Exam 2: Asset Classes and Financial Instruments

The Dow Jones Industrial Average is _________.

A benchmark index has three stocks priced at $23,$43,and $56.The number of outstanding shares for each is 350,000 shares,405,000 shares,and 553,000 shares,respectively.If the market value weighted index was 970 yesterday and the prices changed to $23,$41,and $58,what is the new index value?

Which of the following is not considered a money market investment?

Deposits of commercial banks at the Federal Reserve are called _____.

The Federal Reserve Board of Governors directly controls which of the following interest rates?

The U.K.stock index is the _________.

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

A firm that fails to pay dividends on its preferred stock is said to be _________.

The Standard and Poors 500 is a(n)__________ weighted index.

A __________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date.

An investor purchases one municipal and one corporate bond that pay rates of return of 5.00% and 6.40% respectively.If the investor is in the 15% tax bracket,his after tax rates of return on the municipal and corporate bonds would be respectively

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

Which of the following is most like a short-term collateralized loan?

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

Large well-known companies often issue their own short term unsecured debt notes directly to the public,rather than borrowing from banks,their notes are called _________.

A bond that has no collateral is called _________.

Thirteen week T-bill auctions are conducted ____.

Eurodollars are _________.

_____ is considered to be an emerging market country.

The Hang Seng index reflects market performance on which of the following major stock markets?