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It is common when a firm has temporary excess cash that the financial manager most likely will ________. a. invest in the stock market b.
- It is common when a firm has temporary excess cash that the financial manager most likely will ________.
a. | invest in the stock market |
b. | invest in marketable securities |
c. | pay a large dividend to shareholders |
d. | make an additional loan payment |
- Which of the following investments would be considered closest to cash?
a. | Treasury bill |
b. | Shares of common stock |
c. | Bond issued by a small city |
d. | Farmland |
- Certificates of deposit are issued by ________.
a. | commercial banks, savings banks, and credit unions |
b. | the U.S. government |
c. | major corporations |
d. | insurance companies |
- Leverage ________ the return to shareholders and ________ the risk of their investment.
a. | lowers; lowers |
b. | lowers; increases |
c. | increases; lowers |
d. | increases; increases |
- In the U.S. financial system, which of the following is a net saver?
a. | The government |
b. | Business |
c. | Households |
d. | Financial institutions |
- The process used by an insurance company to determine whom to insure and how much to charge is called ________.
a. | a premium |
b. | a insuring agreement |
c. | underwriting |
d. | indemnity |
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