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AE 18 Quiz 1

Total questions: 10

Worksheet time: 9mins

Name
Class
Date
1.

2 TYPES OF CAPITAL MARKETS

a)

INVESTORS AND LENDERS

b)

EQUITY AND CAPITAL

c)

DEPOSITORY AND NON DEPOSITORY

d)

LONG TERM AND SHORT TERM

2.

What are the goals of Financial Management?

I. To survive

II. Beat the competition

III. Minimize Cost

IV. Maximize profits

V. Minimize sales

a)

I, II, III

b)

II, III, IV

c)

I, II, III, IV

d)

I, II, III, IV, V

3.

Which of the following describes a GOCs in the US?

a)

They issue stock to the public

b)

Are operated for profit

c)

Five out of nine directors are appointed by the president

d)

None of the above

4.

The following are types of deposit accounts except?

a)

Demand

b)

Supply

c)

Savings

d)

Time

5.

This type of insurance insures against the inability of an employed person to earn an income in either the insured's own occupation or any occupation.

a)

Disability insurance

b)

Structured settlements

c)

Financial guarantee insurance

d)

Investment oriented

6.

An RIC with 45 million shares outstanding has a portfolio with a market value of 535 Million and liabilities of 34 million. What is the Net Asset Value?

a)

14.44

b)

14.41

c)

11.33

d)

11.13

7.

The largest expense component of the expense ratio of an RIC is the shareholder fee.

a)

True

b)

False

8.

Which of the following describes hedge funds?

a)

Does not employ assortment of trading techniques and instruments

b)

Organized domestically

c)

Use specific variety of trading techniques

d)

Pay performance fees to managers

9.

The following are examples of supranational institutions except _____?

a)

UE

b)

WHO

c)

WTO

d)

World Bank

10.

One of the functions of investment banks is underwriting which means distributing issue to the public.

a)

TRUE

b)

FALSE