Capital markets trade securities that: 1. mature in more than one year. II. has relatively higher risk of capital loss. III. must be guaranteed by the federal governm A. I only. B. II only. C. I and II only
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- Choose the best answer 1.) A place or system that primarily allows trading of financial assets with a maturity of more than one year 2.) Allows trade of commodities and contracts wherein they are to be delivered on a future date but at a set price 3.) A place or system that allows trading of highly liquid and short-term securities A.) Futures market B.) Bond market C.) Primary market D.) Money market E.) Capital market F.) Organized market G.) Over-the-counter market H.) Secondary market I.) Cash market12) Which of the following is NOT a property of Financial assets? A. Divisibility B. Reversibility C. Convertibility D. Marketability 13) Which of the following security is issued in money market: A. Common stock B. Preferred stock C. Bankers acceptance D. Commercial bonds 14) The money market is used to issue securities that maturity in: A. One year B. Two years C. Three years D. Four years 15) The capital market is used to issue securities that maturity in: A. 3 months B. 6 months C. 9 months D. 15 months 16) All the following factors contribute to the integration of the financial market: A. Liberalization B. Technology C. Institutionalization D. Democratization 17) Which money market instrument is infrequently traded in the Secondary Market: A. Treasury bills B. Commercial paper C. Certificate of deposit D. Repurchase agreementMarketable securities are a. long term in nature b. are examples of bonds c. traded in the money market d. traded in the capital market
- Do capital markets include trade equity and debt instruments with maturities of less than one year?Money market securities are debt offerings with a maturity of one year or less. They are very liquid and can be sold in a secondary market. Discuss the contents of the most popular money market securities.Based upon risk, which of the following financial assets is likely to have the highest required rate of return? Select one: A. A corporate bond B. A U.S. Treasury bill C. A bank certificate of deposit D. A share of common stock
- Capital markets trade securities that: mature in more than one year. has relatively higher risk of capital loss. must be guaranteed by the federal government. 1 only. 2 only. 1 and 2 only 1 and 3 onlyThe money market is the market in which ________ are traded. new issues of securities previously issued securities short-term debt instruments long-term debt and equity instrumentsWhen a company collects the face value of a bond investment at maturity, total assets increase. O True O False
- Marketable securities bought and held primarily for sale in the near term are classified as: a) Available-for-sale securities. b) Held-to-maturity securities. c) Stock securities. d) Trading securitiesQuestion 4 Capital markets trade securities that: I. mature in more than one year. II. has relatively higher risk of capital loss. III. must be guaranteed by the federal government. A. I only. B. II only. C. I and II only D. I and III only3. A. Rank the following financial securities in order of interest rate risk (1 being the lowest and 3 being the highest).a. 10-year traditional coupon bondb. 10-year zero-coupon bondc. 10-year fully amortizing loan B. Rank the following financial securities in order of reinvestment risk (1 being the lowest and 3 being the highest).d. 10-year traditional coupon bonde. 10-year zero-coupon bondf. 10-year fully amortizing loan
