Multiple choice please answer all questions to the best of your ability.

Question 1 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Contracts to sell and buy back a security at a predetermined price and date are known as Select one: A. negotiable certificates of deposit. B. bankers' acceptances. C. repurchase agreements. D. mortgage securities. Question 2 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Secondary markets typically provide: I. Liquidity II. Price competition III. Deposit insurance Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 3 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following trading practices is forbidden in the secondary market? I. Trading on information that gives corporate insiders an unfair advantage over the public II. Trading designed to manipulate securities prices at the expense of the public III. Trading before true and adequate disclosure has been made to the public Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 4 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following is NOT true of the NASDAQ exchange? I. It is located on Wall Street, where brokers transact business for clients II. It was once operated by the National Association of Securities Dealers (NASD) III. It is a publicly-owned, not-for-profit exchange Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 5 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following is not a capital market security? Select one: A. Common stock B. Commercial paper C. Corporate bond D. U.S. Treasury note Question 6 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Funds flow from __________ to __________ in the secondary markets. Select one: A. investors; issuing corporations B. investors; other investors C. issuing corporations; investors D. All of the above. Question 7 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following securities provisions created the Securities Exchange Commission (SEC) to enforce securities laws and regulate U.S. securities markets? Select one: A. The Securities Act of 1933 B. The Securities Exchange Act of 1934 C. Rule 415 D. Reg ATS Question 8 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following is true concerning commercial paper? I. Commercial paper is offered in short-term maturities suitable for the money market II. All public corporations qualify to issue commercial paper III. The cost to the issuer of raising funds using commercial paper is usually lower than borrowing at the prime lending rate Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 9 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following securities provisions required registration and full disclosure of new securities being issued in the U.S.? Select one: A. The Securities Act of 1933 B. The Securities Exchange Act of 1934 C. Rule 415 (shelf registration) D. Reg ATS (alternative trading system) Question 10 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Common money market instruments used by importers to guarantee funds owed to exporters are known as Select one: A. negotiable certificates of deposit. B. bankers' acceptances. C. garnishment agreements. D. repurchase agreements. Question 11 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Characteristics of trading on Electronic Communication Networks include: I. Higher transaction costs than traditional trading II. Fewer regulations and round-the-clock trading III. Privacy Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 12 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Federal agency securities are Select one: A. only traded in the money market, not in the capital market. B. issued by agencies sponsored by the U.S. government. C. insured by the Federal Deposit Insurance Corporation up to $100,000 in value. D. typically used by U.S. corporations for short-term working capital financing. Question 13 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Banker's acceptances: I. Can be bought and sold until they mature II. Carry low interest rates because of the very low default risk III. Are issued only by large money center banks Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III E. None of the above Question 14 Not yet answered Points out of 1.00 Not flaggedFlag question Question text In situations where asymmetric information problems are not severe, Select one: A. the money markets have a distinct cost advantage over banks in providing short-term funds. B. the money markets cannot allocate short-term funds as efficiently as banks can. C. banks have a distinct cost advantage over the money markets in providing short-term funds. D. the money markets have a distinct cost advantage over banks in providing long-term funds. Question 15 Not yet answered Points out of 1.00 Not flaggedFlag question Question text A negotiable certificate of deposit: I. Is a bearer instrument, meaning whoever holds the certificate at maturity receives the principal and interest II. Can be bought and sold until maturity III. Is a term security because it has a specified maturity date Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 16 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following are true statements about participants in the money markets? Select one: A. The Federal Reserve is the single most influential participant in the U.S. money market. B. Large banks participate in the money markets by selling large negotiable CDs. C. The U.S. government and corporations borrow in the money markets because cash inflows and outflows are rarely synchronized. D. All of the above are true. E. Only A and B of the above are true. Question 17 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Commercial banks are large holders of _________ and are the major issuer of _________. Select one: A. negotiable certificates of deposit; U.S. government securities B. Eurodollars; commercial paper C. U.S. government securities; negotiable certificates of deposit D. commercial paper; Eurodollars Question 18 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Eurodollars: I. May offer borrowers lower interest rates than the domestic market. II. Can only be obtained through London banks. III. Have a variety of available maturities. Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 19 Not yet answered Points out of 1.00 Not flaggedFlag question Question text A firm will borrow long-term Select one: A. if short-term interest rates are expected to decline during the term of the debt. B. if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the expected premium that is paid for borrowing long term. C. if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates before it retires its debt. D. if long-term interest rates are expected to decline during the term of the debt. Question 20 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Bonds Select one: A. are securities that represent a debt owed by the issuer to the investor. B. obligate the issuer to pay a specified amount at a given date, generally without periodic interest payments. C. both A & B. D. none of the above. Question 21 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Treasury bonds are subject to _________ risk but are free of _________ risk. Select one: A. interest-rate; underwriting B. default; interest-rate C. interest-rate; default D. default; underwriting Question 22 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Capital market trading occurs in Select one: A. the primary market. B. the secondary market. C. both A and B D. none of the above. Question 23 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Compared to money market securities, capital market securities have Select one: A. less risk. B. longer maturities. C. more liquidity. D. lower yields. Question 24 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Long-term unsecured bonds that are backed only by the general creditworthiness of the issuer are called Select one: A. convertible bonds. B. junk bonds. C. debentures. D. callable bonds. Question 25 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Securities not listed on one of the exchanges trade in the over-the-counter market. In this exchange, dealers "make a market" by Select one: A. selling stocks from inventory when investors want to buy. B. buying stocks for inventory when investors want to sell. C. doing both of the above. D. doing neither of the above. Question 26 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following is true of Electronic Communications Networks (ECNs)? I. Transactions costs are lower for ECN trades II. All unfilled orders are available for review by ECN traders III. ECNs tend to work well for thinly-traded stocks Select one: A. I only B. I and II only C. I and III only D. II and III only Question 27 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Preferred stockholders hold a claim on assets that has priority over the claims of Select one: A. common stockholders, but after that of bondholders. B. bondholders, but after that of common stockholders. C. neither common stockholders nor bondholders. D. both common stockholders and bondholders. Question 28 Not yet answered Points out of 1.00 Not flaggedFlag question Question text How does over-the-counter (OTC) trading differ from trading on an organized exchange? I. Requirements for trading OTC are less restrictive than on organized exchanges II. Trading cannot be done electronically on organized exchanges III. No publicly-traded stocks can be offered OTC Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 29 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following statements about trading operations in an organized ("floor") exchange is correct? I. Floor traders all deal in a wide variety of stocks II. In most trades, specialists buy for or sell from their own inventories III. In most trades, specialists match buy and sell orders. Select one: A. I only B. II only C. III only D. I and II only E. II and III only Question 30 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following is an objective of the Securities and Exchange Commission? I. Maintain the integrity of the securities markets II. Require firms to provide specific information to investors III. Regulate major participants in securities markets Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 31 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following are important ways in which mortgage markets differ from stock and bond markets? Select one: A. The usual borrowers in capital markets are government entities, whereas the usual borrowers in mortgage markets are small businesses. B. The usual borrowers in capital markets are government entities and large businesses, whereas the usual borrowers in mortgage markets are small businesses. C. The usual borrowers in capital markets are businesses and government entities, whereas the usual borrowers in mortgage markets are individuals. D. The usual borrowers in capital markets are government entities and large businesses, whereas the usual borrowers in mortgage markets are small businesses and individuals. Question 32 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following are important ways in which mortgage markets differ from the stock and bond markets? Select one: A. Because mortgages are made for different amounts and different maturities, developing a secondary market has been more difficult. B. Most mortgages are secured by real estate, whereas the majority of capital market borrowing is unsecured. C. The usual borrowers in the capital markets are government entities and businesses, whereas the usual borrowers in the mortgage markets are individuals. D. All of the above are important differences. E. Only A and B of the above are important differences. Question 33 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Mortgage-backed securities Select one: A. are securities collateralized by both insured and uninsured mortgages. B. have been growing in popularity in recent years as institutional investors look for attractive investment opportunities. C. are securities collateralized by a pool of mortgages. D. all of the above. E. only A and B of the above. Question 34 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The Federal Housing Administration (FHA) Select one: A. provides insurance for certain mortgage