DOWNLOAD THE Test Bank for Essentials of Investments 11th Edition Bodie
v v v v v v v v v v
EssentialsvofvInvestments,v11ev(Bodie)
Chapterv2 AssetvClassesvandvFinancialvInstruments
1) Whichvofvthevfollowingvisvnotvavmoneyvmarketvinstrument?
A) Treasuryvbill
B) commercialvpaper
C) preferredvstock
D) bankers'vacceptance
2) T-billsvarevissuedvwithvinitialvmaturitiesvof:
I. 4vweeks
II. 16vweeks
III. 26vweeks
IV. 32vweeks
A) IvandvIIvonly
B) IvandvIIIvonly
C) I,vII,vandvIIIvonly
D) I,vII,vIII,vandvIV
3) Whenvcomputingvthevbankvdiscountvyield,vyouvwouldvuse
daysvinvthevyear.vA)v260
B)v360
C)v365
D)v366
4) Avdollar-denominatedvdepositvatvavLondonvbankvisvcalled .
A) eurodollars
B) LIBOR
C) fedvfunds
D) bankers'vacceptance
5) Moneyvmarketvsecuritiesvarevsometimesvreferredvtovasvcashvequivalentsvbecause .
A) theyvarevsafevandvmarketable
B) theyvarevnotvliquid
C) theyvarevhigh-risk
D) theyvarevlow-denomination
6) Thevmostvmarketablevmoneyvmarketvsecurityvis .
A) Treasuryvbills
B) bankers'vacceptances
C) certificatesvofvdeposit
D) commonvstock
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7) Thevminimumvtickvsize,vorvspreadvbetweenvpricesvinvthevTreasuryvbondvmarket,vis
A) 1/8vofvavpoint.
B) 1/16vofvavpoint.
C) 1/32vofvavpoint.
D) 1/128vofvavpoint.
8) AnvinvestorvinvavT-billvearnsvinterestvby .
A) receivingvinterestvpaymentsveveryv90vdays
B) receivingvdividendvpaymentsveveryv30vdays
C) convertingvthevT-billvatvmaturityvintovavhigher-valuedvT-note
D) buyingvthevbillvatvavdiscountvfromvthevfacevvaluevtovbevreceivedvatvmaturity
9) v wouldvnotvbevincludedvinvthevEAFEvindex.
A) Australia
B) Canada
C) France
D) Japan
10) v isvconsideredvtovbevanvemergingvmarketvcountry.
A) France
B) Norway
C) Brazil
D) Canada
11) Whichvonevofvthevfollowingvisvavtruevstatement?
A) Dividendsvonvpreferredvstocksvarevtax-
deductiblevtovindividualvinvestorsvbutvnotvtovcorporatevinvestors.
B) Commonvdividendsvcannotvbevpaidvifvpreferredvdividendsvarevinvarrearsvonvcumulativevp
referredvstock.
C) Preferredvstockholdersvhavevvotingvpower.
D) Investorsvcanvsuevmanagersvforvnonpaymentvofvpreferredvdividends.
12) ThevbidvpricevofvavTreasuryvbillvis .
A) thevpricevatvwhichvthevdealervinvTreasuryvbillsvisvwillingvtovsellvthevbill
B) thevpricevatvwhichvthevdealervinvTreasuryvbillsvisvwillingvtovbuyvthevbill
C) greatervthanvthevaskvpricevofvthevTreasuryvbillvexpressedvinvdollarvterms
D) thevpricevatvwhichvthevinvestorvcanvbuyvthevTreasuryvbill
13) ThevGermanvstockvmarketvisvmeasuredvbyvwhichvmarketvindex?
A) FTSE
B) DowvJonesv30
C) DAX
D) Nikkei
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14) DepositsvofvcommercialvbanksvatvthevFederalvReservevarevcalled .
A) bankers'vacceptances
B) federalvfunds
C) repurchasevagreements
D) timevdeposits
15) Whichvofvthevfollowingvisvnotvavtruevstatementvregardingvmunicipalvbonds?
