Question;1.;value:1.00;points;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.
Paper#45563 | Written in 18-Jul-2015Price : $22