mcq73

Discuss how a form of debt can be classified as both Current and Long-Term Liabilities.  Why do investors care?

Explain the interest rate sensitivity of government debt as a function of: i) its maturity and ii) the level of coupon it pays.

Which of the following is not a Money Market Instruments? a. Corporate Bonds b. Bankers’ Acceptance c. Bills of Exchange d. Treasury Bills

Which of the following is the risk due to a firm's debt usage?      Business risk     Financial risk     Market risk     Interest rate risk     Purchasing power risk     Exchange rate risk

Choose the correct statement about different types of financial markets: a. Capital market is the market for short-term government and corporate debt securities b. None of these c. Money market is market for long-term financial instruments d. Stock market is the market where participants can issue and trade stocks

Which of the following is not a main core function of the financial system?a. Provide a payments system for the exchange of goods and services.b. Provide mechanisms to separate funds for smaller-scale investmentc. Provide the channels to transfer funds and economic resources across industriesd. Provide ways to manage uncertainty and mitigate risk According to the market segmentation theory of the term structure,a. the interest rate for bonds of one maturity is determined by the supply and demand for bonds of that maturity.b. bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time.c. investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope downward.d. only A and B of the above. Costs associated with the correspondent bank process include:a. Interestb. Currency conversion spreadc. Reputation costsd. Payroll costs