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Strayer FIN350 - Week 6 Quiz 5

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Question;? Question 1 ____ mortgages enabled more people with relatively lower income, or high existing debt, or a small down payment to purchase homes.? Question 2 ____ economic growth will probably ____ the risk premium on mortgages and ____ the price of mortgages.? Question 3 Rates for adjustable-rate mortgages are commonly tied to the? Question 4 The interest rate on a second mortgage is ____ on a first mortgage created at the same time, because the second mortgage is ____ the existing first mortgage in priority claim against the property in the event of default.? Question 5 Fannie Mae and Freddie Mac experienced financial problems during the credit crisis because they:? Question 6 A financial institution has a higher degree of interest rate risk on a ____ than a ____.? Question 7 Financial institutions that hold fixed-rate mortgages in their asset portfolios are exposed to ____ risk, because they commonly use funds obtained from short-term customer deposits to make long-term mortgage loans.? Question 8 In a collateralized mortgage obligation (CMO), mortgages are segmented into ____ (or classes).? Question 9 ____ risk is the risk that a borrower may prepay the mortgage in response to a decline in interest rates.? Question 10 For any given interest rate, the shorter the life of the mortgage, the ____ the monthly payment and the ____ the total payments over the life of the mortgage.? Question 11 An institution that originates and holds a fixed-rate mortgage is adversely affected by ____ interest rates, the borrower who was provided the mortgage is adversely affected by ____ interest rates.? Question 12 Which of the following is not true with respect to a growing-equity mortgage?? Question 13 From the perspective of the lending financial institution, interest rate risk is? Question 14 Collateralized mortgage obligations (CMOs) are generally perceived to have? Question 15 Which of the following will typically require homeowners to ultimately request a new mortgage?? Question 16 "Pink sheets" are traded on the? Question 17 ____ are portfolios of international stocks created and managed by various financial institutions.? Question 18 The largest organized exchange, listing the largest firms, is the? Question 19 A ____ requires that dividends cannot be paid on common stock until all current and previously omitted dividends are paid on preferred stock.? Question 20 Shareholders can most easily measure a firm's performance by monitoring changes in its ____ over time.? Question 21 Managers of firms may consider a stock repurchase or even a leveraged buyout when they believe their stock is ____ by the market, or a secondary stock offering when they believe their stock is ____ by the market.? Question 22 The prevailing price per share divided by the firm's earnings per share is known as the? Question 23 The transaction costs to the issuing firm in an IPO is usually ____ percent of the funds raised.? Question 24 ____ sell shares to investors and use the proceeds to invest in portfolios of international stocks created and managed by portfolio managers.? Question 25 The ____ is a value-weighted index of stock prices of 500 large U.S. firms.? Question 26 A new stock issuance by a specific firm that already has stock outstanding is referred to as a(n)? Question 27 Which of the following is not a part of the over-the-counter market?? Question 28 ____ are acquisitions that require substantial amounts of borrowed funds. ? Question 29 Initial public offerings (IPOs) perform ____ on the day following the IPO and ____ for periods of a year or longer after the IPO. ? Question 30 When a firm buys some of its shares that it had previously issued, this is referred to as a

 

Paper#49934 | Written in 18-Jul-2015

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