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WorksheetsFIN358: CHAPTER 2&3
Total questions: 20
Worksheet time: 21mins
Stock and bonds would be classified as
real assets
indirect assets
personal assets
financial assets
Investment made in real estate is a
real investment
non-financial investment
financial investment
intangible investment
Financial risk is most associated with
the use of equity financing by corporations
equity investments held by corporations
the use of debt financing by corporations
debt investments held by corporations
A stock is
small units of equal value called shares
expressed in terms of money
expressed in terms of number of shares
fully paid and partly paid shares
Financial disclosure regulations affecting the brokerage industry are a type of
market risk
liquidity risk
financial risk
business risk
Commercial papers are
issued for a period of 1 to 2 years
unsecured promissory notes
secures promissory notes
sold at premium
Interest rate risk is a
unsystematic risk
market risk
internal risk
systematic risk
The _______ is the risk free investment
certificate of deposit
savings account
treasury bill
treasury bond
Most investors are risk averse which means
they avoid the stock market due to the high degree of risk
they actively seek to minimize their risks
they will always invest in the investment with the lowest risk possible
they will assume more risk only if thet are compensated by higher expected
Treasury bills are traded in the
capital market
money market
government market
regulated market
The investment professionals that arrange the sale of new securities are
investment bankers
arbitragers
specialists
traders
Which one of the following is not the money market security?
Commercial paper
National Savings Certificate
Treasury bills
Certificate of Deposit
Primary and Secondary market
complement each other
compete with each other
control each other
function independently
The underwriter has to take up
the fixed portion of the issued capital
the agreed portion or can refuse it
the agreed portion of the unsubscribed part
none of the above
Another name for stock brokers is
portfolio managers
registered representatives
security analysts
specialists
In private placement
shares are offered through letter of offer
shares are offered through brokers
shares are offered through prospectus
shares are offered through investment bankers
Which of the following would not be considered as capital market security?
a mutual fund share
a common stock
a corporate bond
a 6-month treasury bill
The __________ summarizes information about a new security issue
shelf rule
prospectus
IPO
syndicate offer
Investment bankers operate in the
primary market
secondary market
third market
fourth market
_________ is example of financial intermediaries
insurance companies
investment companies
credit unions
commercial banks
