Question
3. The short term financial instruments traded in money market is commonly called a. Bonds b. Shares c. Notes d. Bills 4. A futures contract
3. The short term financial instruments traded in money market is commonly called a. Bonds b. Shares c. Notes d. Bills
4. A futures contract is: a. an agreement to buy or sell a specified quantity of a particular asset during a given period at the spot price b. a marketable obligation to buy or sell a specified quantity of a particular asset during a given period for a given price c. an option to buy or sell a specified quantity of a particular asset during a given period for a given price d. a marketable obligation to buy or sell a specified quantity of a particular asset during a given period at a price to be determined in the future e. both a and b
5. Firms seek to list their shares on the exchanges of several countries because: a. They seek to diversify their sources of capital across national boundaries. b. It diminishes the prospect of takeover by other domestic concerns. c. It boosts their name awareness. d. It helps increase their sales revenues. e. All of the above
. 6. The theory of purchasing power parity is a theory of how exchange rate are determined in a. the long run. b. the short run. c. both (A) and (B). d. None of the above.
7. Which of the following is not a basic assumption of the Efficient Markets Hypothesis? a. There are large numbers of traders in the market b. Prices respond slowly to new information c. New information arrives in the market randomly d. Prices reflect new information
8. The advantage of liquidity which financial intermediaries offer savers means that savers may: a. Request the withdrawal of funds at any time. b. Redeem their shares at any time. c. All of the above. d. None of the above
9. Forward Exchange Rates are determined by: a. The Spot Exchange Rate b. The interest rate in two countries c. The income growth rate d. (a) and (b) only e. All of the above
10. The seller of a futures contract will realize a profit if the futures price: a. Increases. b. Decreases. c. Stays the same.3 d. None of the above. e. All of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started