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DSST Money And Banking
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DSST Money And Banking
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25 Questions

1. 3 -6 -12 month securities with no explicit one payment and is sold at a discount. These securities are highly liquid - and can be traded in the secondary market. These are some of the safest securities.

2. Most Common

3. More than 10 year maturities

4. Pays owner of bond a fixed payment - until maturity when it pays off face par value

5. Nominal interest rate is not adjusted for inflation.

6. Long-Term debt instruments of Corporations which are held 2-30 years. These securities have excellent credit ratings and pay interest two times a year and pay at maturity. These can be redeemed for shares of stock.

7. Yield curves most always...

8. The degree of uncertainty associated with the return on one asset relative to alternative assets.

9. Markets bonds - loans - and deposits denominated in the currency of a given nation but held and traded outside that nations borders.

10. They channel funds from savers to investors - thereby promoting economic efficiency

11. A rise in the price level causes the demand for money at each interest rates to increase and the demand curve to shift to the right.

12. At lower prices (higher i) - ceteris paribus - the quantity demanded of bonds is higher- an inverse relationship the quantity supplied of bonds is lower- a positive relationship.

13. The higher the default risk means the yield curve...

14. The increase in the price of set goods and services in a given economy over a period of time - the percent change.

15. Used to measure value in the economy

16. The percent of available labor force unemployed

17. Financial instruments whose return is based on the underlying returns on mortgage loans.

18. Paper currency - has no real value

19. If short-term interest rates are low than the yield curve slopes...

20. A share of ownership in a corporation

21. Expectations theory forms the foundation of the slope of the curve. Liquidity Premium Theory makes Long Term permanent modifications that suggests an up ward slopping curve. Over short periods - relatives supplies of securities have an impact on yiel

22. Allowing consumers to time their purchases better.

23. The return expected over the next period on one asset relative to the alternative asset.

24. The upward and downward movement of aggregate output produced in the economy.

25. The relationship between yield and maturity is...