Fill in the blank. Adverse selection, Bank capital, Commercial bank, Commercial

Question

Fill in the blank.

Adverse selection, Bank capital, Commercial bank, Commercial paper, Credit union, Debit account, Debit account, Enron, Eurobond, Eurodollars, Federal Reserve, FOMC, Foreign bonds, Glass-Steagall, Inflation rate, Interest rate, Investment grade bonds, Lien, MBS, Money market, securities Moral hazard, NYSE, Pension fund, Securitization, Sweep account, Treasury bills, U.S. Treasury, Yield to maturity

1. _______________________ occurs when borrowers who are the most likely to default are the ones most actively seeking a loan.

2. A ________________________ is an example of a contractual savings institution.

3. _______________________ securities are unsecured issuances from corporations, and they never have a term to maturity that exceeds 270 days.

4. A ________________protects the mortgage lender's right to sell property if the underlying loan defaults?

5. The ______________financial scandal increased uncertainty about the quality of accounting information and as a result, increased required return on investment in stocks.

6. In 2013, the __________ traded 4 billion shares on an average trading day.

7. _______________________ are marketable securities collateralized by a pool of mortgages.

8. _________________is raised by selling new equity and is a cushion against a drop in asset value.

9. The legislation that separated commercial banking from the securities industry is known as the ________, It was repealed in 1999. (R.I.P. Prince)

10. The practice of creating marketable debt instruments that are backed by otherwise illiquid assets is known as ____________________________________.

11. A _____________ account is an example of a financial innovation introduced to avoid regulations.

12. Meeting every six weeks, the _____________ determines monetary policy strategy.

13. Money market instruments issued by the U.S. Treasury are called __________________

14. ________________________________ are low risk, liquid and short term, but are not actually considered “money”.

Explanation / Answer

1 Adverse Selection
2 Pension Fund
3 Commercial Paper
4 Lien
5 Enron
6 NYSE
7 MBS
8 Bank Capital
9 Glass-Steagall
10 Securization
11 Sweep A/c
12 FOMC
13 Treasury Bill
14 Money Market

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