Primary reserves: are short term securities held by banks that are quickly converted into cash at little cost to the banks reflects the bank's ability to keep the value of a bank's assets greater than its liabilities. include the cash assets of the firm under the heading "cash and balances due from depository institutions. reflects the bank's ability to meet depositor withdrawals. Which of the following is not part of the underwriting process? the prospectus the Federal Reserve the Securities and Exchange Commission the syndicate Which of the following describes the basic function of money? liquidity standard of value store of purchasing power medium of exchange Assume that a bank must keep reserves of 20% against deposits. The bank receives a primary deposit of $50,000. What amount of excess reserves can the bank safely lend? is a highly regulated document which details the issuers operations and finances and must be provided to each buyer of a newly issued security. A prospectus An underwriting agreement A best efforts agreement none of the above Determine the size of the M1 money supply using the following information. Currency $73 billion Money market mutual funds $96 billion Demand deposits $30 billion Other checkable deposits $30 billion Traveler's checks $5 billion The New York Stock Exchange forbids buying stock on margin transfers funds to businesses is a financial intermediary is a secondary market Which of the following are not thrift institutions? all of the above savings and loan institutions savings banks commercial banks Entering a sell order at $18.50 when the bid and ask is 1819 : is a limit order. requires a margin payment. is a market order illustrates a short sale. The term structure of interest rates indicates the : relationship between the time and yields. the difference between the yield (interest rate) on government and corporate debt. the difference between borrowing and lending relationship between risk and yields