Quiz 4.2

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Unformatted text preview: Quiz 4.2 User ID: yyoo Attempt: 3 / 3 Out of: 25 Started: July 20, 2005 9:27pm Finished: July 20, 2005 9:29pm Time spent: 2 min. 17 sec. Question 1 (1 point) On a bank's balance sheet, ______________ are listed as assets, while ______________ are listed as liabilities. Student response: Percent Value Student Response Answer Choices 100.0% a. loans and T-bills; checking and savings accounts b. checking and savings accounts; loans and T-bills c. loans and checking accounts; T-bills and savings accounts d. deposits; loans Score: 1 / 1 Question 2 (1 point) If a pension fund owns stock in a corporation, the stock would be listed as an asset on its balance sheet. Student response: Percent Value Student Response Answer Choices 100.0% a. True b. False Score: 1 / 1 Question 3 (1 point) Which of the following formulas expresses the t rue relationship between savings and investment? Student response: Percent Value Student Response Answer Choices a. I+(T-G)-NX = S b. I+G-NX=S c. S+T-NX=I 100.0% d. S+(T-G)-NX=I Score: 1 / 1 Question 4 (1 point) If you buy 100 shares of Exxon stock online, you are trading on the primary market. Student response: Percent Value Student Response Answer Choices a. True 100.0% b. False Score: 1 / 1 Question 5 (1 point) Imagine that an entrepreneur has raised $10 million to pursue a business opportunity. $5 million was raised in debt financing with 8% fixed annual interest, and $5 million was raised in equity financing. (The entrepreneur is paid a salary but has no equity stake.) After one year, the entrepreneur shuts down the venture, having earned $13 million. How much did the equity holders make? Student response: Percent Value Student Response Answer Choices a. $6.5 million 100.0% b. $7.6 million c. $5 million d. $6.96 million Score: 1 / 1 Question 6 (1 point) If a bond's coupon rate is 5% and the bondholder receives a $500 interest payment annually, the face value of the bond must be ________. Student response: Percent Value Student Response Answer Choices 100.0% a. $10,000 b. $25 c. $1,000 d. $100,000 Score: 1 / 1 Question 7 (1 point) A bond is defined by its Student response: Percent Value Student Response Answer Choices a. rate of return, face value, and coupon rate. b. market interest rate, rate of return, and coupon rate. 100.0% c. face value, coupon rate, and maturity date. d. inception date, face value, and maturity date. Score: 1 / 1 Question 8 (1 point) If the market interest rate is greater than a bond's coupon rate, then the price of the bond will be less than its face value. Student response: Percent Value Student Response Answer Choices 100.0% a. True b. False Score: 1 / 1 Question 9 (1 point) If there is a bond with a face value of $500 that pays $50 in interest annually, which of the following statements must be true?...
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