Question 1

Disintermediation can be best defined as movement of funds from accounts with:

Accepted Answer

A) deposit-taking financial intermediaries and the reinvestment of those funds in bonds. 
B) deposit-taking financial intermediaries and the reinvestment of those funds in international equities. 
C) deposit-taking financial intermediaries and the reinvestment of those funds in higher yielding securities. 
D) non-deposit-taking financial intermediaries and the reinvestment of those in high-yielding securities. 
A) deposit-taking financial intermediaries and the reinvestment of those funds in bonds. 
B) deposit-taking financial intermediaries and the reinvestment of those funds in international equities. 
C) deposit-taking financial intermediaries and the reinvestment of those funds in higher yielding securities. 
D) non-deposit-taking financial intermediaries and the reinvestment of those in high-yielding securities.

Question 2

The number of ordinary shares received by the holder of each converting preference share is known as the:

Accepted Answer

A) converting ratio. 
B) share ratio. 
C) conversion ratio. 
D) perpetual ratio. 
A) converting ratio. 
B) share ratio. 
C) conversion ratio. 
D) perpetual ratio.

Question 3

Which of the following statements about yields on short-term securities is true?

Accepted Answer

A) The yield on a Treasury note is generally higher than the interest rate on a bank overdraft. 
B) The interest rate on a bank overdraft is generally less than on an inter-company loan. 
C) The interest rate on an inter-company loan is generally higher than the yield on a Treasury note. 
D) The yield on a Treasury note is generally higher than the interest rate on an inter-company loan. 
A) The yield on a Treasury note is generally higher than the interest rate on a bank overdraft. 
B) The interest rate on a bank overdraft is generally less than on an inter-company loan. 
C) The interest rate on an inter-company loan is generally higher than the yield on a Treasury note. 
D) The yield on a Treasury note is generally higher than the interest rate on an inter-company loan.

Question 4

Which of the following statements with regards to mortgage loans is false?

Accepted Answer

A) Mortgage loans are usually made on a credit foncier basis. 
B) A 'balloon' payment may be necessary at maturity. 
C) Most life insurance companies specify a minimum amount for mortgage finance,usually upwards of $200 000. 
D) The main source of mortgage finance for companies has traditionally been superannuation funds. 
A) Mortgage loans are usually made on a credit foncier basis. 
B) A 'balloon' payment may be necessary at maturity. 
C) Most life insurance companies specify a minimum amount for mortgage finance,usually upwards of $200 000. 
D) The main source of mortgage finance for companies has traditionally been superannuation funds.

Question 5

The role of an acceptor in relation to bills of exchange is to:

Accepted Answer

A) act as a negotiator. 
B) provide the funds. 
C) write up the documents. 
D) repay the face value of the debt at maturity. 
A) act as a negotiator. 
B) provide the funds. 
C) write up the documents. 
D) repay the face value of the debt at maturity.

Question 6

Endorsement means that:

Accepted Answer

A) if the acceptor is unable to pay the face value on the maturity date,then it is obliged to draw a bill to meet its initial obligations. 
B) an agreement between the acceptor and an endorser is reached,whereby the acceptor is obliged to pay the face value on the maturity date if the endorser is unable to pay the subsequent holder of the bill. 
C) the endorser has a contingent liability until the bill matures and is paid. 
D) none of the given options. 
A) if the acceptor is unable to pay the face value on the maturity date,then it is obliged to draw a bill to meet its initial obligations. 
B) an agreement between the acceptor and an endorser is reached,whereby the acceptor is obliged to pay the face value on the maturity date if the endorser is unable to pay the subsequent holder of the bill. 
C) the endorser has a contingent liability until the bill matures and is paid. 
D) none of the given options.

Question 7

A loan for general business purposes secured against the inventory of the borrower is known as:

Accepted Answer

A) floor plan finance. 
B) wholesale finance. 
C) revolving facility finance. 
D) bridging finance. 
A) floor plan finance. 
B) wholesale finance. 
C) revolving facility finance. 
D) bridging finance.

Disintermediation can be best defined as movement of funds from accounts with:

The number of ordinary shares received by the holder of each converting preference share is known as the:

Which of the following statements about yields on short-term securities is true?

Which of the following statements with regards to mortgage loans is false?

The role of an acceptor in relation to bills of exchange is to:

Endorsement means that:

A loan for general business purposes secured against the inventory of the borrower is known as:

Introduction

Consumption, Investment and the Capital Market

The Time Value of Money: An Introduction to Financial Mathematics

Applying the Time Value of Money to Security Valuation

Project Evaluation: Principles and Methods

The Application of Project Evaluation Methods

Risk and Return

The Capital Market

Sources of Finance: Equity

Payout Policy

Principles of Capital Structure

Capital Structure Decisions

The Cost of Capital and Taxation Issues in Project Evaluation

Leasing and Other Equipment Finance

Capital Market Efficiency

Futures Contracts

Options and Contingent Claims

Analysis of Takeovers

International Financial Management

Management of Short-Term Assets: Inventory

Management of Short-Term Assets: Liquid Assets and Accounts Receivable

Filters

Exam 10: Sources of Finance: Debt

Disintermediation can be best defined as movement of funds from accounts with:

The number of ordinary shares received by the holder of each converting preference share is known as the:

Which of the following statements about yields on short-term securities is true?

Which of the following statements with regards to mortgage loans is false?

The role of an acceptor in relation to bills of exchange is to:

Endorsement means that:

A loan for general business purposes secured against the inventory of the borrower is known as:

Introduction

Consumption, Investment and the Capital Market

The Time Value of Money: An Introduction to Financial Mathematics

Applying the Time Value of Money to Security Valuation

Project Evaluation: Principles and Methods

The Application of Project Evaluation Methods

Risk and Return

The Capital Market

Sources of Finance: Equity

Payout Policy

Principles of Capital Structure

Capital Structure Decisions

The Cost of Capital and Taxation Issues in Project Evaluation

Leasing and Other Equipment Finance

Capital Market Efficiency

Futures Contracts

Options and Contingent Claims

Analysis of Takeovers

International Financial Management

Management of Short-Term Assets: Inventory

Management of Short-Term Assets: Liquid Assets and Accounts Receivable

Filters