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The brokers' call rate represents


A) the rate the broker charges an investor on a margin account.
B) the rate the broker pays its bank on borrowed funds.
C) the return earned by the broker on a margin account.
D) the return earned by the investor on a margin account.

E) B) and D)
F) A) and D)

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Which of the following is used to back international sales of goods and services?


A) certificate of deposit
B) bankers' acceptance
C) eurodollar deposits
D) commercial paper

E) None of the above
F) A) and D)

Correct Answer

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Which of the following is not a money market instrument?


A) Treasury bill
B) commercial paper
C) preferred stock
D) bankers' acceptance

E) All of the above
F) B) and C)

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A dollar-denominated deposit at a London bank is called ________.


A) eurodollars
B) LIBOR
C) fed funds
D) bankers' acceptance

E) All of the above
F) C) and D)

Correct Answer

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Money market securities are sometimes referred to as cash equivalents because ________.


A) they are safe and marketable
B) they are not liquid
C) they are high-risk
D) they are low-denomination

E) A) and C)
F) B) and D)

Correct Answer

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