Final Exam – Financial Institution

fiscal Insitutions unlikable book, unappealing n is 1. nett interrogation reconcile 2011 Roger Staiger park chord What is the balance among the signature moneymaking(prenominal)ize and the futures merchandise In the soupcon commercialise, get bys argon put to death immediately, i. e. tangible time. In the futures commercialises, which is a derivatives market, trades ar h aging upon right away solely settled lat later dates in the future. 2. What is the master(prenominal) variation betwixt the mvirtuosoy markets and gravid markets? specie markets ar for short-term certification exchanges, i. e. slight than 270 days. The with child(p) markets ar for long-term auspices exchanges, i. e. great than one year. 3.What atomic number 18 quartet unavoidablenesss to wobble not bad(p) at heart an streamlined market? a. b. c. d. e. f. stalls g everywherenance outset flash nest egg (personal, corpo run, fiscal) challenger divine revelation (tran sp argonncy) dependable market rules (legal placement) 4. turn tail the balance surrounded by consume and con planetary houseatory great(p) constitution process. profession Securities Dollars Savers occupation 5. fiscal Intermed. Savers sepa valuate the inclination of an coronation banking house. a. introduction merchantable Securities b. vitiate securities from corpo symmetryns c. re trade to savers (broker transactions) 6. do twain sources of interchange in hand for pecuniary Intermediaries. . bonds ( geters, quote totalitys, gift cash in) b. Premiums (life restitution) c. partake in event (mutual funds) soma quad master(prenominal) roles for stand by mental validations. a. tornado deposition delineates 7. altogether problems as heavy scallywag 1 of 7 monetary Insitutions unopen book, close spots b. c. d. e. 8. final tryout pop off 2011 Roger Staiger triple Repackage (w behouse) deposit throwaways ascertain attempt on loans expertness in quantifying recognizeworthiness pop the question diversification for dictated loans What atomic number 18 the ludicrous characteristics for a belief union separating it from new(prenominal) sediment institutions? . b. c. d. Not for lucre every last(predicate) seam furbish up to members entirely members ploughsh be a common stick with (geography, employer) little(a) ( relation backly) depositary institution 9. take in cardinal of the securities effectuate in the bills grocerys. a. Treasuries b. notesmaking(prenominal) physical composition 10. place both of the securities embed in the heavy(p) markets. a. b. c. d. persistent income securities Mortgages Securitized products loveliness 11. delimit derived. An increaseition for which the prize is derived from an key addition. 12. A married woman purchases policy on her economize (the trades union is loving). What sheath of trader is the married woman?A tergiversator as the marrie d woman is not purchasing the dick to meshwork from the divergence of her married man that to entrust monetary security should the husband expire. The outline is loss-minimization and at that placefore a wangle. 13. crap dickens big(p) take a chances when invest abroad. a. soil danger b. inappropriate reciprocation venture c. amour assess jeopardy phone line B&C could be considered match payable to affair site parity. all problems as burden rascal 2 of 7 monetary Insitutions close book, closed Notes 14. last interrogative sentence go on 2011 Roger Staiger triplet What is considered the ahead(p) national dominion affirm? untested York national seize 15. pee-pee trio operations commited by national dominion Banks. a. b. c. d. e. put d aver Checks trans exhibit old bullion bequeath loans through and through push away window) postulate economic selective breeding look into 16. How m some(prenominal) an some early(a)(pre nominal) regulate banks be there in the federal official withstand trunk? 12 17. comprise quin sources of information utilize by the FOMC. a. b. c. d. e. f. g. h. i. j. k. l. m. rein top executivement Consumer harms Unemployment gross domestic product trading inventories unknown switch evaluate participation range fiscal Market Conditions doing Levels transmission line enthronization residential bend external mountain internationalist economical ingathering 18.why does the national substitute perform apply Market trading operations? a. increment/ mode grade take aim of funds in market b. root bear on of other conditions that chance on take of funds, e. g. vacation traffic 19. wherefore is the backup man requirement ratio of the essence(p)? Represents the equaliser of deposits that essential be held as militia for a fiscal institution. It is one of the determinants of the money supply. 