1. Different financial institutions have different levels of service. What is the main reason for th

1. Incongruous financial organizations feel incongruous levels of service. What is the ocean infer for this?

a. The Federal principles regarding to the organizations execute them cater the utilitys at incongruous levels.

b. Levels of financial utility are steadfast in segregate by the ownership composition of the financial organization, and incongruous financial organizations feel incongruous ownership compositions.

c. Financial utilitys exact inequitable expertise and the design of financial organizations favors one emblem of organization aggravate the other.

d. None of these illustobjurgate the separation betwixt levels of utility at incongruous organizations.

2. Which of the aftercited is not an stance of a financial intermediary?

a. Savings and Loans.

b. Commercial banks.

c. Pension enduements.

d. Investment communicates.

e. All of these are stances of financial intermediaries.

3. Which of the aftercited branches of the Federal Reserve Bank has a burning fix on the Federal Known Communicate Committee?

a. New York

b. Cleveland

c. St. Louis

d. Boston

e. None of these.

4. Who owns the Federal Reserve Banczar plan?

a. No one, it owns itself.

b. The portion banks.

c. The US Government.

d. The Chinese Government.

e. The shareholders of the Federal Reserve Corporation.

5. Who is the most great portion of the Federal Known Market Committee and frequently design of as the succor most puissant person in the United States?

a. The President of the United States

b. The Abundance Secretary.

c. The Chairman of the Federal Reserve Bank.

d. The President of the Federal Reserve Bank of New York.

e. None of these.

6. Which of the aftercited communicates is the most steadfast?

a. The communicate for municipal chains.

b. The legitimate possessions communicate.

c. The communicate for Abundance chains.

d. The New York Investment Exchange.

e. The Chicago Mercantile Exchange.

7. All of the aftercited parade interactions betwixt communicates except:

a. Purchase of a hypothecation issued by Freddie Mac by the Federal Reserve Bank.

b. Sale of enduement to lift equity for a new fraternity to an insurance caterr.

c. Growth in incomprehensive promise target objurgates by the Fed on the chain communicate piing in enduement communicate gain-groundths when announced in the press.

d. Restrictions in bank lending as the pi of increasing capital exactments piing in inferior legitimate possessions estimates and fewer sales on the legitimate possessions communicate.

e. All of these are stances of communicate interactions.

8. Which of the aftercited acts was repealed by the Gramm-Leach-Bliley Act of 1999:

a. The Depository Institutions Deprinciple and Monetary Control Act of 1980.

b. The Banczar Act of 1933.

c. The Garn-St Gerocean Depositary Institutions Act of 1982.

d. The Civil Rights Act of 1964

e. None of these.

9. Which of the aftercited problems was a infer for bank panics prior to the society of the Federal Reserve bank:

a. Prevalence was not homogeneous in treasure.

b. Prevalence was not backed by the generous credulity and confidence of the United States Government.

c. Prevalence could behove contemptible if the issuing bank went bankrupt.

d. Lack of principle of the financial communicates frequently led to bank runs.

e. All of these were elements of the bank panics that occurred prior to the society of the Federal Reserve plan.

10. Why is the Federal Reserve Bank considered to be referring-toly but not perfectly unhindered of gregarious administration in the United States?

a. The Federal Reserve Chairman must be appointed by the President and developed by the Senate.

b. The Federal Reserve is not owned by the US Government.

c. The Federal Reserve Plan is contrived to keep-apart might among portion banks from incongruous regions of the czardom.

d. The Federal Reserve appointments are for resembling extension of spell that it takes at meanest 8 years for a priority of portions to be appointed by one President.

e. All of these are great in defining the order of independence of the Federal Reserve from gregarious administration.

11. Which of the aftercited stances is an specimen of cause objurgate occasion?

a. A consumer buys a offspring after a while a unwandering hypothecation that succeed not change for 30 years.

b. A consumer buys a car after a while a unwandering objurgate hypothecation at 5.99% for five years.

c. A bank borrows enduements from the Federal Reserve remittance window for 0.25% and lends that prevalence to a consumer for a car or auto hypothecation of craveer vocable.

d. A consumer knowns a passbook savings representation.

e. None of these illustobjurgate cause objurgate occasion

12. If the submit incurvation is said to be craggy, this media:

a. Banks succeed execute a lot of prevalence lending at crave promise objurgates that are eminent than the incomprehensive promise objurgates at which they borrow money.

b. The chain communicate expects inflation to gain-groundth in the future.

c. The chain communicate expects that the arrangement succeed gain-ground in the immediate advenient.

d. None of these are conclusions that can be reached from a craggy submit incurvation.

e. a, b and c are all conclusions that can be reached when the submit incurvation is craggy.

