Multiple choice: 1. An investor may place a limit order that a. Limits the amount of commissions. b. Specifies when the stock will be purchased. c. Establishes the exchange on which the security is to be bought or sold. d. States a price at which the investor seeks to buy or sell the stock. 2. Which of the following is not a financial intermediary? a. New York Stock Exchange b. Washington Savings and Loan c. First National City Bank d. Merchants Savings Bank 3. Using accelerated depreciation a. Initially increases the firm's profits. b. Initially decreases the firm's taxes. c. Discourages investment in plant and equipment. d. Increases expenses and decreases cash flow.

4. The current Yield on a bond is a. Interest paid divided by the bond's price b. The bond's coupon c. The interest rate stated on the bond. d. The yield over the lifetime of the bond. 5. The increases use of financial leverage may I. Affect the firm's credit rating. II. decrease risk III. alter the firm's earnings.

A. I and II B. I and III C. II and III D. I, II and III