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The least risky capital market security is
a. preferred stock.
b. common stock.
c. corporate bonds.
d. treasury bonds
Which statement is true of digital legal tender?
a. Digital legal tender replaces physical notes and coin.
b. Digital legal tender issued into the economy will not save on costs associated with printing
physical notes.
c. Distributed ledger technology can enable the central banks to issue a secure, transparent and
efficient digital legal tender.
d. Digital legal tender is worth more than physical notes
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- Which statement is true of digital legal tender? a.Digital legal tender replaces physical notes and coin. b.Digital legal tender issued into the economy will not save on costs associated with printing physical notes. c.Distributed ledger technology can enable the central banks to issue a secure, transparent and efficient digital legal tender. d.Digital legal tender is worth more than physical notesWhich of these has the biggest potential risk area? O a. Cash Machines O b. Mobile Banking O c. Cheque Books O d. SharesHow should a bank structure its liquid assets portfolio to take advantage of falling interest rates ? a. The bank should invest in short-term securities to minimise capital loss b. The bank should invest in long term securities to maximise capital gains. c. The bank should borrow at fixed interest rates d. The bank should issue certificate deposits with fixed interest rates. e. The bank should hold cash to maximise its interest income. Which option is correct
- 1) What id the essential purpose for financial markets? 2) Which is more important, the primary market for stocks of the secondary market? Why? 3) How does a ponzi scheme work? 4) Discuss some of the forces that help make markets efficient? 5) What are institutional investors? Why are they needed in our economy? 6) What are some of the differences between a forward contract and a future contract?What is the role of regulators in the financial markets? Why are financial assets important to growth of an economy? In what ways do exchanges reduce contracting costs and risks? Is trading in an OTC market more risky for a trader than trading in an exchange? How so? What is the difference between Fed funds rate and the discount window rate?How do you think the shape of the yield curve for commercial paper and other money market instruments compares to the yield cure for treasury securities? Explain your own interpretation. Many financial institutions borrow heavily in the money markets using mortgages and montages backed securities as collateral. How do you explain the impact of the credit crisis on deficit and surplus units that participate in the money market? Do you think that the money market should be regulated to ensure proper collateral in the money market? Can you explain how activities in the secondary T-bill market are conducted? How can this kind of activity benefit investors in T-bills? Why might a financial institution sometimes consider T-bills as a potential source of funds?
- a. "Financial intermediaries play a crucial role in an economic crisis-they are responsible for both causing the market to crash and then helping it recover from the crisis." Is this statement true? Discuss with an example. b. What are the risks and rewards of investing in the stock market as compared to the bond market?A currency which is in the digital form and without government's control is called: a. Crowd funding b. Investment banking c. Block chain technologies d. Crypto currenciesTo weaken the dollar using sterilized intervention, the Fed would ____ dollars and simultaneously ____ Treasury securities. A. buy; sell B. sell; sell C. sell; buy D. buy; buy
- Marketable securities are liquid financial instruments that can be quickly converted into cash at a reasonable price. Is it True or False?QUESTION Hedging is a risk management strategy that is used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies. REQUIRED: Discuss the importance of hedging to the financial risk manager Are there any downside to hedging?bank manager wants to protect the bank against losses that would be incurred on its portfolio of Treasury securities should interest rates rise, he could financial futures. If a Not yet options on answered Points out of 1 Select one: PFlag question A. sell put B. sell call C. buy put D.buy call