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WorksheetsCâu hỏi về Tài chính
Total questions: 41
Worksheet time: 21mins
Financial intermediaries save costs due to:
Diverse services
Economies of scale and specialization
Professionalism
All of A, B, and C are correct
An investor buys a European put option for 100 shares of Stock A with a strike price of 50 USD per share. The option premium is 5 USD per share, and the expiration date is in 3 months. If the stock price at expiration is 40 USD per share, the investor:
Does not exercise the option and incurs a loss of 500 USD
Exercises the option and has a net profit of 500 USD
Exercises the option and has a net profit of 1000 USD
Exercises the option and incurs a loss of 500 USD
A contract that allows the buyer to sell a certain number of shares at a specified price within a certain period is:
Forward contract
Call option
Futures contract
Put option
Select the correct statement:
Issuing bonds does not increase the debt ratio of the issuer
The government can issue stocks to raise capital
The issuer does not have to bear the pressure of paying interest when issuing stocks
A, B, and C are all correct
A company faces ....... risk when issuing preferred stock compared to issuing corporate bonds. Dividends on preferred stock ....... the company's profitability.
Higher; depends
Higher; does not depend
Lower; does not depend
Lower; depends
The central bank participates in buying and selling securities in the financial market to adjust the money supply. This is called:
Discounting securities
Prior credit
Open market operations
Securities market operations
Investor A buys a call option for 100 shares of HP with a strike price of 50 USD per share on the expiration date. Investor A pays an option fee of 1.5 USD per share. What must the price of HP shares be on the expiration date for Investor A to break even?
48.5 USD
51.5 USD
50 USD
Other answer
The most important function of the financial market is:
To transfer capital from surplus units to deficit units
To provide savings instruments
To finance government deficits
A, B, and C are all correct
Futures contracts usually do NOT lead to the delivery of the underlying asset because:
Buyers or sellers often close their positions before the expiration date
The exchange imposes penalties for delivering the asset upon expiration
Buyers or sellers of futures contracts cannot meet the contract terms
Sellers of futures contracts often do not perform
Discount bonds:
Are sold below face value and repay principal at face value at maturity
Pay interest and a portion of principal periodically
Pay interest periodically and repay principal in a lump sum at maturity
A, B, and C are all correct
Which agency is an investment organization?
Financial company
Credit union
Pension fund
Insurance company
The difference between preferred stock and corporate bonds is:
A company can skip paying dividends on preferred stock, but has an obligation to pay interest on bonds.
Typically, preferred stockholders have voting rights, while bondholders do not.
A company must pay dividends to preferred stockholders before paying interest to bondholders.
A company only pays dividends to preferred stockholders when there is profit, while it can skip paying interest on bonds.
When the required reserve ratio increases, commercial banks must hold larger reserves at the central bank, leading to a _____ in the monetary base and money supply.
Increase
Decrease
Fluctuation
None of the above
Which of the following is TRUE about the financial market:
Provides liquidity for financial instruments
Determines the price of financial instruments
Establishes a channel to transfer capital from surplus units to deficit units
A, B, and C are all correct
Which of the following is NOT a contractual savings organization:
Commercial bank
Life insurance company
Non-life insurance company
Pension fund
Capital market instruments include:
Bonds, promissory notes, treasury bonds, commercial papers
Stocks, corporate bonds, government bonds
Treasury bonds, commercial papers, NCD, promissory notes
Stocks, bonds, commercial papers, promissory notes
____ instruments have a maturity of one year or less; ____ instruments usually have high liquidity:
Capital market; capital market
Capital market; money market
Money market; capital market
Money market; money market
The present value of a future cash flow _____ when interest rates increase:
Remains unchanged
Is not affected
Decreases
Increases
When interest rates increase:
Remains unchanged
Not affected
Decreases (Correct answer)
Increases
When the government runs a budget deficit, the supply of bonds tends to _____, and the supply curve shifts to _____, assuming other factors remain unchanged:
Increase, to the right (Correct answer)
Increase, to the left
Decrease, to the right
Decrease, to the left
The supply curve will shift to _____, assuming other factors remain unchanged:
Increase, to the right (Correct answer)
Increase, to the left
Decrease, to the right
Decrease, to the left
At any given time, the actual price of a three-month Treasury bond is always:
Equal to the price of a six-month Treasury bond
Higher than the price of a six-month Treasury bond
Equal to its face value
Lower than the price of a six-month Treasury bond (Correct answer)
One of the main assumptions of the segmented market theory is that bonds with different maturities:
Can be substituted for each other, but not perfectly
Cannot be substituted (Correct answer)
Can be perfectly substituted
Can only be substituted for each other when investors are paid a premium
A company faces _____ risk when issuing preferred stock compared to corporate bonds. The company _____ can stop paying dividends on preferred stock without being forced into bankruptcy:
More; can
Less; cannot
More; cannot
Less; can (Correct answer)
What financial instrument did Tân Hoàng Minh use to raise capital from investors?
