SIE Exam Lesson 9 Free Quiz: Money Market - a podcast by Franz

This is a SIE Exam Lesson 9 Free Quiz which is covering Money Market. Try it and see how you do if you need help listen to the lesson over.
SIE SIE Exam Lesson 9 Free QuizThis is a SIE Exam Lesson 9 Free Quiz which is covering Money Market. Try it and see how you do if you need help listen to the lesson over.

Questions covered includeBelow are questions based on the previous lesson. Choose the letter of the correct answer.
To take the quiz online, click here.1. Which of the following is an example of a money market instrument?
A. treasury billsB. commercial paper
C. banker’s acceptanceD. all of the above

2. Money market instruments mature in ___.A. one year or less
B. two yearsC. five years
D. ten years or more3. This is the only type of banker’s acceptance that the Federal Reserve buys.
A. premium banker’s acceptanceB. primary banker’s acceptance
C. prime banker’s acceptanceD. The Federal Reserve does not accept banker’s acceptance.

4. The price of repurchasing a security include a yield.A. True
B. False5. A reverse repurchase agreement is an agreement between two parties where one party agrees to sell a block of securities to another party with the agreement that those securities will be repurchased at a later date at a specific price.
A. TrueB. False

6. The shortest repurchase agreement is ___.A. twelve hours
B. overnightC. two days
D. five days7. Which is NOT a characteristic of a repurchase agreement?
A. It has a liquidity risk.B. It has a purchasing power risk.
C. Its interest rate can change overnight.D. Its interest rates are very low.

8. The reverse repurchase agreement is used primarily by the ___.A. Federal Reserve
B. government agenciesC. secondary market
D. all of the above9. A reverse repurchase agreement is also called a matched sale.
A. TrueB. False

10. The Federal Reserve is owned by the government.A. True
B. False11. Which of the following does the President of the United States have authority to appoint in the Federal Reserve Board?
A. chairmanB. governors
C. both the chairman and the governorD. neither the chairman nor the governor

12. The Federal Reserve having “open market operations” means ___.A. It accepts all kinds of financial instruments.
B. It operates 24 hours a day, 7 days a week.C. It transacts even with those people outside the member banks.
D. all of the above13. How does the Federal Reserve create liquidity in the market?
A. It buys fixed-income investments.B. It sells collateralized debt obligations.
C. It sells fixed-income investments.D. all of the above

14. What does LIBOR stand for?A. Leicester Internal Bureau of Reserve
B. Leicester International Bank Open RateC. London Interbank Offered Rate
D. London International Bank Official Rate15. These are funds which a member bank of the Federal Reserve leaves on deposit at the Federal Reserve.
A. Federal AssetB. Federal Deposits
C. Federal FundsD. Federal Reserve Account

16. What is the Federal Fund rate?A. the overnight rate which is the daily average of the rates of most member banks
B. the overnight rate which is the highest accounted rate of the day among the member banksC. the overnight rate which is the rate of the day of the Federal Reserve
D. the overnight rate which is twice the rate of the day of the loaning bank17. These are dollar-denominated deposits which are held in a bank branch outside the United States.
A. EurodollarsB. Federal Funds
C. Foreign DepositsD. all of the above

18. This is the rate for Eurodollars loaned overnight.A. Eurodollar Overnight Rate
B. Eurodollar Standardized RateC. Federal Fund Rate
D. London Interbank Offered Rate19. The London Interbank Offered Rate is the average of Eurodollar loan rates of five major banks which are all located in London.
A. TrueB. False

20. Which of the following is NOT considered as eligible securitie...

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