Question

In: Finance

20.) Money markets are markets for


20.) Money markets are markets for

A.For financial assets with a maturity of less then one year

B.For financial assets with a maturity of more then one year

C.For use in cash transactions

D.For use in foreign exchange transactions

TRUE OR FALSE

22.) The return on an investment is inversely related to the risk of the investment.

23.) Commercial paper is short term and is uncollaterialized.

24.)In an efficient market the intrinsic value and the market price of a stock are the same.

25.)A home mortgage is a collateralized loan, which means if you do not meet the payment obligation, the bank can take your home from you.

Solutions

Expert Solution

20.

Money market is a part of the financial market in which securities that are traded, is highly liquid and short term in nature.

so, money markets are markets for securities , with maturities less than one year.

so, the correct option is option 1.

22. False, the return and risk of an investment is directly related, higher the risk greater is the return . Lower the risk, lower is the return.

23. True, commercial paper is an unsecured, short term debt obligation issued and is used to pay for current liabilities, inventories and accounts payable.

24. True, in an efficient market the intrinsic value is the dame as the market value. In efficient markets, stocks are in equilibrium that is the stocks prices is equal to it's intrinsic value.

25.True, a home mortgage is collateralized , in case the borrower fails to repay the loan, the mortgage lender can take over the property.


Related Solutions

Why are there money markets?
Why are there money markets?
How do money markets fit into a corporations investment strategy? How do corporations use money markets...
How do money markets fit into a corporations investment strategy? How do corporations use money markets in their daily operations? How do the use of money markets differ between corporations and individuals?
Discuss money markets. Money market securities are debt offerings with a maturity of one year or...
Discuss money markets. Money market securities are debt offerings with a maturity of one year or less. They are very liquid and can be sold in a secondary market. Discuss the contents of the most popular money market securities and whether money market securities can be justified by scripture.
What are the foundations of money and what are the foundations of financial markets?
What are the foundations of money and what are the foundations of financial markets? What are the similarities and differences between these two types of foundations?
Buyers and sellers of securities for themselves in the money markets are called:
Buyers and sellers of securities for themselves in the money markets are called:
Compare and contrast Money Markets and Capital Markets. In your description list the most financial instruments...
Compare and contrast Money Markets and Capital Markets. In your description list the most financial instruments trading on each market. Make sure that you always indicate what types of investors prefer what type of markets, assets and explain why?
What is the difference between primary markets and secondary markets?Explain What is the difference between money...
What is the difference between primary markets and secondary markets?Explain What is the difference between money markets and capital markets?Explain What are three (3) of the seven (7) types of financial institutions? Include a description of the main services offered by each. Explain Why would the U.S. government, local governments, and corporations issue bonds? Explain Provide the definitions of a discount bond and a premium bond. Give examples. As owners, what rights and advantages do shareholders obtain? Explain Why might...
What is the differences between Money Markets and Capital Markets. Which would a smalll investor prefer and why?
What is the differences between Money Markets and Capital Markets. Which would a smalll investor prefer and why? List reasons why Money Markets are important.
Money markets are financial markets where long-term debt and equity securities are bought and sold, while...
Money markets are financial markets where long-term debt and equity securities are bought and sold, while capital markets are financial markets where short-term debt securities are bought and sold. T or F
Identify two interesting articles about an issue related to money and capital markets, financial markets, financial...
Identify two interesting articles about an issue related to money and capital markets, financial markets, financial instruments, international markets, and economic policy. Then for each article, write a 2 page analysis (double spaced). you will have to read newspapers (The Boston Globe, The New York Times, etc.), magazines (The Economist, Money, Newsweek, Times, etc.), journals (The Wall Street Journal), and/or economic and financial news over the internet in order to identify the articles for your analysis. use any of these...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT