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Chapter 14 - Capital Markets
62. Which of the following statements concerning futures markets is false?
63. All of the following are recognized as an important influences in the development of the
banking crisis of 2008 and the resulting credit crisis EXCEPT:
64. Which of the following was not a major supplier of funds to credit markets in 2008?
Chapter 14 - Capital Markets
65. Evidence of how global markets are linked was provided in 1997 and 1998 when
international markets reacted to
66. When global capital markets collectively react to international events like Russia's default
on its sovereign debt, it is common to find
67. Which of the following is not a money market instrument?
Chapter 14 - Capital Markets
68. The European Monetary Union (EMU) which came into effect in January of 1999
includes
69. The formation of the European Monetary Union and its single currency Euro is expected
to
70. During the next ten years, the major threat to the dominance of the U.S. money and capital
markets will come from
Chapter 14 - Capital Markets
71. Global capital markets are influenced by
72. Companies list their stock around the globe to
73. Foreign investors have preferred to invest in the United States due to all but one of the
following reasons:
Chapter 14 - Capital Markets
74. With respect to the United States and its relationship with the rest of the world, it can be
said that
75. Financial instruments in the capital markets generally fall under what category in the
Balance Sheet?
76. Corporations prefer bonds over preferred stock for financing their operations because
Chapter 14 - Capital Markets
77. In general when interest rates are expected to rise, financial managers
78. Federally sponsored credit agencies include all but which of the following?
79. Which of the following is an internal source of funds?
Chapter 14 - Capital Markets
80. The major supplier of funds for investment in the whole economy is
81. Financial intermediaries serve which of the following purposes?
82. Which of the following is not an example of indirect investment by a household?
Chapter 14 - Capital Markets
83. Which of the following are benefits of financial intermediaries?
84. The purpose of secondary trading is to
85. The most important capital markets in the world (in terms of dollar value) are located in
Chapter 14 - Capital Markets
86. Which Stock Exchange is known as the most liquid?
87. Which of the following is false regarding decimalization?
88. Middle to small size companies that are centered in one city or state would most likely be
found on the
Chapter 14 - Capital Markets
89. What type of trading accounts for over 90% of stocks traded on the Chicago and Pacific
regional exchanges?
90. The emergence of trading via ECNs has.
91. Which of the following is not a criterion for an efficient market?
Chapter 14 - Capital Markets
92. Security markets are efficient when each of the following exist except
93. The efficient market hypothesis deals primarily with
94. The efficient market hypothesis has several forms. The weak form states that
Chapter 14 - Capital Markets
95. Security markets provide liquidity
96. The semi-strong form of the efficient market hypothesis states that
97. The strong form of the efficient market hypothesis states that
Chapter 14 - Capital Markets
98. The Securities Act of 1933 is primarily concerned with
99. The Securities Act of 1933 did not
100. Research has generally indicated that which Efficient Market hypothesis is clearly not
correct?
Chapter 14 - Capital Markets
101. The Securities Exchange Act of 1934 is primarily concerned with
Chapter 14 - Capital Markets
102. Match the following with the items below:
A financial institution such as a bank or life
insurance company that directs other peoples' money
into indirect investments like government and corporate
2. listing
Financial standards that corporations must meet
before their common stock can be traded on a stock
Securities listed by various semiautonomous
segments of the federal government such as the Federal
4. financial
The buying and selling of publicly-owned securities
in markets like the New York Stock Exchange and the
Exists when the common stock of one company is
Competitive markets for securities with maturities of
7. municipal
This fund is composed of retained earnings and non-
8. over-the-counter
Competitive markets for securities with maturities of
10. internally
A market for securities where dealers transact
purchases and sales of securities by trading from their
