18- which of the statements given below is false? Please select one; a) a financial intermediary borrows funds from people who have saved b) in a bull market stock prices are rising on average c) interest rates can be accurately described as the rental price of money d) a stock is a debt security that promises to make periodic payments for a specific period of time e) banks are financial intermediaries that accept deposits and make loans

18- which of the statements given below is false? Please select one; a) a financial intermediary borrows funds from people who have saved b) in a bull market stock prices are rising on average c) interest rates can be accurately described as the rental price of money d) a stock is a debt security that promises to make periodic payments for a specific period of time e) banks are financial intermediaries that accept deposits and make loans

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

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Banks use gap analysis to measure interest rate risk in their balance sheets. If firm XYZ is said to have a positive gap, this means: Group of answer choices C. Rate-sensitive assets exceed rate-sensitive liabilities B. Long-term assets are funded with short-term liabilities D. Rate-sensitive assets equal rate-sensitive liabilities A. Liabilities reprice before assets
24. Financial institutions that cut back on their lending are engaged in A) liability management B) deleveraging C) financial innovation. D) torsion control 25. Instruments which provide payments to holders of bonds in the event of default are known as A) collateralized bond obligations B) tertiary payment devices C) credit default swaps D) mortgage-backed securities
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Page 6 of 14 d) State True or False for each of the following statements (: o Every financial market allows loans to be made. An example of direct financing is if you were to lend money to your neighbour. The New York Stock Exchange is an example of a primary market. Commercial paper is not traded in the capital market. Eurodollars are traded in the money market. The process of financial intermediation is also known as direct finance. A mutual fund is not a depository institution. A pension fund is not a contractual savings institution. Activate Window Go to Settings to activa Hide screen. Stop sharing D Focus | 国尾
26.Which of the following statements is/are not false?Statement 1: Bank Drafts are commitments by banking institutions to advance funds on demand by the party to whom the drafts was directed.Statement 2: Financial Assets is a contractual obligation to deliver cash or another financial asset to another entity. Statement 3: Examples of equity instruments are ordinary shares, preference shares, and warrants.Statement 4: Derivatives derive their value on contractually required cash flows from some other security or index and is not considered as financial instrument. a. Statement 1 and Statement 2 b. Statement 2 and Statement 3 c. Statement 1 and Statement 3 d. Statement 2 and Statement 4
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Which of the following is not a money market instrument? a.Equity Shares b.Treasury Bills c.Certificate of Deposits d.Commercial Paper **reply fast plz -
7- which of the statements given below is true? Please select one; a) every financial market allows loans to be made b) The New York Stock Exchange is an example of a primary market c) the capital market is a financial market in which only short term debt instruments (generally those with an original maturity of less than one year) are traded d) a pansion fund is not a contractual savings instution e) in the US financial intermediaries are restricted in what they are allowed to do and what assets m m they can hold
D3 These statements are True or False? Please explain. 1. The role performed by banks in which thay stand behind their customers when those customers are unable to pay a debt obligation is known as the discounting valuable paper role. 2. Collaterals should be considered as the primary resource to pay off the loans
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