Question

In: Finance

QUESTION 41 RANs, BANs, TANs, and CLNs are issued by municipalities to provide intermediate-term financing provide...

QUESTION 41

  1. RANs, BANs, TANs, and CLNs are issued by municipalities to

    provide intermediate-term financing

    provide flexible-term financing

    provide short-term financing

    provide long-term financing

1 points   

QUESTION 42

  1. Which of the following is NOT TRUE of warrants?

    Warrants can trade separately from the stock or bond of the issuer.

    Warrants are issued to make a new stock or bond offering more attractive to investors.

    Warrants give holders a perpetual interest in the issuer’s underlying stock.

    Warrants are longer-term than rights.

1 points   

QUESTION 43

  1. Which of the following items must be included on a customer's order ticket for common stock?

    I. The registered representative’s ID number

    II. A description of the security

    III. Whether the trade is executed in a cash or margin account

    IV. The execution price

    I, II, and III

    II, III, and IV

    I, II, and IV

    I, II, III, and IV

1 points   

QUESTION 44

  1. Which of the following are ways that you can help a client mitigate her investment risk?

    Portfolio rebalancing

    All provided answers are correct

    Diversification

    Hedging

QUESTION 46

  1. Which of the following investments have tax advantages?

    I. IRAs

    II. Municipal bonds

    III. GNMAs

    IV. Hedge funds

    I, III, and IV

    II, III, and IV

    I and II

    I, II, and III

    QUESTION 48

    Which of the following investments would be most suitable for a married couple in their mid-twenties who have already maxed out their IRA contributions?

    Buying index call options

    DPPs

    Commodities

    Growth funds

    Which of the following is/are considered private investment companies?

    I. Hedge funds

    II. Specialized funds

    III. Income funds

    IV. Private-equity funds

    I and IV

    II and IV

    I, II, III, and IV

    I, II, and IV

    1 points   

    QUESTION 51

    1 points   

    QUESTION 50

    The aggregate exercise price of an option is

    the strike price multiplied by the number of outstanding option contracts on the same security at the same strike price

    the strike price multiplied by the number of units of the underlying security

    the strike price multiplied by the number of outstanding option contracts on the same security

    the strike price of the underlying security

    1 points   

    QUESTION 49

    Which oil and gas DPP provides the highest degree of safety for investors?

    Combination program

    Exploratory program

    Developmental program

    Income program

Solutions

Expert Solution

41. The correct option is C (provide short term finance).

These are issued by municipaities to finace short term projects and are repaid within the period of 1 year.

42. The correct option is C (Warrants gives holders a perpetual interest in issuers underlying stock).

Warrants gives right only till its expiry, even it is not exercised till expiry interest ends.

43. The correct option is D (all the options).

An customer order ticket contains all the details mentioned in the question.

44. The correct option is B (All answers are correct).

All these are methods of mitigating risks in her portfolio.

46. The correct option is C (1 & 2)

Only Investment in IRAs and municiple bonds are eligible to be tax advantages.

48. The correct option is D (Growth funds).

Since the age of couple is low and they have already invested heavily in Risk free investments they can invest in growth funds to diversify their savings and take some risk.

. The correct option is C (All)

The are considered to be private investment companies.

50. The correct option is A.

The strike price multiplied with number of outstanding option contracts on the same security.

49. The correct answer is D.

Income program invests in existing wells generating cash flows and which will required to raise little additional cash in the future and is the least risky option but least growth option as well.


Related Solutions

Bonds are issued by the Treasury, corporations, and municipalities. What are some common characteristics of these...
Bonds are issued by the Treasury, corporations, and municipalities. What are some common characteristics of these bonds and what are their differences? (risk, taxes, purpose for issue, how they are repaid)
Finance companies provide short and intermediate-term credit to consumers and small businesses. In business, microfinance represents...
Finance companies provide short and intermediate-term credit to consumers and small businesses. In business, microfinance represents powerful methods in financing small and intermediate businesses. You are requested to write about the role and activities of finance companies in Bahrain. You may name some of these companies to support your answer. Please elaborate.
2. (6 marks) On May 15, 2019, President Trump issued an executive order that bans the...
2. On May 15, 2019, President Trump issued an executive order that bans the export of U.S. technology to Chinese mobile phone manufacturing firms. As a result, the cost of chips that produces mobile phones becomes more expensive. According to Research Report of Mobile Phone Exports in China, the price of Chinese manufacturing mobile phones changed by 10% while the sales volume changed by 15% due to the executive order. a. With the above figures, calculate the relevant price elasticity...
Discuss the relationship of operation financing and long-term financing
Discuss the relationship of operation financing and long-term financing
Sources of Short-Term financing
Discuss all the possible sources of short-term financing currently prevailing in Pakistan? 
2). Why would banks be hesitant to provide short term financing to businesses during this pandemic...
2). Why would banks be hesitant to provide short term financing to businesses during this pandemic even if that business was profitable in the past
1. Provide a flowchart of the cycle for Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders' Equity,...
1. Provide a flowchart of the cycle for Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts. Prepare an audit program. Describe the cycle and include any risks involved with this cycle.
Determine the targeted financial goals for short term, intermediate and long term. (800 words)
Determine the targeted financial goals for short term, intermediate and long term. (800 words)
This is a five part question. a. Define the term mixed cost and provide an example....
This is a five part question. a. Define the term mixed cost and provide an example. b. Provide two examples of costs that are likely variable costs. c. Provide two examples of costs that are likely to be fixed costs. d. Why total compensation paid to the sales force is likely to be mixed cost. e. What is the total difference between contribution margin and contribution ratio?
41. A high and rising level of long-term debt relative to short-term debt might signify that:...
41. A high and rising level of long-term debt relative to short-term debt might signify that: (a) inflation expectations are worsening; (b) monetary policy is too tight; (c) borrowers have confidence in the outlook for inflation and real economic growth; (d) major debt restructuring is imminent. 42. Normally, falling tax rates and rising government spending can be expected to: (a) dampen investment spending; (b) cause long-term interest rates to fall; (c) win legislative approval from the Federal Reserve; (d) create...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT