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1. Which of the following is
not
a money market instrument?
2. T-bills are issued with initial maturities of:
I. 4 weeks
II. 16 weeks
III. 26 weeks
IV. 32 weeks
3. When computing the bank discount yield, you would use ____ days in the year.
4. A dollar-denominated deposit at a London bank is called _____.
5. Money market securities are sometimes referred to as
cash equivalents
because _____.
6. The most marketable money market security is _____.
7. The minimum
tick size
, or spread between prices in the Treasury bond market, is
8. An investor in a T-bill earns interest by _________.
9. ______ would
not
be included in the EAFE index.
10. _____ is considered to be an emerging market country.
11. Which one of the following is a true statement?
12. The bid price of a Treasury bill is _________.
13. The German stock market is measured by which market index?
14. Deposits of commercial banks at the Federal Reserve are called _____.
15. Which of the following is
not
a true statement regarding municipal bonds?
16. Which of the following is
not
a characteristic of a money market instrument?
17. An individual who goes short in a futures position _____.
18. Which of the following is
not
a nickname for an agency associated with the mortgage
markets?
19. Commercial paper is a short-term security issued by __________ to raise funds.
20. The maximum maturity on commercial paper is _____.
21. Which one of the following is a true statement regarding the Dow Jones Industrial
Average?
22. Treasury bills are financial instruments issued by __________ to raise funds.
23. Which of the following are true statements about T-bills?
I. T-bills typically sell in denominations of $10,000.
II. Income earned on T-bills is exempt from all federal taxes.
III. Income earned on T-bills is exempt from state and local taxes.
24. A bond that has no collateral is called a _________.
25. A __________ gives its holder the right to sell an asset for a specified exercise price on or
before a specified expiration date.
26. A T-bill quote sheet has 90-day T-bill quotes with a 4.92 bid and a 4.86 ask. If the bill has
a $10,000 face value, an investor could buy this bill for _____.
27. Which one of the following is a true statement regarding corporate bonds?
28. The yield on tax-exempt bonds is ______.
29. __________ is
not
a money market instrument.
30. An investor buys a T-bill at a bank discount quote of 4.80 with 150 days to maturity. The
investor's actual annual rate of return on this investment is _____.
31. The U.K. stock index is the _________.
32. A __________ gives its holder the right to buy an asset for a specified exercise price on or
before a specified expiration date.
33. Which one of the following provides the best example of securitization?
34. Which of the following indexes are market value-weighted?
I. The NYSE Composite
II. The S&P 500
III. The Wilshire 5000
35. The interest rate charged by large banks in London to lend money among themselves is
called _________.
36. A firm that has large securities holdings and wishes to raise money for a short length of
time may be able to find the cheapest financing from which of the following?
37. Currently, the Dow Jones Industrial Average is computed by _________.
38. An investor purchases one municipal bond and one corporate bond that pay rates of return
of 5% and 6.4%, respectively. If the investor is in the 15% tax bracket, his after-tax rates of return
on the municipal and corporate bonds would be, respectively, _____.
39. If a Treasury note has a bid price of $996.25, the quoted bid price in the
Wall Street
Journal
would be _________.
40. TIPS are ______.
41. The price quotations of Treasury bonds in the
Wall Street Journal
show a bid price of
102:12 and an ask price of 102:14. If you sell a Treasury bond, you expect to receive _________.
42. The Dow Jones Industrial Average is _________.
43. Investors will earn higher rates of returns on TIPS than on equivalent default-risk standard
bonds if _______________.
44. Preferred stock is like long-term debt in that ___________.
45. Which of the following does
not
approximate the performance of a buy-and-hold portfolio
strategy?
46. In calculating the Dow Jones Industrial Average, the adjustment for a stock split occurs
_________.
