Question: The Federal Reserve decreases the money supply by _____________?

• 1. selling Swiss bills
• 2. buying Swiss bills
• 3. selling treasury bills
• 4. buying treasury bills

Question: The bankers acceptance which is usually time draft is fully backed by ___________?

• 1. commercial banks
• 2. Swiss banks
• 3. agriculture banks
• 4. functional banks

Question: The promissory notes issued by company for short term fund raising are unsecured are classified as _____________?

• 1. unsecured notes
• 2. debt paper
• 3. term paper
• 4. commercial paper

Question: The limit of getting treasury bills auctioned in a treasury auction is that no bidder can get more than ___________?

• 1. 0.35
• 2. 0.3
• 3. 0.25
• 4. 0.2

Question: The group of dealers and brokers in financial institutions also include ____________?

• 1. money and security brokers
• 2. capital brokers
• 3. mortgage brokers
• 4. expansionary brokers

Question: The operating tool used by Federal Reserve to influence the supply of bank to control demand and supply of repurchase agreements is classified as ____________?

• 1. selling window
• 2. buying window
• 3. premium window
• 4. discount window

Question: Financial panic that produce large losses for public can cause ___________?

• 1. serious damage to economy
• 2. problems for investors
• 3. pulling of funds
• 4. soundness of institutes

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