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Final - MB 2021-Q
Final - MB 2021-Q
Econ & Admin Sc. Dep. Fall 2021- 2022 Time: 2 hours
Notes a. Answers are limited to the space under each question ONLY.
: b. Answers with Pencils and Red pens will NOT be graded.
Question 1- Choose the most accurate answer to each of the following questions: [10 points]
1. "Repos" are:
A. The safest money market instrument because there is a low probability of default.
B. Short-term loans (usually with a maturity term of less than two weeks) for which
Treasury bills serve as collateral.
C. Loans provided to banks by the fed.
D. All of the above.
4. When short in liquidity, the following option is the most attractive for banks:
A. Advances
B. Fed funds
C. Parent company
D. Eurodollars
5. The following financial instrument proves the role of the banking system in facilitating
international trade:
A. Commercial Papers
B. Repurchase agreements
C. US- government securities
D. Eurobonds
E. All of the above
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6. The most liquid of all bank assets is:
A. US T- bills
B. Consumer loans
C. Required reserve
D. Excess reserve
E. None of the above
7. All of the following financial intermediaries get their funds through deposits except:
A. Commercial Banks
B. Saving and loan associations
C. Credit unions
D. Pension funds
9. "The average number of times per year (turnover) that a dollar is spent in buying the
total amount of goods and services produced in the economy." Is the definition for:
A. Liquidity
B. Transaction cost
C. Money supply
D. Velocity of Money
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2. The bank manager has four primary concerns:
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3. The three functions of money are:
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4. The two types of asymmetric information are:
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5. In the financial system, borrowers- spenders are ranked as:
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Question 3 - Financial Markets can be classified into several categories; talk in details about
primary and secondary markets. [15 points]
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"Good luck!"
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