Exam 3: Financial Indices, Market Information, and Economic Data

Moody's and Standard & Poor's are considered competitors.

According to the concept of random walk, successive changes in asset prices often appear as unpredictable as a sequence of random numbers.

The organization charged with oversight of insider securities transactions is:

In the Flow of Funds Accounts all but one of the following statements is necessarily true for a single sector in the economy (such as the household sector). Which statement below is not necessarily true for a single sector of the economy?

Any indication of a softening of the economy or of reduced inflation, may result in

When a note or bond is selling at a discount under its par value and carries various possible maturity dates, the yield on the note or bond is generally figured to the nearest maturity date.

At the end of year 19X1 the corporate business sector posted net worth of $60 billion, total investment in plant and equipment of $75 billion, total holdings of financial assets of $131 billion and total debt outstanding of $146 billion. The following year-end, 19X2, total corporate indebtedness climbed to $167 billion, holdings of financial assets fell to $120 billion and net worth increased to $62 billion due to retained profits. Construct a sources and uses of funds statement for the corporate sector for the year 19X2.

Suppose you are given the data shown for the household sector of the economy. From this information please construct a statement of financial assets and liabilities for the household sector.

According to the ____ an asset's current price is the best estimate of that asset's expected fundamental value.

The Wilshire 5000 actually includes more than 6300 stocks, most of them are publicly traded US corporations.

The optimal forecast of next period's market value (price) for an asset when we know only this period's information must be the asset's

Investors harmed by insider trading may

Bond prices are quoted in the Wall Street Journal.

Because of electronic surveillance systems by corporations, major stock exchanges and security trading firms, it is easier today to get away with insider trading.

Price quotations on individual stocks may be found in all but one of the following published sources. Which source shown below does not contain individual stock price quotations?

If bank deposits are insured, moral hazard problems are generally eliminated.

The line or curve described by the equation E(Ri ) = rf + bi[E(Rm)-rf] is known as the:

In addition to assigning credit risk ratings to borrowing institutions, Moody's also

In the Sources and Uses Statement, when purchases of an asset exceed sales of that asset, the resulting number is carried as a positive increase in that asset.

Both bonds and notes generally carry a set maturity date.