Archives: Quiz
Banking Chapter 20 1 They can offer export insurance coverage, transportation, warehousing and other services for exporting goods and services
1. A(n)___________________________________________ is the simplest organizational form for an international bank. This is a limited service office that markets the services provided by the home office and identifies new customers but does not take deposits or book loans. 2. A(n)______________________ […]
Investments & Securities Chapter 5 3 According to historical data, over the long run which of the following assets has the best chance to provide the best after-inflation, after-tax rate of return
62. You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P , constructed with two risky securities, X and Y. The optimal weights of X […]
Economics Chapter 20 1 From 1990 to 2004 among developed countries, a 1 percentage point increase in productivity growth was associated with increased per capita GDP growth of
Chapter 20 – Economic Growth and Development Chapter 20 Economic Growth and Development Multiple Choice 1. A country’s real GDP can increase for brief periods of time A) only if its aggregate demand increases. B) only if its aggregate supply […]
Banking Chapter 19 1 When the existing ownership of the bank experiences a loss in their share of the company due to an increased number of shares going to new stockholders it is known as
1. The____________________________________________ is the law that requires each merging bank to seek approval from its principal federal regulating agency before a merger can take place. 2. Under the terms of Bank Merger Act, the federal regulating agencies must give top […]
Investments & Securities Chapter 5 2 Historically, the best asset for the long-term investor wanting to fend off the threats of inflation and taxes while making his money grow has been
40. One method of forecasting the risk premium is to use the _______. A. coefficient of variation of analysts’ earnings forecasts B. variations in the risk-free rate over time C. average historical excess returns for the asset under consideration D. […]
Economics Chapter 1a 1 Rene Descartes realized that he could define the location of any point on the ceiling, relative to a corner of the room
Chapter 01A – Graphing: Yes, You Can Chapter 01A Graphing: Yes, You Can Multiple Choice 1. In the Cartesian coordinate system, the point on a two-dimensional graph were both variables have a value of zero, i.e., (0,0), is called the […]
Banking Chapter 18 1 The interest rate on most consumer loans is based on the cost of loanable funds to the bank plus non funding cost plus premiums for default and time to maturity
1. The purchase of a house or a multifamily dwelling such as a duplex, triplex or apartment building is usually financed through the use of a______________________ loan. 2. A(n)______________________ loan is a short- or medium-term loan repayable in two or […]
Investments & Securities Chapter 5 1 If you want to measure the performance of your investment in a fund, including the timing of your purchases and redemptions, you should calculate the
1. You put up $50 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.50. Your HPR was ____. A. 4% B. 3.5% C. 7% D. 11% […]
Economics Chapter 19 1 If the United States forbids the importation of more than a fixed amount of cane sugar, it is engaging in which of the following policies
Chapter 19 – NAFTA, CAFTA, GATT, WTO: Are Trade Agreements Good for Us? Chapter 19 NAFTA, CAFTA, GATT, WTO: Are Trade Agreements Good for Us? Multiple Choice 1. Which of the following purports to be a “free-trade” agreement? A) NAFTA […]
Banking Chapter 18 2 When interest owed on a loan is added to the principal amount of the loan to determine a borrowing customer’s required installment payments
99. Which of the following is not part of the evaluation of an installment loan? A) The borrower’s track record in caring for and maintaining property B) Evidence of stable employment C) Evidence of residence stability D) Evidence of income […]
Investments & Securities Chapter 4 1 mutual funds that vary the proportions of funds invested in particular market sectors according to the fund manager’s forecast of the performance of that market sector
1. Which one of the following invests in a portfolio that is fixed for the life of the fund? A. Mutual fund B. Money market fund C. Managed investment company D. Unit investment trust AACSB: Analytic Blooms: Remember Difficulty: 1 […]
Economics Chapter 18 1 Changes in U.S. citizens’ holdings of long-term financial and physical assets in another country are reported in
Chapter 18 – International Finance and Exchange Rates Chapter 18 International Finance and Exchange Rates Multiple Choice: 1. Since 1970, U.S. investment in other countries has A) increased by more than foreign investment in the U.S. B) increased by less […]
Banking Chapter 17 2 The business loan pricing method that includes the non funds operating costs of making a loan plus the bank’s desired profit margin is
