Chapter 2 Bank

A bond issue that does NOT trade on the public market but instead is sold to a small group of investors is called a(n): O A. syndicated bond. O B. revolving line of credit. OC. syndicated bank loan. D. Eurobond. O E. prívate placement.

Which of the following statements is true about dealer markets? NYSE is the best-known example of a dealer market. A dealer market involves time-consuming search for a fair deal. The advantage of a dealer over a brokered market is that brokers cannot guarantee that an order will be executed promptly, while dealers can, because they have an inventory of securities. All of the above are true of dealer markets.

Security firms offer brokerage services, which allows customers to buy/sell stocks.  Group of answer choices True False

An arrangement with a broker to borrow stocks from them and then sell it in the market, with the hope that they earn a profit by buying the stock back again after it has fallen in price is called Select one: a. smart money. Ob. short sales. Oc. behavioral finance. Od. random walk.

A primary market is: -the financial market where new security is sold for the first time. -the financial market where previously issued securities are sold the second time. -a product market where previously issued securities are resold (traded). -product market where products are sold for the second time Explain the correct option answer well.

The overthecounter ​(OTC) market is​ ________.   A.a market where​ smaller, unlisted securities are traded   B.an organized market in which all financial derivatives are traded   C.a market in which low risk−high return securities are traded   D.a highly liquid market as compared to NASDAQ

What are the pros and cons of dealer markets (e.g. - treasury bond markets) as compared to trading securities on an exchange

Fact finding of the trading on ASX.                   1) what kind of questions are needed to clearing from the broker to start own trading?

e) describe the expiration and exercise procedures commonly used in derivatives exchanges.  f) describe over-the-counter (OTC) derivatives trading and the risks involved in OTC trading versus exchange trading.    g) discuss the role of the clearinghouse in derivatives trading.  h) explain the concepts of initial margin, maintenance margin, and margin call.

Moving to another question will save this response. Quèstion 3 For each of the following definition select the correct term Definition Term A time draft payable to a seller of goods, with payment guaranteed by a bank Give bond holders the opportunity to purchase common stock at a prespecified price Government-issued foreign currency-denominated debt Option that can be exercised at any time before (and on) the expiration date Hybrid security that has characteristics of both bonds and common stock The risk that depositors will demand more cash than banks can immediately provide

1. Explain the differences between a market order and a limit order 2. What extra function do retail brokers handle that prime brokers do not? 3. Describe the differences between the NYSE and NASDAQ. 4. Roughly, how many firms are listed on the NYSE? How many are listed on NASDAQ? Then use a financial website to find an estimate of the current number  

Statement 1 - Majority of the American money markets are over- the- counter markets. Statement 2 - Secondary markets offer the buyers and sellers liquidity. a. Statement 1 is correct but statement 2 is wrong. b. Statement 1 is wrong but statement 2 is correct. c. both statements are correct. d. Both statements are wrong.

Why do most bond trades occur in the over-the-counter market?

All financial intermediary institutions in the intermediation market O borrow in small denominations and lend in large borrow short and lend long buy primary securities and sell secondary securities buy from brokers and dealers and sell to the public

Why is the bond market less transparent than the stock market? Multiple choice question. Media reports do not adequately cover the bond market. The bond market is not subject to any regulations. The bond market is bigger than the stock market. Many bond transactions are negotiated privately.

Choose the correct statement about different types of financial markets: a. Capital market is the market for short-term government and corporate debt securities b. None of these c. Money market is market for long-term financial instruments d. Stock market is the market where participants can issue and trade stocks

Which of the following is incorrect regarding margin trading? O a. The relationship between security prices and the new margin is positive. O b. It can be applied to bond trading. O c. An account is restricted when the equity is less than the maintenance margin. O d. The lower the amount of equity, the greater the loss when prices fall.

Which of the following is true about the clearing house? (several answers)   a. Big house which is originated in New York b. Clearinghouses are "perfectly hedged" by maintaining no futures market position of their own. c. It stands between two parties in the over-the-counter market d. It is a trader that works for a bank e. Guarantee that the traders will honor their obligations

Question 1 a. Distinguish between the following:i. Primary market and secondary market ii. Money market and capital market iii. Fixed income security and convertible security iv. Systematic risk and Unsystematic risk b. You are an investment advisor and you are asked to guide a new investor to trade shares on the Ghana Stock Exchange (GSE). Explain any six (6) of the listing requirement of GSE that are to be met before the company can start trading on the market.   Question 2 a. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests in stocks, bonds, short-term money market instruments and other securities. The performance of these mutual funds and the portfolio they build needs to be evaluated as frequently as possible. Evaluating the performance of these mutual funds is important for both existing and potential investors. The Table below provides the average return, standard deviation and betas of selected…

Secondary Market can be best described in which of the following statement? a. It is a market for an unlisted company to raise equity capital. b. It is a market where securities are issued through private placement. c. It is a market in which short-term money market instruments such as Treasury bills are traded. d. It is a market in which preowned securities are traded.

Bond rating agencies like Moody's and Fitch specialize in: O A. guaranteeing a specific interest rate payment by bond issuers to investors O B. assessing the liquidity risk of issuers. OC. assessing the credit and default risk of issuers. O D. assessing the credit, default and liquidity risk of issuers.

2. summarize the key features of the markets with the guide questions below. Features Equity Market Fixed-Income Market Types of Securities Traded Accessibility of the Market Levels of Risk Expected Returns Goals of Investors Strategies Used by Market Participants Example markets

Inflation-linked bonds, also known as treasury inflation-protected securities (TIPS), are used to protect against inflation. Explain the relationship between TIPS and the consumer price index. What are the benefits and drawbacks of buying TIPS?

Which of the following is true with Primary Market? Select one: a. None of the options b. Provides liquidity for instruments which are already issued by companies c. Deals with old stocks issued by companies d. Increases risk e. Needs fixed place for trading   Which of the following is not a financial instrument? Select one: a. Merchant bankers b. Mutual Fund Companies c. All the options d. Banks e. Leasing Companies

1. At any given time, the bank will purchase foreign exchange currency at what cost?  a. market price b. client's selling price c. lower than the selling price 2. A bond call price amount is  a. lower than par value b. higher than par value c. lower than discount value