Financial markets have the basic function of bringing together people with funds to lend and people who
Question:
Financial markets have the basic function of
bringing together people with funds to lend and people who wantto borrow funds. | ||
assuring that the swings in the business cycle are lesspronounced. | ||
assuring that governments need never resort to printing moneywhenever the economy contracts. | ||
both A and B of the above. | ||
both B and C of the above. |
1 points
QUESTION 2
Which of the following can be described as involving directfinance?
A corporation's stock is traded in an over-the-countermarket. | ||
A corporation buys a commercial paper issued by anothercorporation. | ||
A pension fund manager buys a commercial paper from the issuingcorporation. | ||
Both A and B of the above. | ||
Both B and C of the above. |
1 points
QUESTION 3
Which of the following can be described as involving indirectfinance?
A corporation takes out loans from a bank. | ||
People buy shares in a mutual fund. | ||
Company X buys a 1-month commercial paper issued by Company Y inthe secondary market. | ||
Only B and C. | ||
Only A and B |
1 points
QUESTION 4
Which of the following statements about the characteristics ofdebt and equity securities are true? [I] A debt security can beshort-term or long-term [II] Equities can be short-term orlong-term [III] Equity securities can only be long-term [IV] Theyboth involve a claim on the issuer's income. [V] Dividends onequity capital are mandatory [VI] They both enable a corporation toraise funds.
I, II, V, VI | ||
I, III, IV, VI | ||
IV, V, VI | ||
II, III, IV, V | ||
All are correct |
1 points
QUESTION 5
The money market is the market in which ________ are traded.
new issues of securities | ||
previously issued securities | ||
short-term debt instruments | ||
long-term debt and equity instruments |
1 points
QUESTION 6
Long-term debt and equity instruments are traded in the ________market.
primary | ||
secondary | ||
capital | ||
money |
1 points
QUESTION 7
Which of the following are primary markets?
New York Stock Exchange | ||
Frankfurt Stock Exchange | ||
Over-the-counter stock market | ||
Tokyo Stock Exchange | ||
None of the above |
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell