FINANCE

11. This is a security formalizing an agreement between two parties to exchange a standard quantity of an asset at a predetermined price on a specified date in the future.
A. derivative security
B. initial public offering
C. liquidity asset
D. trading volume

 

12. Which of these does NOT perform vital functions to securities markets of all sorts by channeling funds from those with surplus funds to those with shortages of funds?
A. commercial banks
B. secondary markets
C. insurance companies
D. mutual funds

 

13. This is the ease with which an asset can be converted into cash.
A. direct transfer
B. liquidity
C. primary market
D. secondary market

 

14. This is the risk that an asset’s sale price will be lower than its purchase price.
A. default risk
B. liquidity risk
C. price risk
D. trading risk

 

15. This is the interest rate that is actually observed in financial markets.
A. nominal interest rates
B. real interest rates
C. real risk free rate
D. market premium

 

16. This is the interest rate that would exist on a default-free security if no inflation were expected.
A. nominal interest rate
B. real interest rate
C. real risk free rate
D. market premium

 

17. This is the risk that a security issuer will miss an interest or principal payment or continue to miss such payments.
A. default risk
B. liquidity risk
C. maturity risk
D. price risk

 

18. This is the continual increase in the price level of a basket of goods and services.
A. deflation
B. inflation
C. recession
D. stagflation

 

19. Which of these statements is true?
A. The higher the default risk, the higher the interest rate that security buyers will demand.
B. The lower the default risk, the higher the interest rate that security buyers will demand.
C. The higher the default risk, the lower the interest rate that security buyers will demand.
D. The default risk does not impact the interest rate that security buyers will demand.

 

20. This is a comparison of market yields on securities, assuming all characteristics except maturity are the same.
A. liquidity risk
B. market risk
C. maturity risk
D. term structure of interest rates

 

21. According to this theory of term structure of interest rates, at any given point in time, the yield curve reflects the market’s current expectations of future short-term rates.
A. Expectations Theory
B. Future Short-term Rates Theory
C. Term Structure of Interest Rates Theory
D. Unbiased Expectations Theory

 

Order now and get 10% discount on all orders above $50 now!!The professional are ready and willing handle your assignment.

ORDER NOW »»