C) Contingent liability D) Marketability of the product or service E) None of the above 103. Which dimension of a business firm’s financial and operating performance would the gross profit margin fit best? A) Liquidity measure B) Market indicator C) […]
Investments & Securities Chapter 4 2 You are considering investing in one of several mutual funds. All the funds under consideration have various combinations of front-end and back-end loads and
AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Contrast open-end mutual funds with closed-end funds; unit investment trusts; hedge funds; and exchange-traded funds. Topic: Types of Investment Companies 47. If a mutual fund has multiple-class shares, which class […]
Economics Chapter 17 1 If a country can, with a single unit of labor, produce more of both clothing and computers than another country, then the first country has
Chapter 17 – International Trade: Does It Jeopardize American Jobs? Chapter 17 International Trade: Does It Jeopardize American Jobs? Multiple Choice 1. In 2009, trade made up ____ percent of the U.S. economy. A) 1.3 B) 5.0 C) 11.1 D) […]
Banking Chapter 17 1 The only way the bank can renege on its promise is if there has been a “material adverse change” in the borrower’s financial condition
1. A(n)___________________________________________ is generally used to finance the purchase of inventory to sell and take advantage of the firm’s normal cash cycle to repay the loan. 2. A(n)______________________ is generally used to support the construction of homes, apartments, office buildings […]
Investments & Securities Chapter 3 2 The last trade in the stock occurred at a price of $40. If a market buy order for 100 shares comes in, at what price will it be filled
AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-03 Describe trading practices in dealer markets; specialist-directed stock exchanges; and electronic communication networks. Topic: U.S. Markets 40. The _________ price is the price at which a dealer is willing to […]
Economics Chapter 16 1 If you overheard a worker say that her pension would only give her what she put in and the interest she garnered on those savings regardless
Chapter 16 – Is the (Fiscal) Sky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities Chapter 16 Is the (Fiscal) Sky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension […]
Banking Chapter 16 1 A written loan policy gives loan officers and the bank’s management specific guidelines in making individual loan decisions and in forming the bank’s loan portfolio
1. The______________ is a uniform rating system developed by regulators where banks are given a rating from one to five in each of six categories and an overall rating from one to five. 2. One of the 6 C’s of […]
Investments & Securities Chapter 3 3 The commission structure on a stock purchase is $20 plus $.02 per share. If you purchase four round lots of a stock selling for $56, what is your commission
64. Regulation NMS: I. Supports the goal of integrating financial markets II. Requires the use of specialists to execute trades III. Requires that exchanges honor quotes of other exchanges when they can be executed automatically A. I only B. I […]
Banking Chapter 15 1 Supplemental capital such as the allowance for loan losses, subordinated debt, mandatory convertible debt, intermediate-term preferred stock
1. The risk that has to do with banks trading in foreign currencies is called _________________________. 2. The risk that has to do with fraud, embezzlement and bank robberies is called __________________. Answer: crime risk 3. _________________________ is measured by […]
Investments & Securities Chapter 3 1 The dealer made 10 trades that totaled 500 bonds traded that day. What was the dealer’s gross trading profit for this security
1. Underwriting is one of the services provided by _____. A. the SEC B. investment bankers C. publicly traded companies D. FDIC AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how firms issue securities to the public. […]
Economics Chapter 14 1 The elements of the stimulus package adopted in 2009 that allowed states to continue to make their unemployment compensation payments
Chapter 14 – The Recession of 2007-2009: Causes and Policy Responses Chapter 14 The Recession of 2007-2009: Causes and Policy Responses Multiple Choice 1. One of the most, if not the most severe recession since World War II began in […]
Banking Chapter 14 1 A nonproprietary mutual fund is where the bank acts as a broker for a nonaffiliated mutual fund but does not act as an investment advisor
1. When bank customers purchase stocks, bonds, mutual funds, and annuities through the bank, these products are referred to as ________________________. 2. A(n) __________________ mutual fund is a mutual fund offered through a bank’s affiliated company. The bank acts as […]
Investments & Securities Chapter 2 2 Suppose the market prices of the 30 stocks in the Dow Jones Industrial Average all change by the same dollar amount on a given day
47. Suppose the market prices of the 30 stocks in the Dow Jones Industrial Average all change by the same dollar amount on a given day. Assuming there are no stock splits, which stock will have the greatest impact on […]
