2-4

Investments with S&P bind-in card

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The Sample First Midterm Examination Student: ___________________________________________________________________________ 1. What is the after-tax return on a 5.62% bond yield given a marginal tax rate of 15%? A. 4.78% B. 5.26% C. 5.62% D. 6.25% 2. A dollar denominated deposit at a London bank is called ______. A. eurodollars B. LIBOR C. fed funds D. banker's acceptance 3. The bid price of a treasury bill is __________. A. the price at which the dealer in treasury bills is willing to sell the bill B. the price at which the dealer in treasury bills is willing to buy the bill C. greater than the ask price of the treasury bill expressed in dollar terms D. the price at which the investor can buy the treasury bill 4. Deposits of commercial banks at the Federal Reserve are called ______. A. bankers acceptances B. federal funds C. repurchase agreements D. time deposits 5. __________ is not a characteristic of a money market instrument. A. liquidity B. marketability C. low risk D. long maturity
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6. Treasury bills are financial instruments initially sold by __________ to raise funds. A. commercial banks B. the Federal Government C. large corporations D. state and city governments 7. A bond that has no collateral is called __________. A. a callable bond B. a debenture C. a junk bond D. none of the above 8. __________ would best describe Eurodollars. A. Dollar-denominated deposits in Europe B. Dollar-denominated deposits at branches of foreign banks in the U.S. C. Dollar-denominated deposits at foreign banks and branches of American banks outside the U.S. D. Dollar-denominated deposits at American banks in the U.S. 9. __________ market-value weighted. A. The New York Stock Exchange Composite index is C. The Wilshire 5000 index is D. All of the above are 10. Three stocks have share prices of $5, $7, and $3. What is the value of a price-weighted index of the three stocks? A. 15 B. 5 C. 105 D. indeterminate 11. Purchases of new issues of stock take place __________. A. at the desk of the Fed B. in the primary market C. in the secondary market D. none of the above
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12. The bulk of most initial public offerings (IPOs) of equity securities go to ____________. A. institutional investors B. individual investors C. the firm's current shareholders D. day traders 13. __________ is a false statement about the function of investment bankers. A. They act as intermediaries between issuers of stocks and investors B. They purchase new securities from corporations and sell them to the public C. They are commercial banks that accept deposits from savers and lend them out to companies D. They act as advisers to companies in helping them analyze their financial needs and find buyers for their securities 14. The _________ price is the price at which a dealer is willing to purchase a security. A. bid
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This document was uploaded on 02/26/2008.

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2-4 - The Sample First Midterm Examination Student: _ 1....

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