Which of the following can be described as involving direct finance?O A. People buy shares in a mutual fund.B. A corporation buys commercial paper issued by another corporation.OC.A pension fund manager buys commercial paper from the issuing corporation.D.Both A and B of the aboveOE.Both B and C of the above.

Borrowers borrow funds directly from the financial market without the need of a third-party service…

Answered: Which of the following can be described…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 3LO

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Similar questions

Which of the following can be described as involving indirect finance? a. People pay premiums to an insurance company b. A corporation issues new shares to people c. People lend money to their friends d. People buy bonds from companies
Mutual funds collect money from its _____ A) lenders B) shareholders C) banks D) loan sharks and invest those funds in _____. A) diversified portfolios of securities B) bank CDs C) precious metal and art
The largest proportion of long-term mutual fund assets is held by A) nonfinancial corporate business B) bank trusts and estates C) life insurance firms D) the household sector E) private pension funds
In Growth and Income Mutual Fund the companies make investment of their funds in a. Already proven companies b. Debentures of companies c. Finance companies d. Government securities
Which of the following is an example of direct finance? Select one:investors buy shares in a mutual fundA pension fund manager buys a security in the secondary marketinvestors buy shares in a mutual fundNone of the answers are correctcompany buy security in a secondary market
Which statement best defines a mutual fund? a. It is a fund set aside by a local government to lend to small firms who want to invest in projects that are beneficial to the firm and community. b. It is an institution that sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit. c. It is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks and bonds. d. It is a financial market where small firms agree to sell and bonds to raise funds.
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 is a financial instrument? Select one: a. Merchant bankers b. Leasing Companies c. All the options d. Bonds e. Mutual Fund Companies
The company wishes to mobilize short term funds through various sources, Which of the following is not an appropriate source for the company? Select one: A. Equity Shares B. Commercial Paper C. Treasury Bills D. Commercial Bills
1. What is a mutual fund or unit trust? Explain and discuss the business model of mutual funds. What role do they play in the economy, and in the financial sector in particular? 2. A mutual fund has assets of K5 092.2 million and K4.6 million in liabilities with outstanding shares of 150.6 million. Calculate the net asset value (NAV) of the portfolio. 3. Another mutual fund manages a portfolio of securities of K120 million. The fund owes K4 million to advisers and a further K1 million for running expenses and has 5 million shares outstanding. Calculate the net asset value.
What are the pros and cons of investing into the following assets? Make comparison. a. A unit trust b. A closed-end fund? c. A stock of a company
Which of the following can be categorized as Short term sources of finance? i Equity Shares ii. Trade Credit iii Debenture iv Money Market Instruments a. Only Money Market Instruments b. Only Equity Shares c. Both Equity Shares and Debentures d. Both Money Market Instruments and Trade Credit

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