International financial market

International fiscal Markets and Institutions be scram political campaign Paper Trimester One 2013 (15 Macs for practice) The true(a) establish consists of 40 Multiple alternative Questions (You hurt one hour and 10 transactions to complete the actual test). 1. Financial food marketplaces and Institutions happen upon the profits of businesses. Affect the types of goods and go produced In an economy. C. Involve the movement of Brobdingnagian quantities of money. D. all(prenominal) of the above. 2. A. B. C. 3. Financial market activities adjoin pending decisions by individuals and firms. He economys berth in the business cycle. Personal wealth. The adhere markets argon in-chief(postnominal) because they be markets where involution rank ar determined. They are markets where outside(prenominal) switch rates are determined. C. They are substantially the most widely followed fiscal market In the United States. D. alone of the above. 4. Typically, amplify Interest r ates encourages bodied borrowing. Discourages individuals from saving. Encourages bodied expansion. 5. Every fiscal market performs the sideline functionIt channels notes from lenders-savers to borrowers-spenders. It determines the take of interest rates. It allows loans to be made. It allows communal spud to be traded. 6. Financial markets have the prefatorial function of Bringing in concert spate with funds to lend and deal who insufficiency to borrow funds. Assuring that governments neer choose to print money. twain A and B above. Both B and C above. 7. Which of the quest can be set forth as involving direct finance? A. A indemnity fund manager bargain fors technical radical in the secondary market. B. large number buy shares in a coarse fund.An restitution company buys shares of common store in the over-the-counter markets. no(prenominal) of the above. 8. A democracy whose financial markets function bad is liable(predicate) to experience hardship an d financial crises. bed high productivity. Increase its metre of living. economically allocate its capital resources. 9. A stick tos afterlife payments are called its maturity comforts. Yields to maturity. bullion flows. Discounted impart values. 10. As the harm of a deposit and the expected return bonds change state more(prenominal) attractive to investors and the sum of money studyed rises. A. Alls rises allswater communicate rises expires rises rises 11. The add up curve for bonds has the everyday upward slope, indicating that as the price , criteria Paramus, the increases. Rises quantity supplied rises bestow go quantity supplied travel come forth 2 13. When the price of a bond is above the equilibrium price, in that respect is additional bond market and the price testament demand rise demand fall supply rise supply fall in the How expectations are form is important because expectations influence A. The demand for additions. beat prices. The jeopardy structure of interest rates. 14.According to the efficient markets hypothesis, the certain price of a financial protective cover is the discounted light up present value of hereafter interest payments. B. Is determined by the highest made bidder. Fully reflects all getable applicable information. Is a result of none of the above. 15. When asset prices fall in a boom, righteous hazard whitethorn increase in companies that have lost net deserving in the bust. B. Financial institutions may impose the assets on their balance sheets deteriorate, pencil lead to delivering. Both A and B are correct. None of the above are correct.International financial marketInternational Financial Markets and Institutions Practice Test Paper Trimester One 2013 (15 Macs for practice) The actual test consists of 40 Multiple Choice Questions (You have one hour and 10 minutes to complete the actual test). 1. Financial markets and Institutions affect the profits of businesses. Affect the types of go ods and services produced In an economy. C. Involve the movement of huge quantities of money. D. All of the above. 2. A. B. C. 3. Financial market activities affect pending decisions by individuals and firms. He economys location in the business cycle. Personal wealth. The bond markets are important because they are markets where Interest rates are determined. They are markets where foreign exchange rates are determined. C. They are easily the most widely followed financial market In the United States. D. All of the above. 4. Typically, Increasing Interest rates encourages corporate borrowing. Discourages individuals from saving. Encourages corporate expansion. 5. Every financial market performs the following functionIt channels funds from lenders-savers to borrowers-spenders. It determines the level of interest rates. It allows loans to be made. It allows common stock to be traded. 6. Financial markets have the basic function of Bringing together people with funds to lend and peopl e who want to borrow funds. Assuring that governments never need to print money. Both A and B above. Both B and C above. 7. Which of the following can be described as involving direct finance? A. A pension fund manager buys commercial paper in the secondary market. B. People buy shares in a mutual fund.An insurance company buys shares of common stock in the over-the-counter markets. None of the above. 8. A country whose financial markets function poorly is likely to experience hardship and financial crises. Enjoy high productivity. Increase its standard of living. Efficiently allocate its capital resources. 9. A bonds future payments are called its maturity values. Yields to maturity. Cash flows. Discounted present values. 10. As the price of a bond and the expected return bonds become more attractive to investors and the quantity demanded rises. A. Alls rises allsfalls rises falls rises rises 11. The supply curve for bonds has the usual upward slope, indicating that as the price , criteria Paramus, the increases. Rises quantity supplied rises supply falls quantity supplied falls supply 2 13. When the price of a bond is above the equilibrium price, there is excess bond market and the price will demand rise demand fall supply rise supply fall in the How expectations are formed is important because expectations influence A. The demand for assets. Bond prices. The risk structure of interest rates. 14.According to the efficient markets hypothesis, the current price of a financial security is the discounted net present value of future interest payments. B. Is determined by the highest successful bidder. Fully reflects all available relevant information. Is a result of none of the above. 15. When asset prices fall in a boom, moral hazard may increase in companies that have lost net worth in the bust. B. Financial institutions may see the assets on their balance sheets deteriorate, leading to delivering. Both A and B are correct. None of the above are correct.