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Financial Market (T/F)

Total questions: 26

Worksheet time: 13mins

Name
Class
Date
1.

Financing is serviced on secondary  markets?

a)

True

b)

False

2.

Are dividends always distributed in monetary form?

a)

True

b)

False

3.
  1. Euronext organizes the listing of shares on the secondary market in Europe?

a)

True

b)

False

4.
  1. To access the order book, an investor must have a securities account with a broker?

a)

True

b)

False

5.
  1. Does the market order have priority over other orders?

a)

True

b)

False

6.
  1. Is the limit order the basic order for shares?   

a)

True

b)

False

7.

The SRD allows you to use leverage by investing an amount greater than your wealth?

a)

True

b)

False

8.

Short selling allows you to play on falling stocks?

a)

True

b)

False

9.
  1. For a buy order with a trigger threshold, the threshold entered must be lower than the last quoted value?

a)

True

b)

False

10.
  1. Short selling was suspended on US bank shares in 2008?

a)

True

b)

False

11.
  1. PER refers to the ratio of earnings (per share) to share price (E/P)?

a)

True

b)

False

12.
  1. The inverse of PER is called Earning Yield (EY)?

a)

True

b)

False

13.
  1. Can a NEU CP have a quotation value lower than its nominal value?

a)

True

b)

False

14.
  1. A bond's actuarial yield is the discount rate that cancels out the bond's NPV?

a)

True

b)

False

15.
  1. For zero-coupon bonds, principal and interest are paid in a lump sum at maturity?

a)

True

b)

False

16.
  1. If an In Fine bond does not offer a repayment premium and an issue premium, must its actuarial yield at issue be identical to the nominal rate?

a)

True

b)

False

17.
  1. SVTs (Spécialistes en Valeur du Trésor) offer selling and buying prices on the secondary market for Treasury bills (BTF, OAT)?

a)

True

b)

False

18.
  1. Bonds are quoted at the foot of the coupon and as a percentage of face value?

a)

True

b)

False

19.
  1. A bond that quotes its face value is said to be at par?

a)

True

b)

False

20.
  1. A bond with no repayment premium or issue premium, whose actuarial rate on the secondary market is above the nominal rate is quoted below the par?

a)

True

b)

False

21.

Do banks obtain issuance mandates from issuers of financial securities on the primary markets?

a)

True

b)

False

22.

Does the trigger order become a market order when the threshold is crossed?

a)

True

b)

False

23.

Does short selling promote market liquidity?

a)

True

b)

False

24.

Is a NEU CP with no default risk a risk-free asset?

a)

True

b)

False

25.

A zero-coupon bond distributes coupons?

a)

True

b)

False

26.

Is the actuarial rate of return on an In Fine bond always equal to the bond's nominal (face) rate?

a)

True

b)

False