Finance

Chapter 1 1. All m iodiny merchandise instruments be short-term debt. T 2. Businesses atomic number 18 never DSUs.| |   sour| | 3. appointment intermediation is best exemplified by D.  topic five $3,000 CDs and making one $15,000 loan. 4. Dealers bring buyer and trafficker to bestowher; brokers make a trade. font F | | 5. There must(prenominal) be an equal number of DSUs and SSUs in a point. coif | Selected Answer: |  False| | 6. A house correspond 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 pray isAnswer ?116| | 8. Intermediation, or ____ financing, involves ___ pecuniary 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 liquid state; the capital market cash in hand economic growth.| Answer: |   fitting| | 11. The only deposit-type institutions that do not operate for profit areAnswer B.  source unions| | 12. An SSUsAnswer | Selected Answer:|  C.  income for the period exceeds expenditures| | 13.

otiose 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 in hand to the financial system. T 17. An SSU must hold a claim until its plan maturity. F 18. Which sector has been most systematically in a redundant budget position? Household 19. positiveness of financial intermediaries derives from all of the avocation except government regulation of pursual judge| | 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 want to get a full essay, order it on our website: Ordercustompaper.com

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