First Class Presentation (Example) (BUS G-345; Money, Banking; and Capital Markets; Self)

First Class Presentation (Example) (BUS G-345; Money, Banking; and Capital Markets; Self)

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Unformatted text preview: Business G345, Summer“ 'J, First class Presentation Student Feedback Name: :__ i Group assigned: E Rate Group A presentation on a scale from 1 (provided no information and generally a poor presentation) to 10 (provided good information and an excellent presentation). Rating: (Circleone) 1 2 3 4 5 6 7(8) 9 10 Rate Group A from 1 (worst) to 6 (best) presentation in regards to the presentations that you did not present. Rating: (Circle one) 1 2 3 5 6 Consider the two questions below from the group and give your answer to the question. J .. l i J Your critique of the first question: if”? - " i . 0' -' -' I" .- ,- _ . .' r"- 2" taxi-'0'“ tract/i ' ' . . ‘- -’ t t "17- Mr ‘1'!" Ir": r"! Your critique of the second question: / i 1. You would like to invest in a security that restricts your interest rate risk and default risk, but you still want to invest in corporate bonds. Which of the possible bonds best satisfies your criteria? A. AAA bond with 10 years to maturity. B AAA bond with 15 years to maturity. AAA bond with 5 years to maturity. D. BBB bond with 4 years to maturity. Group A 2. Which of the following bonds would give you the highest afier—tax return? Tax Bracket = 35% $1,000 US Treasury Bond with a 10% interest rate (SB $1,000 Municipal Bond with a 10% interest rate “C. $1,000 us Treasury Bond with a 8% interest rate D. $1,000 Municipal Bond with a 8% interest rate Group A Business G345, Summerflu, First class Presentation Student Feedback I Name: _' '_ _. f I Group assigned: F Rate Group B presentation on a scale from 1 (provided no information and generally a poor presentation) to 10 (provided good information and an excellent presentation). Rating:(Circleone) '1 2 3 4 5 6 (7? s 9 10 Rate Group B from 1 (worst) to 6 (best) presentation in regards to the presentations that you did not present. Rating: (Circle 01160 2 3 4 5 6 Consider the two questions below from the group and give your answer to the question. Your critique of the first question: an 04 q;_.a€*‘fit-}g . 5' fill-1 Ln .r :' ' I? I .rfl' ; P Your critique of the second question: c; u e r r ."J ,. "5". M74:- i/bc.r.,tr.r'= .. a '. "1 ..r-'. . 1% £46 W 1. Carl loves to read the newspaper. Depending on how interesting Carl finds the articles Carl reads the newspaper in between 30 and 50 minutes. On average Carl usually reads the paper in 40 minutes. Carl does not know that his favorite baseball team won last night in a surprise 1 1lhl inning game, nor that his office building where he works experienced a major fire last night. There are 2 very long articles about the game and the fire in the paper (they total 5 pages). What is Carl’s rational forecast for how long it will take to read the paper? A. 33 minutes B. 38 minutes 40 minutes D. 50 minutes Group B 2. In order for a security’s price to be driven to the point at which the efficient market condition holds, must be well informed about the security or have rational expectations regarding the security. (a) Most investors in the financial market B. All investors in the financial market C. Only a few investors in the financial market D. None of the investors in the financial market Group B 1:? Business G345, Summer ), First class Presentation Student Feedback Name: M. t. . . a I Group assigned: Rate Group C presentation on a scale from 1 (provided no information and generally a poor presentation) to 10 (provided good information and an excellent presentation). Rating: (Circleone) 1 2 3 4 5 6 7 s (9;) 10 Rate Group C fiom 1 (worst) to 6 (best) presentation in regards to the presentations that you did not present. Rating: (Circle one) 1 2 3 4 5 Consider the two questions below from the group and give your answer to the question. Your critique of the first question: ll": " I" g“ 1. What is the one fact that the Expectations Theory cannot explain, and the reason it is not accepted by more people? A. Interest rates on bonds of different maturities move together over time. B. When short-term interest rates are high, yield curves tend to slope downward and become inverted. (0] Yield curves almost always slope upward. D . The interest rate for each bond with a different maturity is determine by the demand and supply of that bond. Group C 2. Which of these explains what is happening to interest rates of different maturities when the yield curve slopes upward and then levels off at higher rate? A. Future short-term interest rates are expected to stay the same. B.‘ Future short—term interest rates are expected to rise and then fall moderately. {Cf Future short-term interest rates are expected to rise and continue rising. D. Future short-term interest rates are expected to rise and then fall sharply. Group C Business G345, Summe , First class Presentation Student Feedback H . _ ,/' a: Name: .. . Group assigned: P Rate Group D presentation on a scale from 1 (provided no information and generally a poor presentation) to 10 (provided good information and an excellent presentation). Rating:(Circleone) 1 2 3 4 5 6 7 8®10 ' Rate Group D from 1 (worst) to 6 (best) presentation in regards to the presentatiOns that you did not present. Rating: (Circle one) 1 2 3 4 6 Consider the two questions below from the group and give your answer to the question. ‘ . . f f F: 1 n _ F0?! 