Multiple Choice

The fourth pair of columns on a 10-column work sheet prepared at the end of the period would be the

Week 7 Chapter 6: Investors in the Share Market True/False QUESTIONS 1. Investing in shares of publicly listed corporations should, on average, over time provide a higher return than investing in fixed-interest securities. a. True b. False 2. Investments through a stock exchange are limited to ordinary shares issued by listed corporations. a. True b. False 3. Portfolio theory contends that a diversified share portfolio enables an investor to significantly reduce the portfolio’s exposure to systematic risk. a. True b. False 4. A share that has a beta of one is twice as risky as an average share listed on a stock market. a. True b. False 5. Shares that typically demonstrate a negative price correlation will usually move in the same direction

7. (TCO D) A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? (Points : 10)

Construct Sources and Uses Statement  Determine if available / identified financing sufficient to cover initial pricing  Determine answer to Question #1

b. Available-for-sale securities. Investments in debt securities that are classified as available for sale and equity securities

You will undoubtedly find yourself in numerous leadership situations during your professional career. Accordingly, you should understand that:

9. How do the primary risks of credit unions differ from banks? From savings institutions (SIs)? From finance companies?

B. Was the Federal Deposit Insurance Corporation, so that the government would guarantee bank deposits.

One of the other questions I didn't pick a right answer on this test is #24. I believed the answer to be A, but the answer is actually B. The reason why I know B is actually the correct answer is because the author highlights the emotional tolls of exile and problems faced by exiles. With the use of elimination strategy, I eliminated answer choices C,D, and E, but after going back to the passage and by reading it again, now I understand why answer choice B is the correct answer.

Financial services companies are present in all economically developed geographic locations and tend to cluster in local, national, regional and international financial centers such as London,

E. record both income and expenses as soon as the amount for each can be ascertained.

Question: Financial markets in which equity and debt instruments with maturities greater than one year are traded are called

A: Most investments in the economy would fail to take place if there were no financial institutions because many independent investors do not like to take large amounts of risk. By utilizing financial intermediaries, which are “organizations that receive funds from savers and channel them to investors,” people are given peace of mind in knowing that their source of money/investing is more stable and accounted for. Those who apply this principle also value the liquidity, or convertibility, that financial institutions provide in the case of emergency or cold feet.

A financial intermediary, by definition, is responsible for the process of transferring money from economic agents with a surplus of funds to economic agents with a deficit of funds, and is known as financial intermediation. This is achieved by means of a financial security, such as stocks and bonds. The mechanism that allows the trade of such financial securities is known as a financial market. Financial markets aim to facilitate the raising of capital, as well as the transfer of risk between economic agents and also international trade. Typically, the borrower will issue a receipt, or financial security, to the lender that promises to pay back the capital gained. Securities such as these can be freely bought or sold within financial

The statement number 1 and 2 are premises since they help to draw a conclusion. These statements give a direction to narration.