Financial Investment part 2

1.      Certificates of deposits are insured for up to _______ in the event of bank insolvency.

• A.   $10,000

• A.   $100,000

• A.   $250,000

• A.   $500,000

1.      The maximum maturity of commercial paper that can be issued without SEC registration is __________

• A.   270 days.

• A.   180 days.

• A.   90 days.

• A.   30 days.

1.      Which of the following is used extensively in foreign trade when the creditworthiness of one trader is unknown to the trading partner?

• A.   Repos

• A.   Bankers’ acceptances

• A.   Eurodollars

• A.   Federal funds

1.      A U.S. dollar – denominated bond that is sold in Singapore is a ____________

• A.   Eurobond.

• A.   Yankee bond.

• A.   Samurai bond.

• A.   Bulldog bond.

1.      A municipal bond issued to finance an airport, hospital, turnpike, or port authority is typically a ___________

• A.   revenue bond.

• A.   general obligation bond.

• A.   industrial development bond,

• A.   revenue bond or general obligation bond.

1.      Unsecured bonds are called __________

• A.   junk bonds.

• A.   debentures.

• A.   indentures.

• A.   subordinated debentures.

• A.   either debentures or subordinated debentures.

1.      A bond that can be retired prior to maturity by the issuer is a(an) _________ bond.

• A.   convertible

• A.   secured

• A.   unsecured

• A.   callable

• A.   yankee

1.      The trading of stock that was previously issued takes place _____________

• A.   in the secondary market.

• A.   in the primary market.

• A.   usually with the assistance of an investment banker.

• A.   in the secondary and primary markets.

1.      A purchase of a new issue of stock takes place ________________

• A.   in the secondary market.

• A.   in the primary market.

• A.   usually with the assistance of an investment banker.

• A.   in the secondary and primary markets.

• A.   in the primary market and usually with the assistance of an investment banker.

1.      Firms raise capital by issuing stock _____________

• A.   in the secondary market.

• A.   in the primary market.

• A.   to unwary investors.

• A.   only on days when the market is up.