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The least used form of mortgage securitization is the ______________________.
A.second mortgage
B.mortgage-backed bond
C.mortgage pass-through
D.CMO
E.home equity loan
Refer to Figure 14-1. What is the price/earnings ratio for Rosa's?
Figure 14-1
Rosa's is a small chain of Mexican food restaurants that features five delicious varieties
of salsa. The business has grown over the past ten years from a hobby to a small
corporation with 200,000 shares of common stock outstanding. The corporation has not
issued any preferred stock. The following is Rosa's latest financial data:
NARREND
a.9.3
b.13.6
c.32.8
d.35.0
Investment A pays 8 percent simple interest for 10 years. Investment B pays 7.75
percent compound interest for 10 years. Both require an initial $10,000 investment. The
future value of A minus the future value of B is equal to ______________ (to the
nearest penny).
A.-$3,094.67
B.$3,094.67
C.$1,643.32
D.$2,500.00
E.-$2,500.00
Property owned for business purposes is covered under your homeowner's policy.
a.True
b.False
In a bear market, which option positions make money?
I. Buying a call
II. Writing a call
III. Buying a put
IV. Writing a put
A.I and II
B.I and III
C.II and IV
D.II and III
E.I and IV
Purchased funds include all but which one of the following?
A.Brokered deposits
B.Wholesale CDs
C.Fed funds purchased
D.Repurchase agreements
E.Demand deposits
Martha and Gordon purchased a home for $175,000 six years ago with a 5.5 percent,
30-year $140,000 mortgage. Their home now has a market value of $210,000 and they
owe $134,000 on the mortgage. What is the equity in their home?
a.$76,000
b.$70,000
c.$41,000
d.$35,000
An eight-year annual payment 7 percent coupon Treasury bond has a price of $1,075.
The bond's annual E(r) must be
$1,075 = 70 x PVIFA (E(r)%, 8) + 1,000 x PVIF (E(r)%, 8), trial and error or calculator
A.13.49 percent.
B.5.80 percent.
C.7.00 percent.
D.1.69 percent.
E.4.25 percent.
The most recognized professional designation held by financial planner is the
a.NAPFA Registered Financial Advisor (NRFA)
b.Certified Financial Planner (CFP)
c.Certified Public Accountant (CPA)
d.Accredited Financial Counselor (AFC)
The large U.S. current account deficit implies that
A.U.S. interest rates are too high.
B.the value of the dollar is too weak.
C.dollar foreign currency reserves at Asian central banks are too low.
D.the presidential administration desires to improve growth of overseas economies.
E.the United States must rely on foreigners to be willing to invest in the United States.
A contingent item that may eventually be placed on the right-hand side of the balance
sheet or expensed on the income statement is a(n)
A.loan commitment.
B.off-balance-sheet liability.
C.off-balance-sheet asset.
D.net charge-off.
E.loan sold without recourse.
