318-sample questions_midterm

318-sample questions_midterm - ECON 318 Sample Questions...

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ECON 318 Sample Questions for mid-term 1. The value of a financial instrument rises as: a. The size of the payment promised decreases b. The promised payment is made sooner rather than later c. It is less likely the payment will be made d. The payments are made when the prospective investor needs them least 2. Financial instruments used primarily as stores of value include each of the following, except : a. Bonds b. Futures contracts c. Stocks d. Home mortgages 3. Which of the following financial instruments is used mainly to transfer risk? a. Asset-backed securities b. Bonds c. Options d. Stocks 4. Roles served by financial markets include the following, except : a. Eliminating risk b. Providing liquidity c. Pooling and communicating information d. Sharing of risk 5. The high volume of shares of stock that are traded on a normal day on stock markets reflects: a. The high transaction costs associated with these financial markets b. The low transaction costs and high liquidity associated with these markets c. The low transaction costs and low liquidity associated with these markets
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This note was uploaded on 10/18/2010 for the course ECON 301 taught by Professor Kutch during the Fall '08 term at Elon.

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318-sample questions_midterm - ECON 318 Sample Questions...

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