Economics Chapter 13 1 A cities like Indianapolis and Dallas are unbounded by mountains or oceans while cities like Los Angeles and San Diego are bounded by both Los Angeles and San Diego are bounded by both
Chapter 13 – The Housing Bubble Chapter 13 The Housing Bubble Multiple Choice 1. In 2006 and 2007, for the first time in decades, in many major urban areas across the U.S., A) property tax rates decreased. B) housing prices […]
Banking Chapter 13 1 When a bank buys funds from other financial institutions in order to cover good quality loan demand and to satisfy deposit reserve requirements they are practicing
1. Dollar denominated CDs issued outside the U.S. are called _________________________. 2. The CDs large foreign banks sell through their U.S. branches are called _________________________. Answer: Yankee CDs 3. When a bank buys funds from other financial institutions in order […]
Investments & Securities Chapter 2 1A firm that has large securities holdings and wishes to raise money for a short length of time may be able to find the cheapest financing from which of the following
1. Which of the following is not a money market instrument? A. Treasury bill B. Commercial paper C. Preferred stock D. Bankers’ acceptance AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Distinguish among the major assets that trade […]
Economics Chapter 12 1 D38 Which of the following events occurred during the 2000 to 2003 time-frame and had an important impact on the deficit/surplus projections
Chapter 12 – Federal Deficits, Surpluses, and the National Debt Chapter 12 Federal Deficits, Surpluses, and the National Debt Multiple Choice 1. The pattern of the 1930’s through the middle 1990’s was A) deficits interspersed with a few years of […]
Banking Chapter 12 1 When financial institutions tempt customers by paying postage both ways in bank-by-mail services or by offering free gifts such as teddy bears
1. A(n) _________________________ requires the bank to honor withdrawals immediately upon request. 2. A(n) _________________________ is an interest bearing checking account and gives the bank the right to insist on prior notice before customer withdrawals can be honored. Answer: Negotiable […]
Investments & Securities Chapter 1 2 Suppose an investor is considering one of two investments that are identical in all respects except for risk. If the investor anticipates a fair
38. The Sarbanes-Oxley Act tightened corporate governance rules by requiring all but which one of the following? A. Required that corporations have more independent directors B. Required that the CFO personally vouch for the corporation’s financial statements C. Required that […]
Economics Chapter 11 1 The trends in the share of mandatory and discretionary spending suggest that the percentage attributable to
Chapter 11 Federal Spending Multiple Choice 1. Federal Spending in 2013 was A) $3.8 trillion. B) $3.8 billion. C) $38 trillion. D) $380 trillion. Answer: A 2. Prior to 2009, Federal Spending as a percentage of GDP had peaked in […]
Banking Chapter 11 1 This is the period in which the bank has to keep their average daily level of required reserves for a particular computation period
1. A(n) __________________ is an asset which can be converted into cash easily, which has a relatively stable price and is reversible so that the seller can recover their original investment with little risk of loss. 2. When a financial […]
Investments & Securities Chapter 1 1 Which one of the following firms falsely claimed to have a $4.8 billion bank account at Bank of America and vastly understated its debts, eventually resulting in the firm’s bankruptcy
1. Financial assets represent _____ of total assets of U.S. households. A. over 60% B. over 90% C. under 10% D. about 30% AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Distinguish between real assets and financial assets. […]
Economics Chapter 10 1 The fact that you can use money to buy things well after the money is earned is a result of which characteristic
Chapter 10 – Monetary Policy Chapter 10 Monetary Policy Multiple Choice 1. The Federal Reserve came into existence in response to A) the inflation of the Civil War. B) the depression of the 1930’s. C) the boom and bust nature […]
Banking Chapter 10 1 The investment maturity strategy which calls for the bank to have one half of its investment portfolio in very short term assets and one half of its investment
1. A(n) _________________________ is a security issued by the federal government which has less than one year to maturity when it is issued. 2. Debt instruments issued by cities, states and other political entities and which are exempt from federal […]
Economics Chapter 9 1 If you were to use an Aggregate Supply Aggregate Demand diagram to model nondiscretionary and discretionary fiscal policy
Chapter 09 – Fiscal Policy Chapter 9 Fiscal Policy Multiple Choice 1. Fiscal Policy is controlled by A) the Federal Reserve Board. B) Congress and the President. C) the Supreme Court. D) private banks. Answer: B 2. The purpose of […]
Banking Chapter 9 1 The issuing bank, in return for a fee, guarantees the repayment of a loan received by its customer or the fulfillment of a contract made by its customer to a third party
