Pregunta 1
Pregunta
Money market securities have maturities of one year or less.
Pregunta 2
Pregunta
Preferred stock pays a variable dividend.
Pregunta 3
Pregunta
The cost of borrowing funds is most commonly called the interest rate.
Pregunta 4
Pregunta
The primary market is the only market in which the issuer is directly involved in the transaction and recieves direct benefits from the issue.
Pregunta 5
Pregunta
The over-the-counter market is generally reserved for stocks with very large trading volume.
Pregunta 6
Pregunta
T-Bonds are money market securities, while T-bills and T-notes are traded in the capital market.
Pregunta 7
Pregunta
Market makers include both specialist and dealers.
Pregunta 8
Pregunta
Specialist and dealers determine the price of the security.
Pregunta 9
Pregunta
Corporate bonds pay interest payments that are usually tax-exempt to investors.
Pregunta 10
Pregunta
The New York Stock Exchange is an example of an organized market.
Pregunta 11
Pregunta
Earnings should retained only if the firm needs capital very badly and would have difficulty raising it from external sources.
Pregunta 12
Pregunta
The importance of the role of financial management is emphasized by examples of companies whose strategic financing decisions contributed to their demise, or to their success when economic conditions changed rapidly.
Pregunta 13
Pregunta
The riskiness inherent in a firm's earnings per share (EPS) depends on both the types of projects the firm takes on and the manner in which the projects are financed.
Pregunta 14
Pregunta
The two most important functions of markets are to establish fair prices and provide liquidity.
Pregunta 15
Pregunta
Bonds are long-term loans that typically pay interest per year based on the average bank rate.
Pregunta 16
Pregunta
The _______ is a financial relationship created by a number of institutions with arrangements that allow the suppliers and demanders of long term funds to make transactions.
Respuesta
-
money market
-
bond market
-
capital market
-
eurobond market
Pregunta 17
Pregunta
The AMEX Exchange could be classified as a/an ______ security exchange.
Respuesta
-
organized
-
over-the-counter
-
primary
-
closed
Pregunta 18
Pregunta
In the over-the-counter market, dealers are linked with the purchasers and sellers of securities through the _____ system.
Respuesta
-
NASDAQ
-
bonds
-
stocks
-
short-term funds
Pregunta 19
Pregunta
Common stockholders expect to receive a return through capital gains and
Respuesta
-
interest payments
-
dividends
-
fixed periodic dividends
-
coupon payments
Pregunta 20
Pregunta
Bonds with an AAA rating will have a ______ interest rate compared to bonds with a BAA rating.
Respuesta
-
lower
-
equal
-
higher
-
undetermined
Pregunta 21
Pregunta
The______ is the financial market in which securities are initially issued.
Respuesta
-
OTC
-
secondary market
-
primary market
-
private placement
Pregunta 22
Pregunta
________ are long-term debt instruments that are used by business and government to raise large sums of money.
Respuesta
-
T-bills
-
Common stock
-
Preferred stock
-
Bonds
Pregunta 23
Pregunta
Shares of ____ are units of ownerships interest, or equity, in a corporation.
Respuesta
-
bank loans
-
common stock
-
debt
-
commercial paper
Pregunta 24
Pregunta
The possibility that the issuer of debt will not pay the principal as scheduled.
Respuesta
-
liquidity risk
-
default risk
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contractual risk
-
maturity risk
Pregunta 25
Pregunta
Which of the following does not need to be considered when assessing the impact of financial decision?
Respuesta
-
Financial market conditions
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timing of the earnings flow
-
project earnings
-
all of the above must be considered.
Pregunta 26
Pregunta
Money markets are markets for
Pregunta 27
Pregunta
Which of the following is not a major participant in the money market.
Pregunta 28
Pregunta
If a $2,000 bond is quoted at 120:16, the price of the bond is ______
Respuesta
-
1,205.31
-
1,205.00
-
2,410.62
-
2,410.00
Pregunta 29
Pregunta
The difference between Common Stock and Preferred Stock lies in: