the economics of money, banking, and financial markets

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24. 
    

    In 1977, he pioneered the concept of selling new public issues of junk bonds for companies
    that had not yet achieved investment-grade status.
    A) Michael Milken
    B) Roger Milliken
    C) Ivan Boskey
    D) Carl Ichan
    Answer: A
    Diff: 1 Type: MC Page Ref: 246
    Skill: Recall
    Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
    system"

    
    


25. 
    

    One factor contributing to the rapid growth of the commercial paper market since 1970 is
    ____.
    A) the fact that commercial paper has no default risk
    B) improved information technology making it easier to screen credit risks
    C) government regulation
    D) FDIC insurance for commercial paper
    Answer: B
    Diff: 1 Type: MC Page Ref: 247
    Skill: Recall
    Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
    system"

    
    


26. 
    

    The development of money market mutual funds contributed to the growth of ____
    since the money market mutual funds need to hold liquid, high-quality, short-terms assets.
    A) the commercial paper market
    B) the municipal bond market
    C) the corporate bond market
    D) the junk bond market
    Answer: A
    Diff: 1 Type: MC Page Ref: 247
    Skill: Recall
    Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
    system"

    
    


27. 
    

    The process of transforming otherwise illiquid financial assets into marketable capital market
    instruments is known as ____.
    A) securitization
    B) internationalization
    C) arbitrage
    D) program trading
    Answer: A
    Diff: 1 Type: MC Page Ref: 247
    Skill: Recall
    Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
    system"