contracts. B. was set up to buy mortgages from thrifts so that these institutions could make more loans. C. funds purchases of mortgages by selling bonds to the public. D. all of the above. E. only A and B of the above. Question 35 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The most common type of mortgage-backed security is Select one: A. the participation certificate, a security which passes the borrower's mortgage payments equally among all the owners of the certificates. B. collateralized mortgage obligations, a security which reduces prepayment risk. C. the mortgage pass-through, a security that has the borrower's mortgage payments pass through the trustee before being disbursed to the investors. D. the securitized mortgage, a security which increases the liquidity of otherwise illiquid mortgages. Question 36 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The Federal National Mortgage Association (Fannie Mae) Select one: A. funds purchases of mortgages by selling bonds to the public. B. was set up to buy mortgages from thrifts so that these institutions could make more loans. C. provides insurance for certain mortgage contracts. D. all of the above. E. only A and B of the above. Question 37 Not yet answered Points out of 1.00 Not flaggedFlag question Question text When the value of the British pound changes from $1.50 to $1.25, then the pound has _________ and the dollar has _________. Select one: A. depreciated; appreciated B. depreciated; depreciated C. appreciated; appreciated D. appreciated; depreciated Question 38 Not yet answered Points out of 1.00 Not flaggedFlag question Question text When the exchange rate for the euro changes from $1.20 to $1.00, then, holding everything else constant, the euro has Select one: A. depreciated and American wheat sold in Germany becomes less expensive. B. appreciated and German cars sold in the United States become more expensive. C. appreciated and German cars sold in the United States become less expensive. D. depreciated and American wheat sold in Germany becomes more expensive. Question 39 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Increased demand for a country's _________ causes its currency to appreciate in the long run, while increased demand for _________ causes its currency to depreciate. Select one: A. imports; exports B. imports; imports C. exports; imports D. exports; exports Question 40 Not yet answered Points out of 1.00 Not flaggedFlag question Question text An increase in the foreign interest rate causes __________ in the demand for __________ currency and the foreign currency to appreciate. Select one: A. an increase; domestic B. a decrease; foreign C. an increase; foreign D. none of the above Question 41 Not yet answered Points out of 1.00 Not flaggedFlag question Question text A lower domestic money supply causes the domestic currency to Select one: A. depreciate in the long run. B. appreciate in the short run. C. depreciate in the short run. D. do both A and B of the above. E. do both B and C of the above. Question 42 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The _________ states that exchange rates between any two currencies will adjust to reflect changes in the price levels of the two countries. Select one: A. quantity theory of money B. theory of purchasing power parity C. law of one price D. theory of money neutrality Question 43 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The theory of purchasing power parity is a theory of how exchange rate are determined in Select one: A. the long run. B. the short run. C. both A and B. D. none of the above. Question 44 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following causes a depreciation of the domestic currency? I. A lower expected domestic inflation rate. II. A decrease in the domestic money supply. III. A decline in the domestic real interest rate. Select one: A. I only B. II only C. III only D. I and II only E. II and III only Question 45 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The starting point for understanding how exchange rates are determined is a simple idea called _________, which states that if two countries produce an identical good, the price of the good should be the same throughout the world no matter which country produces it. Select one: A. the law of one price B. purchasing power parity C. arbitrage D. Gresham's law Question 46 Not yet answered Points out of 1.00 Not flaggedFlag question Question text In the long run, a rise in a country's price level (relative to the foreign price level) causes its currency to _________, while a rise in the country's relative productivity causes its currency to _________ Select one: A. appreciate; appreciate. B. appreciate; depreciate. C. depreciate; depreciate. D. depreciate; appreciate. Question 47 Not yet answered Points out of 1.00 Not flaggedFlag question Question text A central bank sale of _________ to purchase _________ in the foreign exchange market results in an equal rise in its international reserves and the monetary base. Select one: A. foreign assets; domestic currency B. domestic currency; domestic currency C. domestic currency; foreign assets D. foreign assets; foreign currency Question 48 Not yet answered Points out of 1.00 Not flaggedFlag question Question text When the central bank allows the purchase or sale of domestic currency to have an effect on the monetary base, it is called Select one: A. a money neutral foreign exchange intervention. B. an exchange rate feedback rule. C. a sterilized foreign exchange intervention. D. an unsterilized foreign exchange intervention. Question 49 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Under a pegged exchange rate system, Select one: A. an anchor country loses control over its monetary policy. B. a country that ties its currency to that of another country acquires greater control over its monetary policy. C. a country that ties its currency to that of another country loses control over its monetary policy. D. a country that ties its currency to that of another country gains control of the other country's monetary policy. Question 50 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The