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Home  arrow Student Resources  arrow Chapter 12: Nonbank Finance  arrow Multiple Choice Quiz

Multiple Choice Quiz



This activity contains 15 questions.

Question 1.
Mutual life insurance companies:

 
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Question 2.
Which of the following is not true about commercial banks and life insurance?

 
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Question 3.
Deductibles help reduce the moral hazard problem for insurance companies because

 
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Question 4.
If an insurance company does not charge risk-based premiums:

 
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Question 5.
Pension funds invest in long-term securities because:

 
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Question 6.
Mary deposits $100 per year in her pension fund. After 10 years, this will have a value of $1753. If the defined benefit is $2000, then:

 
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Question 7.
Finance companies are different from banks in that:

 
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Question 8.
An IPO is:

 
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Question 9.
An underwriter:

 
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Question 10.
Brokerage firms:

 
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Question 11.
Fannie Mae and Freddie Mac

 
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Question 12.
A mutual fund sold with no sales commissions, from which shares can be redeemed at any time at a price based on the value of the fund's assets, is a ________, ________ fund.

 
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Question 13.
An agent on the floor of a stock exchange who matches identically-priced buy and sell orders and also buys or sells stocks from his own holdings when buy and sell orders do not match is:

 
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Question 14.
The Social Security system

 
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Question 15.
Hedge funds

 
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