Chapter 10
The Investment Function in Banking and Financial-Services Management
Fill in the Blank Questions
1. A(n) _________________________ is a curity issued by the federal government which has less than one year to maturity when it is issued.
Answer: Treasury bill
2. Debt instruments issued by cities, states and other political entities and which are exempt from federal taxes are collectively known as _________________________ .
迭起造句Answer: municipal curities
3. The investment maturity strategy which calls for the bank to have one half of its investment portfolio in very short term asts and one half of its investment portfolio in long term asts is known as the _________________________ .
Answer: barbell strategy
4. A(n) _________________________ is a curity where the interest portion of the curity is sold parately from the principal portion of the curity.
Answer: stripped curity
5. _________________________ are the way the federal, state and local governments guarantee the safety of their deposits with banks.
Answer: Pledging requirements
6. The most aggressive investment maturity strategy calls for the bank to continually shift the maturities of its curities in respons to changes in interest rates and is called the __________________.
Answer: rate expectation strategy
7. _________________________ is the risk that the bank will have to ll part of its i
nvestment portfolio before their maturity for a capital loss.
Answer: Liquidity risk
8. _________________________ is the risk that the economy of the market area they rvice may take a down turn in the future.
Answer: Business risk
9. __________________ is the risk that the company who bonds the financial institution owns may retire the entire issue of corporate bonds in advance of their maturity leaving the bank with the risk of earnings loss resulting from reinvesting the cash at lower interest rates.
Answer: Call risk 五知>曲园
工资表格式范本图片 10. A curity issued by the federal government with 1 to 10 years to maturity when it is issued is called a(n) _________________________ .
Answer: Treasury note
11. A short term debt curity issued by major corporations is known as __________________.
Answer: commercial paper
12. The investment maturity strategy which calls for the bank to have all of their investment asts in very short term maturities is called the _________________________.
Answer: front-end-loaded policy
13. A money market curity which reprents a bank's commitment to pay a stipulated amount of money on a specific future date under specific conditions and which is often ud in international trade is known as a(n) _________________________.
Answer: bankers' acceptance
14. A(n) _________________________ is an interest-bearing receipt for the deposit of funds in a bank for a stipulated time period. Ones that are oriented towards business customers or institutions are known as jumbos.
大染缸
Answer: certificate of deposit 说说句子
15. _________________________ are any curities which reach maturity in under one year.
Answer: Money market curities
16. _________________________ are any curities who original maturity exceeds one year.
Answer: Capital market curities
17. Securities sold by Fannie Mae, Freddie Mac and others are known as _________________________.
Answer: federal agency curities
18. Claims against the expected income and principal generated by a pool of similar-type loans are known as _________________________.
Answer: curitized asts
19. The long term debt obligations of major corporations are known as ________________________.
Answer: corporate bonds
20. The investment maturity strategy which calls for the bank to have all of their investment asts in very long term maturities is known as the _________________________. 冬日将至
Answer: back-end-loaded policy
21. Financial Institutions may invest in municipal bonds issued by smaller local governments. The bonds are known as ____________ bonds.
Answer: bank qualified
22. Marketable notes and bonds sold by agencies owned by the government or sponsored by the government are known as .
Answer: government agency curities
23. A curity issued by the federal government with greater than 10 years to maturity when it is issued is called a(n) 澳洲牛排.
Answer: Treasury Bond
24. are time deposits of fixed maturity issued by the world’s larges banks headquartered in financial centers around the globe. The heart of this market is centered in London.