official reserve transactions balance is referred to as Select one: A. the capital account. B. the current account. C. net change in government international reserves. D. the trade balance. Question 51 Not yet answered Points out of 1.00 Not flaggedFlag question Question text If a central bank does not want to see its currency rise in value, it may pursue _________ monetary policy to _________ the domestic interest rate, thereby weakening its currency. Select one: A. contractionary; lower B. expansionary; raise C. expansionary; lower D. contractionary; raise Question 52 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Revaluation of a currency's value occurs when Select one: A. a floating exchange rate adjusts upward. B. a fixed exchange rate is adjusted downward. C. a fixed exchange rate is adjusted upward. D. a floating exchange rate adjusts downward. Question 53 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The current account balance plus the capital account balance equals Select one: A. the trade balance. B. the amount of unsterilized exchange market intervention. C. the net change in government international reserves. D. both A and C of the above. Question 54 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Because sterilized interventions mean offsetting open market operations: I. There is almost no effect on the exchange rate II. There is no impact on the money supply III. There is no direct effect on interest rates Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 55 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following are true statements about the Bretton Woods system? Select one: A. The Bretton Woods system was a flexible exchange rate regime, in which central banks allowed their currencies to float within a wide trading band. B. The Bretton Woods agreement broke down in 1945. C. The U.S. dollar was called a reserve currency because it was used to denominate the securities central banks held as international reserves. D. Only A and B of the above are true. Question 56 Not yet answered Points out of 1.00 Not flaggedFlag question Question text _________ is when the domestic currency is backed 100% by a foreign currency and in which the noteissuing authority establishes a fixed exchange rate to this foreign currency and stands ready to exchange domestic currency for the foreign currency at this rate whenever the public requests it. Select one: A. Revaluation B. Currency board C. Dollarization D. Devaluation Question 57 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The Second Bank of the United States was denied a new charter by Select one: A. Vice-President John Calhoun. B. President John Q. Adams. C. President Benjamin Harrison. D. President Andrew Jackson. Question 58 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The most important developments that have reduced banks' income advantages in the past twenty years include: I. The growth of securitization II. The growth of the junk bond market III. The growth of the commercial paper market Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III E. only A and B of the above. Question 59 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Today the United States has a dual banking system in which banks supervised by the _________ and by the _________ operate side-by-side. Select one: A. state governments; municipalities B. federal government; municipalities C. municipalities; states D. federal government; states Question 60 Not yet answered Points out of 1.00 Not flaggedFlag question Question text State banks that are not members of the Federal Reserve System are most likely to be examined by the Select one: A. Federal Deposit Insurance Corporation. B. Federal Reserve System. C. Comptroller of the Currency. D. Federal Home Loan Bank System. Question 61 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which bank regulatory agency has the sole regulatory authority over bank holding companies? Select one: A. The Federal Bank Holding Company Agency B. The Comptroller of the Currency C. The Federal Reserve System D. The Federal Deposit Insurance Corporation Question 62 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The Federal Reserve Act of 1913 required that Select one: A. national banks establish branches in the cities containing Federal Reserve banks. B. state banks be subject to the same regulations as national banks. C. national banks join the Federal Reserve System. D. all of the above be done. Question 63 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following statements concerning bank regulation in the United States are true? Select one: A. The Federal Reserve and the state banking authorities jointly have responsibility for state banks that are members of the Federal Reserve System. B. The Office of the Comptroller of the Currency has sole regulatory responsibility over bank holding companies. C. The Office of the Comptroller of the Currency has the primary responsibility for state banks that are members of the Federal Reserve System. D. All of the above are true. E. Only A and B of the above are true. Question 64 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The Glass-Steagall Act prohibited commercial banks from Select one: A. purchasing any debt securities. B. issuing equity to finance bank expansion. C. selling new issues of government securities. D. engaging in underwriting of and dealing in corporate securities. Question 65 Not yet answered Points out of 1.00 Not flaggedFlag question Question text In the 1950s the interest rate on three-month Treasury bills fluctuated between 1.0% and 3.5%. In the 1980s, the three-month Treasury bill rate ranged from 5% to over 15%. From this one could predict that in the 1980s interest-rate risk was _________ and the demand for financial innovation was _________. Select one: A. greater; lower B. greater; greater C. lower; greater D. lower; lower Question 66 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which regulatory body charters national banks? Select one: A. The Comptroller of the Currency B. The Federal Reserve C. The Federal Deposit Insurance Corporation