Test Bank For An Introduction to Derivative Securities 1st Edition by Robert A. Jarrow
Digital item No Waiting Time Instant DownloadISBN-13: 978-0393912937 ISBN-10: 0393912930
In Stock
Original price was: $55.00.$19.00Current price is: $19.00.
Test Bank For An Introduction to Derivative Securities 1st Edition by Robert A. Jarrow
CHAPTER 3: Stocks MULTIPLE CHOICE
1.The primary market for a stock is:
|
a. |
an initial public offering |
|
b. |
an auction |
|
c. |
a private placement |
|
d. |
a subscription offering |
|
e. |
None of these answers are correct. |
ANS:ADIF:EasyREF:3.2
TOP: Primary and Secondary Markets, Exchanges, and Over-the-Counter Markets
MSC: Factual
2.Which of the following is NOT true about stockholders?
|
a. |
A stockholder has fractional ownership over a company. |
|
b. |
A stockholder usually gets dividend payments from a company. |
|
c. |
A stockholder can lose more than her initial investment because the company is a “legal person” and must meet its debts and legal obligations. |
|
d. |
A stockholder can play a role in changing the top management of the company. |
|
e. |
A stockholder cannot be sued for misdeeds of a company. |
ANS:CDIF:ModerateREF:3.2 | 3.3
TOP: Primary and Secondary Markets, Exchanges, and Over-the-Counter Markets | Brokers, Dealers, and Traders in Securities Markets MSC: Factual
3.US stock exchanges are:
|
a. |
regulated by the CFTC |
|
b. |
regulated by the Congress |
|
c. |
regulated by the Federal Reserve Bank |
|
d. |
regulated by the EPA |
|
e. |
regulated by the SEC |
ANS:EDIF:EasyREF:3.2
TOP: Primary and Secondary Markets, Exchanges, and Over-the-Counter Markets
MSC: Factual
4.Which of the following statements about self-regulation of exchange-traded securities markets is INCORRECT?
|
a. |
It makes the markets more honest. |
|
b. |
It helps demonstrate to the federal agencies that the industry is doing a good job policing itself and thus more regulatory oversight may not be necessary. |
|
c. |
It deals with problems before they get wide publicity. |
|
d. |
It builds the reputation of the marketplace and thus attracts high-quality customers and greater trade volume. |
|
e. |
Its net costs are far more than the benefits it provides. |
ANS:EDIF:EasyREF:3.3
TOP: Brokers, Dealers, and Traders in Securities Markets MSC: Factual
5.Which of the following is NOT true about a dealer?
|
a. |
A dealer has inventory risk. |
|
b. |
A dealer matches a buyer and a seller and earns commissions for this service. |
|
c. |
A dealer posts bid and ask prices. |
|
d. |
A dealer must have adequate capital to maintain her portfolio of securities. |
|
e. |
A dealer trades on her own account. |
ANS:BDIF:EasyREF:3.3
TOP: Brokers, Dealers, and Traders in Securities Markets MSC: Factual
6.Which of the following is NOT true about a spread in a financial market?
|
a. |
A spread may refer to the gap between bid and ask prices of a stock or other security. |
|
b. |
A spread may refer to the simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. |
|
c. |
A spread may refer to the difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. |
|
d. |
A spread may refer to the difference between the price that someone purchasing an item in an auction pays and the price that the seller receives. |
|
e. |
A spread may refer to the price an issuer pays above a benchmark fixed-income yield to borrow money. |
ANS:DDIF:ModerateREF:3.3
TOP: Brokers, Dealers, and Traders in Securities Markets MSC: Factual
7.The foreign exchange market is one of the world’s largest:
|
a. |
exchanges |
|
b. |
primary markets |
|
c. |
auction markets |
|
d. |
dark pools |
|
e. |
over-the-counter markets |
ANS:EDIF:EasyREF:3.2
TOP: Primary and Secondary Markets, Exchanges, and Over-the-Counter Markets
MSC: Factual
8.The following individuals do not trade in the derivative securities markets:
|
a. |
day traders |
|
b. |
market makers |
|
c. |
position traders |
|
d. |
scalpers |
|
e. |
specialists |
ANS:EDIF:EasyREF:3.3 | 3.6
TOP: Brokers, Dealers, and Traders in Securities Markets | Buying and Selling Stocks
MSC: Factual
9.You are a dealer and post a price of $100.00 to $100.50 for a stock. There are more sell orders than buy orders and you find your inventory is growing. What is the correct way to adjust your quotes?
|
a. |
Lower the bid price and then lower the ask price. |
|
b. |
Lower the ask price and then lower the bid price. |
|
c. |
Raise the ask price and then raise the bid price. |
|
d. |
Raise the bid price and then raise the ask price. |
|
e. |
Do nothing—orders arrive randomly and they will self-adjust. |
ANS:ADIF:ModerateREF:3.3
TOP: Brokers, Dealers, and Traders in Securities Markets MSC: Applied
10.Traders with superior information are more likely to trade in the:
|
a. |
stock market |
|
b. |
bond market |
|
c. |
money market |
|
d. |
options market |
|
e. |
swaps market |
ANS:DDIF:ModerateREF:3.3
TOP: Brokers, Dealers, and Traders in Securities Markets MSC: Conceptual
11.Which statement below is INCORRECT?
