SIE Exam Lesson 9 Free Quiz: Money Market

SIE Exam: Securities Industry Essentials Exam Lessons and Information

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 Quiz 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. Questions covered include Below 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 bills B. commercial paper C. banker’s acceptance D. all of the above 2. Money market instruments mature in ___. A. one year or less B. two years C. five years D. ten years or more 3. This is the only type of banker’s acceptance that the Federal Reserve buys. A. premium banker’s acceptance B. primary banker’s acceptance C. prime banker’s acceptance D. The Federal Reserve does not accept banker’s acceptance. 4. The price of repurchasing a security include a yield. A. True B. False 5. 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. True B. False 6. The shortest repurchase agreement is ___. A. twelve hours B. overnight C. two days D. five days 7. 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 agencies C. secondary market D. all of the above 9. A reverse repurchase agreement is also called a matched sale. A. True B. False 10. The Federal Reserve is owned by the government. A. True B. False 11. Which of the following does the President of the United States have authority to appoint in the Federal Reserve Board? A. chairman B. governors C. both the chairman and the governor D. 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 above 13. 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 Rate C. London Interbank Offered Rate D. London International Bank Official Rate 15. These are funds which a member bank of the Federal Reserve leaves on deposit at the Federal Reserve. A. Federal Asset B. Federal Deposits C. Federal Funds D. 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 banks C. 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 bank 17. These are dollar-denominated deposits which are held in a bank branch outside the United States. A. Eurodollars B. Federal Funds C. Foreign Deposits D. all of the above 18. This is the rate for Eurodollars loaned overnight. A. Eurodollar Overnight Rate B. Eurodollar Standardized Rate C. Federal Fund Rate D. London Interbank Offered Rate 19. The London Interbank Offered Rate is the average of Eurodollar loan rates of five major banks which are all located in London. A. True B. False 20. Which of the following is NOT considered as eligible securitie...