D. None of the above Question 67 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The Competitive Equality in Banking Act of 1987 Select one: A. discouraged regulators from pursuing regulatory forbearance. B. encouraged regulators to continue their policy of regulatory forbearance. C. directed regulators to close "zombie S&Ls" as quickly as administratively possible. D. did both A and B of the above. Question 68 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The main source of funds at savings and loan associations is Select one: A. borrowing in the capital market. B. deposits. C. equity capital. D. borrowing in the money market. Question 69 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The major provisions of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 included: I. Establishing the Resolution Trust Corporation to manage and liquidate insolvent thrifts II. Increased deposit insurance III. Implementing new lending restrictions Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 70 Not yet answered Points out of 1.00 Not flaggedFlag question Question text In the 1980s, thrift institutions, which had been almost entirely restricted to making loans for home mortgages only, were allowed by regulators to Select one: A. purchase junk bonds. B. finance acquisitions in commercial real estate. C. extend consumer loans. D. do all of the above. E. do none of the above. Question 71 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The Competitive Equality in Banking Act of 1987 Select one: A. provided sufficient funding and encouraged the FSLIC to close down insolvent S&Ls. B. actually directed S&L regulators to continue to pursue regulatory forbearance, further delaying the closing of insolvent S&Ls. C. created a new agency, the Resolution Trust Corporation, to manage insolvent thrifts. D. did all of the above. E. did only A and B of the above. Question 72 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The major provisions of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 included: I. Establishing the Resolution Trust Corporation to manage and liquidate insolvent thrifts II. Expanding the responsibilities of the FDIC and deposit insurance III. Implementing new lending restrictions Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 73 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Credit unions are characterized by: I. Common-bond membership II. Non-profit, tax-exempt status III. Mutual ownership Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 74 Not yet answered Points out of 1.00 Not flaggedFlag question Question text According to the text, the Competitive Equality in Banking Act of 1987 Select one: A. failed to provide the funds necessary to close ailing S&Ls, and actually encouraged regulators to continue to pursue regulatory forbearance. B. turned the thrift industry around by providing the necessary funds to close the "zombie S&Ls." C. lowered the cost of bailing out the S&Ls by quickly closing "zombie S&Ls" before they could cause other thrifts to fail. D. did both A and B of the above. Question 75 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The S & L Crisis in the 1980s Select one: A. was at the time, the most severe financial crisis since the Great Depression B. was exacerbated by the practice of borrowing short and lending long C. was not affected by regulatory forbearance D. Both A and B are correct Question 76 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Since 1990 the number of credit union members has Select one: A. increased substantially. B. decreased substantially. C. increased slightly. D. decreased slightly. Question 77 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Special Drawing Rights (SDRs) Select one: A. constitute an international currency created by the International Monetary Fund. B. are considered as "paper gold", used as a substitute for gold in international exchange. C. are used as part of the official reserves of central banks to settle international debt. D. all of the above. Question 78 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The The International Monetary Fund (IMF): I. Is considered to be the international lender of last resort. II. Is primarily responsible for determining U.S. monetary policy and short-term interest rates. III. Makes structural adjustment loans, which are often extended, to countries with a variety of debtrelated problems. Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 79 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Today's major industrialized nations are using a foreign exchange system known as Select one: A. managed float B. pegged rates C. free float D. fixed rates Question 80 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Under a system of floating exchange rates, which of the following conditions would the Canadian dollar tend to appreciate in value against the U.S. dollar? Select one: A. Canadian banks offer lower rates of interest than U.S. banks. B. The rate of inflation in Canada is lower than in the U.S. C. There is a rising demand for U.S. goods on the part of Canadian consumers. D. Canadians perceive that the U.S. is about to experience higher economic growth. Question 81 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following was a managed float agreement signed by the major industrialized nations in 1987? Select one: A. The Greenspan Currency Control Act B. The Western Currency Management Agreement C. The Geneva Exchange Rate Accord D. The Louvre Currency Stabilization Accord Question 82 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Faced with a continuing drain of U.S. gold reserves, the U.S. chose to Select one: A. allow interest rates to rise in order to attract gold back into U.S. vaults. B. lower the exchange ratio of dollars to gold from 1/35 ounce to 1/70 ounce. C. eliminate the redemption of foreign-held U.S. dollars for gold. D. end the military draft in an effort to boost U.S. productivity. Question 83 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following will lead to an inflow of U.S. dollars in the U.S. Balance of Payments account? I. Imports of foreign goods