Directions: A. On the space provided, write TRUE if the idea being expressed is correct and FALSE otherwise. 1. investments generally earn passive income 2. Time deposit accounts do not earn interest. 3. Banks issue bank statement on savings deposit accounts. 4. Insurance are set up for some specific purpose at some certain time in the future. 5. Mutual funds generally earn more than savings account.
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- A bank's net interest margin represents the proportion of its investments that are financed with borrowed funds. Group of answer choices: True FalseRemembering: List down four considerations before investment decision making."_________" The higher rate the greater the return."_________" An investment is unideal if the cost of trading is high."_________" There are cost savings in government bonds."_________" Certificate of deposits cannot withdraw anytime.When deposit inflows exceed loan demand a bank can A. No answer text provided. B. buy back shares C. give larger dividends to customers D. invest to safe fixed income securities -
- Give typing answer with explanation and conclusion When a bank increases its fed funds sold, its deposit balance in the Fed will _________ ; when a bank's deposit balance in the Fed increases, the bank has increased its fed funds______ Group of answer choices increase; purchased increase; sold decrease; purchased decrease; sold........ is a link between savers & borrowers, helps to establish a link between savers & investors Select one: a . Money market b . Marketing c. None d . Financial market e . None of theseWhich 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
- Why do equity investors often use borrowed funds? Explain positive and negative financial leverage and the risks to the borrower of using borrowed funds.What is a real estate investment trust? Explain the difference between public and private REITs. How is performance measured for REITs? Choose three common investment ratios in real estate. Explain what the ratio measures and why an investor might consider the ratio. What is the difference between unlevered and levered cash flows? What discount rate must be applied when using unlevered cash flows versus levered cash flows? What is lease assignment? What is subletting? Explain at least one main difference between these methods.Banks use gap analysis to measure interest rate risk in their balance sheets. If firm XYZ is said to have a positive gap, this means: Group of answer choices C. Rate-sensitive assets exceed rate-sensitive liabilities B. Long-term assets are funded with short-term liabilities D. Rate-sensitive assets equal rate-sensitive liabilities A. Liabilities reprice before assetsThe investment banker does all of the following except a. make long-term investments for banking institutions b. advise clients c. bear the risk of selling a security issue d. act as a middleman between the issuer and buyer of a new security
- 1 . Which investor type would most likely have high tolerance for risk, long investment horizon, and low liquidity needs? a) pension funds b) commercial banks c)individuals d) mutual funds 2. Which manager most likely receives the highest compensation through fees? a) passive manager b) fixed income asset manager c) smart beta manager d) alternative asset manager 3. A no-load mutual fund will most likely charge which of the following fee? a) redemption fee b) up front fee c) management fee d) all of the above 4. The diversification between any two assets most likely to occur when which of the following conditions is met? a) Correlation between the two assets is less than 1.0 b) Correlation between the two assets is greater than 1 c) Correlation between the two assets is strictly negative d) Correlation between the two assets is strictly zero 5. When the economy is at the lowest point of the business cycle (the "through"), which are the best industries to invest in? a) Cyclical…A deposit institution can offset its liquidity risk to reduce its net deposit drains by reducing its assets through all of the following methods except: a. Borrowing funds or issuing equity. b. Calling back its loans. c. Use cash reserve. d. Selling securities.Answer true or false 1. An investors financial position will also affect his or her objectives. 2. You will incur pre-termination charges against the earnings of your time deposit if you will pull-out your investment from the bank prior to maturity