Question :
171.Banks
a.playaroleincreatinganassetthatpeoplecanuseasamediumofexchange.
b.arefinancialintermediaries,butmutualfundsarenotfinancialintermediaries.
c.arefinancialmarkets,as : 1261795
171.Banks
a.playaroleincreatinganassetthatpeoplecanuseasamediumofexchange.
b.arefinancialintermediaries,butmutualfundsarenotfinancialintermediaries.
c.arefinancialmarkets,asarebondmarkets.
d.Alloftheabovearecorrect.
172.Whoacceptsalloftheriskassociatedwithamutualfund’sportfolioofstocksand/orbonds?
a.thefund’smanagers
b.thefund’sshareholders
c.thefederalgovernment
d.thecorporationsthatoriginallyissuedthestocksand/orbondsheldbythefund
173.Thebondmarket,thestockmarket,banks,pensionfunds,andinsurancecompaniesareallfinancial
a.systems.
b.markets.
c.institutions.
d.intermediaries.
174.Whichofthefollowingbothmaketheinterestrateonabondhigherthanotherwise?
a.theinterestitpaysistaxedanditwasissuedbyafinanciallystrongcorporation
b.theinterestitpaysistaxedanditwasissuedbyafinanciallyweakcorporation
c.theinterestitpaysistaxexemptanditwasissuedbyafinanciallystrongcorporation
d.theinterestitpaysistaxexemptanditwasissuedbyafinanciallyweakcorporation
175.Whichofthefollowingwouldbothmaketheinterestrateonabondhigherthanotherwise?
a.theinterestitpaysistaxedanditislongterm
b.theinterestitpaysistaxedanditisshortterm
c.theinterestitpaysistaxexemptanditislongterm
d.theinterestitpaysistaxexemptanditisshortterm
176.Midwesterncorporationissuesbonds.Southerncorporationissuesstock.Whichcorporationusedequityfinancing?
a.bothMidwesterncorporationandSoutherncorporation
b.MidwesterncorporationbutnotSoutherncorporation
c.SoutherncorporationbutnotMidwesterncorporation
d.neitherMidwesternnorSoutherncorporation
177.Whichofthefollowingisacertificateofindebtedness?
a.bothstocksandbonds
b.stocksbutnotbonds
c.bondsbutnotstocks
d.neitherstocksnorbonds
178.Whichofthefollowinginvolvesfinancialintermediation?
a.abankmakesaloan
b.ahouseholdbuysstockissuedbyacorporation
c.aforeigngovernmentpurchasesU.S.governmentbonds
d.Alloftheabovearecorrect.
179.Ifafirmwantstoborrowitcan
a.supplybondsbysellingthem.
b.supplybondsbybuyingthem.
c.demandbondsbysellingthem.
d.demandbondsbybuyingthem.
180.Abondbuyerisa
a.saver.Longtermbondshavelessriskthanshorttermbonds.
b.saver.Longtermbondshavemoreriskthanshorttermbonds.
c.borrower.Longtermbondshavelessriskthanshorttermbonds.
d.borrower.Longtermbondshavemoreriskthanshorttermbonds.
181.Acreditorofacorporationholds
a.bondssoldbythecorporation.Ifthecorporationexperiencesfinancialdifficultiesstockholdersarepaidbeforebondholders.
b.bondssoldbythecorporation.Ifthecorporationexperiencesfinancialdifficultiesbondholdersarepaidbeforestockholders.
c.stockssoldbythecorporation.Ifthecorporationexperiencesfinancialdifficultiesstockholdersarepaidbeforebondholders.
d.stockssoldbythecorporation.Ifthecorporationexperiencesfinancialdifficultiesbondholdersarepaidbeforestockholders.
182.Whichofthefollowingstatementsaboutmutualfundsiscorrect?
a.Amutualfundisnotafinancialintermediary.
b.Adisadvantageofbuyingmutualfundsisalackofdiversification
c.Peoplewhobuysharesfromamutualfundareguaranteedaminimumreturn.
d.Onaverageindexfundsoutperformmanagedfunds.
183.Bydefinition,equityfinance
a.isaccomplishedwhenunitsofgovernmentsellbonds.
b.isaccomplishedwhenfirmssellbonds.
c.isaccomplishedwhenfirmssellsharesofstock.
d.involves“fair”interestratesordividendyields.
184.Theindirectprovisionoffundsbysaverstoborrowersisaccomplishedby
a.banksandotherfinancialmarkets.
b.banksandotherfinancialintermediaries.
c.stockmarketsandotherfinancialmarkets.
d.Alloftheabovearecorrect.
185.Ifafirm’spriceearningsratioisrelativelylow,thenitmightbeanindicationthat
a.thedemandforthestockisrelativelyhigh.
b.thesupplyofthestockisrelativelylow.
c.peopleexpectthefirm’searningstorise.
d.peopleexpectthefirm’searningstofall.