Question 1

The loans themselves are not transferred when a credit default swap is performed.

Accepted Answer

A) True 
 B)False

Question 2

Explain why companies perform stock split.

Accepted Answer

If a board determines that a stock's pri

Question 3

Bonds issued by states,cities,and various government agencies to fund public projects are known as ________.

Accepted Answer

A)  treasury bonds 
B)  treasury bills 
C)  TIPS 
D)  treasury notes 
E)  municipal bonds 
A)  treasury bonds 
B)  treasury bills 
C)  TIPS 
D)  treasury notes 
E)  municipal bonds

Question 4

A company's price/earnings ratio is determined by dividing the market value per share by the earnings per share.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the most important purpose of issuing a stop order?

Accepted Answer

A)  restricting the possible losses an investor is likely to incur 
B)  buying a stock if its price reaches a certain level 
C)  buying stock even without having adequate capital 
D)  buying a stock if its price falls below a certain level 
E)  minimizing the brokerage fee on a particular transaction 
A)  restricting the possible losses an investor is likely to incur 
B)  buying a stock if its price reaches a certain level 
C)  buying stock even without having adequate capital 
D)  buying a stock if its price falls below a certain level 
E)  minimizing the brokerage fee on a particular transaction

Question 7

Preferred stock owners have no voting rights in a corporation.

Accepted Answer

A) True 
 B)False

Question 8

Currency futures are used to ________.

Accepted Answer

A)  reduce a lender's exposure to credit risk 
B)  buy commodities at a fixed price 
C)  avoid obligations to buy or sell assets 
D)  hedge against exchange rate shifts 
E)  reduce a borrower's exposure to credit risk 
A)  reduce a lender's exposure to credit risk 
B)  buy commodities at a fixed price 
C)  avoid obligations to buy or sell assets 
D)  hedge against exchange rate shifts 
E)  reduce a borrower's exposure to credit risk

Question 9

James wants to buy some shares of JE Electricals.He instructs the broker to buy 1000 shares at the best possible price immediately.This is an example of a(n)________.

Accepted Answer

A)  market order 
B)  control order 
C)  limit order 
D)  stop order 
E)  bounded order 
A)  market order 
B)  control order 
C)  limit order 
D)  stop order 
E)  bounded order

Question 10

Most trading in the bond market occurs over the counter and takes place outside organized exchanges.

Accepted Answer

A) True 
 B)False

Question 11

Short selling refers to selling ________.

Accepted Answer

A)  a stock at a price much above the market price 
B)  stocks partially from an investor's portfolio 
C)  stock borrowed from a broker 
D)  a contract to sell a product at a later date 
E)  a stock at a price much below the market price 
A)  a stock at a price much above the market price 
B)  stocks partially from an investor's portfolio 
C)  stock borrowed from a broker 
D)  a contract to sell a product at a later date 
E)  a stock at a price much below the market price

Question 12

A stop order is an order to sell a stock when ________.

Accepted Answer

A)  an order is placed by a specific buyer in the stock exchange 
B)  its price falls to a particular point 
C)  its p/e ratio crosses a certain level 
D)  brokerage cost is lower than a specified amount 
E)  overall price index of the stock exchange exceeds a certain amount 
A)  an order is placed by a specific buyer in the stock exchange 
B)  its price falls to a particular point 
C)  its p/e ratio crosses a certain level 
D)  brokerage cost is lower than a specified amount 
E)  overall price index of the stock exchange exceeds a certain amount

Question 13

RS Bank introduces a mutual fund that is designed to invest only in the telecom sector.This mutual fund is an example of a(n)________.

Accepted Answer

A)  target-date fund 
B)  sector fund 
C)  optimal fund 
D)  balanced fund 
E)  socially responsible fund 
A)  target-date fund 
B)  sector fund 
C)  optimal fund 
D)  balanced fund 
E)  socially responsible fund

Question 14

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 15

Dobex Investing is a fund management company.Most of the firm's funds are invested in a wide mixture of stocks and bonds.Such funds are called ________ funds.

Accepted Answer

A)  balanced 
B)  sector 
C)  restricted 
D)  specialized 
E)  socially responsible 
A)  balanced 
B)  sector 
C)  restricted 
D)  specialized 
E)  socially responsible

Question 16

Go to a web site that allows you to maintain a virtual portfolio (Example: Yahoo).Create a diversified portfolio in the web site.

Accepted Answer

This is an activity that stude

Question 17

Global funds are funds invest in ________.

Accepted Answer

A)  U.S. securities from foreign countries 
B)  special sectors or industries 
C)  foreign and U.S. securities 
D)  foreign securities only 
E)  environmentally sustainable funds only 
A)  U.S. securities from foreign countries 
B)  special sectors or industries 
C)  foreign and U.S. securities 
D)  foreign securities only 
E)  environmentally sustainable funds only

Question 18

Credit derivatives are 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 19

Josephine would like to invest part of her Individual Retirement Account (IRA)in the stock market,but she wants to minimize the risk as much as possible.Which of the following is the most suitable investment alternative for Josephine?

Accepted Answer

A)  financial futures 
B)  derivatives 
C)  options 
D)  preferred stock 
E)  commodities futures 
A)  financial futures 
B)  derivatives 
C)  options 
D)  preferred stock 
E)  commodities futures

Question 20

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

Accepted Answer

A)  Municipal bonds 
B)  Treasury bills 
C)  Treasury bonds 
D)  TIPS 
E)  Treasury notes 
A)  Municipal bonds 
B)  Treasury bills 
C)  Treasury bonds 
D)  TIPS 
E)  Treasury notes

The loans themselves are not transferred when a credit default swap is performed.

Explain why companies perform stock split.

Bonds issued by states,cities,and various government agencies to fund public projects are known as ________.

A company's price/earnings ratio is determined by dividing the market value per share by the earnings per share.

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

Which of the following is the most important purpose of issuing a stop order?

Preferred stock owners have no voting rights in a corporation.

Currency futures are used to ________.

James wants to buy some shares of JE Electricals.He instructs the broker to buy 1000 shares at the best possible price immediately.This is an example of a(n)________.

Most trading in the bond market occurs over the counter and takes place outside organized exchanges.

Short selling refers to selling ________.

A stop order is an order to sell a stock when ________.

RS Bank introduces a mutual fund that is designed to invest only in the telecom sector.This mutual fund is an example of a(n)________.

A call provision allows the issuer to ________.

Dobex Investing is a fund management company.Most of the firm's funds are invested in a wide mixture of stocks and bonds.Such funds are called ________ funds.

Go to a web site that allows you to maintain a virtual portfolio (Example: Yahoo).Create a diversified portfolio in the web site.

Global funds are funds invest in ________.

Credit derivatives are used to ________.

Josephine would like to invest part of her Individual Retirement Account (IRA)in the stock market,but she wants to minimize the risk as much as possible.Which of the following is the most suitable investment alternative for Josephine?

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

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

The loans themselves are not transferred when a credit default swap is performed.

Explain why companies perform stock split.

Bonds issued by states,cities,and various government agencies to fund public projects are known as ________.

A company's price/earnings ratio is determined by dividing the market value per share by the earnings per share.

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

Which of the following is the most important purpose of issuing a stop order?

Preferred stock owners have no voting rights in a corporation.

Currency futures are used to ________.

James wants to buy some shares of JE Electricals.He instructs the broker to buy 1000 shares at the best possible price immediately.This is an example of a(n)________.

Most trading in the bond market occurs over the counter and takes place outside organized exchanges.

Short selling refers to selling ________.

A stop order is an order to sell a stock when ________.

RS Bank introduces a mutual fund that is designed to invest only in the telecom sector.This mutual fund is an example of a(n)________.

A call provision allows the issuer to ________.

Dobex Investing is a fund management company.Most of the firm's funds are invested in a wide mixture of stocks and bonds.Such funds are called ________ funds.

Go to a web site that allows you to maintain a virtual portfolio (Example: Yahoo).Create a diversified portfolio in the web site.

Global funds are funds invest in ________.

Credit derivatives are used to ________.

Josephine would like to invest part of her Individual Retirement Account (IRA)in the stock market,but she wants to minimize the risk as much as possible.Which of the following is the most suitable investment alternative for Josephine?

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

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