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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

Finance Feb 23, 2022

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

 

Expert Solution

1. B. 360
2. C. TREASURY BOND
3. B. LARGE WELL-KNOWN COMPANIES
4. C. THE FEDERAL GOVERNMENT
5. B. NASDAQ
6. B. ASK
7. A. GREATER THAN
8. A. MARKET
9. B. 1055.12
10. A. 8000
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