and services into the U.S. II. Gifts (aid) received by the U.S. from foreign countries III. Foreign investment in U.S. Treasury securities Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 84 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following will lead an American to exchange U.S. dollars for British pounds? Select one: A. Importing a case of British salmon B. Purchasing a cottage in the British countryside C. Investing in a British manufacturing company D. All of the above Question 85 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following can be considered as disadvantages of using a pegged exchange rate? Select one: A. The pegged currency's true value may not reflect underslying economic fundamentals. B. It may not be possible to maintain the pegged currency's value over time. C. Both of the above. D. None of the above. Question 86 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following is true concerning multilateral financial institutions? Multilaterals: Select one: A. receive primary funding from the world's major industrialized nations. B. offer official development assistance to developing countries. C. have been criticized for driving countries further ito debt and financial vulnerability. D. All of the above. Question 87 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The World Bank Select one: A. was founded as part of the Bretton Woods agreement. B. consists of two organizations making loans to the world's poor and poorest nations. C. makes loans typically used for agricultural and infrastructure development. D. all of the above. Question 88 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following multilateral institutions often insists that a country follow "austerity measures" designed to restore financial solvency as a condition of receiving a loan? Select one: A. The BIS B. The IMF C. The World Bank D. None of the above. Question 89 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following, enacted in 1933 for the purpose of separating commercial and investment banking in the U.S., was repealed in 1999 by passage of the Gramm-Leach-Bliley Act? Select one: A. The Glass-Steagall Act B. The Stevens-Seagal Act C. The Morgan-Stanley Act D. The Commercial Securities Act Question 90 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following is true concerning depository financial intermediaries? I. They are important to the channeling of funds between lenders and borrowers. II. They are chartered and regulated in an effort to protect depositors and the financial system. III. They are required to make loans to anyone with an adequate credit score. Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 91 Not yet answered Points out of 1.00 Not flaggedFlag question Question text A large domestic bank with headquarters in New York City that provides international lending and payments services to large, multinational business firms is most likely to be a: Select one: A. Money Center bank B. Regional bank C. Mid-Market bank D. Community bank Question 92 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following statements is true international banking? I. The explosive growth in Eurodollar lending has led to an increase in the number of U.S. branch banks abroad II. Due to trade restrictions, foreign banks have not been successful in the U.S., where they do very little banking III. Stricter regulations abroad makes international banking more expensive for U.S. banks Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 93 Not yet answered Points out of 1.00 Not flaggedFlag question Question text By law, credit unions are: I. Not-for-profit depository intermediaries II. Tax-exempt financial institutions III. Disallowed from engaging in any business lending Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 94 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following acts broke down the wall of separation between securities underwriting and commercial lending? Select one: A. Gramm-Leach-Bliley Financial Services Modernization Act B. Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA) C. Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) D. None of the above Question 95 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Credit unions: I. Offer their members savings and checking services similar to those of commercial banks II. Are non-profit entities that typically pass cost savings on to members III. Are insured by the Federal Deposit Insurance Corporation (FDIC) Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 96 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Corporations with a controlling interest in one or more affiliated banks are known as Select one: A. commercial banks. B. bank holding companies. C. government sponsored enterprises. D. mutual fund companies. Question 97 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Most domestic banks in the U.S. are Select one: A. nationally chartered. B. state chartered. C. members of the Federal Reserve System. D. all of the above. Question 98 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following statements is true regarding bank charters? I. National banks are chartered by the U.S. comptroller of the currency. II. Banks may be chartered at either the national or state level. III. Only nationally-chartered banks can be members of the Federal Reserve System Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III Question 99 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Financial holding companies are: I. Companies that hold a variety of different types of financial institutions II. Are currently being regulated by the U.S. Office of the Comptroller of the Currency III. Cannot hold both depository and non-depository financial intermediaries Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III Question 100 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The difference between what a commercial bank pays for its deposits and what it earns on its loans is called the Select one: A. margin interest or lending spread. B. earnings before interest and taxes. C. return on shareholder's investment. D. underwriting spread