QUESTION 12

The interest paid on reserves sets a floor for the federal funds rate.

True

False

QUESTION 13

General obligation bonds

		are secured by public assets such as toll roads
		are secured by public lands
		are secured by cosigners
		are unsecured

QUESTION 14

The alternative to a registered bond is

		a debenture
		a treasury bond
		a corporate bond
		a bearer bond

QUESTION 15

A bond rating of "B" indicates

		a lack of characteristics of a desirable investment
		a moderate ability to pay interest and repay principal
		the second highest bond rating
		poor prospects of attaining any real investment standard

QUESTION 16

In 1992 legislation, Fannie Mae (FNMA) and Freddie Mac (FHLMC) were given the mission of

		promoting affordable housing
		assuring proper loan documentation
		avoiding loans that were likely to default
		buying only loans that were low default risks

QUESTION 17

Interest rate risk refers to

		volatility of a bonds price
		volatility in a bonds coupon yield
		the risk of negative earnings for the borrower c. the risk that the firm will not pay interest as agreed

QUESTION 18

The SuperDOT system accounts for about what portion of NYSE orders?

		2%
		10%
		55%
		75%

QUESTION 19

The SEC primarily focuses on

		assessing the fundamental value of all publicly traded stocks
		rendering opinions about the over- or under-valuation of publicly traded stocks
		promoting disclosure of information and reducing asymmetric information
		running the ADR (American Depository Receipts) market

QUESTION 20

Exchange traded funds are listed and traded as individual stocks on stock exchanges.

True

False