Question 1

Credit derivatives are derivatives used to ________.

Accepted Answer

A)  reduce a lender's exposure to risk 
B)  link liabilities to a federal agency 
C)  hedge against exchange rate shifts 
D)  link assets to a federal agency 
E)  avoid obligations to buy or sell assets 
A)  reduce a lender's exposure to risk 
B)  link liabilities to a federal agency 
C)  hedge against exchange rate shifts 
D)  link assets to a federal agency 
E)  avoid obligations to buy or sell assets

Question 2

Maturity date is the date on which the principle of a bond will be repaid in full.

Accepted Answer

A) True 
 B)False

Question 3

Compare and contrast call options and put options.

Accepted Answer

All stock options fall into tw

Question 4

Portfolio diversification is performed to ________.

Accepted Answer

A)  protect against significant declines in any one vehicle 
B)  maximize the returns from any one vehicle 
C)  reduce the load that intermediaries charge 
D)  maximize the earning potential of a portfolio 
E)  maximize the earning potential of an investment vehicle 
A)  protect against significant declines in any one vehicle 
B)  maximize the returns from any one vehicle 
C)  reduce the load that intermediaries charge 
D)  maximize the earning potential of a portfolio 
E)  maximize the earning potential of an investment vehicle

Question 5

Norbon Securities is a financial intermediary.The firm facilitates the sale of mutual funds and charges commission when selling mutual funds to investors.This commission is referred to as ________.

Accepted Answer

A)  bill 
B)  index 
C)  load 
D)  yield 
E)  coupon 
A)  bill 
B)  index 
C)  load 
D)  yield 
E)  coupon

Question 6

Compare and contrast blue chip,income,growth and cyclical stocks.

Accepted Answer

Blue chip:Stocks of major,well-establish

Question 7

Suppliers use future contracts to protect themselves from future price decreases.

Accepted Answer

A) True 
 B)False

Question 8

Treasury bonds are short-term debt securities issued by the federal government that are repaid within a year.

Accepted Answer

A) True 
 B)False

Question 9

Compare and contrast options and futures.

Accepted Answer

An option is the purchased right - but n

Question 10

Treasury notes are debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

Accepted Answer

A) True 
 B)False

Question 11

Annual interest/closing price = ________.

Accepted Answer

A)  current yield 
B)  maturity 
C)  coupon 
D)  par value 
E)  face value 
A)  current yield 
B)  maturity 
C)  coupon 
D)  par value 
E)  face value

Question 12

Which of the following statements is true of bond markets?

Accepted Answer

A)  Treasury bills and commercial papers are traded in a bond market. 
B)  A bond market is a component of a stock market. 
C)  Exchange trading of futures occurs at a bond market. 
D)  Most trading is done over the counter in a bond market. 
E)  A bond market is less diffuse and centralized than the stock market. 
A)  Treasury bills and commercial papers are traded in a bond market. 
B)  A bond market is a component of a stock market. 
C)  Exchange trading of futures occurs at a bond market. 
D)  Most trading is done over the counter in a bond market. 
E)  A bond market is less diffuse and centralized than the stock market.

Question 13

What are derivatives?

Accepted Answer

Derivatives are contracts whose value is

Question 14

________ refers to shares of ownership without voting rights but with defined dividends.

Accepted Answer

A)  Treasury bond 
B)  Preferred stock 
C)  Derivative 
D)  Equity stock 
E)  Common stock 
A)  Treasury bond 
B)  Preferred stock 
C)  Derivative 
D)  Equity stock 
E)  Common stock

Question 15

Preferred stock appreciates in value much faster than common stock.

Accepted Answer

A) True 
 B)False

Question 16

Describe the different order types you can use when you buy or sell a stock.

Accepted Answer

A market order tells the broker to buy o

Question 17

A call provision allows the issuer to ________.

Accepted Answer

A)  reduce the interest rate of the bond 
B)  change the face value of the bond 
C)  repurchase the bond before maturity 
D)  downgrade the status of the bond 
E)  change the coupon rate of the bond 
A)  reduce the interest rate of the bond 
B)  change the face value of the bond 
C)  repurchase the bond before maturity 
D)  downgrade the status of the bond 
E)  change the coupon rate of the bond

Question 18

Margin trading occurs when a ________.

Accepted Answer

A)  buyer pays the broker immediately after buying a stock 
B)  broker does not charge brokerage fee for a transaction 
C)  buyer pays the broker before placing an order 
D)  broker gives volume discounts to a good buyer 
E)  buyer borrows money from the broker to buy stock 
A)  buyer pays the broker immediately after buying a stock 
B)  broker does not charge brokerage fee for a transaction 
C)  buyer pays the broker before placing an order 
D)  broker gives volume discounts to a good buyer 
E)  buyer borrows money from the broker to buy stock

Question 19

The price at which the stock is actually selling is referred to as its ________ value.

Accepted Answer

A)  face 
B)  par 
C)  book 
D)  intrinsic 
E)  market 
A)  face 
B)  par 
C)  book 
D)  intrinsic 
E)  market

Question 20

The value assigned to each share of stock when it is first issued is known as its book value.

Accepted Answer

A) True 
 B)False

Credit derivatives are derivatives used to ________.

Maturity date is the date on which the principle of a bond will be repaid in full.

Compare and contrast call options and put options.

Portfolio diversification is performed to ________.

Norbon Securities is a financial intermediary.The firm facilitates the sale of mutual funds and charges commission when selling mutual funds to investors.This commission is referred to as ________.

Compare and contrast blue chip,income,growth and cyclical stocks.

Suppliers use future contracts to protect themselves from future price decreases.

Treasury bonds are short-term debt securities issued by the federal government that are repaid within a year.

Compare and contrast options and futures.

Treasury notes are debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

Annual interest/closing price = ________.

Which of the following statements is true of bond markets?

What are derivatives?

________ refers to shares of ownership without voting rights but with defined dividends.

Preferred stock appreciates in value much faster than common stock.

Describe the different order types you can use when you buy or sell a stock.

A call provision allows the issuer to ________.

Margin trading occurs when a ________.

The price at which the stock is actually selling is referred to as its ________ value.

The value assigned to each share of stock when it is first issued is known as its book value.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

The Money Supply and Banking Systems

Filters

Exam 19: Financial Markets and Investment Strategies

Credit derivatives are derivatives used to ________.

Maturity date is the date on which the principle of a bond will be repaid in full.

Compare and contrast call options and put options.

Portfolio diversification is performed to ________.

Norbon Securities is a financial intermediary.The firm facilitates the sale of mutual funds and charges commission when selling mutual funds to investors.This commission is referred to as ________.

Compare and contrast blue chip,income,growth and cyclical stocks.

Suppliers use future contracts to protect themselves from future price decreases.

Treasury bonds are short-term debt securities issued by the federal government that are repaid within a year.

Compare and contrast options and futures.

Treasury notes are debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

Annual interest/closing price = ________.

Which of the following statements is true of bond markets?

What are derivatives?

________ refers to shares of ownership without voting rights but with defined dividends.

Preferred stock appreciates in value much faster than common stock.

Describe the different order types you can use when you buy or sell a stock.

A call provision allows the issuer to ________.

Margin trading occurs when a ________.

The price at which the stock is actually selling is referred to as its ________ value.

The value assigned to each share of stock when it is first issued is known as its book value.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

The Money Supply and Banking Systems

Filters