Details of this Paper

Chapter 02 Asset Classes and Financial Instruments

Description

solution


Question

Question;13.;Deposits of;commercial banks at the Federal Reserve Bank are called;A.;bankers;acceptances.;B.;repurchase;agreements.;C.;time;deposits.;D.;federal;funds.;E.;reserve;requirements.;14.;The interest rate;charged by banks with excess reserves at a Federal Reserve Bank to banks;needing overnight loans to meet reserve requirements is called the;A.;prime rate.;B.;discount;rate.;C.;federal funds;rate.;D.;call money;rate.;E.;money market;rate.;15.;Which of the;following statement(s) is(are) true regarding municipal bonds?;I);A municipal bond is a debt obligation issued by state or local governments.;II);A municipal bond is a debt obligation issued by the federal government.;III);The interest income from a municipal bond is exempt from federal income;taxation.;IV);The interest income from a municipal bond is exempt from state and local;taxation in the issuing state.;A.;I and II only;B.;I and III;only;C.;I, II, and;III only;D.;I, III, and;IV only;E.;I and IV only;16.;Which of the;following statements is true;regarding a corporate bond?;A.;A corporate;callable bond gives the holder the right to exchange it for a specified;number of the company's common shares.;B.;A corporate;debenture is a secured bond.;C.;A corporate;indenture is a secured bond.;D.;A corporate;convertible bond gives the holder the right to exchange the bond for a;specified number of the company's common shares.;E.;Holders of;corporate bonds have voting rights in the company.;17.;In the event of the;firm's bankruptcy;A.;the most;shareholders can lose is their original investment in the firm's stock.;B.;common;shareholders are the first in line to receive their claims on the firm's;assets.;C.;bondholders;have claim to what is left from the liquidation of the firm's assets after;paying the shareholders.;D.;the claims of;preferred shareholders are honored before those of the common shareholders.;E.;the most;shareholders can lose is their original investment in the firm's stock and;the claims of preferred shareholders are honored before those of the common;shareholders.;18.;Which of the;following is true regarding a;firm's securities?;A.;Common;dividends are paid before preferred dividends.;B.;Preferred;stockholders have voting rights.;C.;Preferred;dividends are usually cumulative.;D.;Preferred;dividends are contractual obligations.;E.;Common;dividends usually can be paid if preferred dividends have been skipped.

 

Paper#55072 | Written in 18-Jul-2015

Price : $22
SiteLock