Finalexamstudyguide

FI363 Final Examination Student Study Guide
Final Examination 1.05

This is a two-hour, closed book and closed notes test. Therefore, it cannot be a take-home test. Students may use a hand-held calculator during the test provided it does not have features that allow it to take pictures or otherwise store test information other than the current calculation. The calculator cannot have means to communicate via email, instant messenger or any other means.

Students are not allowed to use a computer during the test except for word processing. Students are not allowed to bring extra “scratch” paper to the exam. They can use the back side of the test for scratch paper if needed.

The examination contains twenty multiple choice questions valued at 5 points each (100 points total) and five essay questions valued at 40 points each (200 points total). The total value of the examination is 300 points.

Multiple Choice Questions ask the students to relate key financial System concepts that they have learned:

1. The student should review these course concepts a. Interest rates and interest rate calculations b. Various types of financial markets c. Various types of financial institutions d. Direct and indirect finance e. Present value f. Supply and demand as applied to financial instruments g. Term structure h. The Federal Reserve System i. Monetary Policy j. Monetary Policy Targeting k. Money markets l. Capital markets m. Mortgage Markets n. Foreign exchange markets o. Securities and Exchange Commission p. Currency exchange rates q. International finance r. Adverse selection s. Moral hazard t. Conflict of interest u. World Bank v. International Monetary Fund w. Financial system structure x. Central bank

Essay questions ask the student to relate core learning concepts to financial system situations and to discuss or define financial system terms. Be certain that you completely understand the following terms. The student should review concepts that relate to the following and be prepared to write analyses that include:

a) Assess the structural characteristics of the American financial system. b) Evaluate the functions of financial markets, such as the money market, bond market, stock market, and mortgage market, within the financial system. c) Compare the functions of types of financial institutions to evaluate their role in the financial system. d) Examine the role of central banks in the financial system to promote economic growth and stability. e) Contrast the international financial system with that in the United States. f) Evaluate the impact of risk and regulations in the functions of financial institutions and markets.