Please answer multiple choice questions 1-6.

Question 1.1. "The process of transforming illiquid financial assets into marketable capital market instruments" best defines which of the following terms? (Points : 3)

a. Revaluation b.obfuscation c.securitization d.sterilization

Question 2.2. Of the following sources of external finance for American nonfinancial businesses, the most important is: (Points : 3)

a.loans from banks b.stocks c.bonds and commercial paper d.nonbank loans

Question 3.3. The possibility that the failure of one bank can hasten the failure of other banks is called the (Points : 3)

a.serial insolvency phenomenon b.adverse selection effect c.contagion effect d. bank run effect

Question 4.4. The legislation that authorized the Federal Reserve to place interest rate ceilings on bank savings and time deposits (and which the Fed administered through Regulation Q) was: (Points : 3)

a.the Federal Reserve Act b.Glass-Steagall c.The National Banking Act d.McFadden

Question 5.5. Which of the following is the largest category of bank liabilities? (Points : 3)

a.consumer and commercial loans b.demand/checkable deposits c.small time and savings deposits d.federal funds sold e.borrowings from other banks and the Fed

Question 6.6. The Bank Holding Company Act of 1970 installed what agency as the primary regulator of bank holding companies? (Points : 3)

a. the Federal Reserve b.the Comptroller of the Currency c.the Securities and Exchange Commission d.the Federal Trade Commission e.none of the above-the Act did not address regulatory responsibility