Exam 2: Asset Classes and Financial Instruments

When setting the interest rate on loans, the commonly used measure is the ________-day bank bond rate.

A transaction where a dealer agrees to sell and subsequently repurchase a security from another deal is called ________.

What would you expect to have happened to the spread between yields on commercial paper and Treasury notes immediately after September 11, 2001?

Which of the following mortgage scenarios will benefit the homeowner the most?

Which of the following is not a characteristic of a money market instrument?

The interest rate charged by large banks in London to lend money among themselves is called ________.

Which of the following types of bonds are excluded from most bond indices?

Ownership of a put option entitles the owner to the ________ to ________ a specific share, on or before a specific date, at a specific price.

What are business firms most likely to use derivative securities for?

The maximum maturity of certificate of deposits is

Commercial paper is a short-term security issued by ________ to raise funds.

Which of the following are not characteristic of common share ownership?

A typical bond price quote includes all but which one of the following?

Ownership of a call option entitles the owner to the ________ to ________ a specific share, on or before a specific date, at a specific price.

Which one of the following is a true description of the Dow Jones Industrial Average?

Treasury notes have initial maturities between ________ weeks.

An individual who goes short in a futures position ________.

A dollar-denominated deposit at a London bank is called ________.

TIPS are treasury bonds that protect investors from inflation. Investors will earn higher rates of returns on TIPS than equivalent default risk standard bonds if ________.

A tax-exempt bond is priced to yield 6.25%. If you are in the 28% tax bracket this bond would provide you with an equivalent taxable yield of ________.