Test Bank for Foundations of Finance 17th Edition by Arthur J. Keown. ISBN NO;0134417526.pdf

DOWNLOAD THE Test Bank for Foundations of Finance 9th Edition Keown
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FoundationsgofgFinance,g9eg(Keown/Martin/Petty)
Chapterg2g g ThegFinancialgMarketsgandgInterestgRates

LearninggObjectiveg2.1

1) Commongstockgisgconsideredgagshort-termgsecuritygbecausegitghasgnogmaturitygdategandgaglong-
termgsecuritygisgonegwithgagmaturitygdategofgmoregthangonegyear.
Answer:g FALSE
Diff:g1
PagegRef:g23gKeywo
rds:g Long-
termgCapitalgLearninggObj.:g L
.O.g2.1gAACSB:g ReflectivegThi
nking

2) Savinggsurplusgunitsgincludegindividualsgandggovernments,gbutgnotgcorporations
.gAnswer:g FALSE
Diff:g1 PagegRef:g24
Keywords:g CapitalgMarkets,gSavingsgSurplusgUnits
gLearninggObj.:g L.O.g2.1

AACSB:g ReflectivegThinking

3) Individuals,gcorporations,gandggovernmentsgcangbegeithergsavingsgdeficitgunitsgorgsavingsgsurplusgunits
.gAnswer:g TRUE
Diff:g1 PagegRef:g24
Keywords:g CapitalgMarkets,gSavingsgSurplusgUnits,gSavingsgDeficitg
LearninggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking

4) Agcorporationgneedinggcashgsellsgsecuritiesgtoginvestorsgingthegsecondarygmarket
.gAnswer:g FALSE
Diff:g1
PagegRef:g26gKeywo
rds:g SecondarygMarketgLearni
nggObj.:g L.O.g2.1gAACSB:g Re
flectivegThinking

5) PartgofgthegU.S.gGovernment'sghugegdeficitgisgfinancedgbygforeigngcountries,gsuchgasgChina,gwhichgisg
agsavingsgsurplusgunit.
Answer:g TRUE
Diff:g1 PagegRef:g24
Keywords:g CapitalgMarkets,gSavingsgSurplusgUnits
gLearninggObj.:g L.O.g2.1

AACSB:g Diversegandgmulticulturalgworkgenvironments

6) Venturegcapitalistsgtypicallygprovidegfundsgtoghigh-
riskgstartupgcompaniesgbutgtakegnogactivegrolegingtheirgmanagement.
Answer:g FALSE
Diff:g1
PagegRef:g25,g26gKey
words:g VenturegCapitalistgLe

1
Copyrightg©g2017gPearsongEducation,gInc.
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,DOWNLOAD THE Test Bank for Foundations of Finance 9th Edition Keown
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arninggObj.:g L.O.g2.1gAACSB:
g ReflectivegThinking




2
Copyrightg©g2017gPearsongEducation,gInc.
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,DOWNLOAD THE Test Bank for Foundations of Finance 9th Edition Keown
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7) Seasonedgsecondarygofferingsgoccurgingthegsecondarygmarket.
gAnswer:g FALSE

Diff:g1 PagegRef:g26
Keywords:g SeasonedgSecondarygOffering,gSecondarygMarketgLearni
nggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking

8) Capitalgmarketsgaregallgthegfinancialginstitutionsgthatghelpgagbusinessgraiseglong-
termgcapital.gAnswer:g TRUE
Diff:g1
PagegRef:g23gKeyw
ords:g CapitalgMarketsgLearn
inggObj.:g L.O.g2.1gAACSB:g
ReflectivegThinking

9) Transactionsgingthegfuturesgmarketsginvolvegcurrentgpaymentsgforggoodsgwhichgwillgbegdeliveredga
tgsomegfuturegagreedgupongdate.
Answer:g FALSE
Diff:g1
PagegRef:g27gKeyw
ords:g FuturesgMarketgLearni
nggObj.:g L.O.g2.1gAACSB:g R
eflectivegThinking

10) Organizedgstockgexchangesgprovidegthegbenefitsgofgagcontinuousgmarket,gfairgsecuritygpricing,gan
dghelpinggbusinessesgraisegnewgcapital.
Answer:g TRUE
Diff:g1 PagegRef:g28
Keywords:g OrganizedgStockgExchangesgL
earninggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking

11) Ongthegbasisgofgnumbergofgsharesgtraded,gmoregstocksgaregtradedgovergthegcountergthangongorganize
dgexchanges.
Answer:g TRUE
Diff:g1 PagegRef:g27
Keywords:g OrganizedgStockgExchanges,gOver-The-
CountergMarketsgLearninggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking

12) StocksglistedgongthegNewgYorkgStockgExchangegmustgbegtradedgexclusivelygongthegNYSEgingordergt
ogmaintaingtheghighgstandardsgsetgbygthegexchange.
Answer:g FALSE
Diff:g1 PagegRef:g28
Keywords:g NewgYorkgStockgExchange,gNYSEgLear
ninggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking




3
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store

, DOWNLOAD THE Test Bank for Foundations of Finance 9th Edition Keown
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13) OnegadvantagegofgbeingglistedgongthegNYSEgisgthatgallgtradesgaregmadegingangauctiongsettinggwithgface
-gto-facegtradinggbetweengindividualsgongthegfloorgofgthegstockgexchange.
Answer:g FALSE
Diff:g1 PagegRef:g28
Keywords:g NewgYorkgStockgExchange,gNYSEgLear
ninggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking

14) Onegadvantagegofgorganizedgstockgexchangesgisgincreasedgstockgpricegvolatilitygresultinggfromgth
egefficientgexchangegofgpricingginformation.
Answer:g FALSE
Diff:g2 PagegRef:g28
Keywords:g StockgExchange,gPricegVolatilitygLearni
nggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking

15) Threegwaysgthatgsavingsgcangbegtransferredgthroughgthegfinancialgmarketsgtogthosegingneedgofgfund
sgincludegdirectgtransfers,gindirectgtransfersgusinggtheginvestmentgbanker,gandgindirectgtransfersgusinggt
hegfinancialgintermediary.
Answer:g TRUE
Diff:g1 PagegRef:g24
Keywords:g CapitalgMarkets,gDirectgTransfer,gIndirectgTransfergLear
ninggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking

16) Flotationgcostsgaregtypicallyggreatergingthegsecondarygmarketgthangingthegprimarygmarket
.gAnswer:g FALSE
Diff:g1 PagegRef:g26
Keywords:g FlotationgCosts,gSecondarygMarket,gPrimarygMarketgLea
rninggObj.:g L.O.g2.1
AACSB:g ReflectivegThinking

17) Eachgpurchasegoccurringgingthegsecondarygmarketsgincreasesgthegtotalgstockgofgfinancialgassetsgtha
tgexistgingthegeconomy.
Answer:g FALSE
Diff:g1
PagegRef:g26gKeywo
rds:g SecondarygMarketgLearni
nggObj.:g L.O.g2.1gAACSB:g Re
flectivegThinking

18) Thegmoneygmarketgincludesgtransactionsgingshort-
termgfinancialginstruments.gAnswer:g TRUE
Diff:g1
PagegRef:g27gKeyw
ords:g MoneygMarketgLearni
nggObj.:g L.O.g2.1gAACSB:g R
eflectivegThinking




4
Copyrightg©g2017gPearsongEducation,gInc.
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