寂寂无言42. In 2012, ____________ was(were) the least significant real asset(s) of U.S. nonfinancial
businesses in terms of total value.
A. equipment and software
B. inventory
C. real estate
D. trade credit
E. marketable securities
43. In 2012, ____________ was(were) the least significant liability(ies) of U.S. nonfinancial
businesses in terms of total value.
A. bonds and mortgages
B. bank loans
C. inventories
D. trade debt
E. marketable securities
44. In terms of total value, the most significant liability(ies) of U.S. nonfinancial businesses in
2012 was(were)
A. bank loans.
B. bonds and mortgages.
C. trade debt.
D. other loans.
E. marketable securities.
1-16
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
45. In 2012, ____________ was(were) the least significant financial asset(s) of U.S. nonfinancial
businesses in terms of total value.
A. cash and deposits
B. trade credit
C. trade debt
D. inventory
E. marketable securities
46. New issues of securities are sold in the ________ market(s).
A. primary
B. secondary
C. over-the-counter
D. primary and secondary
47. Investors trade previously issued securities in the ________ market(s).
A. primary
B. secondary
C. primary and secondary
D. derivatives
1-17
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
48. Investment bankers perform which of the following role(s)?
A. Market new stock and bond issues for firms
B. Provide advice to the firms as to market conditions, price, etc.
C. Design securities with desirable properties
D. All of the options
E. None of the options
49. Until 1999, the ________ Act(s) prohibited banks in the United States from both accepting
deposits and underwriting securities.
A. Sarbanes-Oxley
B. Glass-Steagall
C. SEC
D. Sarbanes-Oxley and SEC
E. None of the options
50. The spread between the LIBOR and the Treasury-bill rate is called the
A. term spread.
B. T-bill spread.
C. LIBOR spread.
D. TED spread.
1-18
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
51. Mortgage-backed securities were created when ________ began buying mortgage loans from
originators and bundling them into large pools that could be traded like any other financial asset.
A. GNMA
B. FNMA
C. FHLMC
D. FNMA and FHLMC
E. GNMA and FNMA
52. The sale of a mortgage portfolio by setting up mortgage pass-through securities is an
example of
A. credit enhancement.
B. securitization.
C. unbundling.
D. derivatives.
1-19
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
53. Which of the following is true about mortgage-backed securities?
I) They aggregate individual home mortgages into homogeneous pools.
II) The purchaser receives monthly interest and principal payments received from payments made on the pool.
III) The banks that originated the mortgages maintain ownership of them. IV) The banks that originated the mortgages continue to service them.
A. II, III, and IV
B. I, II, and IV
C. II and IV
D. I, III, and IV
E. I, II, III, and IV
54. ________ were designed to concentrate the credit risk of a bundle of loans on one class of
investor, leaving the other investors in the pool relatively protected from that risk.
A. Stocks
B. Bonds
C. Derivatives
D. Collateralized debt obligations
E. All of the options
1-20
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
