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.

jeff jeffy answered 1 year ago

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