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FIN 4350 Quiz 1 QUESTION 1 The bank discount yield is for valuation of money market instruments like T-bills, how many days you would use when applying this method A

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FIN 4350 Quiz 1

QUESTION 1

1. The bank discount yield is for valuation of money market instruments like T-bills, how many days you would use when applying this method

	A.	260
	B.	360
	C.	365
	D.	366

1 points   

QUESTION 2

1. Which of the following products is not traded in the money markets?

 

	A.	Treasury bill
	B.	commercial paper
	C.	Treasury bond
	D.	bankers' acceptance

1 points   

QUESTION 3

1. Which of the following entities usually issues commercial paper as a short-term security issued to raise funds

	A.	the Federal Reserve
	B.	large well-known companies
	C.	the New York Stock Exchange
	D.	all of above

1 points   

QUESTION 4

1. Which of the following entities can issue Treasury bills to raise funds

	A.	the Federal Reserve
	B.	large well-known companies
	C.	the federal government
	D.	commercial banks

1 points   

QUESTION 5

1. Which of the following belongs to a dealer market

	A.	NYSE
	B.	NASDAQ
	C.	housing market
	D.	None of them above

1 points   

QUESTION 6

1. Which of the following is the price at which a dealer would like to sell a security.

 

	A.	bid
	B.	ask
	C.	clearing
	D.	settlement

1 points   

QUESTION 7

1. The yield on taxable bonds is usually

	A.	greater than the yield on tax-exempt bonds
	B.	less than the yield on tax-exempt bonds
	C.	equal to the yield on tax-exempt bonds
	D.	None of  them above

1 points   

QUESTION 8

1. An order to buy or sell a security at the current price is a

	A.	market order
	B.	limit-buy order
	C.	limit-sell order
	D.	none of them above

1 points   

QUESTION 9

1. The price quotations of Treasury bonds show a bid price of 105.5121 and an ask price of 105.5782. If you wish to sell a Treasury bond, how much you expect to receive

	A.	$ 1,000.00
	B.	$ 1,055.12
	C.	1,055.78
	D.	none of them above

1 points   

QUESTION 10

1. You short sell 500 shares of GE stock at $40 per share. Suppose the initial margin is 40%. How much you need to put up?

	A.	8,000
	B.	12,000
	C.	20,000
	D.	28,000