MC Qu. 62 Which of the following statements concerning...;Which of the following statements concerning futures markets is false?;Futures markets allow investors to manage risk.;Futures markets can be used to hedge against changing commodity prices.;Interest rate futures can be used to hedge against the risk of rising interest rates.;All of the statements above are true.;2.;value;1.00 points;MC Qu. 63 All of the following are recognized as an...;All of the following are recognized as an important influences in the development of the banking crisis of 2008 and the resulting credit crisis EXCEPT;Too many subprime loans were repackaged and sold as securities.;The IMF bailed out Freddie Mac and Fannie Mae.;Real estate prices collapsed.;Consumers, especially homeowners, took on too much debt.;3.;value;1.00 points;MC Qu. 65 Evidence of how global markets are linked...;Evidence of how global markets are linked was provided in 1997 and 1998 when international markets reacted to;the collapse of Asian currencies in Thailand, Indonesia, Malaysia and Korea.;Russia's default on its sovereign debt.;Japan's seven years of economic stagnation.;a and b are true.;4.;value;1.00 points;MC Qu. 68 The European Monetary Union (EMU) which came...;The European Monetary Union (EMU) which came into effect in January of 1999 includes;Britain, France, Germany, Spain, Italy and 6 other European countries.;The establishment of a new European Central Bank to coordinate monetary policy for the Euro-zone countries.;A new currency called the Euro, which will be put into circulation in all EMU countries no later than 2009.;All of these.;5.;value;1.00 points;MC Qu. 70 During the next ten years, the major threat...;During the next ten years, the major threat to the dominance of the U.S. money and capital markets will come from;The Euro-zone countries comprising the European Monetary Union and a single currency.;The huge Chinese economy and its billion plus people.;Japan's prolonged recession and banking crisis.;Russia's difficulty in transforming its economy into a capitalistic one.;6.;value;1.00 points;MC Qu. 76 Corporations prefer bonds over preferred...;Corporations prefer bonds over preferred stock for financing their operations because;preferred stocks require a dividend.;bond interest rates change with the economy while stock dividends remain constant.;the after-tax cost of debt is less than the cost of preferred stock.;none of these.;7;MC Qu. 77 In general when interest rates are expected...;In general when interest rates are expected to rise, financial managers;balance the company's debt structure with more short-term debt and less long-term debt.;rely more on internal sources of funds rather than external sources.;try to lock in long-term financing at low cost.;accept more risk.;8;MC Qu. 80 The major supplier of funds for investment...;The major supplier of funds for investment in the whole economy is;businesses.;financial institutions.;households.;government.;9;MC Qu. 92 Security markets are efficient when each of...;Security markets are efficient when each of the following exist except;the markets can absorb large dollar amounts of stock without destabilizing the price.;prices adjust rapidly to new information.;there is a continuous market where each successive trade is made at a price close to the previous trade.;security prices follow the leading indicators such as the DJIA very closely.;10;MC Qu. 97 The strong form of the efficient market...;The strong form of the efficient market hypothesis states that;past price data is positively correlated to future prices.;prices reflect all public information.;all information both public and private is immediately reflected in stock prices.;none of these;11.;value;1.00 points;MC Qu. 98 The Securities Act of 1933 is primarily...;The Securities Act of 1933 is primarily concerned with;original issues of securities.;protecting customers of bankrupt securities firms.;secondary trading of securities.;national securities market.;12;MC Qu. 99 The Securities Act of 1933 did not;The Securities Act of 1933 did not;require that all securities sold in more than one state be registered with the SEC.;set guidelines for insiders who trade in the securities of their own firm.;require a prospectus for all new issues of securities which contains all information appearing in the registration statement.;hold corporate officers liable for losses for those who were misled by false information in the prospectus.;13;MC Qu. 101 The Securities Exchange Act of 1934 is...;The Securities Exchange Act of 1934 is primarily concerned with;original issues of securities.;a central market system.;regulation of organized exchanges.;protecting customers of bankrupt securities firms.
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