Explain the statement markets enable the separation of ownership and management of the
corporation, allowing an optimal allocation of scarce resources.
The above statement refers to the situation associated with publicly held business
corporations in whic
How do financial markets in general benefit an economy
The Benefits of Financial Markets: A Case Study of European Football Clubs
there are important benefi ts to
domestic economies and to domestic fi nancial service competitors
when liberalized markets a
Other alternative modes of financing in which Europoean football club through sponsorship
and sports marketing.
Fristly, sponsorship is a private equity investment firm, particularly a private equity
firm that engages in leveraged buyout transa
Explain the factors that contribute to the increment in the football clubs stock price.
The factors that contribute to the increment in the share price of football clubs in past,
current and future performance is conclude in equation that is R it = ai + b
e)The main use of funds
1-Bank Pembangunan Malaysia Bhd
The main use of funds for bank pembangunan Malaysia which is infrastructure.There
are seven target sectors that have a long gestation of period from 3 to 5 years which is
usually given to borrower ar
Submit Project Data
Once a member of a project group has got a registered company, the member can send
the data of that company to the lecturer. The relevant companys daily share price data
from DS should be saved into a MS Excel worksheet (without any ch
b) Main Services
2) Bank Perusahaan Kecil dan Sederhana Malaysia Berhad (SME Bank)
The SME Bank complements existing services offered by commercial banks through a
comprehensive and integrated financial and business advisory services. SME Bank is
Export-Import Bank of Malaysia Berhad (EXIM Bank) was incorporated on 29 August
1995 as a government owned development financial institution through a wholly owned
subsidiary of the Minister of Finance Incorporated. The Bank was es
Chapter 3 Interest Rates and Security Valuation
1. If interest rates increase, the value of a fixed income contract decreases and vice versa.
Answer: True Page: 69 Level: Easy
2. At equilibrium a security's required rate of return wil
Chapter 10 Derivative Securities Markets
1. Credit derivatives generally provide a means for lenders to hedge against an increase
in a borrower's default risk on a loan.
Answer: True Page: 285 Level: Easy
2. Forward contracts are mark
1. Securities with maturities of one year or less are class ified as:
A) capital market instruments.
B) money market instruments.
C) preferred stock.
D) none of these.
2. Which of the following is not a money market sec
Chapter 6 Bond Markets
1. A Treasury STRIP is sometimes referred to as a TIPS.
Answer: False Page: 158 Level: Easy
2. A callable bond is one where the issuer is required to retire a certain amount of the
outstanding bonds each year to
Market Microstructure and Strategies
1. A _ order to buy or sell a stock means to execute the transaction at the best possible price.
2. With a _ order, the investor specifies a purchase p
AC 509. Business Finance
1. Everything else equal, an effective annual rate will be greater than the bond equivalent yield on
the same security.
2. Money markets exist to help reduce the opportunity cost of holding cash balances.
1. A _ requires that dividends cannot be paid on common stock until all current and previously
omitted dividends are paid on preferred stock.
A) residual claim
B) preferred margin
C) cumulative provision
Chapter 9 Stock Markets
1. A type of absentee ballot that allows a representative to vote on behalf of the
stockholder is called a proxy.
Answer: True Page: 250 Level: Easy
2. An order to buy shares of stock at a specified price or be
Chapter 15 Insurance Companies
1. The primary function of insurance companies is to compensate policy holders or their
beneficiaries if some specific adverse event occurs.
Answer: True Page: 442 Level: Easy
2. Most large life insurers
1. The opening of a commercial bank in the United States
A) does not require a charter.
B) always requires a charter from a state government.
C) always requires a charter from the federal government.
D) requires a charter from
1. _ are offered to bank customers who desire to write checks against their account.
A) Time deposit accounts
C) Demand deposit accounts
D) Money market deposit accounts
2. Which type of savings accou
1. Federally insured mortgages guarantee
A) loan repayment to the lending financial institution.
B) that the interest rate will not increase during the life of the mortgage.
C) the lending financial institution a selling price
Board of governors - how many members? Who
appoints them and how long do they serve? Who is
the Federal Reserve Chairman?
1. 7 members
2. They are appointed by the president and serve 14 years. They stagger appointment every
3. Federal Reserve
Money Markets versus Capital Markets
One year or less. Small fluctuations in prices
o Federal funds
o Repurchase agreements
o Commercial paper
o Negotiable certificates of deposit
o Bankers acceptance
Chapter 5 Money Markets
17. A dealer is quoting a $10,000 face 60 day T-Bill quoted at 3.22 bid, 3.14 ask. You
could buy this bill at _ or sell it at _.
A) $9,947.67 , $9,946.33
B) $9,678.00 , $9,686.00
C) $9,686.00 , $9,678.00
D) $9,946.33 , $9,947.67
Chapter 14 Other Lending Institutions: Savings Institutions, Credit
Unions, and Finance Companies
1. Thrifts are comprised of three types of depository institutions: savings banks, credit
unions, and finance companies.
Answer: False P
Chapter 2 Determinants of Interest Rates
1. The real interest rate is the increment to purchasing power that the lender earns in
order to induce him or her to forego current consumption.
Answer: True Page: 46 Level: Medium
2. If you e