Corporate securities are ranked from highest to lowest risk as follows: common stock; preferred stock; bonds preferred
Question:
Corporate securities are ranked from highest to lowest risk as follows:
-
common stock; preferred stock; bonds
preferred stock; common stock; bonds
bonds; preferred stock; common stock
common stock; bonds; preferred stock
2 points
QUESTION 43
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_____ are loans made to borrowers who do not qualify for loans at the usual market rate because of a poor credit rating or because the loan is larger than justified by their income.
Fannie Mae Loans
Securitized mortgages
Mortgage-backed loans
Subprime loans
2 points
QUESTION 44
-
____ means that investors can convert their investments into cash quickly and at a low cost.
Diversification
Denominational intermediation
Liquidity intermediation
Cost advantages
2 points
QUESTION 45
-
Companies that borrow funds from people who have saved and make loans to others are ____.
the FED
financial intermediaries
foreign exchange companies
central banks
2 points
QUESTION 46
-
____ is the uncertainty about the returns investors will earn on an investment account.
Moral hazzard
Wealth
Risk
Diversification
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood