Which of the following statements regarding securities firms and investment banks are not true? OA One of the major functions of investment banks is to originate and underwrite new securities issued by industrial firms or governments OB. The merger activities in secruities ferms and investment banks have increased in recent years due to the Financial Services Modernization Act of 1999 OC. Initial public offerings are first time security issuances of firms whose securities have not previously traded in any security exchanges OD. In a public new security offering, investment banks place the newly issued securities with a selected number of private, usually wealthy, investors

A large nation-wide bank’s acquisition of a major investment advisory firm would be an example of a: a. market extension merger. b. conglomerate merger. c. product extension merger. d. horizontal merger.

Which of the following is an example of a systematic risk?     Bond investor invests in a Japanese investment grade bond and receives coupon payments in Japanese yens     A firm hires a former politician with ties to the Republican party when a political climate in the state changes     U.S. government announces an increase in corporate tax rate       Bond investor receives news about a bond issuer issuing another corporate bond

Which of the following is true of the current state of financial regulation for financial institutions (FIs)?   Most banks can transfer risk on a greater scale and in more complex ways than before. Most FIs now conduct virtual global business, reducing the influence of very large FIs. Most global financial money and capital markets are deliberately disconnected. Most securities exchanges have required majority ownership by resident nationals.