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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
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. |
260 |
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|
B. |
360 |
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|
C. |
365 |
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|
D. |
366 |
1 points
QUESTION 2
- Which of the following products is not traded in the money markets?
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|
A. |
Treasury bill |
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|
B. |
commercial paper |
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C. |
Treasury bond |
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D. |
bankers' acceptance |
1 points
QUESTION 3
- Which of the following entities usually issues commercial paper as a short-term security issued to raise funds
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|
A. |
the Federal Reserve |
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B. |
large well-known companies |
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C. |
the New York Stock Exchange |
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D. |
all of above |
1 points
QUESTION 4
- Which of the following entities can issue Treasury bills to raise funds
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|
A. |
the Federal Reserve |
|
|
B. |
large well-known companies |
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C. |
the federal government |
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D. |
commercial banks |
1 points
QUESTION 5
- Which of the following belongs to a dealer market
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|
A. |
NYSE |
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|
B. |
NASDAQ |
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C. |
housing market |
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D. |
None of them above |
1 points
QUESTION 6
- Which of the following is the price at which a dealer would like to sell a security.
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|
A. |
bid |
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B. |
ask |
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C. |
clearing |
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D. |
settlement |
1 points
QUESTION 7
- The yield on taxable bonds is usually
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A. |
greater than the yield on tax-exempt bonds |
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B. |
less than the yield on tax-exempt bonds |
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C. |
equal to the yield on tax-exempt bonds |
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D. |
None of them above |
1 points
QUESTION 8
- An order to buy or sell a security at the current price is a
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|
A. |
market order |
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B. |
limit-buy order |
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C. |
limit-sell order |
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D. |
none of them above |
1 points
QUESTION 9
- 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
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A. |
$ 1,000.00 |
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B. |
$ 1,055.12 |
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C. |
1,055.78 |
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D. |
none of them above |
1 points
QUESTION 10
- 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?
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A. |
8,000 |
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B. |
12,000 |
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C. |
20,000 |
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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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