Quiz M2

Banks (Depository)

Financial institutions that accept deposits and make loans are called ________ institutions.

Assets, Liabilities

Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.

Deposits

The primary liabilities of a chartered bank are ________.

Stock

When I purchase ________, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.

A life insurance company

Which of the following is a contractual savings institution?

Credit Union

Which of the following is a depository institution?

They can both be long-term financial instruments

Which of the following statements about the characteristics of debt and equities is true?

Mutual Funds

________ are financial intermediaries that acquire funds by selling shares to many individuals and using the proceeds to purchase diversified portfolios of stocks and bonds.

Money

A financial market in which only short-term debt instruments are traded is called the ________ market.

Secondary

A financial market in which previously issued securities can be resold is called a ________ market.