An investment bank purchases securities from a corporation at a predetermined price and then resells them in the market. This process is called

11) Contractual savings institutions include
A) mutual savings banks.
B) money market mutual funds.
C) commercial banks.
D) life insurance companies.
Answer: D
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12) Which of the following are not contractual savings institutions?
A) Life insurance companies
B) Credit unions
C) Pension funds
D) State and local government retirement funds
Answer: B
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13) Which of the following is not a contractual savings institution?
A) A life insurance company
B) A pension fund
C) A savings and loan association
D) A fire and casualty insurance company
Answer: C
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14) The primary assets of a pension fund are
A) money market instruments.
B) corporate bonds and stock.
C) consumer and business loans.
D) mortgages.
Answer: B
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15) Which of the following are investment intermediaries?
A) Life insurance companies
B) Mutual funds
C) Pension funds
D) State and local government retirement funds
Answer: B
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16) An investment intermediary that lends funds to consumers is
A) a finance company.
B) an investment bank.
C) a finance fund.
D) a consumer company.
Answer: A
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17) The primary assets of a finance company are
A) municipal bonds.
B) corporate stocks and bonds.
C) consumer and business loans.
D) mortgages.
Answer: C
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18) ________ are financial intermediaries that acquire funds by selling shares to many individuals
and using the proceeds to purchase diversified portfolios of stocks and bonds.
A) Mutual funds
B) Investment banks
C) Finance companies
D) Credit unions
Answer: A
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19) Money market mutual fund shares function like
A) checking accounts that pay interest.
B) bonds.
C) stocks.
D) currency.
Answer: A
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20) An important feature of money market mutual fund shares is
A) deposit insurance.
B) the ability to write checks against shareholdings.
C) the ability to borrow against shareholdings.
D) claims on shares of corporate stock.
Answer: B
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21) The primary assets of money market mutual funds are
A) stocks.
B) bonds.
C) money market instruments.
D) deposits.
Answer: C
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22) An investment bank helps ________ issue securities.
A) a corporation
B) the United States government
C) the SEC
D) foreign governments
Answer: A
Ques Status: New
23) An investment bank purchases securities from a corporation at a predetermined price and then
resells them in the market. This process is called
A) underwriting.
B) underhanded.
C) understanding.
D) undertaking.
Answer: A
Ques Status: New