1. Which of the following is a function of every financial market? A) It determines the level of interest rates. D) It channels funds from lenders-savers to B) It allows common stock to be traded. borrowers-spenders. C) It allows loans to be made. 2. Securities are for the person who purchases them, but they are for the person/firm who sells them. A) assets; liabilities B) liabilities; assets C) income; liabilities D) liabilities; expenses 3. Which of the following is/are money market instrument(s)? A) Negotiable certificates of deposits B) Common stock C) T-bonds D) 4-year maturity corporate bond 4. Who has voting rights at a shareholders' meeting? A) All common stock owners. B) Common stock owners who own more C) Only the company's managers. D) All preferred stock owners. than 1% of the company. 5. These are investments where shareholders become the owners of the portfolio of the account. These portfolios of securities could be made up of equity securities or debt securities. A) Insurances B) Corporate bonds C) Pension funds D) Mutual funds

1. Which of the following is a function of every financial market? A) It determines the level of interest rates. D) It channels funds from lenders-savers to B) It allows common stock to be traded. borrowers-spenders. C) It allows loans to be made. 2. Securities are for the person who purchases them, but they are for the person/firm who sells them. A) assets; liabilities B) liabilities; assets C) income; liabilities D) liabilities; expenses 3. Which of the following is/are money market instrument(s)? A) Negotiable certificates of deposits B) Common stock C) T-bonds D) 4-year maturity corporate bond 4. Who has voting rights at a shareholders' meeting? A) All common stock owners. B) Common stock owners who own more C) Only the company's managers. D) All preferred stock owners. than 1% of the company. 5. These are investments where shareholders become the owners of the portfolio of the account. These portfolios of securities could be made up of equity securities or debt securities. A) Insurances B) Corporate bonds C) Pension funds D) Mutual funds

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 20MCQ

See similar textbooks

Similar questions

What are financial securities? Describe some financial instruments.
Which of the following statements is/are true?Statement 1: A key role of financial markets is to accommodate corporate finance activity. Statement 2: In general, individuals are net demanders of funds, while businesses and governments are net supplier of funds.Statement 3: An important characteristic of securities that are traded in secondary markets is liquidity
Title Every financial market has the following characteristic: Description Function of Financial Markets 1) Every financial market has the following characteristic: A) It determines the level of interest rates. B) It allows common stock to be traded. C) It allows loans to be made. D) It channels funds from lenders-savers to borrowers-spenders. 2) Financial markets have the basic function of A) getting people with funds to lend together with people who want to borrow funds. B) assuring that the swings in the business cycle are less pronounced. C) assuring that governments need never resort to printing money. D) providing a risk-free repository of spending power. 3) Financial markets improve economic welfare because A) they channel funds from investors to savers. B) they allow consumers to time their purchase better. C) they weed out inefficient firms. D) eliminate the need for indirect finance.
Which of the following is the basis for fixing the price of securities in the financial market? a. Government b. Demand and Supply in the Market c. Seller of the Financial Instrument d. The issuer of the Instruments
Which one is not the core functions of investment bank? * a.Selling of securities b. Accepting deposits c. Advisory services d. Marketing of securities
What is the meaning of Financial Markets? Name and differentiate all the types of financial markets?
What is one of the functions of the financial markets and how does financial institutions play a role in this process.
Which of the following is not a Money Market Instruments? a. Corporate Bonds b. Bankers’ Acceptance c. Bills of Exchange d. Treasury Bills
Explain the roll of debt and equity markets in the economy. How do they interact with both Primary and Secondary Markets? What roles do debt and equity markets and primary and secondary markets play in the “flow of funds?”
Which of the following is the function of the financial market ? Select one : a . It decides the interest rate b . It makes loan available c . It channels funds from lenders - savers to borrowers - spenders D. None of these
Which of the following can be categorized as Long term sources of finance ? i Equity Shares ii Trade Credit iii Debenture iv Money Market Instruments a. Both Money Market Instruments and Trade Credit b. Both Equity Shares and Debentures c. Only Equity Shares d. Only Money Market Instruments
Which of the following can be considered as financial institutions in a good financial system? a. Treasuries b. Stock Exchanges c. Banks d. All