The stamp on a prospectus accompanying a new issue that indicates the issue has not
yet been approved for sale by the SEC is called the
A.green hornet.
B.seal of approval.
C.red herring.
D.eagle stamp.
E.Regd FD.
A financial planner who adheres to a fiduciary standard must always act in the best
interest of the client regardless of how it might affect the advisor.
a.True
b.False
Laura and Alan are a married couple with three small children. Alan earns $60,000 a
year, but Laura has no earned income. What is the maximum total contribution Laura
and Alan can make to their IRA accounts this year?
a.$11,000
b.$5,500
c.$7,500
d.$0
A ___________ placed against mortgaged property ensures that the property cannot be
sold (except by the lender) until the mortgage is paid off.
A.collateral
B.lien
C.writ of habeas corpus
D.down payment
E.writ of certiorari
A mortgage applicant who is turned down for a mortgage application should find out
why by requesting the
a.a settlement denial.
b.defect disclosure form.
c.credit report.
d.adverse action notice.
Banks€ net foreign exposure is equal to
A.net foreign assets.
B.net FX bought.
C.net foreign assets + net FX bought.
D.assets – liabilities.
E.none of the options.
The spot rate for the Argentine peso is $0.3600 per peso. Over the year, inflation in
Argentina is 10 percent and U.S. inflation is 4 percent. If purchasing power parity
holds, at year-end the exchange rate should be approximately ______________ dollars
per peso.
A.0.2987
B.0.3614
C.0.2875
D.0.3384
E.0.3015
The higher the exercise price, the ________________ the value of a put and the
_______________ the value of a call.
A.higher; higher
B.lower; lower
C.higher; lower
D.lower; higher
Banks that issue credit cards typically impose penalty APRs on certain borrowersto
raise the APR for the entire debt repayment when
a.a payment is more than 60 days late.
b.a payment by check is returned for insufficient funds.
c.market conditions result in a restriction of credit.
d.both a payment is more than 60 days late and a payment by check is returned for
insufficient funds on accounts at that bank.
The largest source of income at a typical bank is
A.interest income on securities held for sale.
B.interest income on securities held for investment.
C.interest income on loans and leases.
D.noninterest income.
E.dividends or stock.