Fi363 Final Study Guide

FI363 Final Examination Student necessitate Guide Final Examination 1. 05 This is a two-hour, disagreeable book and closed notes test. Therefore, it cannot be a take-home test. Students are not allowed to use a computer during the test. Students are not allowed to bring extra scratch radical to the exam. They can use the back side of the test for scratch paper if needed. The examination contains twenty multiple choice questions quantifyd at 5 points each(prenominal) (100 points total) and five essay questions valued at 40 points each (200 points total). The total value of the examination is 300 points.Multiple Choice Questions ask the students to bushel key monetary System concepts that they have learned 1. The student should analyze these course concepts a. Interest rates and interest rate calculations b. Various types of fiscal markets c. Various types of financial institutions d. Direct and indirect finance e. Present value f. Supply and demand as applied to financial in struments i. e. supply rationalize for bonds g. Term structure i. e. relationship among interest rates on bonds with incompatible maturities h. The Federal Reserve System identify components i.Monetary polity concept throne raising or lower the money supply j. Monetary Policy Targeting k. Money markets characteristics l. Capital markets compared to money market securities m. Mortgage Markets and how they differ from nervous strain and bond markets n. Foreign sub markets o. Securities and Exchange Commission characteristics p. Currency exchange rates and the law of one price q. International finance r. perverse selection s. Moral hazard and characteristics of loan management principles t. Too-Big-to-Fail Policy u. infringe of interest and the concept behind consumer/business lending v.Bank Liabilities/Assets w. Dual Banking System. x. humanity Bank y. Financial system structure Essay questions ask the student to relate core learning concepts to financial system situations a nd to discuss or define financial system terms. Be certain that you completely get wind the following terms. The student should review concepts that relate to the following and be hustling to write analyses that include 1. Assess the structural characteristics of the American financial system, including twain institutions and markets that lead to its efficiency and effectiveness. 2. happen upon and evaluate the functions of financial markets. Provide an example of the functions of the seize Market, the Stock Market, or the Mortgage market. 3. Discuss the role of central banks, such(prenominal) as the Federal Reserve in the United States, to provide stinting growth and stability. 4. Differentiate between the roles of various financial institutions within the financial system. Provide a detailed example of one financial institution. 5. Describe and the regulatory system in the United States and evaluate its impact of regulations on financial institutions and markets.