In which situation can a registered representative lend money to a client without firm permission? The client is a corporate executive The client is a high-net-worth individual The client is a long-term investor The client is a bank or family member

The client is a bank or family member

Which entities are typically issuers of general obligation bonds (GO Bonds)? School districts, states, villages Non-profit organizations, charities, trusts Private corporations, banks, hedge funds Federal government, international organizations

School districts, states, villages

When does an investor receive an official statement in the context of municipal bonds? Receiving interest payments on municipal bonds Holding municipal bonds to maturity Selling municipal bonds in the secondary market Purchasing a new offering of municipal bonds

Purchasing a new offering of municipal bonds

In which situations does an investor not receive an official statement? Investing in a mutual fund Buying a corporate bond Receiving an allocation of an IPO Purchasing a new municipal bond

Receiving an allocation of an IPO

Who must approve the anti-money laundering compliance program within a firm? The firm's external auditor The firm's legal advisor The firm's compliance officer A member of the firm's senior management team

A member of the firm's senior management team

What are issued by banks, represent a specific number of shares of a foreign company, and trade and pay dividends in dollars? Exchange-traded funds (ETFs) Corporate bonds Mutual funds American depositary receipts (ADRs)

American depositary receipts (ADRs)

What institutions serve as depository and clearing facilities? Depository Trust Company and National Securities Clearing Corporation Securities and Exchange Commission New York Stock Exchange Federal Reserve Bank

Depository Trust Company and National Securities Clearing Corporation

Purchase a bond with a SHORTER time to maturity and a HIGHER coupon rate Pay $10,000 a year for 8 years if the initial investment is $60,000 required return = 8% Minimize interest rate risk --> Fisher Equation sunk costs?

Minimize interest rate risk -->

NPV = 0 = - [cash flow / (1+i)^t] + [cash flow / (1+i)^t2] - initial investment + = accept - = reject Best criteria for evaluating investments Standard Deviation Operating cash flow in each of the 3 periods OCF = (Operating Cash Flow)

Best criteria for evaluating investments

Investments

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