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A equity b fixed income c preferred stock d mutual

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A)EquityB)Fixed-incomeC)Preferred stockD)Mutual Fund9In the financial markets, financial intermediaries ____________.A)are considered "major players" who are net lendersB)are considered "major players" who are net borrowersC)bring lenders and borrowers togetherD)raise funds by borrowing in order to invest in real assets10A portfolio manager with a passive investment strategy manages a portfolio by______________.A)holding a diversified portfolio without expending effort to improve performanceB)selecting mispriced securities in order to improve performanceC)using a "bottom-up" strategy
D)emphasizing asset allocation and security selection11Agency problems within a corporation are _______________.A)conflicts among stockholders with differing objectivesB)conflicts between stockholders and financial intermediariesC)conflicts among managers with competing interestsD)conflicts between managers and stockholders12Which of the following is not an example of a real asset?A)A factory buildingB)MachineryC)DesksD)Corporate stock13Which of the following is not a financial intermediary?A)Credit unionsB)Insurance companiesC)Mutual fundsD)Investment bankers14Financial intermediaries which pool and manage the money of many investors are called_________________.A)financial engineersB)investment companiesC)investment bankersD)credit unions15Which of the following are net suppliers of capital?A)Firms
B)Governments that run deficitsC)HouseholdsD)Investment bankersMultiple Choice Quiz(See related pages)1Which of the following is an example of a money market instrument?A)Mortgage-backed securitiesB)Federal fundsC)Treasury notesD)Federal agency debt2Which of the following observations about preferred stock dividends is true?A)For tax purposes, preferred stock payments are treated as interest on debt.B)Preferred dividends are usually noncumulative.C)Preferred stock payments are not tax-deductible expenses for the firm paying thedividend.D)Preferred dividends must be paid in full after the dividends are be paid to holders ofcommon stock.3Callable bonds give the issuing company the option to _______________.A)pay no coupon on the bonds until maturityB)cancel the company's obligation to pay bond interestC)convert the bonds to common stockD)repurchase the bonds4Which of the following observations concerning repos is correct?A)They are short-term sales of government securities.B)They do not involve repurchase clauses.C)They are considered unsafe in terms of credit risk.
D)The term of the transaction is usually one year or more.5A trader who takes a long position in a corn futures contract has _______________ to______________ a specified quantity of corn on the delivery date, at an agreed upon price.A)an obligation; buyB)an obligation; sellC)the right; sellD)the right; buy6The Dow Jones Industrial Average is a _______________.

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Term
Winter
Professor
N/A
Tags
Financial Markets, Stock exchange

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