Quiz
Chapter 2 Financial Markets
Crie uma conta grátis para terminar este quiz
Salve seu progresso e veja sua nota final.
Já tem uma conta? Inicie sessão
Perguntas do quiz (29)
1Money market securities have maturities of one year or less.
- AVerdadeiro
- BFalso
2Preferred stock pays a variable dividend.
- AVerdadeiro
- BFalso
3The cost of borrowing funds is most commonly called the interest rate.
- AVerdadeiro
- BFalso
4The primary market is the only market in which the issuer is directly involved in the transaction and recieves direct benefits from the issue.
- AVerdadeiro
- BFalso
5The over-the-counter market is generally reserved for stocks with very large trading volume.
- AVerdadeiro
- BFalso
6T-Bonds are money market securities, while T-bills and T-notes are traded in the capital market.
- AVerdadeiro
- BFalso
7Market makers include both specialist and dealers.
- AVerdadeiro
- BFalso
8Specialist and dealers determine the price of the security.
- AVerdadeiro
- BFalso
9Corporate bonds pay interest payments that are usually tax-exempt to investors.
- AVerdadeiro
- BFalso
10The New York Stock Exchange is an example of an organized market.
- AVerdadeiro
- BFalso
11Earnings should retained only if the firm needs capital very badly and would have difficulty raising it from external sources.
- AVerdadeiro
- BFalso
12The importance of the role of financial management is emphasized by examples of companies whose strategic financing decisions contributed to their demise, or to their success when economic conditions changed rapidly.
- AVerdadeiro
- BFalso
13The riskiness inherent in a firm's earnings per share (EPS) depends on both the types of projects the firm takes on and the manner in which the projects are financed.
- AVerdadeiro
- BFalso
14The two most important functions of markets are to establish fair prices and provide liquidity.
- AVerdadeiro
- BFalso
15Bonds are long-term loans that typically pay interest per year based on the average bank rate.
- AVerdadeiro
- BFalso
16The _______ is a financial relationship created by a number of institutions with arrangements that allow the suppliers and demanders of long term funds to make transactions.
- Amoney market
- Bbond market
- Ccapital market
- Deurobond market
17The AMEX Exchange could be classified as a/an ______ security exchange.
- Aorganized
- Bover-the-counter
- Cprimary
- Dclosed
18In the over-the-counter market, dealers are linked with the purchasers and sellers of securities through the _____ system.
- ANASDAQ
- Bbonds
- Cstocks
- Dshort-term funds
19Common stockholders expect to receive a return through capital gains and
- Ainterest payments
- Bdividends
- Cfixed periodic dividends
- Dcoupon payments
20Bonds with an AAA rating will have a ______ interest rate compared to bonds with a BAA rating.
- Alower
- Bequal
- Chigher
- Dundetermined
21The______ is the financial market in which securities are initially issued.
- AOTC
- Bsecondary market
- Cprimary market
- Dprivate placement
22________ are long-term debt instruments that are used by business and government to raise large sums of money.
- AT-bills
- BCommon stock
- CPreferred stock
- DBonds
23Shares of ____ are units of ownerships interest, or equity, in a corporation.
- Abank loans
- Bcommon stock
- Cdebt
- Dcommercial paper
24The possibility that the issuer of debt will not pay the principal as scheduled.
- Aliquidity risk
- Bdefault risk
- Ccontractual risk
- Dmaturity risk
25Which of the following does not need to be considered when assessing the impact of financial decision?
- AFinancial market conditions
- Btiming of the earnings flow
- Cproject earnings
- Dall of the above must be considered.
26Money markets are markets for
- Aforeign currency exchange
- Bcorporate stocks
- Clong-term bonds
- Dshort-term debt securities
27Which of the following is not a major participant in the money market.
- AFederal Reserve
- BCommercial Banks
- CMoney Market Mutual Funds
- DWall Street Dealers
28If a $2,000 bond is quoted at 120:16, the price of the bond is ______
- A1,205.31
- B1,205.00
- C2,410.62
- D2,410.00
29The difference between Common Stock and Preferred Stock lies in:
- Avote or not
- Bfixed or variable dividends
- CPriority of claim on assets
- Dall of the above
Informações
- Descrição
- Quiz sobre Chapter 2 Financial Markets, criado por run2hurdle em 26-09-2015.
- Autor
- run2hurdle
- Idioma
- English
- Visualizações
- 42
- Avaliação
- Ainda sem avaliações Avalie este quiz