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F) None of the above. ____18. Which of the following is true about commercial paper (CP)? [Ch. 11]
A. CP is quoted with a discount yield.
B. CP makes interest payments semi-annually.
C. CP has maturities of 1 to 10 years.
D. CP is issued by the Federal Reserve.
E. CP is usually secured with treasury bills as collateral.
F. None of the above. ____19. Negotiable CDs are usually issued by: [Ch. 11]
A. The Fed
B. The US Treasury
C. Ginnie Mae (GNMA) and Fannie Mae (FNMA)
D. Commercial Banks
F. None of the above. ____20. Which of the following is true about investment-grade bonds? [Ch. 12]
A. They have high yields because they are considered to be fairly safe.
B. They have high prices because they are considered to be very risky.
C. They have low prices because they are considered to be fairly safe.
D. They have high ratings, such as AAA.
E. They have low ratings, such as CCC.
F. None of the above. ____21. Which of the following are true about muni bonds? [Ch. 12]
A. The yields on muni bonds will always be lower than the yiel...
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This test prep was uploaded on 04/07/2014 for the course FINA 3317 taught by Professor Pieterdejong during the Spring '08 term at UT Arlington.
- Spring '08