PT Ch02

PT Ch02 - Exam Name MULTIPLE CHOICE Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Financial enterprises, more popularly referred to as financial institutions, provide a variety of services. Which of the below is NOT one of these? 1) A) Transform financial assets acquired through the market and constituting them into a different, and more widely preferable, type of asset–which becomes their liability. B) Assist in the creation of financial assets for their customers, and then sell those financial assets to other market participants. C) Manage the portfolios of other market participants. D) Exchange financial assets on behalf of customers but not for their own accounts. 2) Asset management firms receive their compensation ________ from management fees charged based on the market value of the assets managed for clients. 2) A) secondarily B) totally C) primarily D) to a minor extent 3) There is no universally accepted definition to describe the 9,000 privately pooled investment entities in the United States called ________ that invest more than $1.3 trillion in assets. 3) A) option funds B) hedge funds C) asset/liability funds D) derivative funds 4) ________ is the risk that a counterparty in a trade fails to satisfy its obligation. 4) A) Settlement risk B) Counterparty risk C) Market risk D) Liquidity risk 5) There are various ways to categorize the different types of hedge funds. Mark Anson uses the four broad categories. Which of the below is NOT one of these? 5)
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PT Ch02 - Exam Name MULTIPLE CHOICE Choose the one...

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