A) Avmunicipalvbondvisvavdebtvobligationvissuedvbyvstatevorvlocalvgovernments.
B) Avmunicipalvbondvisvavdebtvobligationvissuedvbyvthevfederalvgovernment.
C) Thevinterestvincomevfromvavmunicipalvbondvisvexemptvfromvfederalvincomevtaxation.
D) Thevinterestvincomevfromvavmunicipalvbondvisvexemptvfromvstatevandvlocalvtaxationvinvthevi
ssuingvstate.
16) Whichvofvthevfollowingvisvnotvavcharacteristicvofvavmoneyvmarketvinstrument?
A) liquidity
B) marketability
C) lowvrisk
D) maturityvgreatervthanv1vyear
17) Anvindividualvwhovgoesvshortvinvavfuturesvposition .
A) commitsvtovdeliveringvthevunderlyingvcommodityvatvcontractvmaturity
B) commitsvtovpurchasingvthevunderlyingvcommodityvatvcontractvmaturity
C) hasvthevrightvtovdelivervthevunderlyingvcommodityvatvcontractvmaturity
D) hasvthevrightvtovpurchasevthevunderlyingvcommodityvatvcontractvmaturity
18) Whichvofvthevfollowingvisvnotvavnicknamevforvanvagencyvassociatedvwithvthevmortgagev
markets?
A) FannievMae
B) FreddievMac
C) SallievMae
D) GinnievMae
19) Commercialvpapervisvavshort-termvsecurityvissuedvby tovraisevfunds.
A) thevFederalvReserve
B) thevNewvYorkvStockvExchange
C) largevwell-knownvcompanies
D) allvofvthesevoptions
20) Thevmaximumvmaturityvonvcommercialvpapervis .
A) 270vdays
B) 180vdays
C) 90vdays
D) 30vdays
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21) WhichvonevofvthevfollowingvisvavtruevstatementvregardingvthevDowvJonesvIndustrialvAverage?
A) Itvisvavvalue-weightedvaveragevofv30vlargevindustrialvstocks.
B) Itvisvavprice-weightedvaveragevofv30vlargevindustrialvstocks.
C) Itvisvavprice-weightedvaveragevofv100vlargevstocksvtradedvonvthevNewvYorkvStockvExchange.
D) Itvisvavvalue-weightedvaveragevofvallvstocksvtradedvonvthevNewvYorkvStockvExchange.
22) Treasuryvbillsvarevfinancialvinstrumentsvissuedvby tovraisevfunds.
A) commercialvbanks
B) thevfederalvgovernment
C) largevcorporations
D) statevandvcityvgovernments
23) WhichvofvthevfollowingvarevtruevstatementsvaboutvT-bills?
I. T-billsvtypicallyvsellvinvdenominationsvofv$10,000.
II. IncomevearnedvonvT-billsvisvexemptvfromvallvfederalvtaxes.
III. IncomevearnedvonvT-billsvisvexemptvfromvstatevandvlocalvtaxes.
A) Ivonly
B) IvandvIIvonly
C) IvandvIIIvonly
D) I,vII,vandvIII
24) Avbondvthatvhasvnovcollateralvisvcalledva .
A) callablevbond
B) debenture
C) junkvbond
D) mortgage
25) A
givesvitsvholdervthevrightvtovsellvanvassetvforvavspecifiedvexercisevpricevonvorvbeforevavspecif
iedvexpirationvdate.
A) callvoption
B) futuresvcontract
C) putvoption
D) interestvratevswap
26) AvT-billvquotevsheetvhasv90-dayvT-billvquotesvwithvav4.92vaskvandvav4.86vbid.vIfvthevbillvhasva
$10,000vfacevvalue,vanvinvestorvcouldv sellvthisvbillvfor
.v
A)v$10,000
B)v$9,878.50
C)v$9,877
D)v$9,880.16
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v v v v v v v v v v
EssentialsvofvInvestments,v11ev(Bodie)
Chapterv2 AssetvClassesvandvFinancialvInstruments
1) Whichvofvthevfollowingvisvnotvavmoneyvmarketvinstrument?