1" u "H. “I. If Your cnthue Ofthe first quesuon: 4 fir {£6 , :51 flange 3 ' .:~..,-.- .953," E, If: _ : _- .I . .. .a i! I I; ' .I _l_ f I I I -' , . "—3- a or “If - Your critique of the second question: I l I .2- ‘ .I _ .. .- . _ (offal? ‘22.: _I ‘I if : , - "v? .- ' u :- -' _- I ‘_, “‘5'” (if): I . . . h J-.. . f 5‘ 1:..." r'J .rE. '].-?_('_u_ _.3-:' .3.“ hi!" :"4' '." ,' (it :‘E (If --: r"; [it ’ {gfiiiqa ’11. i" " f "1’ '”’ f' " " ' ' ' ' ' r (I / r} '- ' do“? LL 4! ‘C. C‘s-fur"; (l; , {WI-“j contracts? A. Auditing the firm frequently reduce moral hazard B. Free rider problem decreases monitoring Debt contracts eliminate the need to monitor managers D. All the above are true Group D What is an example of government intervention in reducing asymmetric informatiou in equity contracts? A. Financial intermediaries which help reduce free-rider problem. B. Hire auditors to audit the firms frequently on managements behaviors 9 Heavy penalty on white-collar crimes . S&P gather information on firm’s balance sheet positions and investment activities, publish these data, and sell them to subscribers. Group D Business G345, Summer ‘3, First class Presentation Student Feedback Name: 1,».- ' Group assigned: Rate Group E presentation on a scale from 1 (provided no information and generally a poor presentation) to 10 (provided good information and an excellent presentation). Rating: (Circleone) 1 2 3 4 5 6(7) 8 9 10 Rate Group E from 1 (worst) to 6 (best) presentation in regards to the presentations that you did not present. Rating: (Circle one) 1 2 4 5 6 Consider the two questions below from the group and give your answer to the question. Your critique of the first question: -' . 'f Your critique of the second question: IT I . Bob withdraws $5,000 from his checking account at his bank in Bloomington. He deposits $3,500 in a money market deposit account in a US bank branch located in India. Bob then sets up a $1,000 two year CD at his local bank and spends the rest of the money on a party at his house. What is the net effect on M1 and M2 after this series of transactions (assume the money Spent remains as cash)? ) .. t A. _M1 decreases $4,500 and M2 decreases $2,500 ( xB./ M1 decreases $1,000 and M2 increases $1,000 C. M1 decreases by $4,500 and M2 decreases $3,500 D./ M] remains the same and M’Z-increases $4,500 / W I}??? (2,224-23. Group E .a What drawbacks of the batter system are solved by money? A. Double coincidence of wants B. Lack of specialization C. Low transactions costs (1;). A and B E. All of the above Group E in Business G345, SummerZOlO, First class Presentation Student Feedback r. z _ ._ , / - Name:#;;._.__‘____Gr0up assigned: F Rate Gro resentation on a scale from 1 (provided no information and generally a poor presentation to 10 (provided good information and an excellent presentation). Rating: (Circleone) 1 2 3 4 5 6 7 8 9 10 Rate Group F fiorn 1 (worst) to 6 (best) presentation in regards to the presentations that you did not present. Rating: (Circle one) 1 2 3 4 S 6 Consider the two questions below from the group and give your award to the question. \ Your critique of the first question: Your critique of the second Question: Without holding Milton Friedman's effectsponstant, what would happen to interest rates in the short run if the Fed increased MS? ‘x .. \x A. Decrease _/ \ B. No Change C. Increase \x D. Decrease Then Increase H‘ .' I ‘\ Group F - \‘x\ The LiquidityPreference Framework does not account for all interest rate movements unless is-held constant? / A/fncorne Effect B. Price Level Effect C. Expected Inflation Effect \_ D. All Of The Above Group F Business G345, Summer ‘ ' ' ‘, First class Presentation Student Feedback Name: " I Group assigned: _. . Rate Group G presentation on a scale fiom 1 (provided no information and generally a poor presentation) to 10 (provided good information and an excellent presentation). Rating: (Circleone) 1 2 3 4 5 6 7 8 9 10 Rate Group G from 1 (worst) to 6 (best) presentation in regards to the presentations that you did not present. Rating: (Circle one) 1 2; 3 4 S 6 Consider the two questions below from the group and give your answer to the question. .z/t.__‘_ Your critique of the first question: “I ’ " / Your critique of the second question: '1" .- 4‘ . ' = .' -' -' 4 fir» ..‘ l '. \If 1. Which of the following is true about bond prices? «A. The coupon rate is greater than the yield to maturity when the bond price is below face value ("5? Buyers have an incentive to buy when bond prices are low ' C. The longer the maturity of a discount bond, the higher the bond price, ceteris paribus D; Sellers have an incentive to sell when bond prices are low Group G 2. What is the present value of a bond which pays $1 ,000 a year for 3 years, then $1,200 at the end of year 4. The interest rate is 7%. A. $4200 B. $3925 {(5) $3540 D. $3400 Group G ...
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This note was uploaded on 12/21/2011 for the course BUS 100 taught by Professor Intro during the Fall '11 term at UCSB.

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First Class Presentation (Example) (BUS G-345; Money, Banking; and Capital Markets; Self)

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