Question
QUESTION 42 Corporate securities are ranked from highest to lowest risk as follows: common stock; preferred stock; bonds preferred stock; common stock; bonds bonds; preferred
QUESTION 42
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Corporate securities are ranked from highest to lowest risk as follows:
common stock; preferred stock; bonds
preferred stock; common stock; bonds
bonds; preferred stock; common stock
common stock; bonds; preferred stock
2 points
QUESTION 43
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_____ are loans made to borrowers who do not qualify for loans at the usual market rate because of a poor credit rating or because the loan is larger than justified by their income.
Fannie Mae Loans
Securitized mortgages
Mortgage-backed loans
Subprime loans
2 points
QUESTION 44
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____ means that investors can convert their investments into cash quickly and at a low cost.
Diversification
Denominational intermediation
Liquidity intermediation
Cost advantages
2 points
QUESTION 45
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Companies that borrow funds from people who have saved and make loans to others are ____.
the FED
financial intermediaries
foreign exchange companies
central banks
2 points
QUESTION 46
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____ is the uncertainty about the returns investors will earn on an investment account.
Moral hazzard
Wealth
Risk
Diversification
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