test1 - Practice test 1 FI 312 Spring 2007 1. In financial...

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Practice test 1 FI 312 Spring 2007 1. In financial markets, corporations are net __________ and household are net __________. A.borrowers, borrowers B.borrowers, savers C.savers, borrowers D.savers, savers 2. Financial assets __________ means by which individuals hold claims on real assets. Financial assets __________ directly to the productive capacity of the economy. A.are, contribute B.are, do not contribute C.are not, contribute D.are not, do not contribute 3. _____ is a mechanism to mitigate potential agency problems A.Tying income of managers to success of the firm B.Directors defending top management C.Anti takeover strategies D.all of the above 4. Which of the following is not a money market instrument? A.treasury bill B.commercial paper C.preferred stock D.banker's acceptance 5. The Dow Jones Industrial Average is computed by __________. A.adding the prices of 30 large "blue-chip" stocks and dividing by 30 B.calculating the total market value of the 30 firms in the index and dividing by 30 C.adding the prices of the 30 stocks in the index and dividing by a divisor D.adding the prices of the 500 stocks in the index and dividing by a divisor 1
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6. In calculating the Dow Jones Industrial Average, the adjustment for a stock split occurs __________
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test1 - Practice test 1 FI 312 Spring 2007 1. In financial...

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