Question
Hi, Need help with the below. Thank you! Which of the following markets is likely to be the most inefficient? GE stock. Treasury bonds. Dollar/euro
Hi, Need help with the below. Thank you!
Which of the following markets is likely to be the most inefficient?
GE stock.
Treasury bonds.
Dollar/euro foreign exchange rate.
Housing prices in Miami.
Equity prices of members of the Dow Jones Industrial Average.
If a country's income rises, the demand for bonds is likely to
Rise because of higher wealth.
Fall because of higher expected returns.
Fall because of a lower unemployment rate.
Be unchanged.
Rise because of lower interest rates.
If the Federal Reserve raises interest rates, which of the following is least likely to happen
Bond yields will rise.
The US dollar will go up.
The stock market will open down and close higher.
Bank lending will increase.
Corporate borrowing rates will rise.
If inflation increases, the demand for bonds will most likely
Rise.
Fall.
Remain unchanged.
Fluctuate wildly.
Have less volatility.
Which of the following is most likely to be indirect finance?
A mortgage.
A corporate bond.
A new stock issue.
Uncle John borrowing $10000 from you to start an ice cream store.
A new business buys commercial paper from another company.
Ways that banks try to avoid moral hazard include all of the following except
Requiring the business to keep their checking account at the lending bank.
Require the businesses to get, if so desired, any new lending from the original lenders / investors.
Maintain collateral in the form of plant and equipment.
Allow the company to audit their business before the loan is made.
Monitor the activities of the company.
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