Question

11: Money market securities are issued by various entities for the purpose of:

     a. bringing in new ownership.

     b. raising long-term funding

     c. paying taxes.

     d. supplying the economy with money.

12: Among the various categories of money market instruments, which one accounts

for the smallest "slice" of the money market "pie"?

     a. Bankers acceptance

     b. U.S. Treasury bill

     c. Federal funds and repurchase agreements

     d. Commercial paper

13: Of the following institution types, which have been increasing their share

of total assets in all financial institutions, since the year 2000?

     a. Commercial banks

     b. Pension funds

     c. Investment companies

     d. (a) and (b)

14: If an asset can be more readily converted into cash, we would say that this

asset is:

     a. a capital asset.

     b. a secondary asset.

     c. more liquid.

     d. more diversified.

15: Suppose that a financial institution issues securities of one maturity, and

uses the proceeds to buy securities of a different maturity. This sort of

activity would be described as:

     a. transmission of monetary policy.

     b. maturity intermediation.

     c. asset diversification.

     d. a direct transfer of funds.

Answer 1