Please help me get answers for those questions ASAP

1. (TCO 1) One sign of an efficient financial system is one that (Points : 4) eliminates search and transactions costs. is a mere theoretical possibility. promotes economic growth and social progress. depends on high volumes of "direct" transactions. 2. (TCO 1) Financial intermediaries will (Points : 4) issue direct claims and purchase direct financial assets. issue indirect claims and purchase indirect financial assets. purchase large amounts of real, tangible assets. purchase direct financial claims and issue indirect securities. Question 3.3. (TCO 1) The largest issuer of commercial paper are (Points : 4) commercial banks. finance companies. property-casualty insurance companies. pension funds. Question 4.4. (TCO 1) Federal agencies invest primarily in claims issued by (Points : 4) businesses that are "too big to fail". the U.S. Treasury to finance government deficits. agricultural or housing-related sectors which have limited access to private credit. foreign governments. Question 5.5. (TCO 1) Security exchanges (Points : 4) create interest in stocks. increase the marketability of securities. provide a legal way to gamble. supply money to deficit spending units. 6. (TCO 2) Which of the following cannot be associated with original objectives of the Fed? (Points : 4) Coordinate an inefficient payments mechanism Provide an inelastic money supply Print currency Serve as a lender of last resort Question 7.7. (TCO 2) To increase the money supply, the Federal Reserve would most likely (Points : 4) buy securities on the open market. lower the Discount Rate. lower reserve requirements. Any of the above would be suitable for this purpose. Question 8.8. (TCO 2) The most visible monetary tool of the Federal Reserve are (Points : 4) open market operations. changes in reserve requirements. all implementations of Reg Z. discount rate policy changes. Question 9.9. (TCO 2) Using the data below, what is the level of excess reserves? Total Reserves $80,000,000 Reserve Requirement 4% Total Deposits $750,000,000 (Points : 4) $ 80,000,000 $ 30,000,000 $ 50,000,000 Not ascertainable 10. (TCO 3) Business investment and consumption spending should increase if (Points : 4) financial wealth decreases. reserve requirements decrease. interest rates increase. credit availability decreases. Question 11.11. (TCO 4) Which one of the following is an explanation for paying interest on borrowed money? (Points : 4) Interest is the rental cost of purchasing power. Interest is the reward for consuming income before it is earned. Interest is always paid at the maturity of a loan. Interest is the time value of current consumption. Question 12.12. (TCO 4) There will be an upward shift in the demand for loanable funds if there is (Points : 4) a decline in the supply of loanable funds. a decline in business prospects. an improvement in technology. an expectation of an upcoming recession. Question 13.13. (TCO 4) Long-term bond prices are more likely to be adversely affected if there is (Points : 4) a forecast of lower inflation in the future. a forecast of a slower economy next year. a forecast of higher inflation in the future. a forecast of lower government budget deficits. 14. (TCO 4) If the actual rate of inflation is greater than the rate expected during a period (Points : 4) borrowers benefited at the expense of lenders. lenders benefited at the expense of borrowers. both borrowers and lenders benefited. neither borrowers nor lenders benefited. Question 15.15. (TCO 4) An investor received an 11% coupon rate last year on a $1,000 bond purchased at par. The inflation rate during the year was 4% and is expected to be 5% next year. The realized real rate earned by the investor last year was (Points : 4) -7% 11% 4% 7% Question 16.16. (TCO 5) In a fixed-rate bond, the variable which changes to determine market rate of return is _____. (Points : 4) price coupon rate coupon amount face value Question 17.17. (TCO 5) When a bond's coupon rate is greater than the market rate of interest, the bond will sell for (Points : 4) a discount. a premium. par. a variable rate. 18. (TCO 5) Interest rate risk is (Points : 4) duration. the extent that coupon rates vary with time. the potential variability in the realized rate of return caused by changes in market rates. the potential variability in the bond maturity caused by changing discount rates. Question 19.19. (TCO 5) Duration is a measure of (Points : 4) a bond's price. a bond's contractual maturity. the length of time it takes to get back the original investment. bond price volatility. Question 20.20. (TCO 5) If market interest rates fall after a bond is issued, the (Points : 4) face value of the bond increases. investor will sell the bond. market value of the bond is increasing. market value of the bond is decreasing. 1. (TCO 5) The source of data for a yield curve might be (Points : 4) bond yield by issuers over time. historical Treasury security yields. realized Treasury security yields by time. outstanding Treasury security yields by maturity. 