29 câu hỏi
In 2009, __________was the most significant real asset of U.S. nonfinancial businesses in terms of total value.
equipment and software
inventory
real estate
trade credit
marketable securities
In 2009, ___________was the least significant real asset of U.S. nonfinancial businesses in terms of total value.
equipment and software
inventory
real estate
trade credit
marketable securities
In 2009, _________was the least significant liability of U.S. nonfinancial businesses in terms of total value.
bonds and mortgages
loans
inventories
trade debt
marketable securities
In terms of total value, the most significant liability of U.S. nonfinancial businesses in 2009 was _______.
loans
bonds and mortgages
trade debt
other loans
marketable securitie
In 2009, _________was the least significant financial asset of U.S. nonfinancial businesses in terms of total value.
cash and deposits
trade credit
trade debt
inventory
marketable securities
New issues of securities are sold in the ______________market(s).
primary
secondary
over the counter
primary and secondary
primary and over the counter
Investment bankers perform the following role(s) ________.
market new stock and bond issues for firms
provide advice to the firms as to market conditions, price, etc
design securities with desirable properties
make trades for small investors to market conditions, price, etc, and design securities with desirable properties with desirable properties
market new stock and bond issues for firms, provide advice to the firms as Investment bankers market new stock and bond issues for firms, provide advice to the firms as to market conditions, price, etc, and design securities
Until 1999, the _______Act(s) prohibited banks in the United States from both accepting deposits and underwriting securities.
Sarbanes-Oxley
Glass-Steagall
SEC
Sarbanes-Oxley and SEC
Fair Credit
The spread between the LIBOR and the Treasury-bill rate is called the______
term spread
T-bill spread
LIBOR spread
TED spread
FRED spread
Mortgage-backed securities were created when _________began buying mortgage loans from originators and bundling them into large pools that could be traded like any other financial asset.
GNMA
FNMA
FHLMC
FNMA and FHLMC
GNMA and FNMA
The sale of a mortgage portfolio by setting up mortgage pass- through securities is an example of _______.
credit enhancement
securitization
unbundling
derivatives
a Ponzi scheme
Which of the following is true about mortgage-backed securities?
I) They aggregate individual home mortgages into homogeneous pools.
II) The purchaser receives monthly interest and principal payments received from payments made on the pool.
III) The banks that originated the mortgages maintain ownership of them.
IV) The banks that originated the mortgages continue to service them.
II, III, and IV
I, II, and IV
II and IV
I, III, and IV
I, II, III, and IV
_________were designed to concentrate the credit risk of a bundle of loans on one class of investor, leaving the other investors in the pool relatively protected from that risk.
Stocks
Bonds
Derivatives
Collateralized debt obligations
TIPS.
___________are in essence an insurance contract against the default of one or more borrowers.
Credit default swaps
CMOs
ETFs
Collateralized debt obligations
Collars
A bond that can be retired prior to maturity by the issuer is a_____bond.
secured
Yankee
callable
unsecured
convertible
A call option allows the buyer to
buy the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.
sell the underlying asset at the exercise price on or before the expiration date.
sell the option in the open market prior to expiration.
sell the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.
buy the underlying asset at the exercise price on or before the expiration date
A form of short-term borrowing by dealers in government securities is
commercial paper.
banker's acceptances.
reserve requirements.
brokers' calls.
repurchase agreements
A US dollar denominated bond that is sold in Singapore is a
Bulldog bond
Eurobond
Singapore Sling
Samurai bond
Yankee bond
An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%, respectively. If the investor is in the 25% marginal tax bracket, his or her after tax rates of return on the municipal and corporate bonds would be___and___, respectively.
5.63% and 10.3%
7.5% and 10.3%
10% and 10%
5.63% and 7.73%
7.5% and 7.73%
Bond market indexes can be difficult to construct because
there are so many different kinds of bonds.
corporations are not required to disclose the details of their bond issues.
bonds tend to trade infrequently, making price information difficult to obtain.
prices cannot be obtained for companies that operate in emerging markets.
they cannot be based on firms' market values.
Brokers' calls_______
are funds borrowed by the broker from the bank, with the agreement to repay the bank immediately if requested to do so.
are funds used by individuals who wish to buy stocks on margin.
carry a rate that is usually about one percentage point lower than the rate on U.S. T-bills.
are funds used by individuals who wish to buy stocks on margin and carry a rate that is usually about one percentage point lower than the rate on U.S. T- bills.
are funds used by individuals who wish to buy stocks on margin and are funds borrowed by the broker from the bank, with the agreement to repay the bank immediately if requested to do so.
Commercial paper is a short-term security issued by ________to raise funds.
the New York Stock Exchange
the Federal Reserve Bank
large, well-known companies
state and local governments
commercial banks
If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all change by the same percentage amount during a given day, which stock will have the greatest impact on the DJIA?
The stock having the greatest amount of debt in its capital structure. b The stock having the lowest volatility.
The stock having the greatest amount of equity in its capital structure.
None of the above.
The stock trading at the highest dollar price per share
In calculating the Standard and Poor's stock price indices, the adjustment for stock split occurs:
by adjusting the divisor.
quarterly, on the last trading day of each quarter.
none of the above.
automatically.
by adjusting the numerator.
In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be?
28%
72%
Cannot tell from the information given
33%
15%
In the event of the firm's bankruptcy
the most shareholders can lose is their original investment in the firm's stock and the claims of preferred shareholders are honored before those of the common shareholders.
bondholders have claim to what is left from the liquidation of the firm's assets after paying the shareholders.
the claims of preferred shareholders are honored before those of the common shareholders.
common shareholders are the first in line to receive their claims on the firm's assets.
the most shareholders can lose is their original investment in the firm's stock.
T-bills are financial instruments initially sold by _________to raise funds.
commercial banks
the U.S. government and agencies of the federal government
state and local governments
agencies of the federal government
the U.S. government
The bid price of a T-bill in the secondary market is______
never quoted in the financial press.
the price at which the dealer in T-bills is willing to sell the bill.
greater than the asked price of the T-bill.
the price at which the dealer in T-bills is willing to buy the bill.
the price at which the investor can buy the T-bill
The Dow Jones Industrial Average (DJIA) is computed by:
adding the prices of the 30 stocks in the index and dividing by the value of these stocks as of some base date period.
adding the prices of the 500 stocks in the index and dividing by a divisor.
adding the prices of the 30 stocks in the index and dividing by a divisor.
adding the prices of 30 large "blue-chip" stocks and dividing by 30.
calculating the total market value of the 30 firms in the index and dividing by 30