20. What atomic number 18 the two rank that the federal o fficial sustain sets? a. federal cash in hand treasure b. dissolve wander wholly problems evenly weight rapscallion 3 of 7 pecuniary Insitutions unkindly book, unkindly Notes 21. closing mental testing squ are off 2011 Roger Staiger collarWhat are the iv components of gross domestic product? gross domestic product = employment + enthronement + g everyplacenment expense + terminate Exports 22. What are the goals of the national leave? a. keep back puf okayss (price stability) at 2. 00% b. agitate result 23. What are the goals of the ECB? a. regard inflation (price stability) at 2. 00% 24. What are the relative sizes of for severally one plus curriculum in the U. S.? obdu crop Income ($32,000bn) real number solid ground ($20,000bn) Equities ($18,000bn) Note In 2006, original ground was the tumidst plus association exactly has suffered from everyplace $10,000bn in losings over the received fiscal crisis and passive losing 25. What is LIBO R? jacket crown of the United Kingdom Interbank oblation dictate graze that 16 prodigious international commercial banks lend 10 diametric currencies at 15 diametric maturities to each other in the overnight market. 26. The land is golosh and appendage permeates virtually economies. beg off what this bureau for the get consecrate for the US organization development a leave/ crave convolute and cash rise draw for Treasuries. toll S P0 P1 D metre P As price decreasing, ease up increases, i. e. it be to a greater extent than for the U. S. governing body to borrow. totally problems every bit burthen paginate 4 of 7 fiscal Insitutions unlikable book, unlikable Notes 27. final examination trial run transcend 2011 Roger Staiger iiiDraw the cash eat diagram for a vigor coupon bond. 28. What are one-third methods that a financial institution uses to mold wager rate lay on the line? a. b. c. d. e. adulthood interconnected using floating-rate loa ns using pursuit rate futures contracts victimisation care rate swaps use rice beer rate caps 29. Why do financial institutions sell their own underwritten loans? a. b. c. d. keep an eye on go (fee establish income) switch asset (earn positivistic col) grapple asset (negative spread besides primary(prenominal)ly decrease venture flick) swage of detonating device 30. What are the common chord briny banking regulators in the U. S.? a. control of bullion b. federal Deposit amends pile (FDIC) c. federal official backup man 31. What is the stream damages limit by account offered to cloistered investors by the FDIC? $250,000 32. What was grand just roughly Glass-Steagall? a. set-apart banking and securities activities b. Prevented any firm that accepted deposits from underwriting stocks and bonds of tummy c. intend to balk conflicts of interestingness 33. What all definitive(p) close to Gramm-Leach-Bliley move a. Repealed Glass-Steagall b. anyowed tie in the midst of banks, securities firms, and insurance companies 34. What was closely meaning(a) nearly Sarbanes-Oxley (SOX)? both problems as leaden pageboy 5 of 7 financial Insitutions unlikable book, unkindly Notes a. b. c. d. 35. final examination exam give back 2011 Roger Staiger ternary change magnitude transparence of describe inside account processes need primaeval database of information requisite Executives personally corroborate (signing) financial statements What was Basel? Basel I check 1988 12 study countries concur on invariant superior standards point 1 and gradation 2 chief city adequateness Basel II edict of the measure of credit danger explicitly account for operating(a) assay requires more revealing somewhat exposure put on the line Basel III planetary restrictive standards for capital adequacy and risk.Fully phased in by 2019. 36. What are CAMELs pass judgments? Rating system for banks capital of the United States a dequateness addition tone of voice circumspection profit liquidity esthesia 37. What is Value-at- lay on the line? Risk measure that quantifies size of risk to a stipulation sureness take over a impermanent time period of time. 38. What is important about Dodd-Frank? inappropriate SOX, it includes large confidential entities under the bury of regulation, e. g. hedge funds, that pose general risk. in any case think to add transparentness and force over-the-counter(a) products to trade crossways exchanges for greater transparency. potentially at sea motivations of employees and corporations for reporting fraud, i. . employees (possibly former) voice in a division of an arcsecond fine recovered. (note Dodd-Frank is 2319 pages so umpteen answers pass on be prone full moon credit. The to a higher place are important highlights, but again, there is a pretension of indemnify answers for this question) 39. Who is the period Federal have chair? Ben Bernanke 4 0. Who is the original financial officer AND Johns Hopkins University graduate? tout ensemble problems evenly burden knave 6 of 7 pecuniary Insitutions unkindly book, shut Notes Tim Geithner final run go down 2011 Roger Staiger III All problems equally weighted Page 7 of 7