Question
5. The store of value purpose for money: a. is aided by inflation b. is harmed by inflation c. is not considered a serious issue
5. The store of value purpose for money:
a. is aided by inflation b. is harmed by inflation
c. is not considered a serious issue d. implies automatic growth.
6. Given a 50% tax bracket and 9% offered on a traditional 20th Century municipal issue, the effective rate of return is (taxable municipal issue was introduced in the 21st Century). ?
7. Given a 40% federal tax bracket and 6% offered on a treasury issue, the nominal rate on a corporate issue to equal the treasury rate is?
8. The initial issuer of securities normally receives funds in which market:
a. secondary b. primary c. derivative d. surplus
9. Money market securities generally have _________; capital market instruments are typically expected to have ________.
a. less liquidity; lower annualized return b. more liquidity; lower annualized return
c. less liquidity; higher annualized return d. more liquidity; higher annualized return
10. Which of the following is traditionally a major investor in stocks?
a. commercial banks b. insurance companies c. thrifts d. pension funds
11. Which of the following would be considered a primary market transaction:
- An individual purchases existing shares of stock in IBM through a broker.
- Microsoft issues a seasoned offering of common stock using an underwriter.
- An institutional investor sells some Disney stock through its broker.
- You arrange to sell a portfolio of stock from an inheritance.
12. With the participation of financial intermediaries in financial market transactions, _______ than they otherwise would be.
- information and transaction costs are lower;
- transaction costs are higher, but information costs are unchanged;
- information costs are higher, but transaction costs are unchanged;
- information and transaction costs are both higher.
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