|
a. |
Arbitrageurs seek price discrepancies among securities and attempt to extract riskless arbitrage profits. |
|
b. |
Hedgers try to reduce risk by trading securities and are often cited as the chief reason for the existence of derivative markets. |
|
c. |
Position traders (also called trend followers) maintain speculative trading positions for longer periods of time. |
|
d. |
Scalpers open their positions in the morning, try to profit from price movements over the day, and close their positions at the end of the trading day. |
|
e. |
Speculators often take calculated risks in their pursuit of profits. |
ANS:DDIF:EasyREF:3.3
TOP: Brokers, Dealers, and Traders in Securities Markets MSC: Factual
12.Which statement below is INCORRECT about block trades?
|
a. |
They involve trades of 5,000 shares or more. |
|
b. |
They involve trades of 10,000 shares or more. |
|
c. |
They are often negotiated away from the trading floor in the “upstairs market.” |
|
d. |
They may or may not involve the services of a broker. |
|
e. |
They are rarely handled by the specialists. |
ANS: A DIF: Easy REF: 3.6 TOP: Buying and Selling Stocks
MSC: Factual
13.Which statement below is correct about the Financial Industry Regulatory Authority (FINRA)?
|
a. |
FINRA is the successor to NASDAQ. |
|
b. |
FINRA was created as a regulator of the stock market during the 1930s. |
|
c. |
FINRA is the new name for NASD. |
|
d. |
NASD and the member regulation, enforcement, and arbitration functions of the New York Stock Exchange were consolidated to form FINRA. |
|
e. |
FINRA operates the NASDAQ Stock Market LLC. |
ANS: D DIF: Easy REF: 3.6 TOP: Buying and Selling Stocks
MSC: Factual
14.Which of the following is NOT true about an electronic communications network (ECN)?
|
a. |
It is an alternate trading system that must be registered with the SEC as a broker-dealer. |
|
b. |
Its participants include institutional investors, broker-dealers, and market makers. |
|
c. |
It publicly displays the limit order book to subscribers. |
|
d. |
It is primarily a trading venue for stocks and currencies. |
|
e. |
It is a secretive trading network that does not send an order directly to an exchange or display it in a limit order book. |
ANS: E DIF: Easy REF: 3.6 TOP: Buying and Selling Stocks
MSC: Factual
15.A stock’s price cum-dividend is $50. If the market is free of riskless profit opportunities, then the ex-dividend price of the stock after the payment of a $1 dividend would be:
|
a. |
$48 |
|
b. |
$49 |
|
c. |
$50 |
|
d. |
$51 |
|
e. |
None of these answers are correct. |
ANS:BDIF:EasyREF:3.7
TOP: Dollar Dividends and Dividend Yields MSC: Applied
Test Bank for “The Economics of Money, Banking, and Financial Markets,” 6th Canadian Edition by Frederic S. Mishkin
Overview: The 6th Canadian Edition of The Economics of Money, Banking, and Financial Markets by Frederic S. Mishkin is a comprehensive textbook that delves into the principles and complexities of the financial system. This edition is tailored to the Canadian context, incorporating relevant examples and data. The test bank associated with this textbook is an essential resource for instructors and students, offering a variety of questions designed to enhance comprehension and application of key concepts.
Content Details:
- Introduction to Financial Markets and Institutions:
- Overview: Explains the role and importance of financial markets and institutions in the economy.
- Topics Covered: Functions of financial markets, types of financial institutions, and their roles in economic stability and growth.
- Monetary Policy and the Federal Reserve System:
- Overview: Provides an understanding of monetary policy tools and the operations of central banks.
- Topics Covered: The Federal Reserve’s role, monetary policy transmission mechanisms, and the impact on economic variables like inflation and unemployment.
- The Money Supply and Demand:
- Overview: Discusses the determinants of money supply and demand and their influence on the economy.
- Topics Covered: Money creation, the money multiplier, and factors affecting money demand.
- Interest Rates and the Term Structure of Interest Rates:
- Overview: Examines how interest rates are determined and their implications for the economy.
- Topics Covered: Theories of interest rate determination, yield curves, and the term structure of interest rates.
- Banking and Financial Intermediaries:
- Overview: Focuses on the functions and operations of banks and other financial intermediaries.
- Topics Covered: Banking operations, risk management, and the role of financial intermediaries in the economy.
- Financial Crises and Regulation:
- Overview: Analyzes causes and consequences of financial crises and the regulatory responses.
- Topics Covered: Historical financial crises, regulatory frameworks, and policies designed to prevent systemic risk.
- International Financial Markets and Exchange Rates:
- Overview: Explores the global dimension of financial markets and the impact of exchange rates.
- Topics Covered: Foreign exchange markets, exchange rate determination, and international financial flows.
- Economic Models and Empirical Analysis:
- Overview: Introduces economic models used to analyze financial markets and policies.
- Topics Covered: Model-based analysis of monetary policy, financial stability, and empirical evidence supporting theoretical concepts.
Test Bank Features:
- Multiple-Choice Questions: Assess basic understanding and application of key concepts.
- True/False Questions: Test comprehension of fundamental principles and definitions.
- Short Answer Questions: Encourage detailed explanations and analysis of specific topics.
- Essay Questions: Allow for in-depth exploration of complex issues and integration of theoretical knowledge.
- Case Studies: Provide practical scenarios for students to apply theoretical concepts to real-world situations.
Conclusion:
The test bank for The Economics of Money, Banking, and Financial Markets, 6th Canadian Edition by Frederic S. Mishkin, is a valuable educational tool that supports the learning process by offering diverse question types to evaluate student understanding. It complements the textbook by providing a structured approach to testing students’ grasp of financial systems, monetary policy, banking operations, and global financial markets. Through its comprehensive question sets, the test bank aids in preparing students for practical application in the field of economics and finance.
Reviews
There are no reviews yet.