1. Which of the following is a function of every financial market? A) It determines the level of interest rates. D) It channels funds from lenders-savers to B) It allows common stock to be traded. borrowers-spenders. C) It allows loans to be made. 2. Securities are for the person who purchases them, but they are for the person/firm who sells them. A) assets; liabilities B) liabilities; assets C) income; liabilities D) liabilities; expenses 3. Which of the following is/are money market instrument(s)? A) Negotiable certificates of deposits B) Common stock C) T-bonds D) 4-year maturity corporate bond 4. Who has voting rights at a shareholders' meeting? A) All common stock owners. B) Common stock owners who own more C) Only the company's managers. D) All preferred stock owners. than 1% of the company. 5. These are investments where shareholders become the owners of the portfolio of the account. These portfolios of securities could be made up of equity securities or debt securities. A) Insurances B) Corporate bonds C) Pension funds D) Mutual funds

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. Which of the following is a function of every financial market?
A) It determines the level of interest rates.
B) It allows common stock to be traded.
C) It allows loans to be made.
D) It channels funds from lenders-savers to
borrowers-spenders.
2. Securities are
for the person who purchases them, but they are
for the person/firm
who sells them.
A) assets; liabilities
B) liabilities; assets
C) income; liabilities
D) liabilities; expenses
3. Which of the following is/are money market instrument(s)?
A) Negotiable certificates of deposits
B) Common stock
C) T-bonds
D) 4-year maturity corporate bond
4. Who has voting rights at a shareholders' meeting?
A) All common stock owners.
B) Common stock owners who own more
than 1% of the company.
C) Only the company's managers.
D) All preferred stock owners.
5. These are investments where shareholders become the owners of the portfolio of the account. These
portfolios of securities could be made up of equity securities or debt securities.
A) Insurances
B) Corporate bonds
C) Pension funds
D) Mutual funds
Transcribed Image Text:1. Which of the following is a function of every financial market? A) It determines the level of interest rates. B) It allows common stock to be traded. C) It allows loans to be made. D) It channels funds from lenders-savers to borrowers-spenders. 2. Securities are for the person who purchases them, but they are for the person/firm who sells them. A) assets; liabilities B) liabilities; assets C) income; liabilities D) liabilities; expenses 3. Which of the following is/are money market instrument(s)? A) Negotiable certificates of deposits B) Common stock C) T-bonds D) 4-year maturity corporate bond 4. Who has voting rights at a shareholders' meeting? A) All common stock owners. B) Common stock owners who own more than 1% of the company. C) Only the company's managers. D) All preferred stock owners. 5. These are investments where shareholders become the owners of the portfolio of the account. These portfolios of securities could be made up of equity securities or debt securities. A) Insurances B) Corporate bonds C) Pension funds D) Mutual funds
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