FINC 3310 Exam 1 Leavell .docx - FINC 3310 Leavell Exam 1 1...

This preview shows page 1 - 2 out of 2 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Fundamentals of Financial Management
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise 5-31
Fundamentals of Financial Management
Brigham
Expert Verified
FINC 3310 Leavell Exam 1 1. The money market is the financial market in which only short-term debt instruments are traded. 2. Brokers are agents of investors who match buyers with sellers of securities 3. The real interest rate more accurately reflects the total cost of borrowing. 4. Bonds with relatively low risk of default are called investment grade bonds. 5. Financial institutions exist to lower transactions costs AND efficiently move money between savers and users of money. 6. Money is defined as anything that is generally accepted in payment for goods and services or in the repayment of debt. 7. Every financial market performs the following function: it channels the funds from lenders-savers to borrowers-spenders. 8. Typically, increasing interest rates discourages corporate investments. 9. The price paid for the rental of borrowed funds is commonly referred to as the interest rate. 10. A country whose financial markets function poorly is likely to experience economic hardships and financial crisis. 11. Long term debt and equity instruments are traded in the capital market. 12. A corporation acquires new funds only when its securities are sold in the primary market. 13. Foreign currencies that are deposited in banks outside the home country are known as Eurocurrencies. 14. A loan that requires the borrower to make the same payment every period until the maturity date is called a fixed payment loan. 15. A coupon bond pays the owner of the bond a fixed interest payment every period and repays the face value at the maturity date.
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Fundamentals of Financial Management
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise 5-31
Fundamentals of Financial Management
Brigham
Expert Verified

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture