IF303 Financial Management course
Topic - Derivative instruments:
Types of derivatives
Economic function of the derivative markets
Advantages and risks
Development of derivative markets in the world
and in Turkey.
Group work done by:
This homework is due on March 6th. It must be handwritten and handed in at the beginning of the lecture.
No late homeworks will be accepted. Please show all your work to receive partial credit.
1) a. Suppose an investor can purchase a 5-year 10
CE 242 Object-Oriented Programming Languages Midterm 1 (Duration 75 minutes)
Q1. Write a method that searches an ArrayList for a specified key value. The method returns the location (index) of key value if
found, otherwise it return -1.
public int linearS
1. Explain currency risk
Currency risk, commonly referred to as exchange-rate risk, arises
from the change in price of one currency in relation to another.
Currency risk can be reduced by hedging, which offsets currency
Explain main types
Chapter 3 Mini-Case
Interest Rates, Bond Yields, and Duration
CONCEPTS IN THIS CASE:
nominal and real interest rates
rate of return
Due by: Midnight 6 April
1) Refer to Ch6_Sundry Material. Use the monthly S&P data covering
1950 to 2016. Construct 24 months holding period portfolios and
calculate the average and the range. Is the range larger than that of 12
'TO PREVENT UNHEALTHY FOODS'
Doctors think that government has an very important
role to prevent consuming unhealthy foods.Fast food
chains should not open near schools.Governm
The Influence of Monetary and Fiscal Policy on Aggregate Demand
1. Fiscal policy affects the economy
a. only in the short run.
b. only in the long run.
c. in both the short and long run.
d. in neither the short nor long run.
A Macroeconomic Theory of the Open Economy
1. Over the past two decades, the United States has
a. generally had, or been very near to a trade balance.
b. had trade deficits in about as many years as it has trade surpluses.
The Short-Run Trade-off between Inflation and Unemployment
1. Closely watched indicators such as the inflation rate and unemployment are released each month by the
a. Bureau of the Budget.
b. Bureau of Labor Statistics.
Aggregate Demand and Aggregate Supply
1. Which of the following explains why production rises in most years?
a. increases in the labor force
b. increases in the capital stock
c. advances in technological knowledge
d. All of the
Five Debates Over Macroeconomic Policy
1. Fluctuations in employment and output result from changes in
a. aggregate demand only.
b. aggregate supply only.
c. aggregate demand and aggregate supply.
d. neither aggregate demand nor
The Theory of Consumer Choice
1. The theory of consumer choice provides the foundation for understanding
a. the structure of a firm.
b. the profitability of a firm.
c. a firms product demand.
d. a firms product supply.
Money Growth and Inflation
1. Inflation can be measured by the
a. change in the consumer price index.
b. percentage change in the consumer price index.
c. percentage change in the price of a specific commodity.
d. change in the
1. The natural rate of unemployment is the
a. unemployment rate that would prevail with zero inflation.
b. rate associated with the highest possible level of GDP.
c. difference between the long-run and short-run une
Open-Economy Macroeconomics: Basic Concepts
1. International trade
a. raises the standard of living in all trading countries.
b. lowers the standard of living in all trading countries.
c. leaves the standard of living unchanged.
The Monetary System
a. is more efficient than barter.
b. makes trades easier.
c. allows greater specialization.
d. All of the above are correct.
2. When we say
Saving, Investment, and the Financial System
1. When opening a restaurant you may need to buy ovens, freezers, tables, and cash registers. Economists call these
a. capital investment.
b. investment in human capital.
The Basic Tools of Finance
1. The field of finance primarily studies
a. how society manages its scarce resources.
b. the implications of time and risk for allocating resources over time.
c. firms decisions concerning how much to
Production and Growth
1. A nations standard of living is measured by its
a. real GDP.
b. real GDP per person.
c. nominal GDP.
d. nominal GDP per person.
TOP: Standard of living
Measuring the Cost of Living
1. Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn more
than 300 times as much as Babe Ruth earned in 1931. However, prices also have risen si
Measuring a Nations Income
1. Macroeconomists study
a. decisions of households and firms.
b. the interaction of households and firms.
c. economy-wide phenomena.
d. regulations on firms and unions.
The Costs of Production
1. According to the law of supply,
a. firms production levels are not correlated with the price of a good.
b. the supply curve will slope downward when demand decreases.
c. firms are willing to produce a
Consumers, Producers, and the Efficiency of Markets
1. Welfare economics is the study of
a. the well-being of less fortunate people.
b. welfare programs in the United States.
c. the effect of income redistribution on work effort.
Supply, Demand, and Government Policies
1. Price controls are usually enacted
a. as a means of raising revenue for public purposes.
b. when policymakers believe that the market price of a good or service is unfair to buyers or se
The Market Forces of Supply and Demand
1. The forces that make market economies work are
a. work and leisure.
b. demand and supply.
c. regulation and restraint.
d. taxes and government spending.
Elasticity and Its Applications
1. In general, elasticity is a measure of
a. the extent to which advances in technology are adopted by producers.
b. the extent to which a market is competitive.
c. how fast the price of a good res
Thinking Like an Economist
1. Which of the following terms are most closely associated with the study of economics?
a. force and acceleration
b. torts and venues
c. ego and cognitive dissonance
d. comparative advantage and deadwe
Income Inequality and Poverty
1. A governments policy of redistributing income makes the income distribution more equitable,
a. distorts incentives, and makes the allocation of resources more efficient.
b. alters behavior, and m
Ten Principles of Economics
1. The word that comes from the Greek word for "one who manages a household" is
TOP: Economy MSC: Definitional
2. The word econom