A single individual pays $7,813 on a taxable income of $47,810 and $7,838 on a
taxable income of $47,910. What is the marginal tax rate?
a.15 percent
b.16 percent
c.25 percent
d.50 percent
You buy a stock for $34 per share and sell it for $36 after you collect a $1.00 per share
dividend. Your pre-tax capital gain yield is ________________ and your pre-tax
dividend yield is ________________.
A.2.94percent; 2.78percent
B.8.82percent; 0.00percent
C.5.88percent; 2.94percent
D.5.56percent; 2.78percent
E.4.65percent; 3.17percent
When comparison shopping, the €rule of 3€ says you should visit a store three different
times before making a major purchase.
a.True
b.False
Depository institutions (DIs) play an important role in the transmission of monetary
policy from the Federal Reserve to the rest of the economy because
A.loans to corporations are part of the money supply.
B.bank and thrift loans are tightly regulated.
C.U.S. DIs compete with foreign financial institutions.
D.DI deposits are a major portion of the money supply.
E.thrifts provide a large amount of credit to finance residential real estate.
Most bonds are callable.
a.True
b.False
Using the decision-making grid below, calculate the total score for Appliance “A.”
a.7.48
b.7.60
c.7.35
d.7.00
There are now ____ marginal tax rates for federal income taxes.
a.two
b.three
c.five
d.seven
In terms of volume of trading and market value of firms traded, the _____________ is
the largest U.S. stock market. In terms of number of firms traded, the ___________ is
the largest in the United States.
A.NYSE; NYSE
B.NASDAQ; NYSE
C.NYSE; AMEX
D.NYSE; NASDAQ
E.NASDAQ; AMEX
Bonds are debt obligations of the issuer.
a.True
b.False
In the area of bank supervision, which of the following are functions of the Federal
Reserve Banks?
I. Examinations of state member banks
II. Approval of member bank and bank holding company acquisitions
III. Deposit insurance
A.I only
B.I and II only
C.II and III only
D.I and III only
E.I, II, and III
The AU ratio measures the bank’s ability to __________ and the PM ratio measures the
bank’s ability to __________________.
A.control expenses; generate income from assets
B.generate income from assets; control expenses
C.maximize interest revenue; minimize interest expense
D.control leverage; minimize physical plant
E.None of the options
Computerized markets that automatically match orders between buyers and sellers and
are used primarily by institutions traders are called
A.OTC bulletin boards.
B.SPIDRS.
C.index markets.
D.ECNs.
E.specialists.
An increase in which of the following would increase the price of a call option on
common stock, ceteris paribus?
I. Stock price
II. Stock price volatility
III. Interest rates
IV. Exercise price
A.II only
B.II and IV only
C.I, II, and III only
D.I, III, and IV only
E.I, II, III, and IV
A decrease in interest rates will
A.decrease the bond’s PV.
B.increase the bond’s duration.
C.lower the bond’s coupon rate.
D.change the bond’s payment frequency.
E.not affect the bond’s duration.
Investors can obtain a company€s 10-K and 10-Q reports from the Securities and
Exchange Commission.
a.True
b.False
The maximum annual deposit into a health savings account is ____ for an individual
and ____ for a family.
a.$1,000 / $5,000
b.$2,000 / $5,000
c.$3,300 / $6,550
d.$5,000 / $10,000