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Question
What is the relationship between spot market prices and forward market prices of a good or financial asset?a. Spot prices represent expected forward prices.
b. Forward prices are always higher than spot prices.
c. Spot prices are always higher than forward prices.
d. Forward prices are expected future spot prices.
Answer
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Related questions
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In recent years, know-your-clients (KYC) is required by international financial regulators. In the U.S., what is the act that requires financial institutions to share information about customer identities with appropriate government agencies?
a. The USA Patriot Act
b. The Sarbanes-Oxley Act
c. The 9/11 Act
d. The U.S. Treasury Department Act
e. The Gramm-Leach-Bliley Act
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A state-chartered bank which is not a member of the Federal Reserve System will
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a. FDIC
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d. Federal Reserve System
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If FDIC tends to charge depository institutions less than the full cost of deposit insurance in its risk-based deposit premium system,
a. the banks will be upset with FDIC.
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c. the moral hazard associated with deposit insurance is still present.
d. the regulator will not have to worry about banks taking excessive risk.
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If bank managers lobby to maintain America's traditional "dual banking" structure, they:
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b. want to maintain the right to make loans and take deposits.
c. want the right to fight competition.
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The presence of moral hazard incentives
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c. reduces the church attendance rate of bank managers.
d. increases the role of markets in disciplining excessive risk-taking.
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All of the following are reasons to regulate depository institutions except:
a. To promote safety and soundness.
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Private or state deposit insurance funds have not successfully prevented panic because
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Moral hazard incentives for undesirable manager behavior may have been created by
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Financial institutions are regulated for the following reason(s):
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In a purchase and assumption of a failed bank, an assuming bank may be required to invest funds for all but one of the following reasons:
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Bank capital is the most reliable cushion that prevents a decline in asset values from threatening the integrity of bank deposits.
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Bailout of large banks by federal regulators is an example of market discipline.
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Banks are regulated in part to protect the nation's money supply, much of which is a liability of the banking industry.
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A "too big to fail" policy encourages small banks to take higher risks.
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The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
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A foreign branch office of a U.S. bank is regulated by
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b. the host country bank regulation.
c. the FDIC.
d. the SEC.
e. both a and b
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All of the following are techniques reducing credit risk in international lending except
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Which of the following is associated with the currency risk of international lending by a U.S. bank?
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b. The U.S. bank is paid dollars by its foreign borrowers.
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a. Edge Act banks
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While country central banks have pursued their own country interests, recently under the framework of the Bank for International Settlements, central banks from leading economies have agreed to
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c. establish minimum capital ratios for international banks.
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c. borrow money to invest in stocks.
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Which of the following is not the difference between hedge funds and mutual funds?
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a. growth and income funds
b. aggressive growth funds
c. balanced funds
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Mutual fund managers can keep their cash balances low by all but one of the following:
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