Using the decision-making grid below, calculate the total score for Appliance “D.”
a.7.1
b.7.2
c.8.1
d.8.5
The major liability of the Federal Reserve is
A.U.S. Treasury securities.
B.depository institution reserves.
C.currency outside banks.
D.vault cash of commercial banks.
E.gold and foreign exchange.
The average expense ratio for managed stock mutual funds is around ____ percent and
_____ percent for index funds.
a.2.00; 0.75
b.1.26; 0.25
c.0.25; 1.26
d.0.75; 2.00
When illness or injuries strike which of these issues may affect your finances?
a.direct health care expenses
b.recuperative care costs
c.rehabilitation costs
d.All of these.
Corporate Bond A returns 5 percent of its cost in PV terms in each of the first five years
and 75 percent of its value in the sixth year. Corporate Bond B returns 8 percent of its
cost in PV terms in each of the first five years and 60 percent of its cost in the sixth
year. If A and B have the same required return, which of the following is/are true?
I. Bond A has a bigger coupon than Bond B.
II. Bond A has a longer duration than Bond B.
III. Bond A is less price-volatile than Bond B.
IV. Bond B has a higher FPV than Bond A.
A.III only
B.I, III, and IV only
C.I, II, and IV only
D.II and IV only
E.I, II, III, and IV
Discretionary income is used to pay for things like
a.auto loans.
b.food.
c.rent.
d.insurance.
Cindy Estrada is applying for a loan and the bank has asked her for some financial
information. Use the following data to calculate Cindy’s net worth.
a.$121,025
b.$129,725
c.$130,375
d.$131,025
An eight-year corporate bond has a 7 percent coupon rate. What should be the bond’s
price if the required return is 6 percent and the bond pays interest semiannually?
Price = 35.00 x PVIFA (3%, 16) + 1,000 x PVIF (3%, 16)
A.$1,062.81
B.$1,062.10
C.$1,053.45
D.$1,052.99
E.$1,049.49
A U.S. firm has £50 million in assets in Britain that they need to repatriate in six
months.
A.buying pounds forward.
B.selling pounds forward.
C.borrowing pounds.
D.both selling pounds forward and borrowing pounds.
E.both buying pounds forward and borrowing pounds.