practice_1_353[1]

practice_1_353[1] - MULTIPLE CHOICE. Choose the one...

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements about financial markets and securities are true? 1) _______ A) A bond is a long - term security that promises to make periodic payments called dividends to the firm's residual claimants. B) The maturity of a debt instrument is the time (term) that has elapsed since it was issued. C) A debt instrument is long term if its maturity is ten years or longer. D) A debt instrument is intermediate term if its maturity is less than one year. 2) Every financial market performs the following function: 2) _______ A) It allows loans to be made. B) It determines the level of interest rates. C) It allows common stock to be traded. D) It channels funds from lenders - savers to borrowers - spenders. 3) When the borrower engages in activities that make it less likely that the loan will be repaid, _________ is said to exist. 3) _______
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This note was uploaded on 09/07/2011 for the course FIN 353 taught by Professor Cobus during the Spring '08 term at S.F. State.

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practice_1_353[1] - MULTIPLE CHOICE. Choose the one...

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