AFM 121 - MIDTERM MULTIPLE CHOICE EXAM QUESTIONS
AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
Which of the following derive their value from the value of an asset
a) Stocks
B) Bonds
c) Currency
d) Derivative
D) derivative
The Canadian Depository for Securities (CDS) is involved in the clearing of stock
trades? What does clearing actually mean?
a) ensuring that the stock trade has been legally entered into
b) providing finacing to the buyer of the stock facilitate the purchase
c) settling the stock trade between the buyer and seller
d) investigating whether there were any unethical issues relating to the sale or
purchase of the stock
Settling the stock trade between the buyer and seller
Which of the following is likely to decrease capital flows between investors and
recipients of capital
a) educated labor force
b) positive economic trends
, c) unstable political environment
d) low interest rates
Unstable political environment
Which country does not have a federal/national securities regulator?
a) united states
b) canada
c) germany
d) united kingdom
Germany
Canada pension plan investment board is not which of the following
a) an institutional investor
b) an entity that sets fiscal policy
c) a firm that hires waterloo students
d) a financial intermediary
an entity that sets fiscal policy
What is the possible risk to a bank "borrowing short and lending long"
a) long term interest rates remain stable while short term interest rates decrease
b) long term interest rates decrease while short term intest rates increase
c) long term interest rates increase while short term interest rates remain stable
d) interest rates are irrelevant to this question
long term interest rates decrease while short term interest rates increase
Which of the following is an example of a capital market that is efficient?
a) low interest
AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
Which of the following derive their value from the value of an asset
a) Stocks
B) Bonds
c) Currency
d) Derivative
D) derivative
The Canadian Depository for Securities (CDS) is involved in the clearing of stock
trades? What does clearing actually mean?
a) ensuring that the stock trade has been legally entered into
b) providing finacing to the buyer of the stock facilitate the purchase
c) settling the stock trade between the buyer and seller
d) investigating whether there were any unethical issues relating to the sale or
purchase of the stock
Settling the stock trade between the buyer and seller
Which of the following is likely to decrease capital flows between investors and
recipients of capital
a) educated labor force
b) positive economic trends
, c) unstable political environment
d) low interest rates
Unstable political environment
Which country does not have a federal/national securities regulator?
a) united states
b) canada
c) germany
d) united kingdom
Germany
Canada pension plan investment board is not which of the following
a) an institutional investor
b) an entity that sets fiscal policy
c) a firm that hires waterloo students
d) a financial intermediary
an entity that sets fiscal policy
What is the possible risk to a bank "borrowing short and lending long"
a) long term interest rates remain stable while short term interest rates decrease
b) long term interest rates decrease while short term intest rates increase
c) long term interest rates increase while short term interest rates remain stable
d) interest rates are irrelevant to this question
long term interest rates decrease while short term interest rates increase
Which of the following is an example of a capital market that is efficient?
a) low interest
