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Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 418 Weeks Ago, 5 Days Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Question 1
Mary purchases a U.S. Treasury bond; the bond is:
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An asset for the government but a liability for Mary. |
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An asset of the U.S. government as well as an asset for Mary. |
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A liability of the U.S. government and an asset for Mary. |
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An asset for Mary but not a liability of the U.S. Government. |
Question 2
More detailed financial instruments tend to be:
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More costly because they will cost more to create. |
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Less costly because they can be standardized more easily. |
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More desirable than less detailed ones, no matter what the price. |
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Less costly because all possible contingencies are covered |
Question 3
Considering the value of a financial instrument, the more likely it is the payment will be made:
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The less valuable is the financial instrument because it is highly liquid. |
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The more valuable the financial instrument. |
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The greater the uncertainty; therefore the less valuable is the financial instrument |
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The less valuable is the instrument because risk is lower. |
Question 4
Most of the buying and selling in primary markets:
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Is done by the Federal Reserve. |
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Is in the public view. |
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Involves an investment bank. |
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Is highly transparent and closely monitored by the SEC. |
Question 5
Derivative markets exist to allow for:
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Cash receipts from the sale of bonds. |
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Reduced information asymmetry. |
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Direct transfers of common stocks for bonds. |
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Reduced risk from volatile prices. |
Question 6
Compound interest is the idea:
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That you get an interest deduction for paying your loan off early. |
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That you get an interest deduction if you take out a loan for longer than one year. |
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That interest rates will rise on larger loans. |
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That you get interest on interest |
Question 7
Suppose Paul borrows $4000 for one year from his grandfather who charges Paul 7% interest. At the end of the year Paul will have to repay his grandfather:
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$4,280 |
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$4,350 |
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None of the above |
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$4,290 |
Question 8
The value of $100 left in a certificate of deposit for four years that earns 4.5% annually will be:
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$119.25 |
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$145.00 |
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$120.00 |
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$117.00 |
Question 9
The relationship between present value and the interest rate could best be described as:
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A direct relationship, they both move together |
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An inverse relationship, as i increases, PV decreases. |
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None of the above. |
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An unclear relationship, whether it is direct or inverse depends on the interest rate. |
Question 10
At any fixed interest rate, an increase in time, n, until a payment is made:
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Has no impact on the present value since the interest rate is fixed. |
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Reduces the present value. |
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None of the above. |
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Increases the present value |
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