Exam 2: The Domestic and International Financial Marketplace

The Dow Jones Industrial Average is calculated using the

There are many reasons why there was a financial crisis in 2007. The most significant event closely associated with this crisis is:

Insider trading is defined as

If the spot rate (in U.S. dollars) for Japanese Yen is 0.00703 and the 180 day forward rate is 0.00717, then the Yen is trading at an annualized

An example of a listed security exchange within the secondary market is:

An example of a financial middleman is a:

Securities not listed on exchanges are said to be traded

There are highly publicized hedge fund problems, for example Julian Robertson's Tiger fund or Long Term Capital Management. The impact that this has had on hedge funds is:

In the financial crisis of 2007 there was cheap money coming from emerging markets. Examples of emerging markets are all of the following EXCEPT:

Commercial banks are a major source of term loans. These loans are best used for:

Which of the following statements is/are correct about financial intermediaries? I. Financial intermediaries primarily operate within the secondary market. II. Examples of financial intermediaries are: commercial banks, thrift companies and the internal revenue service.

In an efficient capital market, corporate diversification is ____.

If Japanese yen are deposited in a bank in Paris, the deposits would be called ____

Capital markets in financially sophisticated economies are not perfectly efficient because of

There are three forms of market efficiency. All of the following statements are correct EXCEPT:

If a treasury bond can be purchased for $9,450 today and the bond holder will receive $850 in interest and the $10,000 face value at maturity, what is the percentage holding period return?

If the exchange rate from U.S. dollars to Canadian dollars is $0.80/Canadian dollar, then the exchange rate from Canadian dollars to U.S. dollars is

Two years ago you bought 100 shares of Big Bubba convertible preferred stock at $25 per share. The preferred stock had an annual dividend of $2.125 per share, and a total of $3.19 in dividends per share have been paid so far. Today the company announced that the stock is redeemable for $26.70 plus accrued and unpaid dividends, for a total of $27.76. Alternatively, holders may convert their shares of preferred stock at a conversion rate of 1.6393 shares of Big Bubba common stock for each share of preferred stock. If the closing price of Big Bubba common stock is $27.50, what is your holding period return?

In any economy as a whole, the actual savings for a given period of time must ____ the actual investments.

Eurodollars are U.S. dollars that have been deposited in