Financial Markets and Institutions

Money Markets
The treasury bills have high liquidity because of
extensive secondary markets
extensive primary markets
premium money markets
discounted money markets
Author: rikazzz Comment
Financial Markets and Funds
The formula of effective annual return is written as
(1+r) c – 1
(2+r) c – 2
(3+r) c – 3
(1+r) c – 5
Author: rikazzz Comment
Stock Markets
The price at which the stock is sold to investors by the investment banks is called
Gross proceeds
cumulative proceeds
non-cumulative proceeds
net proceeds
Author: rikazzz Comment
Valuation Of Securities
The investors of the coupon bond will receive cash flow very soon if the
maturity is lower
maturity is higher
interest payment is higher
interest payment is lower
Author: rikazzz Comment
Bond Markets
The denomination currency choice and volatility of interest rates affect the
maturity date of euro bond
cost of euro bond
issuance process of bonds
process of printing money
Author: rikazzz Comment
Money Markets
The deposit issued by bank are usually negotiable and have specific maturity date and interest rate, hence it is classified as
indirect certificate
direct certificate
negotiable certificate
deposit certificate
Author: rikazzz Comment
Mortgage Markets
The ownership of mortgaged property will be transferred to financial institution if the
borrower defaults
borrower does not default
borrower want less rate
borrower want profit
Author: rikazzz Comment
Stock Markets
In public corporation, the claim of fundamental ownership is called
common stock
fundamental stock
corporate stock
claimed stock
Author: rikazzz Comment
Money Markets
The commercial paper issued with low interest rate thus the commercial paper are categorized as
payables rating
commercial rating
poor credit rating
better credit rating
Author: rikazzz Comment
Foreign Exchange Markets
In equilibrium position, the spread between foreign and domestic rate of interest must be equal to spread of
domestic rates
forward and spot exchange rates
forward rate
spot rates
Author: rikazzz Comment

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