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i need help doing this worksheet please help thank you FINC 340: INVESTMENTS UNIT #2B WEEKLY QUIZ ANSWER SHEET DIRECTIONS: Here is the Unit #2

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i need help doing this worksheet please help thank you

image text in transcribed FINC 340: INVESTMENTS UNIT #2B WEEKLY QUIZ ANSWER SHEET DIRECTIONS: Here is the Unit #2 Weekly Quiz Answer Sheet that you should submit to your Unit #2 Homework Assignment Folder. Please submit your Unit #2 Quiz Answer Sheet in MS Word format with the following file name: LastNameFirstInitial_Unit 02_QuizAnswerSheet.docx. For example, if you name is John Smith, the file name of your Answer Sheet should be SmithJ_Unit02_QuizAnswerSheet.docx. If you have any questions or comments, please do not hesitate to contact me. NAME: _____________________________________ Question Number Question 1 Although you have made no deposits or withdrawals from your emergency fund savings account at the bank, the account balance has risen during the past three years from $15,000 to $17,613.32. What has been the compound annual interest rate that the bank has been crediting to your account? A. 4.5% B. 5.0% C. 5.25% D. 5.5% 2 John Smith, one of your clients, has asked you about the wisdom of investing $25,000 of his funds in a certificate of deposit at his bank. In your advice to him, which of the following characteristics of typical small CDs should you point out? A. The availability of an active secondary market B. The option to redeem the CD prior to maturity, without penalty C. The protection provided by the Federal Deposit Insurance Corporation D. The requirement of a minimum investment of $100,000 3 Which of the following instruments is not traded in a money maket? A. Bankers acceptances B. Government Treasury Bills C. Long-term Bonds D. Repurchse Agreements 4 You deposit $5,000 in a one year CD that offers a 9.0% rate of return componeded daiy. What will the CD be worth at maturity? A. $5,470.81 B. $5,469.03 C. $5,76.00 D. $5,450.00 5 Which of the following are short-term financial instruments? A. A negotiable Certificate of Deposit B. A banker's accespance C. A U.S. Treasury bill D. All of the aboive 1 6 Which of the following instruments are traded ina capital market? A. U.S. government agency securities B. Negotiable bank CDs C. Repurchase agreements D. Commercial paper 7 Which of the following can be described as involving direct finance? A. A corporation takes out a loan from a bank B. People buy shares in a mutual fund C. A corporation buys commercial paper issued by another corporation D. An insurnce company buys shares of common stock in the over-the-counter market 8 The international money market is called A. The Forex Market B. The Capital Market C. The Money Market D. The Financial Market 9 Which of the following statements about financial markets and securities are true? A. Most common stocks are traded over-the-counter, although the largest crporations usually ahe their shares traded at organizaed stock exchanges, such as the New York stock Exchange B. As a corporation gets a share of the broker's commission, a corporation aquires new funds whenever the securities are solde C. Because of their short terms to maturity, the prices of money market instruments tend not to flucuate wildly D. Only (A) and (C) of the above are true 10 What is the distinction between the money market and the capital market? A. Money markets are for short-term securities (with maturities up to one year). Capital markets are for long-term assetrs (with maturities over one year.) B. Money markets are for long-term securities (with maturities over one year.) Capital markets are for short-term assets (with maturities up to one year). C. There isn't a difference between capital and money markets D. The terms capital and money markets are interchangable because they are both in the financial market 11 Which would you prefer to have: $10,000 todayin a lump-sum or $1,000 per year for 13 years beginning one year from now, if the interest rates are: A. Give me the lump-sum today B. 4 percent C. 6 percent 12 There is a wholesales and retails foreign exchange market A. True B. False 2

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