The _______ includes all international transactions.
balance of trade
balance of payments
current account balance
capital account balance
Suppose a firm just issued a $1,000 par value convertible bond. Its conversion ratio is 30 and the stock currently sells for $25 per share. Would it make better financial sense to hold onto the bond or convert it?
hold onto the bond
convert the bond
can’t tell from this information
convert the bond after two more dividend payments
The attitude of central banks and commercial banks toward bankers’ acceptances
has been favorable regarding bankers’ acceptances as attractive short-term commitments.
has never been constructive and has, in fact, been in opposition to their use at times.
is one of approval provided that before investing in such instruments guarantees can be obtained from the Export-Import Bank.
is irrelevant, since they are prevented from investing in such instruments by regulations or laws.
Direct payments to individuals from the Federal government do not include:
Social Security payments.
public transportation subsidies
The loanable funds theory used to explain the level of interest rates holds that interest rates are a function of the supply of:
loanable funds and the demand for money
loanable funds and the demand for loanable funds
money and the demand for loanable funds
money and the demand for money
If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what interest would you expect to observe in the marketplace on short term treasury securities?
Which of the following factors does not affect savings?
Levels of Income
Life stage of the individual or corporation
Price inflation has been characteristic of:
modern industrial society
our post gold-standard period
the history of prices since earliest recorded history
only modern industrialized societies
Motivations for individuals to deposit money into a savings account include:
shelter from taxes
return on investment
lack of better investments
reserving against war
The terms or covenants of a bond contract are set out in which of the following documents?
negative pledge clause
Which of the following is not a bond rating agency?
Standard and Poor’s
A decrease in the supply for loanable funds, holding demand constant, will cause interest rates to:
stay the same
decrease slowly then increase slowly
Which of the following could affect personal income levels?
The following factor may affect a bond rating:
expected trends of industry operations
all the above
A home loan made to a borrower with a relatively high credit score indicating the likelihood that loan payments will be made as agreed to.
These bonds have coupons that are “clipped” and presented, like a check, to the bank for payment.
The traveler’s letter of credit is usually used by
purchasing agents making purchases in foreign countries.
individuals traveling abroad.
correspondent banks, in order to reduce shipment of gold between countries.
Inflation caused by an increase in the money supply is called:
a combination of administrative and speculative inflation
An unrated bond:
is perceived as having lower than average risk
are termed as “debentures”
generally has a lower yield than rated bonds
has not been rated by a rating agency
Before arbitragers take action with respect to exchange rate differentials
central bank approval must be obtained.
loans to cover transactions must be obtained.
a market differential of at least 1¢ must exist between two currencies.
a differential of as little as 1/16 of 1¢ may trigger action.
https://essaysglobe.com/wp-content/uploads/2020/06/logo-EG.png 0 0 Davis https://essaysglobe.com/wp-content/uploads/2020/06/logo-EG.png Davis2022-05-20 07:14:212022-05-20 07:14:21Week 7 - Chapters 6, 7, 8, and 10 Quiz