Test Bank for Foundations of Finance 24th Edition by Arthur J. Keown. ISBN NO;0134417526.pdf

DOWNLOAD THE Test Bank for Foundations of Finance 9th Edition Keown
n n n n n n n n n n




FoundationsnofnFinance,n9en(Keown/Martin/Petty)
Chaptern2n n ThenFinancialnMarketsnandnInterestnRates

LearningnObjectiven2.1

1) Commonnstocknisnconsiderednanshort-termnsecuritynbecausenitnhasnnonmaturityndatenandnanlong-
termnsecuritynisnonenwithnanmaturityndatenofnmorenthannonenyear.
Answer:n FALSE
Diff:n1
PagenRef:n23nKeywo
rds:n Long-
termnCapitalnLearningnObj.:n L
.O.n2.1nAACSB:n ReflectivenTh
inking

2) Savingnsurplusnunitsnincludenindividualsnandngovernments,nbutnnotncorporations
.nAnswer:n FALSE
Diff:n1 PagenRef:n24
Keywords:n CapitalnMarkets,nSavingsnSurplusnUnit
snLearningnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

3) Individuals,ncorporations,nandngovernmentsncannbeneithernsavingsndeficitnunitsnornsavingsnsurplusnunit
s.nAnswer:n TRUE
Diff:n1 PagenRef:n24
Keywords:n CapitalnMarkets,nSavingsnSurplusnUnits,nSavingsnDeficitn
LearningnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

4) Ancorporationnneedingncashnsellsnsecuritiesntoninvestorsninnthensecondarynmarket
.nAnswer:n FALSE
Diff:n1
PagenRef:n26nKeywo
rds:n SecondarynMarketnLearni
ngnObj.:n L.O.n2.1nAACSB:n Re
flectivenThinking

5) PartnofnthenU.S.nGovernment'snhugendeficitnisnfinancednbynforeignncountries,nsuchnasnChina,nwhichnisn
ansavingsnsurplusnunit.
Answer:n TRUE
Diff:n1 PagenRef:n24
Keywords:n CapitalnMarkets,nSavingsnSurplusnUnit
snLearningnObj.:n L.O.n2.1
AACSB:n Diversenandnmulticulturalnworknenvironments

6) Venturencapitalistsntypicallynprovidenfundsntonhigh-
risknstartupncompaniesnbutntakennonactivenroleninntheirnmanagement.
Answer:n FALSE
Diff:n1
PagenRef:n25,n26nKey
words:n VenturenCapitalistnLe

1
Copyrightn©n2017nPearsonnEducation,nInc
.
mynursytest.store

,DOWNLOAD THE Test Bank for Foundations of Finance 9th Edition Keown
n n n n n n n n n n




arningnObj.:n L.O.n2.1nAACSB:
n ReflectivenThinking




2
Copyrightn©n2017nPearsonnEducation,nInc
.
mynursytest.store

,DOWNLOAD THE Test Bank for Foundations of Finance 9th Edition Keown
n n n n n n n n n n




7) Seasonednsecondarynofferingsnoccurninnthensecondarynmarket
.nAnswer:n FALSE
Diff:n1 PagenRef:n26
Keywords:n SeasonednSecondarynOffering,nSecondarynMarketnLearni
ngnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

8) Capitalnmarketsnarenallnthenfinancialninstitutionsnthatnhelpnanbusinessnraisenlong-
termncapital.nAnswer:n TRUE
Diff:n1
PagenRef:n23nKeyw
ords:n CapitalnMarketsnLear
ningnObj.:n L.O.n2.1nAACSB:n
ReflectivenThinking

9) Transactionsninnthenfuturesnmarketsninvolvencurrentnpaymentsnforngoodsnwhichnwillnbendeliveredn
atnsomenfuturenagreednuponndate.
Answer:n FALSE
Diff:n1
PagenRef:n27nKeyw
ords:n FuturesnMarketnLearn
ingnObj.:n L.O.n2.1nAACSB:n
ReflectivenThinking

10) Organizednstocknexchangesnprovidenthenbenefitsnofnancontinuousnmarket,nfairnsecuritynpricing,nan
dnhelpingnbusinessesnraisennewncapital.
Answer:n TRUE
Diff:n1 PagenRef:n28
Keywords:n OrganizednStocknExchangesnL
earningnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

11) Onnthenbasisnofnnumbernofnsharesntraded,nmorenstocksnarentradednovernthencounternthannonnorganize
dnexchanges.
Answer:n TRUE
Diff:n1 PagenRef:n27
Keywords:n OrganizednStocknExchanges,nOver-The-
CounternMarketsnLearningnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

12) StocksnlistednonnthenNewnYorknStocknExchangenmustnbentradednexclusivelynonnthenNYSEninnordernt
onmaintainnthenhighnstandardsnsetnbynthenexchange.
Answer:n FALSE
Diff:n1 PagenRef:n28
Keywords:n NewnYorknStocknExchange,nNYSEnLear
ningnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking




3
Copyrightn©n2017nPearsonnEducation,nInc
.
mynursytest.store

, DOWNLOAD THE Test Bank for Foundations of Finance 9th Edition Keown
n n n n n n n n n n




13) OnenadvantagenofnbeingnlistednonnthenNYSEnisnthatnallntradesnarenmadeninnannauctionnsettingnwithnfac
e-nto-facentradingnbetweennindividualsnonnthenfloornofnthenstocknexchange.
Answer:n FALSE
Diff:n1 PagenRef:n28
Keywords:n NewnYorknStocknExchange,nNYSEnLear
ningnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

14) Onenadvantagenofnorganizednstocknexchangesnisnincreasednstocknpricenvolatilitynresultingnfromnth
enefficientnexchangenofnpricingninformation.
Answer:n FALSE
Diff:n2 PagenRef:n28
Keywords:n StocknExchange,nPricenVolatilitynLearni
ngnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

15) Threenwaysnthatnsavingsncannbentransferrednthroughnthenfinancialnmarketsntonthoseninnneednofnfund
snincludendirectntransfers,nindirectntransfersnusingntheninvestmentnbanker,nandnindirectntransfersnusingnt
henfinancialnintermediary.
Answer:n TRUE
Diff:n1 PagenRef:n24
Keywords:n CapitalnMarkets,nDirectnTransfer,nIndirectnTransfernLear
ningnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

16) Flotationncostsnarentypicallyngreaterninnthensecondarynmarketnthanninnthenprimarynmarke
t.nAnswer:n FALSE
Diff:n1 PagenRef:n26
Keywords:n FlotationnCosts,nSecondarynMarket,nPrimarynMarketnLea
rningnObj.:n L.O.n2.1
AACSB:n ReflectivenThinking

17) Eachnpurchasenoccurringninnthensecondarynmarketsnincreasesnthentotalnstocknofnfinancialnassetsnth
atnexistninntheneconomy.
Answer:n FALSE
Diff:n1
PagenRef:n26nKeywo
rds:n SecondarynMarketnLearni
ngnObj.:n L.O.n2.1nAACSB:n Re
flectivenThinking

18) Thenmoneynmarketnincludesntransactionsninnshort-
termnfinancialninstruments.nAnswer:n TRUE
Diff:n1
PagenRef:n27nKeyw
ords:n MoneynMarketnLearni
ngnObj.:n L.O.n2.1nAACSB:n R
eflectivenThinking




4
Copyrightn©n2017nPearsonnEducation,nInc
.
mynursytest.store