1. When a bank sets aside a group of income-earning assets and then sells securities based upon those assets it is ________________________ those assets. 2. Often when loans are securitized they are passed on to a _________________________ who pools the […]
Economics Chapter 8 1 The interest rate effect, the real balance effect and the foreign purchases effect suggests that the aggregate demand curve is
Chapter 8 Aggregate Demand and Aggregate Supply Multiple Choice 1. The interest rate effect, the real balance effect and the foreign purchases effect suggests that the aggregate demand curve is A) downward sloping. B) horizontal. C) vertical. D) shaped as […]
Banking Chapter 8 2 An agreement where a party with a lower credit rating enters into an agreement to exchange interest payments with a borrower having a higher credit rating is know as
A) Trying to avoid higher borrowing costs B) Trying to avoid declining asset values C) Trying to avoid lower than expected yields on from loans and securities D) A and B above 94. Suppose a bank has an asset duration […]
Economics Chapter 7 2 The reward investors receive for accepting the probability that they will not be fully paid as agreed or as anticipated is called the
A) $5000. B) $5050 to be received two years from now. C) $5075 to be received three years from now. D) $5500 to be received ten years from now. Answer: D 50. The present value of a $1000 payment received […]
Banking Chapter 8 1 The financial futures markets are designed to shift the risk of interest rate fluctuations from risk-averse investors to speculators who are willing to accept and possibly
1. A(n) _________________________ is an agreement between a buyer and a seller today which calls for the delivery of a particular security in exchange for cash at some future date for a set price. 2. A financial institution goes _________________________ […]
Economics Chapter 7 1 If you know that you can afford a $500 per month car payment for the next 48 months, the interest rate is positive and you have found a car dealer
Chapter 07 – Interest Rates and Present Value Chapter 07 Interest Rates and Present Value Multiple Choice 1. The percentage of a balance that a borrower must pay a lender is called the A) inflation rate. B) usury rate. C) […]
Banking Chapter 7 2 The duration of a bond is the weighted average maturity of the future cash flows expected to be received on a bond. Which of the following is a true statement concerning duration
C) Increase, increase, decrease D) Decrease, decrease, decrease E) Decrease, increase, increase 98. If a bank has a negative GAP, a decrease in interest rates will cause interest income to __________, interest expense to__________, and net interest income to __________. […]
Economics Chapter 6 2 If the unemployment rate rises because the number of people not working but searching for work rises, economists would attribute this to the
Chapter 06 – Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, and Depression 96. If the inflation rate turns out to be less than was is expected to be, the clear winners are A) lenders. B) […]
Banking Chapter 7 1 In recent decades, banks have aggressively sought to insulate their assets and liability portfolios and profits from the ravages if interest rate changes
1. The ___________________ view of assets and liabilities held that the amount and types of deposits was primarily determined by customers and hence the key decision a bank needed to make was with the assets. 2. Recent decades have ushered […]
Economics Chapter 6 1 Suppose people on diets buy the bulk of the ground chicken and ground turkey sold in the U.S. and they use either interchangeably as a substitute in recipes
Chapter 06 – Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, and Depression Chapter 06 Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, and Depression Multiple Choice 1. The reason that only […]
Banking Chapter 6 2 Chaos State Bank has an old computer system which can go down for weeks at a time, leaving customers unable to access their accounts online
C) 15.71 percent D) 1.36 percent E) None of the above 80. The TRC Bank has a net profit margin of 7.5%, an asset utilization ratio of 18%, an equity multiplier of 20 times. What is this bank’s ROA? A) […]
Economics Chapter 5 2 There are thousands of broadband internet providers in the country, while in a particular city the only way you can get it is through the phone, the cable company
Chapter 05 – Perfect Competition, Monopoly, and Economic versus Normal Profit 46. In Figure 5.7, assuming perfect competition which price(s) is associated with a loss? A) MR1 B) MR2 C) MR3 D) MR1 and MR2 Answer: D Refer to: Figure […]
Banking Chapter 6 1 The first part is pre-tax net operating income over total operating revenue which looks at how many dollars of revenue survive after operating expenses are removed
1. The equity multiplier for a bank measures the amount of _____________________ of the bank and is one part of the evaluation of the bank’s ROE. 2. __________________________ is the risk that has to do with the quality of the […]