Financial Institutions and Matkets

1. In aggregate, households are deficit spending units. True False

2. Only financial institutions are subject to Fed oversight. True False

3. An initial public offering of equity is a form of direct investment. True False

4. All financial claims have a primary market. True False

5. All financial claims have a secondary market. True False

6. In terms of $-volume outstanding in the US, the mortgage-backed security market is bigger than the corporate bond market. True False

7. The SEC regulates only primary markets. True False

8. Private placements are less marketable than registered securities. True False

9. The Fed regulates foreign banks operating in the US. True False

10. Money market instruments are generally traded on organized exchanges. True False