This quiz is multiple choice and contains 20 questions based on chapters 8-13 from money and banking

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Question 1 (1 point)

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Which of the following is an example of a source of internal finance for companies?
 
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Question 2 (1 point)

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Which of the following is a technique lenders use to alleviate asymmetric information problems?
 
 
A) checking credit ratings
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Question 3 (1 point)

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Which of the following is a technique lenders use to alleviate moral hazard problems?
 
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Question 4 (1 point)

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Sarbanes-Oxley was intended to reduce
 
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Question 5 (1 point)

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A bank can increase its level of reserves by
 
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Question 6 (1 point)

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Which of the following is a method banks use to deal with interest rate risk?
 
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Question 7 (1 point)

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When a bank turns demand deposits into mortgages it is creating:
 
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Question 8 (1 point)

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A bank can increase its level of reserves by
 
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Question 9 (1 point)

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Unit banks
 
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Question 10 (1 point)

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With an ARM, who must take on the interest rate risk?
 
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Question 11 (1 point)

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Bank consolidation is potentially a problem because
 
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Question 12 (1 point)

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The “too big to fail” policy exacerbates the moral hazard problem between
 
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Question 13 (1 point)

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The creation of the SEC was intended to increase _____ in financial markets.
 
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Question 14 (1 point)

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The FDIC was created in response to
 
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Question 15 (1 point)

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Which of the following is considered to be a derivative?
 
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Question 16 (1 point)

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Which of the following markets is least liquid?
:
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Question 17 (1 point)

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Which of the following is true of a financial derivative?
 
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Question 18 (1 point)

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Lenders of last resort intend to
 
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Question 19 (1 point)

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All of the following EXCEPT one would have a strong propensity to initiate a financial crisis. Which is the exception?
 
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Question 20 (1 point)

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During a housing bubble, people continue to buy houses because
:
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