BUS 205 FINALS PART-1 REVIEW

1. Indicate the sources of demand for loanable funds and discuss the factors that affect the demand for loanable funds.

2.What are the types of marketable obligations issued by the Treasury?

3.What is discounting? Give an illustration.

4. What is usury, and how does it relate to the cost of consumer credit?

5.Explain the difference between the annual percentage rate and the effective annual rate.

6. How does a TIPS bond differ from the typical U.S. Treasury security?

7.Describe what is meant by bond covenants.

8.Briefly describe the types of bonds that can be issued to provide bondholder security.

9.Explain what is meant by market stabilization.

10.Briefly describe how investment banking is regulated.

11.What is meant by the coefficient of variation? How is it used as a measure of risk?

12. What are sources of risk facing a firm which are reflected on its income statement?