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Financial Markets #2 Flashcards | StudBud
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Financial Markets #2
Financial Markets #2
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StudBud Administration
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Chapter 11: Financial Markets
Flashcards
10 cards
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Practice quiz
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Host live
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Questions
10
Answers
1
Shares of common stock that represent ownership of a corporation are
Futures
Equities
401(k)s
Options
2
What implication is a direct result of the Efficient Market Hypothesis?
Bargain stock pricing
Vesting
Correct pricing
Stock Analysis
3
Junk bonds are ______ bonds with the _____ rate of return.
risky, lowest
safe, highest
risky, highest
safe, lowest
4
What types of bonds are issued by state and local governments?
Junk Bonds
Municipal Bonds
Government Savings Bonds
Treasury Notes and Bills
5
What do you call the market value of a single mutual fund share?
DIV
NAV
EMH
NET CHG
6
What is the primary factor that determines a bond’s value?
The par value of a bond.
The maturity of the bond.
The risk of the bond, or financial stability of the issuer.
The coupon rate of the bond.
7
Which bond would pay a higher interest rate on your investment: a Treasury bond or a junk bond?
Treasury Bond
Depends on who issues the bond.
They would have the same interest rate.
Junk Bond
8
In a primary market, only the original issuer can sell or repurchase a financial asset.
True
Depends on the duration.
False
Depends on the asset.
9
A bond’s annual coupon interest divided by the purchase price of the bond is equal to its
Par Value
IRA
Current Yield
Maturity
10
What is a securities exchange?
A type of investment banking firm
The act of trading stocks
Groups of corporations that sell their stock shares together
The physical place where stocks are bought and sold
