32

1. Which of the following will affect the supply of loanable funds?
2. A.The types of securities commercial banks will acquB.The types of the loans commercial banks will makeC.The Interest rate commercial banks will pay to borrow fundsD.The types of real estate commercial banks will acquire

2.5 points

QUESTION 33

1. Periodic interest payments over the term to maturity of bonds are called
2. present values
3. coupon payments
4. par values
5. discounting

2.5 points

QUESTION 34

1. Which of the following best describes the diagram of Figure 7-2?
2. The supply of loanable funds increased. In turn, interest rates decreased and the quantity demanded of loanable funds increased
3. The demand for loanable funds decreased. This in turn decreased the interest rate and increased the quantity supplied of loanable funds
4. The supply of loanable funds increased. This in turn increased the interest rate.
5. The interest rate increase, causing an decrease in the supply of loanable funds

2.5 points

QUESTION 35

1. Which of the following occurrences could have caused an increase in the supply curve for loansin Figure 7-2?
2. Atighter monetary policy by the Federal Reserve
3. An increase in income
4. An easier monetary policy by the Federal Reserve(=expansionary monetary policy)
5. A decrease in income

2.5 points

QUESTION 36

1. What is the common term that is used when the firm distributes additional shares for every share owned?
2. none of the options
3. stock dividend
4. stock split
5. special dividend

2.5 points

QUESTION 37

1. Today, the typical amount of cash needed for a down payment on a home is _____ of the purchase price.
2. a.20%b.25%c.15%d.10%

2.5 points

QUESTION 38

1. Often as part of a mortgage payment, banks will allow borrowers to "escrow" funds to pay for
2. a.home repairs and property taxes.b.home maintenance and homeowners' insurance.c.homeowners' insurance and property taxes.d.electricity and heating expenses.

2.5 points

QUESTION 39

1. Donna is in the business of buying houses, fixing them up, and then reselling them quickly (flipping). Donna might be interested in a
2. a.zero-down home mortgage.b.no documentation home mortgage.c.teaser-rate ARM.d.negative amortization home mortgage.

2.5 points

QUESTION 40

1. A loan with real estate used as collateral and where the terms of the contract allow the lender to change the interest rate is known as a(n)
2. a.balloon mortgage.b.LIBOR.c.ARM.d.fixed-rate mortgage.