1) a dealer is quoting a $10,000 face 180-day t-bill quoted at 2.75 bid, 2.65 ask. you
could buy this bill at ______________ or sell it at _______________.
a.$9,869.23; $9864.36
b.$9864.36; $9,869.23
c.$9,867.50; $9862.50
d.$9,862.50; $9,867.50
e.none of the above
2) the spot rate for the argentine peso is $0.3600 per peso. over the year inflation in
argentina is 10% and u.s. inflation is 4%. if purchasing power parity holds, at year-end
the exchange rate should be approximately ______________ dollars per real.
a.0.2987
b.0.3614
c.0.2875
d.0.3384
e.0.3015
3) an annuity and an annuity due with the same number of payments have the same
future value if r = 10%. which one has the higher payment?
a.they both must have the same payment since the future values are the same
b.there is no way to tell which has the higher payment
c.an annuity and an annuity due cannot have the same future value
d.the annuity has the higher payment
e.the annuity due has the higher payment
4) 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
5) the primary regulator of mutual funds is the
a.nasd
b.cftc
c.nyse
d.sec
e.nsmia
6) etfs are a direct competitor to ___________.
a.hedge funds
b.money market mutual funds
c.reits
d.index funds
e.market neutral funds
7) a bank has a negative repricing gap. this implies that
a.some rsas are financed by fixed-rate liabilities
b.some rsls are financing fixed-rate assets
c.some rsas are financing equity
d.the bank has no fixed-rate assets
8) a firm with a low z-score has high
a.insolvency risk
b.interest rate risk
c.liquidity risk
d.international risk
e.none of the above
9) to be well-capitalized, a bank must have a leverage ratio of at least ____________%,
tier i capital to risk-adjusted asset ratio of at least ____________%, and a total
risk-based capital ratio of at least ___________%.
a.4; 4; 8
b.5; 6; 10
c.3; 3; 8
d.4; 8; 4
e.4; 6; 10
10) if an underwriter overestimates the demand for a firm’s securities in a firm
commitment offering, the underwriter can
a.sell the shares back to the issuing firm at a discount
b.lower the bid price to the issuing firm
c.increase the fees charged to the issuing firm
d.cancel the issue and refund the fees paid by the issuing firm
e.none of the above