Expert Answers

1. A sight draft is paid on demand, however a bank would pay a time draft at maturity as stated in the a. bill of lading
b. sight draft
c. time draft
d. letter of credit
2. Which of the following terms is not associated with common stock?
3. A shareholder in a troubled corporation is not likely to lose his or her.
a money invested in th stock
b house
c. dividends declared
d. par value
4. Which of the following market participants functions in the primary equity markets?
a. broker
d. dealer
5. The underwriter’s spread(%) is:
6. Which of the four types of secondary markets listed below involves considerable costs and no third party
7. An order to the New York stock exchange to buy or sell at the best price available is called.
8. A hedger in the financial futures market:
9. An agreement between a business and a large money center bank to seell 10 million of t-bills in sixty days i s call a
10. The purchase of u.s. treasury bonds for immediate delivery is a——– market transaction.
11. The forward price for an asset is
12. Which is not a function of the cftc?
13. You have a right to buy a security at a specific price on a specific date if you—– on this security.
14. A European option is an option contract that allows the holder to
15. A foreign exchange rate is best described as
16. If the cost of yen per dollar changes from 100 to 110 yen per dollar, the
17. With reference to international balance of payment accounting, if a country’s merchandise imports exceed merchandise exports for a period.
18. Differences in real interest rates between countries produce
19. A payment guarantee issued by a commercial bank on behalf of a importer is a
20. Investors with 30% of the voting stock of corporation, interested in a seat on the board of directors, had better have ____ voting privileges