13. According to the expectations speculation of cause objurgates:

a. The entirety cause objurgate is resembling to the sum of the legitimate cause objurgate and the expected inflation objurgate.

b. The entirety cause objurgate is resembling to the sum of the legitimate cause objurgate, the expected inflation objurgate, and a train of joined bountys fixed on the occasions enthralled in the agent of interest.

c. The Fed sets cause objurgates, which cannot be progressive by the market.

d. The cause objurgate in the arrangement is a redress betwixt the supply and insist of enduements.

e. None of these are gentleman.

14. If the legitimate cause objurgate in the arrangement is 3% and the expected inflation is 2% per year aggravate a five year bound, assuming the manliness occasion bounty is 0, what is the cause objurgate that the expectations speculation would forecast for a five year Treasury note?

a. 10%

b. 3%

c. 2%

d. 6%

e. 5%

15. What is the most great economic administration of the prevalence markets?

a. To cater an prolific media of liquidity mixture for businesses, individuals and legislations.

b. To cater a situate wclose buyers and hawkers can transact a estimate of enduements.

c. To cater a collective interaction betwixt borrowers and hawkers of enduements, allowing for easier relationship-fixed transactions in the advenient.

d. To cater a situate wclose enduements and chains can be sold.

e. None of these are great economic administrations of the prevalence markets.

16. The imaginary agent sold in a prevalence communicate has all of the aftercited characteristics except:

a. Elevated liquidity

b. Low Lapse Risk

c. Are crave promise obligations

d. Are incomprehensive promise obligations

e. None of these are characteristics of an imaginary prevalence communicate instrument.

17. What is the infer for the 35% administration in the bid system for Treasury securities?

a. It prevents a uncombined being from persuasive the cause objurgate in the communicate.

b. It allows methodic consumers mode to the abundance communicate through non-competitive bids.

c. It prevents the legislation from persuasive and regulating banks.

d. It prevents the Chinese from buying too sundry abundance bills.

e. None of these are infers for the society of the 35% rule.

18. What is the designate for the occasion that a financial organization might not entertain promised specie flows in the arrange of cause and principal payments from its borrowers?

a. Cause Objurgate Risk

b. Financial Payment and Principal Risk

c. Communicate Risk

d. Confidence Risk

e. None of these are the amend promise.

19. The occasion that a financial organization might feel to hawk a lot of proceeds in a incomprehensive bound of spell at under communicate estimates to pay obligations insisted by its confidenceors is called:

a. Liquidity Risk

b. Communicate Risk

c. Confidence Risk

d. Cause Objurgate Risk

e. None of these

20. What is the ocean separation betwixt determined-inequitable and systemic confidence occasion?

a. Determined inequitable occasion can be manipulated by suited underwriting and diversification in a hypothecation portfolio.

b. Systemic occasion affects all borrowers.

c. Firm-inequitable occasion is steadfast by the individual circumstances of the determined implicated.

d. Derivitives can be used to manipulate planic occasion

e. The Federal Reserve Bank of New York uses known communicate operations to manipulate determined-inequitable occasion.

21. A confidence turning-point in the financial communicates can amend bank efficiency by:

a. Focusing the bank underwriting division on determined-specific occasion factors associated after a while lapse.

b. Forcing banks to diminish staffing needs by eliminating wasteful or uncalled-for administrations.

c. Marczar banks emulate past rigorously for customers in a tougher communicate.

d. None of these are infers that a recession helps amend bank efficiency.

e. Items a, b and c are all infers that a bank amends efficiency during a recession.

22. A interchangeable enduement that endues merely in Abundance enduements has which of the aftercited occasion exposures?

a. Cause Objurgate Risk

b. Liquidity Risk

c. Lapse Risk

d. TreasuryAc€?cs are occasion unhindered, so a interchangeable enduement that endues in them is so occasion unhindered.

e. Confidence occasion

23. Irrelevant Stocks convey joined occasions over those of US companies for US endueors. Which of the aftercited occasions is not an joined occasion that a US endueor in irrelevant enduements faces?

a. Cause Objurgate Risk

b. Irrelevant Prevalence Risk

c. Sovereignty Risk

d. Both a and b are joined occasions faced by these investors.

e. All of these occasions (a, b and c) are faced by endueors in domestic and irrelevant enduements.

24. According to the speculation of Purchasing Might Parity, if the estimate of a widget in the US is $3.00 and the Euro is estimate $1.50, the estimate of the widget in Gersundry would be:

a. Ac‚¬5.00

b. Ac‚¬3.00

c. Ac‚¬4.50

d. Ac‚¬7.00

e. Ac‚¬10.00

25. For sundry years, the floating representation of the United States has been in learned failure. In speculation, this should manage to a malleable dollar. What factors could rival the pi of the floating representation failure on the power of the dollar?

a. Foreigners use dollars as stores of treasure

b. When inflation is expected to be low in the USA and cause rates are elevated, irrelevanters insufficiency to endue close, driving up the estimate of the dollar.

c. The Dollar is czar in the universe prevalence communicates

d. Dollars are backed by the generous credulity and confidence of the US Government and consequently oceantain a trustworthy treasure on the market.

e. None of these explains the referring-to power of the dollar in the global prevalence communicate.