Q&A Hero

Business Development

Q: Treasury strips provide return through:A.increase in value over their life.B.high-dividend yields.C.indexing for inflation.D.changing par value with the passage of time.
Q: For the major bond-rating agencies, the lowest level of an investment grade bond is:A.AA (investment grade includes AAA and AA).B.A (investment grade includes AAA, AA and A).C.BBB (investment grade includes AAA, AA, A, and BBB).D.B (investment grade includes AAA, AA, A, BBB, BB and B).
Q: Which of the following statements about U.S. Treasury securities is true?A.The interest earned on Treasury bills is fully taxable by statesB.All Treasury securities are considered to be risk-freeC.The maturities of Treasury bills, notes, and bonds tend to be differentD.More than one of the above is true
Q: Junk bonds normally provide:A.a higher yield than Treasury bonds.B.a lower yield than Treasury bonds.C.a lower yield than AA corporate bonds.D.More than one of the above is true
Q: A Treasury note normally has a maturity of:A.less than one year.B.1 to 5 years.C.1 to 10 years.D.10 to 30 years.E.30 to 100 years.
Q: A bond with a put provision allows the investor to:A.convert the bond to a specified number of shares of common stock.B.sell the bond back to the corporation at a small premium over par at a specified time period.C.sell the bond back to the corporation at par at a specified time period.D.receive additional interest payments if inflation goes above a specified level.
Q: Foreign bonds normally provide:A.higher yields than U.S. bonds.B.lower yields than U.S. bonds.C.diversification benefits.D.None of the above
Q: The demand side of the bond market is dominated byA.the federal government.B.wealthy individual investors.C.institutional investors.D.None of the above
Q: Which of the following types of bond issues is the most price-sensitive?A.Fixed-rate long-term bondsB.Floating-rate bondsC.Long-term zero-coupon bondsD.Fixed-rate short-term bondsE.Treasury bills
Q: Public utility issues have a greater yield than other corporate issues, primarily because:A.nuclear utility issues carry an extremely high risk premium.B.public utility issues generally have a longer maturity.C.investor demand for utility issues is greater than for other issues.D.utilities' demands for funds is greater than that of other segments.
Q: A legal document which is administered by an independent trustee and spells out the major provisions of a bond agreement is called theA.bond contract.B.bond indenture.C.debenture.D.bond subordination.
Q: The largest segment of the corporate bond market consists ofA.public utilities.B.rails and transportation.C.financial issues.D.industrial issues.
Q: While Treasury bonds and bills are quoted on the basis of price, Treasury notes are quoted on the basis of yield.
Q: Municipal bonds normally pay:A.higher rates than taxable bonds.B.lower rates than taxable bonds.C.the same rate as taxable bonds.D.None of the above
Q: Yankee bonds are issued by foreign governments, corporations, or are traded in the U.S. and denominated (payable) in U.S. dollars.
Q: Foreign-pay bonds are issued in a foreign country and are payable in U.S. dollars.
Q: The most important feature of municipal bonds is:A.the wide range of denominations and maturities.B.that the interest is not taxable by the federal government.C.the risk-free nature of this investment.D.its appeal to investors needing growth.
Q: Money market funds represent a vehicle to buy short-term fixed-income securities through a mutual fund arrangement.
Q: Securities issued by the Federal Farm Credit BankA.are essentially risk-free.B.carry a higher yield than U.S. Treasury securities.C.are fully taxable by federal, state, and local governments.D.All of the above
Q: The bond market is dominated by institutional investors.
Q: In many respects, the bond market appears to demonstrate a high degree of rationality of risk and return.
Q: The dollar volume of new corporate debt issues has exceeded the dollar volume of new corporate equity issues for many years.
Q: A corporation must generally pay taxes on only 30% of the dividends (preferred or common) that it receives from another corporation.
Q: Commercial paper represents a short-term credit instrument.
Q: An investor in a municipal bond will receive 8% interest. He is in a 33% tax bracket. The comparable before-tax yield on a taxable investment is 14%.
Q: Large or jumbo CDs are $100,000 or greater in size.
Q: Interest on federally-sponsored credit agency issues (such as the Federal Home Loan Bank) is not tax-free to the recipient.
Q: There is evidence that the bond market may be less efficient than the stock market.
Q: A Treasury bill is a long-term obligation of the federal government.
Q: Corporate issues make up the largest percentage of new debt offerings in the bond market.
Q: As the yield spread between high and low rating categories increases, this indicates a gain of confidence in the economy.
Q: Income bonds specify that interest is to be paid only to the extent that it is earned in current income.
Q: A bond quote of 91 7/8 on a $1,000 par value bond means the bond is trading at $918.75.
Q: A secured corporate bond is referred to as a debenture.
Q: A split rating means that bond-rating agencies assigned different ratings.
Q: The higher the bond rating of a corporation, the higher the interest rate that is likely to be paid.
Q: An after-acquired clause requires that new property must be placed under the original mortgage.
Q: Private placements refer exclusively to stock issues sold to insurance companies or individuals.
Q: A sinking fund may be used to pay off a perpetual bond.
Q: The bond market investor must be prepared to deal in a relatively strong primary market (new issues market) and a relatively weak secondary market (resale market).
Q: The higher the mutual fund cash position,A.the more likely the market is to go down.B.the more likely the market is to go up.C.the more likely the market is to stay relatively unchanged.D.the higher mutual fund redemptions will be in the future.
Q: The major provisions in the bond agreement are spelled out in the bond debenture.
Q: Preferred stock dividends are tax-deductible to the corporation, and also provide tax advantages to the corporate investor.
Q: Smart money rules or approaches to the market include: A.short sales by specialists. B.the put-call ratio. C.Investment Advisory recommendations. D.the odd-lot theory.
Q: While the stock market has an active secondary market, the bond market consists primarily of investors who buy and hold bond issues to maturity.
