Answer all multiple-choice questions, just select the right option

1. Which of the following are depository financial institutions: a. Mutual funds b. Savings banks c. Finance companies d. Securities firms

2. Which of the follwoing sell shares to surplus units and use the funds received to purchase a portfolio of securities. They are the dominant nondepository financial institution when measured in total assets. a. Pension funds b. Finance companies c. Securities firms d. Mutual funds

3. Which of the follwoing accept deposits from households, businesses, and government agencies, while their main use of funds is the purchase of government and corporate securities and mortgages and other loans to households a. mutual funds b. commercial banks c. finance companies d. savings institutions

4. The central issue of efficient markets concerns a. Participants b. Structure c. Information d. Regulations

5. The interest rate is called which of the following? a. Price of cash flow b. Price of Funds c. Price of Market d. Price of Assets

6. Which of the following is NOT considered capital market securities a. mortgages b. retail CDs c. bonds d. stocks

7. The loanable funds theory is the theory of which of the following? a. Exchange rate determination b. Cashflow price determination c. Interest rate determination d. Asset value determination

8. market where all information about any securities for sale is continuously and freely available to investors is called a. efficient b. inefficient c. imperfect d. perfect

9. According to efficient market hypothesis all information means which of the follwoing a. past, current, inferred and relative information b. past and current information c. past information only d. past, current, and inferred information

10. According to loanable funds theory which of the following option is correct? a. Interest is neither positively nor negatively related to quantity demanded. b. Interest and quantity demanded has exponential relation c. Interest rate and quantity demanded of loanble funds is positvely related d. Interest rate and quantity demanded of loanble funds is negatively related

11. In aggregate which of the following are the most dominant depository institution a. credit unions b. savings banks c. commercial banks d. savings and loan associations

12. Financial markets facilitating the issuance of new securities are known as a. secondary markets b. primary markets c. money markets d. capital markets