Government is typically a ________.
net demander of funds because it borrows more than it saves
Primary and secondary markets are markets for short-term and long-term securities, respectively.
false
Capital markets are for investors who want a safe temporary place to deposit funds where they can earn interest and for borrowers who have a short-term need for funds
false
Long-term debt instruments used by both government and business are known as ________.
bonds
The Federal Deposit Insurance Corporation (FDIC) ________.
s an agency, created by the Glass-Steagall Act ,that monitors banks on a regular basis to ensure that they were safe and sound
guarantees individuals will not lose any money held at any type of financial institution that fails
________ is a financial intermediary that specializes in selling new security issues.
An investment bank
Money markets are markets for long-term funds such as bonds and equity
false
In the OTC market, the ask price is the highest price offered by a dealer to purchase a given security.
false
A financial institution is an intermediary that channels the savings of individuals, businesses, and governments into loans or investments.
true
Which of the following acts regulates the secondary market?
The Securities Exchange Act of 1934
Investment banks are institutions that ________.
engage in trading and market making activities
As a key participant in financial transactions, individuals are ________.
net suppliers of funds because they save more money than they borrow
Which of the following is true of a secondary market?
It is a market in which preowned securities are traded.
Which of the following serves as an intermediary channeling the savings of individuals, businesses, and governments into loans and investments?
financial institutions
In a ________ market, the buyer and seller are brought together to trade securities in an organization called ________.
broker; securities market
The Glass-Steagall Act was imposed to allow commercial and investment banks to combine and work together.
false
Small business investment companies (SBICs) are corporations chartered by the federal government that can borrow at attractive rates from the U.S. Treasury and use the funds to make venture capital investments in private companies.
true
Angel capitalists or angels are wealthy individual investors who do not operate as a business but invest in early-stage companies in exchange for a portion of equity
true
The shadow banking system describes a group of institutions that engage in lending activities, much like traditional banks.
true
The Eurocurrency market is a market for short-term bank deposits denominated in U.S. dollars or other easily convertible currencies.
true