Question: The deposit issued by bank are usually negotiable and have specific maturity date and interest rate, hence it is classified as _____________?

• 1. indirect certificate
• 2. direct certificate
• 3. negotiable certificate
• 4. deposit certificate

Question: The type of market in which the short term instruments are traded and purchased by economic units, is classified as __________?

• 1. money markets
• 2. capital markets
• 3. debt markets
• 4. economic markets

Question: The non-competitive bidding of treasury bills also allow participation of ___________?

• 1. secured investors
• 2. federal investors
• 3. small investors
• 4. large investors

Question: The bidder who can receive the allocation of treasury bills before all other bidders is the result of ___________?

• 1. highest bidder
• 2. lower bidder
• 3. zero bidder
• 4. non-competitive bidder

Question: The difference between purchase price of treasury bills and the face value of treasury bills is considered as __________?

• 1. premium
• 2. discount
• 3. return
• 4. mean value

Question: The transaction of federal funds usually take place in the form of ___________?

• 1. functional loans
• 2. annual loans
• 3. unsecured loans
• 4. secured loans

Question: The interest rate at which the federal funds are borrowed and can be lent is classified as ____________?

• 1. borrowing rate
• 2. supplying rate
• 3. lending rate
• 4. federal funds rate

Question: The agreement which incurs the transaction between two parties and promise held that second party will repurchase security at specific price is classified as ___________?

• 1. repurchasing commercial notes
• 2. repurchase bills
• 3. repurchase agreement
• 4. reverse repurchase agreement

Question: The type of funds that have transfer transactions between financial institutions are classified as __________?

• 1. federal funds
• 2. premium funds
• 3. discount funds
• 4. mean funds

Question: The financial instruments are traded in money markets and then traded in __________?

• 1. money markets
• 2. capital markets
• 3. debt markets
• 4. economic markets