ch 2 - G lobal Financial Instruments 1. Which of the...

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Global Financial Instruments 1. Which of the following is not a money market instrument? a. treasury bill b. commercial paper c. preferred stock d. banker's acceptance 2. Ninety-one-day T-bill auctions are conducted _____. a. daily b. weekly c. monthly d. quarterly 3. When computing the bank discount yield in a leap year you would use ____ days in the year. a. 260 b. 360 c. 365 d. 366 4. A dollar denominated deposit at a London bank is called ______. a. eurodollars b. LIBOR c. fed funds d. banker's acceptance 5. Risk premiums on money market instruments increased during the _____. a. OPEC oil price shocks b. Long Term Capital Management collapse c. 1987 market crash d. all of the above 6. Money market securities are sometimes referred to as "cash equivalent" because a. they are marketable
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b. they are liquid c. they are low-risk d. all of the above 7. The most important feature of municipal bonds is their _______. a. safety b. liquidity c. tax-exempt status d. convertibility 8. ______ voting of common stock gives minority shareholders the most representation on the board of directors. a. Majority b. Cumulative c. Rights d. Proxy 9. _____ computes over 50 country indexes. a. Dow Jones b. The Federal Reserve c. NASDAQ d. MSCI 10. ______ would not be included in the EAFE index. a. Australia b. Canada c. France d. Japan 11. _____ is considered to be an emerging market country. a. France b. Norway c. Brazil d. Canada
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a. Dividends on preferred stocks are tax-deductible b. Common dividends are paid before preferred dividends c. Preferred stockholders have voting power d. Preferred dividends are usually cumulative 13. 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 14. __________ measure bond market performance through creating their own bond market index. a. Lehman Brothers b. Merrill Lynch c. Salomon Brothers d. All of the above 15. Deposits of commercial banks at the Federal Reserve are called ______. a. bankers acceptances b. federal funds c. repurchase agreements d. time deposits 16. __________ is not a true statement regarding municipal bonds. a. A municipal bond is a debt obligation issued by state or local governments. b. A municipal bond is a debt obligation issued by the Federal Government. c. The interest income from a Municipal bond is exempt from federal income taxation. d. The interest income from a Municipal bond is exempt from state and local taxation in the issuing state. 17. __________ is not a characteristic of a money market instrument.
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This note was uploaded on 03/21/2011 for the course ECON 400 taught by Professor Shqerat during the Spring '11 term at University of Jordan.

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ch 2 - G lobal Financial Instruments 1. Which of the...

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