A) Treasuryvbill
B) commercialvpaper
C) preferredvstock
D) bankers'vacceptance
2) T-billsvarevissuedvwithvinitialvmaturitiesvof:
I. 4vweeks
II. 16vweeks
III. 26vweeks
IV. 32vweeks
A) IvandvIIvonly
B) IvandvIIIvonly
C) I,vII,vandvIIIvonly
D) I,vII,vIII,vandvIV
3) Whenvcomputingvthevbankvdiscountvyield,vyouvwouldvuse
daysvinvthevyear.vA)v260
B)v360
C)v365
D)v366
4) Avdollar-denominatedvdepositvatvavLondonvbankvisvcalled .
A) eurodollars
B) LIBOR
C) fedvfunds
D) bankers'vacceptance
5) Moneyvmarketvsecuritiesvarevsometimesvreferredvtovasvcashvequivalentsvbecause .
A) theyvarevsafevandvmarketable
B) theyvarevnotvliquid
C) theyvarevhigh-risk
D) theyvarevlow-denomination
6) Thevmostvmarketablevmoneyvmarketvsecurityvis .
A) Treasuryvbills
B) bankers'vacceptances
C) certificatesvofvdeposit
D) commonvstock
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v v v v v v v v v v
7) Thevminimumvtickvsize,vorvspreadvbetweenvpricesvinvthevTreasuryvbondvmarket,vis
A) 1/8vofvavpoint.
B) 1/16vofvavpoint.
C) 1/32vofvavpoint.
D) 1/128vofvavpoint.
8) AnvinvestorvinvavT-billvearnsvinterestvby .
A) receivingvinterestvpaymentsveveryv90vdays
B) receivingvdividendvpaymentsveveryv30vdays
C) convertingvthevT-billvatvmaturityvintovavhigher-valuedvT-note
D) buyingvthevbillvatvavdiscountvfromvthevfacevvaluevtovbevreceivedvatvmaturity
9) v wouldvnotvbevincludedvinvthevEAFEvindex.
A) Australia
B) Canada
C) France
D) Japan
10) v isvconsideredvtovbevanvemergingvmarketvcountry.
A) France
B) Norway
C) Brazil
D) Canada
11) Whichvonevofvthevfollowingvisvavtruevstatement?
A) Dividendsvonvpreferredvstocksvarevtax-
deductiblevtovindividualvinvestorsvbutvnotvtovcorporatevinvestors.
B) Commonvdividendsvcannotvbevpaidvifvpreferredvdividendsvarevinvarrearsvonvcumulativevp
referredvstock.
C) Preferredvstockholdersvhavevvotingvpower.
D) Investorsvcanvsuevmanagersvforvnonpaymentvofvpreferredvdividends.
12) ThevbidvpricevofvavTreasuryvbillvis .
A) thevpricevatvwhichvthevdealervinvTreasuryvbillsvisvwillingvtovsellvthevbill
B) thevpricevatvwhichvthevdealervinvTreasuryvbillsvisvwillingvtovbuyvthevbill
C) greatervthanvthevaskvpricevofvthevTreasuryvbillvexpressedvinvdollarvterms
D) thevpricevatvwhichvthevinvestorvcanvbuyvthevTreasuryvbill
13) ThevGermanvstockvmarketvisvmeasuredvbyvwhichvmarketvindex?
A) FTSE
B) DowvJonesv30
C) DAX
D) Nikkei
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v v v v v v v v v v
14) DepositsvofvcommercialvbanksvatvthevFederalvReservevarevcalled .
A) bankers'vacceptances
B) federalvfunds
C) repurchasevagreements
D) timevdeposits
15) Whichvofvthevfollowingvisvnotvavtruevstatementvregardingvmunicipalvbonds?
