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- 1. Multiple Choice
Well-functioning financial markets promote
Unemployment
Economic Growth
Deflation
Inflation
- 2. Multiple Choice
Typically, borrowers have superior information relative to lenders about the potential returns and risks associated with an investment project. The difference in information is called
adverse hazard.
moral selection.
risk sharing.
asymmetric information.
- 3. Multiple Choice
Which of the following statements about the characteristics of debt and equities is TRUE?
They can both be long-term financial instruments.
Bonds pay dividends
Bond holders are residual claimants.
The income from bonds is typically more variable than that from equities.
- 4. Multiple Choice
At the age of 30
Married with Kids
Single having a carefree life
- 5. Multiple Choice
When a budget deficit occurs in the United States, the U.S. Treasury finances this deficit by
increasing the tax rate.
printing more dollars
imposing a moratorium of new government spending
borrowing
- 6. Multiple Choice
A corporation acquires new funds only when its securities are sold in the
secondary market by a commercial bank
primary market by an investment bank and secondary market does not play any role for the companies.
secondary market by a stock exchange broker
primary market by an investment bank. Secondary market just improves the liquidity
- 7. Multiple Choice
Everything else held constant, a decline in interest rates will cause spending on housing to
fall
either rise, fall, or remain the same
remain unchanged
Rise
- 8. Multiple Choice
When I purchase a corporate ________, I am lending the corporation funds for a specific time. When I purchase a corporation's ________, I become an owner in the corporation.
stock; debt security
bond; debt security
bond; stock
stock; bond
- 9. Multiple Choice
Prices of short term instruments undergo the least price fluctuations because of
the price ceiling imposed by government regulators.
the heavy regulations in the industry.
the lack of competition in the market.
the short terms to maturity for the securities.
- 10. Multiple Choice
Have you subscribed to 'Drs life' YouTube Channel?
https://www.youtube.com/channel/UCz5r2TGyofdxPopQ9YBkt5g
No, I am copying the link to do it now.
No, I do not intend to do that.
Yes.
Yes and I got my friends to do so.
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