2. (TCO 5) A downward sloping yield curve indicates that future short-term rates are expected to _____ and outstanding security prices will _____. (Points : 4) fall; rise fall; fall rise; rise rise; fall Question 3.3. (TCO 5) A two-year interest rate is 7% and a one-year forward rate one year from now is 8%. According to the expectations theory, what is the current oneyear rate? (Points : 4) 6.0% 6.5% 7.0% 8.0% Question 4.4. (TCO 5) The major determinant of the bond ratings assigned by Moody's, Standard and Poor's, or Fitch is (Points : 4) marketability. tax treatment. term to maturity. default risk. Question 5.5. (TCO 5) _____ provide bond ratings. (Points : 4) The government Investors Corporations Rating agencies 6. (TCO 6) Which of the following is a characteristic of money market instruments? (Points : 4) Short-term to maturity Low default risk High marketability All of the above Question 7.7. (TCO 6) Federal Funds are (Points : 4) Treasury deposits. Federal Reserve assets. commercial bank deposits at the Federal Reserve. overnight interbank loans. Question 8.8. (TCO 6) _____ is a money market security represented by the largest dollar amount outstanding. (Points : 4) Commercial paper A municipal security Negotiable CDs Treasury bills Question 9.9. (TCO 6) Which of the following securities are examples of a money market security? (Points : 4) Treasury bills Certificates of deposit Banker's acceptance All of the above 10. (TCO 6) Repurchase agreements have low risk because the (Points : 4) collateral is of equivalent dollar. transaction is permanent. security is of a short-term nature. collateral is of equivalent dollar and security is of a short-term nature. Question 11.11. (TCO 7) The secondary markets for capital market securities have facilitated economic growth in the U.S. because (Points : 4) they help provide marketability for capital market claims. they have decreased people's willingness to buy capital market claims. they make people more willing to invest because they can more easily diversify their risk. they help provide marketability for capital market claims and they make people more willing to invest because they can more easily diversify their risk. Question 12.12. (TCO 7) When comparing "regular" Treasury securities of the same maturity, TIPS have less _____ risk. (Points : 4) default price liquidity foreign exchange Question 13.13. (TCO 7) STRIPs are created by Treasury security dealers because (Points : 4) STRIPs are sold directly by the Treasury Department. when a STRIP is created, all interest payments become one security and the principal payment becomes the other. many small investors prefer STRIPs because they require a lower minimum investment than original Treasury notes and bonds. they expect to sell the created zero-coupon securities for more than what they paid for the original Treasury security. Question 14.14. (TCO 7) _____ would be least likely to purchase a tax-exempt municipal Bond. (Points : 4) Variables commercial bank Casualty insurance company Mutual funds Individuals in low tax brackets Question 15.15. (TCO 7) Bonds are classified as a junk bonds if (Points : 4) issued in large volumes. originate within small businesses. its with high default risk. None of the above Question 16.16. (TCO 7) Multinational firms look at Eurocurrency markets as a source of attractively priced working capital loans because(Points : 4) lower regulatory costs allow lenders to offer lower cost loans. with transactions starting at $500,000, economies of scale provide better pricing. higher credit checking costs and other processing costs lowers lending rates. lower regulatory costs allow lenders to offer lower cost loans and With transactions starting at $500,000, economies of scale provide better pricing. Question 17.17. (TCO 8) All of the following can be used to adjust ARM rates except (Points : 4) Treasury security rates Dow Jones Mortgage Rate Index S & L cost of funds index LIBOR Question 18.18. (TCO 8) If a savings and loan (S & L) has a very low net worth position, most likely the S & L would (Points : 4) invest in conventional fixed-rate loans. invest in variable-rate loans. make and sell eligible loans to the FHLMC. make equity-participation mortgages. Question 19.19. (TCO 8) The _____ sector is the largest sector of the capital debt market. (Points : 4) corporate bonds mortgages state and municipal bonds U.S. Treasury debt Question 20.20. (TCO 8) Mortgages with private mortgage or government insurance (Points : 4) are likely to sell at lower prices and lower rates than comparable conventional mortgages. are less likely to default that conventional mortgages. offer the investor less default risk than conventional mortgages. will be written under the credit standards of the originator, and not the standards of the agency or insurance company. (TCO 7) _____ would be least likely to purchase a taxexempt municipal Bond. (Points : 4) Question 14.14. Variables commercial bank Casualty insurance company Mutual funds Individuals in low tax brackets Question 15.15. (TCO 7) Bonds are classified as a junk bonds if (Points : 4) issued in large volumes. originate within small businesses. its with high default risk. None of the above (TCO 7) Multinational firms look at Eurocurrency markets as a source of attractively priced working capital loans because (Points : Question 16.16. 4) lower regulatory costs allow lenders to offer lower cost loans. with transactions starting at $500,000, economies of scale provide better pricing. higher credit checking costs and other processing costs lowers lending rates. lower regulatory costs allow lenders to offer lower cost loans and With transactions starting at $500,000, economies of scale provide better pricing. Question 17.17. (TCO 8) All of the following can be used to adjust ARM rates except (Points : 4) Treasury security rates Dow Jones Mortgage Rate Index S & L cost of funds index LIBOR (TCO 8) If a savings and loan (S & L) has a very low net worth position, most likely the S & L would (Points : 4) Question 18.18. invest in conventional fixed-rate loans. invest in variable-rate loans. make and sell eligible loans to the FHLMC. make equity-participation mortgages. (TCO 8) Mortgage rates, relative to other capital market rates (Points : 4) Question 19.19. tend to vary with other rates. tend to be lower than Treasury bond rates. reflect an element of credit risk. tend to vary with other rates and reflect an element of credit risk. (TCO 8) The Federal Home Loan Mortgage Corporation (Freddie Mac) had an original purpose to (Points : 4) Question 20.20. make home loans to low income individuals. purchase the conventional mortgages from thrift institutions. purchase the insured conventional mortgages from financial institutions. purchase the government insured mortgages from thrift institutions