Finance

Chapter 1 1. All m aney merchandise place instruments argon short-term debt. T 2. Businesses ar never DSUs.| |   misguided| | 3. designation intermediation is best exemplified by D.  event five $3,000 CDs and making one $15,000 loan. 4. Dealers bring buyer and seller to bestowher; brokers make a market. hit F | | 5. There must(prenominal) be an equal number of DSUs and SSUs in a stream. tell | Selected Answer: |  False| | 6. A house persuade is an SSU when income for the period exceeds spending.| Answer: |   authentic| | 7. A dealer offers to buy shares of IBM at $116 and sell to investors at $118. The squeeze isAnswer ?116| | 8. Intermediation, or ____ financing, involves ___ monetary 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 provides liquidness; the capital market pecuniary resource economic growth.| Answer: |   graceful| | 11. The only deposit-type institutions that do non operate for profit areAnswer B.  vindication unions| | 12. An SSUsAnswer | Selected Answer:|  C.  income for the period exceeds expenditures| | 13.

superfluous spending units (SSU) are as well as calledAnswer | Selected Answer:|  B.  lenders.| | 14. All money market instruments are short-term debt. T 15. A household is an SSU when income for the period exceeds spending. T 16. Households are the major bug of cash to the fiscal system. T 17. An SSU must hold a claim until its schedule maturity. F 18. Which sector has been most consistently in a overplus budget position? Household 19. favorableness of financial intermediaries derives from all of the next except government regulation of touch on rank| | 20. A financial claim is an IOU from a famine spending unit. T 21. disputation among financial intermediaries tends to force interest rates downward. T...If you want to get a full essay, order it on our website: Orderessay

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