Government bonds
Commercial paper
Corporate bonds (Correct answer)
Certificates of deposit
The characteristic of securities that can be quickly converted into cash is called:
Liquidity (Correct answer)
Convertibility
Stability
Volatility
Asymmetric information occurs when:
Both parties in the transaction have the same information
Information is almost available to both parties in the transaction
Information costs are high
One party in the transaction knows more than the other (Correct answer)
Which of the following is NOT a main source of funding for financial companies:
Savings deposits (Correct answer)
Issuing commercial paper
Issuing bonds
Bank loans
According to the theory of expectations, if investors expect interest rates in the future to decrease significantly, this means that the yield curve will tend to:
Be flat
Sloping down (Correct answer)
Gently sloping up
Steeply sloping up
When _____ is low, the motivation to _____ increases, and the motivation to _____ decreases:
Nominal interest rate; lend; borrow
Real interest rate; lend; borrow
Market interest rate; lend; borrow
Real interest rate; borrow; lend (Correct answer)
The most important source of finance for commercial banks is:
Issuing bonds
Issuing repurchase agreements
Accepting deposits (Correct answer)
Issuing stocks
_____ is a credit instrument that promises to pay investors a fixed annual interest rate until maturity and repay the principal at ____ on the maturity date:
Discount bond; discount price
Discount bond; face value
Coupon bond; discount price
Coupon bond; face value (Correct answer)
The biggest disadvantage of holding common stock is:
Payments are only made after the company has paid all its debts in the event of bankruptcy (Correct answer)
Limited liability
Receiving dividends
Trading on the stock exchange
Bonds with a higher credit rating have _____ yields:
Higher, lower (Correct answer)
Lower, lower
Higher, higher
All are incorrect
The difference in interest rates between high default risk bonds and low default risk bonds is called:
Bond yield spread
Liquidity premium
Tax allocation
Risk premium (Correct answer)
The interbank lending rate is usually _____ the treasury bond interest rate:
Equal
Lower
Unrelated
Higher (Correct answer)
In the capital market, financial instruments are issued by:
Government and local authorities
Corporations
Individuals
Both A and B (Correct answer)
Which of the following is FALSE?
Municipal bonds must pay insurance fees to compensate investors for default risk.
The interest that companies pay on corporate bonds is tax-deductible for corporate income tax.
Corporate bonds must pay insurance fees to compensate investors for default risk.
Government bonds must pay lower insurance fees for risk than municipal bonds due to lower liquidity compared to municipal bonds. (Correct answer)
Capital providers in the financial market are:
Deficit entities
Primary entities
Secondary entities
Surplus entities (Correct answer)
The difference in interest rates between high default risk bonds and low default risk bonds is called:
Bond yield spread
Liquidity premium
Tax allocation
Risk premium (Correct answer)
The interbank lending rate is usually _____ the treasury bond interest rate:
Equal
Lower
Unrelated
Higher (Correct answer)
