Posted on March 5, 2010.
Necessary funding, interest rate assistance, money markets, annuities? Money markets are markets for
currencies.
consumer loans automobile.
business inventories.
Long-term bonds.
debt securities as short-term Treasury bills.
2. Which of the following statements is correct?
The most important difference between the cash markets in relation to futures markets is the maturity of these instruments are traded. Spot market transactions in securities that mature in less than a year since futures trading on the securities markets with maturities greater than one year.
market transactions in the capital include only the preferred shares or common shares.
If GE were to issue new shares this year, it would be considered a secondary market transaction since the company has outstanding.
Both Nasdaq and dealers of "specialists" in the inventories of stocks into NYSE.
money market operations do not involve securities denominated in currencies other than U.S. dollar.
3. If the stock market is semi-strong-form efficient, which statement is correct?
The required returns on all stocks are the same, and required returns on stocks are higher than yields on bonds required.
The declarations required on stocks of equal returns on bonds required.
A trading strategy where you buy stocks that have recently fallen in price is likely to provide a return that exceeds the return on the overall stock market.
If you have any inside information on a particular title, you can not expect a higher return than the average for the information because it is already priced into the current.
Even if a market is semi-strong-form efficient, an investor could still earn a better return than the return of the market, he or she had inside information.
4.
Suppose that 1-year Treasury bonds currently yield 5.00% and the rate of future inflation should be constant at 3.10% per year. What is the real risk-free rate of return * r? Disregard of the terms of the cross-products, namely, if the average is needed, use the arithmetic mean.
1.90%
2.00%
2.10%
2.20%
2.30%
5.
Suppose the real risk-free rate is 3.50%, the average inflation rate to come is 2.25% and a maturity premium of 0.10% per annum until maturity s' applies, ie, MRP = 0.10% (t), where t is the year of maturity. What rate of return on a 5-year Treasury, assuming the pure expectations theory is not valid? Disregard of the terms of the cross-products, namely, if the average is needed, use the arithmetic mean.
5.95%
6.05%
6.15%
6.25%
6.35%
6.
Which of the following would most likely lead to a higher level of interest rates in the economy?
Households start saving a larger percentage of their income.
Companies step up their expansion plans and increase their demand for capital.
The level of inflation starts to decrease.
The economy moves from a boom in recession.
The Federal Reserve decides to try to stimulate the economy.
7.
Suppose the interest rate on 20-year Treasury and corporate bonds are Follo.
