1.Factor finance institutions specialize in loan sales to banks and thrifts.

A. T

B. F

2.Which of the following apply to the money markets and their instruments?

1. I. Low trading costs II. Large denominational size III. Little price risk IV. High default risk V. High rates of return

   		A. I, II, and V
   		B. I, II, and III
   		C. III, IV, and V
   		D. I and II
   		E. I, II, and IV

3. A Banker's acceptance

a time draft drawn on the exporter's bank.
a method to help importers evaluate the creditworthiness of exporters.
a liability of the importer and the importer's bank.
an add-on instrument.
for greater than one year maturity.