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1. | For people to use the savings of others, the economy must have a(n) _________ system, a network of savers, investors, and financial institutions that work together to transfer savings to investors.
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| A) saver
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| B) investment
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| C) transfer
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| D) financial
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2. | Financial institutions that pool the funds that savers provide and lend them to others are called financial __________.
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| A) go-betweens
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| B) intermediaries
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| C) investors
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| D) lenders
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3. | Finance companies, life insurance companies, pension funds, and real estate investment trusts are examples of __________ financial institutions, nondepository institutions that channel savings to investors.
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| A) nonbank
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| B) pension
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| C) insuratory
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| D) realtor
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4. | A __________ has three main components: the coupon, the maturity, and the par value.
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| A) bond
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| B) stock
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| C) rationing
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| D) mutual fund
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5. | In order to compare bonds, investors usually compute the bond's ________ , the annual interest divided by the purchase price.
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| A) price-earnings ratio
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| B) past performance
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| C) future yield
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| D) current yield
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6. | The modern investor has a wide range of financial assets from which to choose. They vary in __________.
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| A) price, net worth, and safety
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| B) cost, maturity, and safety
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| C) price, maturity, and safety
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| D) cost, maturity, and net worth
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7. | When investors speak of the ___________ market, they mean a market where money is loaned for more than one year. Long-term CDs and corporate and government bonds that have more than a year to mature all belong to this category.
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| A) secondary
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| B) capital
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| C) money
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| D) primary
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8. | The oldest, largest, and most prestigious of the organized stock exchanges in the United States is the ____________.
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| A) Wall Street Exchange
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| B) Pacific Stock Exchange
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| C) American Stock Exchange
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| D) New York Stock Exchange
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9. | The _________ is a stock performance index that uses the price changes of 500 representative stocks as an indicator of overall market performance.
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| A) Standard & Poor's
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| B) Dow-Jones Industrial Average
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| C) Fortune 500
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| D) Market 500
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