Finance

Chapter 1 1. All m 1y grocery instruments atomic number 18 short-run debt. T 2. Businesses are never DSUs.| |  False| | 3. Denomination mediation is best exemplified by D.  offspring five $3,000 CDs and making one $15,000 loan. 4. Dealers bring buyer and marketer to bestowher; brokers make a market. acquire F | | 5. There moldiness(prenominal) be an equal number of DSUs and SSUs in a detail. firmness of purpose | Selected Answer: |  False| | 6. A household is an SSU when income for the spot exceeds spending.| Answer: |   authentic| | 7. A dealer offers to buy shares of IBM at $116 and sell to investors at $118. The bid isAnswer ?116| | 8. Intermediation, or ____ financing, involves ___ financial c altogether option(s) linking SSU and DSU.  C.  indirect; two 9. Which of the pursual does non take deposits?| Selected Answer:|  C. finance companies.| | 10. The money market provid es liquidness; the capital market finances economic growth.| Answer: |   neat| | 11. The only deposit-type institutions that do not operate for profit areAnswer B.  acknowledgment unions| | 12. An SSUsAnswer | Selected Answer:|  C.  income for the period exceeds expenditures| | 13.

Surplus spending units (SSU) are as well as calledAnswer | Selected Answer:|  B.  lenders.| | 14. All money market instruments are short debt. T 15. A household is an SSU when income for the period exceeds spending. T 16. Households are the major bug of funds to the financial system. T 17. An SSU must hold a claim until its! scheduled maturity. F 18. Which area has been most consistently in a surplus cipher position? Household 19. Profitability of financial intermediaries derives from all of the following except government regulation of interest rates| | 20. A financial claim is an IOU from a deficit spending unit. T 21. disputation among financial intermediaries tends to force interest rates downward. T...If you insufficiency to get a full essay, order it on our website: OrderCustomPaper.com

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