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FINANCE 3315 EXAM 2 2026
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
1. Which of the following statements concerning mortgage
backed securities are correct? - correct answer-They are
secured by a pool of residential mortgages., A portion of the
income stream is a non taxable return of capital., Their
maturity depends on prepayments of the mortgages in the
pool.
2. A bond quoted at a price of 101.2 - correct answer-has a
coupon rate that exceeds the market rate.
3. A U.S. investor who holds euro denominated bonds will profit
if the euro weakens against the dollar.− - correct answer-
FALSE
4. If the front month is January, then stock options that trade in
the January cycle will have contracts available that expire in -
correct answer-January, February, April, and July.
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5. A normal yield curve is flat or downward sloping. - correct
answer-FALSE
6. The maximum loss on a futures contract is the price paid for
the contract. - correct answer-FALSE
7. Mutual fund fees are disclosed in the fund prospectus. -
correct answer-TRUE
8. Evidence suggests that the price of a stock continues to
move up or down for a period of - correct answer-6 to 12
months.
9. The rapid decline in value and near collapse of the Mortgage
Backed Security market in 2007 2008 was initiated by -
correct answer-a decline in real estate values.
10. Municipal bonds are most attractive to residents of states
with high income tax rates. - correct answer-TRUE
FINANCE 3315 EXAM 2 2026
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
1. Which of the following statements concerning mortgage
backed securities are correct? - correct answer-They are
secured by a pool of residential mortgages., A portion of the
income stream is a non taxable return of capital., Their
maturity depends on prepayments of the mortgages in the
pool.
2. A bond quoted at a price of 101.2 - correct answer-has a
coupon rate that exceeds the market rate.
3. A U.S. investor who holds euro denominated bonds will profit
if the euro weakens against the dollar.− - correct answer-
FALSE
4. If the front month is January, then stock options that trade in
the January cycle will have contracts available that expire in -
correct answer-January, February, April, and July.
, Page | 2
5. A normal yield curve is flat or downward sloping. - correct
answer-FALSE
6. The maximum loss on a futures contract is the price paid for
the contract. - correct answer-FALSE
7. Mutual fund fees are disclosed in the fund prospectus. -
correct answer-TRUE
8. Evidence suggests that the price of a stock continues to
move up or down for a period of - correct answer-6 to 12
months.
9. The rapid decline in value and near collapse of the Mortgage
Backed Security market in 2007 2008 was initiated by -
correct answer-a decline in real estate values.
10. Municipal bonds are most attractive to residents of states
with high income tax rates. - correct answer-TRUE
