over $50,000.

D. Norman uses some of his pre-tax wages to put into his retirement account. The trustee of the account uses the money to buy bonds that mature in the year Norman expects to retire.

E. Northeastern Life Insurance Company sells a life insurance policy to Wendy, investing the premium in Zoom Video Communications.

3. A commercial bank can offer customer deposit accounts that are highly liquid and have low risk in order to fund illiquid bank assets with higher risk because of both ________ and ________.

A. Monitoring; diversification

B. Free riders; regulations

C.Price risk; collateral

D.Primary markets; foreign exchange markets

E. Diversification; high equity returns

4. A ______________ security is a contract whose value depends in part on some mutually agreed upon other security.

Group of answer choices

A. primary market security

B.money market security

C.secondary market security

D.derivative market security

E. capital market security

5. A bank performing a financial surveillance function on behalf of depositors and other creditors is acting as a(n):

Group of answer choices

A. delegated monitor.

B. monetary policy transmitter.

C.transfer agent.

D. IPO.

E. transmission mechanism.

6. Of the following, ______________ are the most diversified type of depository institutions.

Group of answer choices

A. Finance Companies

B. Credit Unions.

C. Commercial Banks

D. Investment Banks

E.Savings Institutions

7. Capital market instruments include all of the following except _______.

Group of answer choices

A. one-hundred shares of Amazon common stock

B. fifteen-year mortgages on personal primary residences

C. thirty-year corporate bonds

D. three-month Treasury bills

E. thirty-year Treasury bonds

8. It is _______ markets that facilitate the movement of short-term funds.

Group of answer choices

A. secondary

B. primary

C. derivative

D. capital

E. money