7- which of the statements given below is true? Please select one; a) every financial market allows loans to be made b) The New York ŞStock Exchange is an example of a primary market c) the capital market is a financial market in which only short term debt instruments (generally those with an original maturity of less than one year) are traded d) a pansion fund is not a contractual savings instution e) in the US financial intermediaries are restricted in what they are allowed to do and what assets they can hold

Question 5?

Which of these statements about banks is true: i) Banks cannot convert all deposits in the Reserves Accounts into loans. ii) Banks can convert all deposits in the Reserves Accounts into loans. iii) Banks can create money iv) Banks can issue money. v) Commercial Banks decide on the reserves ratio O i and iii O ii and iii ii and iv i and v

Which of the following statements is NOT true? A. Debt contracts tend to impose more restrictions on the actions of the borrower than the lender   B. Larger corporations have easier access to the securities market   C. The financial sector is one of the least regulated industries in the US economy   D. Collateral is used to secure debt contracts

With open market operations, the federal reserve sets the interest rate it lends to banks.    Ture or false

Which of the statement is incorrect? i) Eurobond is a bond issued by an international investor and sold to borrowers in countries with currencies other than the currency in which the bond is denominated. ii) Foreign bond is a bond issued in a host country’s financial market, in the host country’s currency, by a foreign borrower. iii) Eurobond is a bond issued by an international borrower and sold to investors in countries with currencies other than the currency in which the bond is denominated. iv) In contrast, a foreign bond is a bond issued in a host country’s financial market, in the foreign currency, by a foreign borrower.

D3) Finance Use covered interest rate parity (CIP) to show that a fixed exchange rate and free capital flows imply that a central bank cannot set the interest rate independently from the interest rate set by the reference currency's central bank.

What is a financial market? What is the role of a financial market? 3-2 What would happen to the standard of living in the United States if people lost faith in our financial markets? Why? 3-3 How does a cost-efficient capital market help to reduce the prices of goods and services? 3-4 The SEC attempts to protect investors who are purchasing newly issued securities by requiring issuers to provide relevant financial information to prospective investors. The SEC does not provide an opinion about the real value of the securities. Hence, an unwise investor might pay too much for some stocks and consequently lose heavily. Do you think the SEC should, as a part of every new stock or bond offering, render an opinion to investors on the proper value of the securities being offered? Explain.

What kind of Interest does a negotiable certificates of deposit issued by large commercial banks carry? a. Variable Interest Rate b. Fixed Interest Rate c. No Interest Rate d. Changing Interest rate

Which of the following is (are) correct statement(s)     To increase reserves in the banking system on temporary basis, the Bank of Canada engages in a repurchase agreement (Repos or SPRAs)     The upper limit of the operating band is called Bank rate     The Bank of Canada uses SPRAs to lower the overnight rate and SRAs to raise the overnight rate.     all of the above     Only a and b above The monetary policy tools used by the Bank of Canada include     are open market operations     Shifting of government deposits to Chartered banks     Changing the reserve requirements     all of the above     Only a and c above The Monetary Base of the Bank of Canada includes     government securities and discount loans     currency in circulation and reserves of the chartered banks     government securities and reserves     currency in circulation and discount loans