Indicate whether the statement is TRUE or FALSE. 1. Eurobonds are dollar denominated bonds issued in...

Indicate whether the statement is TRUE or FALSE. 1. Eurobonds are dollar denominated bonds issued in the United States by a US Corporation. 2. Federal funds are generally short-term unsecured loans while repurchase agreements are shortterm secured loans. 3. An investor providing direct financing requires a financial intermediary to facilitate the transaction. 4. Bond markets and stock markets are examples of capital markets as these markets are involved in the trading of short and long-term securities. 5. Bonds issued with call provisions give the bondholder the opportunity to purchase common stock at a prespecified price up to a specified date. 6. A par value bond is a bond that trades at a value equal to its face value

Solutions

Expert Solution

1) FALSE

A Eurobonds is a bond that is issued in other currency then the country in which that bond is issued. So a Dollar denominated bond issued by a US corporation in any other country then US will be a Eurobonds. So the statement is false as becuase it is saying that bond is issued in US only.

2) TRUE

A federal funds are generally Short term in nature providing a quick liquidity in the market. It is also given on short or no security sokmetimes and so it is considered as Unsecured loans.

3) TRUE

A financial intermediary sometimes do act as a facilitator between 2 parties. However it cannot accept eposit from individual but it can as as an intermediary.

4) TRUE

A bond markets and stock markets are examples of capital market.

5) TRUE.

Call option gives us the option to buy or leave. Hence a callable bond gives the oppurtunity to purchase common stock at prespeceifed price up to a specefied date.

6) TRUE

A par value bonds means that is gives the same return what market is also giving and hence it will have always its face value.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

True/False: Indicate whether the following statement is true or false. If it is false, indicate the...

True/False: Indicate whether the following statement is true or false. If it is false, indicate the reason. If it is true, indicate what makes it true. Just stating true or false will not earn any points. "It is not possible to have concave preferences."

True or False. Indicate whether the statement is true or false. If false, explain in the...

True or False. Indicate whether the statement is true or false. If false, explain in the space provided the statement why it is false, or simply correct the statement. Smooth muscle contraction is regulated by the autonomic nervous system. During exercise, the sympathetic nerves that innervate the smooth muscles of bronchioles and arterioles regulate the contraction of these smooth muscles to increase ventilation and cardiac output. 2. Multiple choice: Choose one best statement. An infant born prematurely has neonatal respiratory...

True/False Indicate whether the statement is true or false. ____1.The form of organization for a business...

True/False Indicate whether the statement is true or false. ____1.The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's owners. ____2.The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not. ____3.There are three primary disadvantages of a regular partnership: (1) unlimited liability, (2)...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and briefly explain your answer. If your answer depends on any assumptions, state them clearly. Use graphs or equations to illustrate your answer whenever it is helpful. 1. A worker should never trust an implicit contract with an employer that pays them less than their marginal product when they first join the firm, but more than their marginal product after many years with the firm,...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and briefly explain your answer. If your answer depends on any assumptions, state them clearly. Use graphs or equations to illustrate your answer whenever it is helpful. 11. In efficiency wage models, employers take the market wage as given, and then choose the level of effort at which employees are required to work. 12. Mandatory retirement only makes sense in a delayed compensation (or underpayment-overpayment)...

For each of the following, indicate whether the statement is true or false and include a...

For each of the following, indicate whether the statement is true or false and include a brief explanation for your answer. a.A pension trust fund appears in the government-wide financial statements but not in the fund financial statements. b.Permanent funds are included as one of the governmental funds. c.A fire department placed orders of $20,000 for equipment. The equipment is received but at a cost of $20,800. In compliance with requirements for fund financial statements, an encumbrance of $20,000 was...

For each of the following, indicate whether the statement is true or false and include a...

True/False (3 pts each) Indicate whether the statement is true or false. If true, explain why...

True/False (3 pts each) Indicate whether the statement is true or false. If true, explain why it is true and/or give examples to support it. If false, explain why it is false. 2.An increase in plasma osmolality will cause more secretion of ADH.

Indicate whether the statement is true or false. If false, please explain why. (Note that if...

Indicate whether the statement is true or false. If false, please explain why. (Note that if the explanation is incomplete, you may not get the full credits.) a. Although payroll taxes are imposed on firms, workers bear more burdens than firms when the elasticity of labor supply is greater than the elasticity of labor demand. (4 pts) b. There might be a situation in which dangerous jobs offer lower wages than safe jobs even if there exist compensating wage differentials....

Indicate whether True, False, or Uncertain. Then provide a brief statement indicating WHY true or false,...

Indicate whether True, False, or Uncertain. Then provide a brief statement indicating WHY true or false, or if the statement is ambiguous, what would need to be altered to the statement to make it clearly true or false. a) Publicly provided insurance may crowd out the purchases of those who would pay for private insurance. b) The existence of moral hazard provides an argument for both market failure and government failure in insurance markets. c) If there were no free-riding,...

Subjects