Question 1 (2 points)

The following are true statements about the Financial Market, EXCEPT:

Question 1 options:

	a) Is the market where funds are transferred from savers to borrowers.
	b) Is the market where interest rates are determined.
	c) It is physically located in New York.
	d) Includes commercial banks, plus other type of financial institutions.

Question 2 (2 points)

The following are examples of private financial intermediaries, EXCEPT:

Question 2 options:

	a) Commercial Banks
	b)Federal Reserve Banks
	c) Pension Funds
	d) Insurance Companies

Question 3 (2 points)

The following are correct descriptions about some financial instruments, EXCEPT:

Question 3 options:

	a) A security is a claim on the issuers future income or assets.
	b) Bonds and Stocks are examples of securities.
	c) A bond is a debt security that promises to make a payment in the future, contingent on certain outcome.
	d) A share of stock is a claim on the residual earnings and assets of the corporation.

Question 4 (2 points)

The following are correct statements about the historical performance of financial markets in USA, EXCEPT:

Question 4 options:

	a) Since the 1980's the average return on assets has declined over time.
	b) Prior to 1980, the rate of money growth and the interest rate on long-term Treasury bonds were closely tied.
	c) Monetary policies have played an important role in business cycles in USA.
	d) It is well established that every single recession in USA has always been preceded by a significant contraction of domestic money supply.

Question 5 (2 points)

The following issues are closely interconnected with the operation of financial markets in USA, EXCEPT:

Question 5 options:

	a) Global Warming
	b) Interest Rates
	c) Economic Business Cycles
	d) Fiscal Decificits