Which of the following is/are money market instrument(s)?
A.Negotiable CDs
B.Common stock
C.T-bonds
D.4-year maturity corporate bond
E.Negotiable CDs, common stock, and T-bonds
Refer to Figure 14-1. What is the amount of Rosa’s retained earnings?
Figure 14-1
Rosa’s is a small chain of Mexican food restaurants that features five delicious varieties
of salsa. The business has grown over the past ten years from a hobby to a small
corporation with 200,000 shares of common stock outstanding. The corporation has not
issued any preferred stock. The following is Rosa’s latest financial data:
NARREND
a.$100,000
b.$400,000
c.$550,000
d.$650,000
The age at which retirees born in 1960 or later will be able to receive full Social
Security benefits
a.59 ½.
b.65.
c.67.
d.72.
______ is a peer-to-peer experimental decentralized digital cash currency based on an
open source cryptographic protocol.
a.Forex
b.bitcoin
c.Bullion
d.Commodity futures contract
The age group that holds the most stock is the ____________ group.
A.under 35
B.35-44
C.45-64
D.65 and older
A bank has $770 million in checkable deposits. The bank has $85 million in reserves.
The bank’s required reserves are _____________ and its excess reserves are
_____________.
Required = 10% (770); Excess = 85 – 10% (770)
A.$85 million; $0
B.$770 million; $85 million
C.$89 million; $21 million
D.$685 million; $8.5 million
E.$77 million; $8 million
LIBOR is generally _______________ the Fed funds rate because foreign bank
deposits are generally ________________ domestic bank deposits.
A.greater than; less risky than
B.less than; riskier than
C.the same as; of equal risk to
D.greater than; riskier than
E.less than; less risky than
A bond that pays interest annually has a 6 percent promised yield and a price of $1,025.
Annual interest rates are now projected to fall 50 basis points. The bond’s duration is six
years. What is the predicted new bond price after the interest rate change? (Watch your
rounding.)
1,025 + [-6 x (-0.0050/1.06) x $1,025]
A.$1,042.33
B.$995.99
C.$1,054.01
D.$987.44
E.None of the options presented
A negotiable CD is
A.a time draft payable to a seller of goods, with payment guaranteed by a bank.
B.a loan to an individual or business to purchase a home, land, or other real property.
C.a short-term fund transferred between financial institutions usually for no more than
one day.
D.a marketable bank issued time deposit that specifies the interest rate earned and a
fixed maturity date.
The IRS requires that you have receipts for deducted cash contributions of $250 or
more.
a.True
b.False