The dollar-amount of benefits under a long-term care insurance plan is on a per-_____
basis.
a.day
b.week
c.month
d.year
A(n) __________________ is a contra asset account.
A.loan commitment
B.provision for loan and lease losses
C.allowance for loan and lease losses
D.net charge-off
Life insurance should be bought primarily
a. as a tax shelter.
b. to provide protection from financial losses.
c. as an investment.
d. as a gift.
Which would have a longer duration: (a) a five-year fully amortized installment loan
with semiannual payments or (b) a five-year semiannual payment bond, ceteris paribus.
Why?
Deferring income can achieve the same result as accelerating deductions.
a.True
b.False
You go to the Wall Street Journal and notice that yields on almost all corporate and
Treasury bonds have decreased. The yield decreases may be explained by which one of
the following?
A.Newly expected decline in the value of the dollar
B.Increases in the U.S. government budget deficit
C.Decreased Japanese purchases of U.S. Treasury bills/bonds
D.An increase in current and expected future returns of real corporate investments
E.A decrease in U.S. inflationary expectations
When an investment banker purchases an offering from a bond issuer and then resells it
to the public, this is known as a
A.rights offering.
B.private placement.
C.firm commitment.
D.best efforts.
E.standby offering.
A construction firm cannot obtain the necessary permits to begin building a shopping
mall until it can show it either has or will have the necessary funding to complete the
project. The firm may ask a bank for which of the following to allow it to obtain the
permits?
I. Commercial letter of credit
II. Loan commitment
III. Credit line
IV. Repurchase agreement
A.I or II
B.II or III
C.II or IV
D.III or IV
E.I or IV
A 50-day maturity money market security has a bond equivalent yield of 3.60 percent.
The security’s EAR is EAR = (1 + (0.0360/(365/50)))365/50 – 1 = 3.66%
A.3.69 percent.
B.3.61 percent.
C.3.55 percent
D.3.87 percent.
E.3.66 percent.
Which of the following persons can assist you in your career advancement for a fee?
a.sponsor
b.mentor
c.reference
d.career coach
The diagram below is a diagram of the
A.secondary markets.
B.primary markets.
C.money markets.
D.derivatives markets.
E.commodities markets.
Currently the Fed sets monetary policy by targeting
A.the Fed funds rate.
B.the prime rate.
C.the level of non-borrowed reserves.
D.the level of borrowed reserves.
E.the stock market.