Exam 5: Financial Markets, Institutions, and Securities

The purpose of the restrictive debt covenant that requires that subsequent borrowing be subordinated to the original loan is to

Violation of any standard or restrictive provision by the borrower gives the lender the right to do all of the following EXCEPT

___________are obligations of the Canadian government with common maturities of 91 to 182 daysand that have a strong secondary market.

A___________ is set up so that employees of corporations or governments can receive income after retirement.

The purpose of the restrictive debt covenant that prohibits borrowers from entering into certain types of leases is to

Trading is carried out on the floor of the New York Stock Exchange by

The yield on commercial paper is generally higher than the yield on

A firm has issued cumulative preferred stock with a $100 par value and a 12 percent annualdividend. For the past two years the board of directors has decided not to pay a dividend. Thepreferred stockholders must be paid___________ prior to paying the common stockholders.

___________is a stipulation in a long-term debt agreement that subsequent or less important creditors agree to wait until all claims of the ____________ are satisfied before having their claims satisfied.