Q: Contrary opinion rules or approaches to the market include: A.the odd-lot theory. B.short sales positions by the public. C.the mutual fund cash position. D.A and B
Q: Like the stock market, there is a strong secondary market for bond issues, particularly corporate and municipal bonds.
Q: Under the Dow Theory, all of the following represent trends in the market except: A.daily fluctuations. B.secondary movement. C.primary trends. D.linear trends.
Q: Technical analysis is based on all of the following assumptions except: A.that market value is determined by the interaction of demand and supply. B.that stocks with strong earnings gains will outperform the market. C.the assumption that, though there are minor fluctuations in the market, stock prices tend to move in trends that persist for long periods of time. D.that shifts in demand and supply can be detected sooner or later. E.that reversals of trends are caused by shifts in demand and supply.
Q: Corporate bonds carry a higher yield than government issues, and are fully taxable for federal, state, and local purposes.
Q: A ratio of the total short sales positions on an exchange to average daily exchange volume for the month is normally A.between 0-.5 B.between 1.0-2.0 C.between 2.0-3.0 D.over 3.0
Q: Interest and capital gains on municipal bonds are tax-exempt by the IRS.
Q: Smart Money Rules include: A.Barron's Confidence Index. B.short sales by individuals. C.short sales by specialists. D.Both A and C
Q: An important feature of the GNMA (GinnieMae) pass-through certificate is that there is no principal balance at maturity.
Q: The IRS taxes zero-coupon bonds as if interest were paid annually, even though no cash flow is received until maturity.
Q: The problem in reading charts has always been: A.with the errors that are frequently made in the graphing process. B.understanding the past market movements. C.in analyzing the patterns in such a fashion that they truly predict stock market movements before they unfold. D.None of the above
Q: Income bonds are highly favored by corporations, because they provide the benefits of tax-deductible interest payments, without the contractual obligations of most debt instruments.
Q: The breadth of the market indicator: A.attempts to measure what a broad range of securities is doing as opposed to merely examining a market average. B.can be used to analyze upturns in the market. C.compares the advance-declines with the movement of a popular market average to determine if there is divergence between the two. D.All of the above
Q: A call provision allows the corporation to retire a bond before maturity by paying a small discount below par value.
Q: While the Dow Jones Industrial Average may be weighted toward large firms, a __________ indicator may be used to examine all stocks on an exchange. A.Key B.Contrary opinion C.Breadth of the market D.More than one of the above
Q: Changes in the market rate of interest are reflected in the semiannual interest payments of a variable rate note, while the price remains stable.
Q: As the ratio of specialist short sales to total short sales increases, technicians consider the market to be: A.bullish. B.bearish. C.neutral. D.in the second leg of a bull market.
Q: A low Barron's Confidence Index means that: A.investors prefer stocks to bonds. B.the yield on bonds is greater than that on stock. C.low-quality bonds have returns much higher than high-quality bonds. D.low-quality bonds have returns slightly higher than high-quality bonds.
Q: A breadth of the market indicator attempts to measure what a broad range of securities is doing as opposed to merely examining a market average.
Q: All of the following are smart money rules except: A.investment advisory recommendations. B.short sales by specialists. C.Barron's Confidence Index. D.None of the above are exceptions
Q: The Barron's Confidence Index is used to observe the trading pattern of investors in the stock market.
Q: The essence of the contrary opinion rule is that it is easier to figure out who is right than who is wrong.
Q: Volume of short sales represents a contrary opinion rule, because: A.short sellers generally do not know what they are doing. B.short sellers tend to overreact. C.short sales generate potential demand for stocks. D.More than one of the above
Q: The ____________ suggests watching the small investor, who is right most of the time but misses key market turns, and then doing the opposite. A.contrary opinion rule B.odd-lot theory C.greed index D.None of the above
Q: Chartists carefully read point and figure charts to observe market patterns (where there is support, resistance, breakouts, congestion, and so on).
Q: The Dow Theory maintains that there are three major fluctuations in the market: daily fluctuations, weekly fluctuations, and yearly fluctuations.
Q: The essence of _______ is to determine whose judgment about the market is wrong. A.key indicators B.smart money rules C.contrary opinion rules D.None of the above
Q: A point and figure chart is used to demonstrate: A.advances and declines of stock prices. B.high, low, and closing price on a daily basis. C.changes of two points or more. D.More than one of the above
Q: High mutual fund cash positions would represent withdrawal from the market and thus a possible future market decline.
Q: A high ratio of specialist short sales compared to exchange short sales is interpreted as bearish.
Q: A bar chart is used to demonstrate: A.advances and declines of stock prices. B.high, low, and closing stock price on a daily basis. C.changes of two points or more. D.More than one of the above
Q: Barron's Confidence Index has only a mixed record of success.
Q: According to the Dow Theory, daily fluctuations and secondary movements in the market are used to help identify: A.a key indicator. B.a primary trend. C.shifts in demand and supply. D.More than one of the above
Q: Investment advisory recommendations are part of the smart money rules.
Q: The Dow Theory uses _________ to follow three major types of market movements. A.charting B.key indicators C.fundamental analysis D.None of the above
1 2 3 … 923

Subjects

Accounting Anthropology Archaeology Art History Banking Biology & Life Science Business Business Communication Business Development Business Ethics Business Law Chemistry Communication Computer Science Counseling Criminal Law Curriculum & Instruction Design Earth Science Economic Education Engineering Finance History & Theory Humanities Human Resource International Business Investments & Securities Journalism Law Management Marketing Medicine Medicine & Health Science Nursing Philosophy Physic Psychology Real Estate Science Social Science Sociology Special Education Speech Visual Arts