A) Avmunicipalvbondvisvavdebtvobligationvissuedvbyvstatevorvlocalvgovernments.
B) Avmunicipalvbondvisvavdebtvobligationvissuedvbyvthevfederalvgovernment.
C) Thevinterestvincomevfromvavmunicipalvbondvisvexemptvfromvfederalvincomevtaxation.
D) Thevinterestvincomevfromvavmunicipalvbondvisvexemptvfromvstatevandvlocalvtaxationvinvthevi
ssuingvstate.
16) Whichvofvthevfollowingvisvnotvavcharacteristicvofvavmoneyvmarketvinstrument?
A) liquidity
B) marketability
C) lowvrisk
D) maturityvgreatervthanv1vyear
17) Anvindividualvwhovgoesvshortvinvavfuturesvposition .
A) commitsvtovdeliveringvthevunderlyingvcommodityvatvcontractvmaturity
B) commitsvtovpurchasingvthevunderlyingvcommodityvatvcontractvmaturity
C) hasvthevrightvtovdelivervthevunderlyingvcommodityvatvcontractvmaturity
D) hasvthevrightvtovpurchasevthevunderlyingvcommodityvatvcontractvmaturity
18) Whichvofvthevfollowingvisvnotvavnicknamevforvanvagencyvassociatedvwithvthevmortgagev
markets?
A) FannievMae
B) FreddievMac
C) SallievMae
D) GinnievMae
19) Commercialvpapervisvavshort-termvsecurityvissuedvby tovraisevfunds.
A) thevFederalvReserve
B) thevNewvYorkvStockvExchange
C) largevwell-knownvcompanies
D) allvofvthesevoptions
20) Thevmaximumvmaturityvonvcommercialvpapervis .
A) 270vdays
B) 180vdays
C) 90vdays
D) 30vdays
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v v v v v v v v v v
21) WhichvonevofvthevfollowingvisvavtruevstatementvregardingvthevDowvJonesvIndustrialvAverage?
A) Itvisvavvalue-weightedvaveragevofv30vlargevindustrialvstocks.
B) Itvisvavprice-weightedvaveragevofv30vlargevindustrialvstocks.
C) Itvisvavprice-weightedvaveragevofv100vlargevstocksvtradedvonvthevNewvYorkvStockvExchange.
D) Itvisvavvalue-weightedvaveragevofvallvstocksvtradedvonvthevNewvYorkvStockvExchange.
22) Treasuryvbillsvarevfinancialvinstrumentsvissuedvby tovraisevfunds.
A) commercialvbanks
B) thevfederalvgovernment
C) largevcorporations
D) statevandvcityvgovernments
23) WhichvofvthevfollowingvarevtruevstatementsvaboutvT-bills?
I. T-billsvtypicallyvsellvinvdenominationsvofv$10,000.
II. IncomevearnedvonvT-billsvisvexemptvfromvallvfederalvtaxes.
III. IncomevearnedvonvT-billsvisvexemptvfromvstatevandvlocalvtaxes.
A) Ivonly
B) IvandvIIvonly
C) IvandvIIIvonly
D) I,vII,vandvIII
24) Avbondvthatvhasvnovcollateralvisvcalledva .
A) callablevbond
B) debenture
C) junkvbond
D) mortgage
25) A
givesvitsvholdervthevrightvtovsellvanvassetvforvavspecifiedvexercisevpricevonvorvbeforevavspecif
iedvexpirationvdate.
A) callvoption
B) futuresvcontract
C) putvoption
D) interestvratevswap
26) AvT-billvquotevsheetvhasv90-dayvT-billvquotesvwithvav4.92vaskvandvav4.86vbid.vIfvthevbillvhasva
$10,000vfacevvalue,vanvinvestorvcouldv sellvthisvbillvfor
.v
A)v$10,000
B)v$9,878.50
C)v$9,877
D)v$9,880.16
4
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NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.
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