1) The capital market consist of :A. Treasury billB. Certificate of depositC. Purchases agreementD. Common stock2) The money market consist of:A. Certificate of depositB. Common stockC. Ordinary shareD.Preference stock3) Which of the following is a characteristic of the money market?A. Long termB. High RiskC. High liquidityD. Poor liquidity4) Which of the following is a characteristic of the capital market?A. Poor liquidityB. Low RiskC. Short TermD. Convertibility5) The financial markets are classified as all following except:A. Debt market vs stock marketB. Money market vs capital marketC. Primary markets vs secondary marketD. Future markets vs spot markets6) An order to be executed at the best price available in the market:A. Limited orderВ.Market orderC. Opening orderD. Closing order 7) An order which must be executed as soon as it reaches the trading floor or is immediately cancelled:A. Limited orderB. Spot orderC. Market orderD. Fill or Kill order8) Which of the following is NOT a condition order?A. Limit orderB. Stop orderC. Market orderD. Market if touch order9) The holder of Equity securities are entitled to:A. DividendB. ProfitC. InterestD. Income10) Common stocks are traded in all of the following market except:A. Organized exchangeB. Fixed Income marketC. Electronic Communication networkD. Over the counter market11) Which money market instrument is mostly traded in the secondary markets:A. Treasury billsB. Commercial paperC. Certificate of depositD. Repurchase agreement

Since more than three sub parts are posted at a time, the answer for first three questions is only…

1) The capital market consist of : A. Treasury bill B. Certificate of deposit C. Purchases agreement D. Common stock 2) The money market consist of: A. Certificate of deposit B. Common stock C. Ordinary share D. Preference stock 3) Which of the following is a characteristic of the money market? A. Long term B. High Risk C. High liquidity D. Poor liquidity

1) The capital market consist of : A. Treasury bill B. Certificate of deposit C. Purchases agreement D. Common stock 2) The money market consist of: A. Certificate of deposit B. Common stock C. Ordinary share D. Preference stock 3) Which of the following is a characteristic of the money market? A. Long term B. High Risk C. High liquidity D. Poor liquidity

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

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