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Test bank for Financial Markets and Institutions 12th Edition by Jeff Madura Latest Update, Exams of Business Ethics

College for Financial PlanningBusiness Ethics

Test bank for Financial Markets and Institutions 12th Edition by Jeff Madura Latest Updated Examination Study Guide 2024/2025

Typology: Exams

2023/2024

Available from 10/05/2024

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Test bank for Financial Markets and Institutions 12th Edition by Jeff
Madura
Latest Updated Examination Study Guide 2024/2025
1. Financial market participants who provide funds are called
a. deficit units.
b. surplus units.
c. primary units.
d. secondary units.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/15/2016 6:38 AM
DATE MODIFIED: 9/16/2016 1:14 AM
2. Which of the following is NOT an issuer of bonds?
a. households
b. corporations
c. the U.S. Treasury
d. government agencies
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FMAI.MADU.15.01.01
NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.03
STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/16/2016 1:15 AM
DATE MODIFIED: 5/1/2018 11:55 AM
3. Behavioral finance
a. applies concepts from sociology and anthropology to the behavior of market participants.
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Download Test bank for Financial Markets and Institutions 12th Edition by Jeff Madura Latest Update and more Exams Business Ethics in PDF only on Docsity!

Madura

Latest Updated Examination Study Guide 2024/

  1. Financial market participants who provide funds are called a. deficit units. b. surplus units. c. primary units. d. secondary units. ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/15/2016 6:38 AM DATE MODIFIED: 9/16/2016 1:14 AM
  2. Which of the following is NOT an issuer of bonds? a. households b. corporations c. the U.S. Treasury d. government agencies ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/16/2016 1:15 AM DATE MODIFIED: 5/1/2018 11:55 AM
  3. Behavioral finance a. applies concepts from sociology and anthropology to the behavior of market participants.

Madura

Latest Updated Examination Study Guide 2024/

b. studies the behavior of financial markets in response to changes in Federal Reserve policy. c. applies psychology to financial decision making. d. explains why markets are efficient. ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/16/2016 1:18 AM DATE MODIFIED: 9/16/2016 1:21 AM

  1. Those financial markets that facilitate the flow of short-term funds are known as: a. money markets b. capital markets c. primary markets d. secondary markets ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/16/2016 1:21 AM DATE MODIFIED: 5/1/2018 11:56 AM
  2. Funds are provided to the initial issuer of securities in the: a. secondary market b. primary market c. deficit market d. surplus market ANSWER: b POINTS: 1

Madura

Latest Updated Examination Study Guide 2024/

QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/16/2016 1:24 AM DATE MODIFIED: 5/1/2018 12:26 PM

  1. Which of the following is a capital market instrument? a. a six-month certificate of deposit b. a three-month Treasury bill c. a ten-year bond d. an agreement for a bank to loan funds directly to a company for nine months ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Comprehension DATE CREATED: 9/16/2016 1:27 AM DATE MODIFIED: 9/16/2016 1:29 AM
  2. Which of the following is a money market security? a. Treasury note b. municipal bond c. mortgage d. commercial paper ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.

Madura

Latest Updated Examination Study Guide 2024/

KEYWORDS: Bloom's: Comprehension

Madura

Latest Updated Examination Study Guide 2024/

b. relatively high liquidity, high expected return, and a high degree of credit risk

Madura

Latest Updated Examination Study Guide 2024/

c. relatively low liquidity, high expected return, and a low degree of credit risk d. relatively high liquidity, low expected return, and a low degree of credit risk ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Comprehension DATE CREATED: 9/16/2016 2:59 AM DATE MODIFIED: 5/1/2018 12:29 PM

  1. If security prices fully reflect all available information, the markets for these securities are: a. efficient b. primary c. overvalued d. undervalued ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/16/2016 3:11 AM DATE MODIFIED: 5/1/2018 12:30 PM
  2. If markets are , investors could use available information ignored by the market to earn abnormally high returns. a. perfect b. active c. inefficient d. in equilibrium ANSWER: c POINTS: 1

Madura

Latest Updated Examination Study Guide 2024/

QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/16/2016 3:14 AM DATE MODIFIED: 9/16/2016 3:15 AM

  1. If financial markets are efficient, this implies that all securities should earn the same return. a. True b. False ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Comprehension DATE CREATED: 9/16/2016 3:17 AM DATE MODIFIED: 5/1/2018 12:31 PM
  2. The Securities Act of 1933 a. required complete disclosure of relevant financial information for publicly offered securities in the primary market. b. declared trading strategies to manipulate the prices of public secondary securities illegal. c. imposed heavy penalties for insider trading. d. required complete disclosure of relevant financial information for securities traded in the secondary market. e. All of these are correct. ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15.

Madura

Latest Updated Examination Study Guide 2024/

STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15.

Madura

Latest Updated Examination Study Guide 2024/

  1. If financial markets were , all information about any securities for sale in primary and secondary

Madura

Latest Updated Examination Study Guide 2024/

markets would be continuously and freely available to investors. a. efficient b. inefficient c. perfect d. imperfect ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Comprehension DATE CREATED: 9/19/2016 5:10 AM DATE MODIFIED: 9/19/2016 5:12 AM

  1. Which of the following is NOT a typical function of securities firms? a. provide brokerage services b. provide underwriting services c. accept deposits that are insured by the federal government and use the funds to provide loans to corporations d. offer advice on mergers and other corporate restructurings ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/19/2016 5:13 AM DATE MODIFIED: 5/1/2018 12:41 PM
  2. Without the participation of financial intermediaries in financial market transactions, a. information and transaction costs would be lower. b. transaction costs would be higher but information costs would be unchanged. c. information costs would be higher but transaction costs would be unchanged.

Madura

Latest Updated Examination Study Guide 2024/

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Comprehension DATE CREATED: 9/19/2016 5:16 AM DATE MODIFIED: 9/19/2016 5:20 AM

  1. Which of the following is most likely to be described as a depository institution? a. finance companies b. securities firms c. credit unions d. pension funds e. insurance companies ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/19/2016 6:47 AM DATE MODIFIED: 9/19/2016 6:50 AM
  2. In aggregate, are the most dominant depository institution, with more total assets than other depository institutions. a. commercial banks b. savings banks c. credit unions d. S&Ls ANSWER: a POINTS: 1 DIFFICULTY: Easy

Madura

Latest Updated Examination Study Guide 2024/

QUESTION TYPE: Multiple Choice

Madura

Latest Updated Examination Study Guide 2024/

DATE CREATED: 9/19/2016 7:19 AM

Madura

Latest Updated Examination Study Guide 2024/

DATE MODIFIED: 9/19/2016 7:26 AM

  1. When a securities firm acts as a broker, it a. guarantees the issuer a specific price for newly issued securities. b. makes a market in specific securities by adjusting its own inventory. c. executes securities transactions between two parties. d. purchases securities for its own account. ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/19/2016 7:30 AM DATE MODIFIED: 9/19/2016 7:35 AM
  2. When a securities firm acts as a(n) , it makes a market in specific securities by maintaining an inventory of those securities. a. adviser b. dealer c. broker d. None of these are correct. ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: FMAI.MADU.15.01. NATIONAL STANDARDS: United States - BUSPROG.FMAI.MADU.15. STATE STANDARDS: United States - OH - DISC.FMAI.MADU.15. KEYWORDS: Bloom's: Knowledge DATE CREATED: 9/19/2016 7:36 AM DATE MODIFIED: 5/1/2018 12:44 PM
  3. obtain funds by issuing securities and then lend the funds to individuals and small businesses. a. Finance companies