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1. What is a Key assumption ofthe expectations theory?
A) The yield curve represents me supply ofand demand tot bones of various terms, which ace primarily influenced by the bigger payers In each sector
B) Current short-term interest rates foreshadow future long-term rales.
C) investors buying a single long-term bond should be earning the same amount of interest as they would by buying two short-term bonds of equal combined duration.
D) Investors prefer short-term bonds because they are more liquid and less volatile in price
2. Which investment dealer category do discount brokers belong to?
A) Institution firms
B) Integrated firm
C) Boutique firms
D) Retail firms
3. What is the best way to measure the performance of stock indexes?
A) Relative value changes
B) Point changes
C) Percentage changes
D) Share price changes
4. What is a company likely trying -c achieve when ituses a stock spit as part of itscorporate strategy?
A) Decrease the share price
B) Fewer outstanding shares
C) Prevent delisting from a stock exchange
D) increase the share price
5. What is the action that the CentralBank takes to limitthe impact of increased foreign Interestrates on Interest rates in Canada?
A) Add a default premium to interest rates to protect lenders.
B) Reduce Interest rales to reduce demand for borrowing.
C) increase short-term interest rates to maintain the value of currency.
D) Decrease interest rate to balance the risk of rising inflation.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: C |
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