Investment Finance

Financial assets represent_____ of total assets of U.S househoulds over 70%over 90%Under 10%About 30%

Real assets in the economy include all but which of the following? LandBuildingsConsumer DurablesCommon stock

Net worth represents ____ of the liabilities and the net worth of commercial banks About 51%About 91%About 11%About 31%

According to the flow of funds accounts of the united states, the largest single asset of U.S Households is _____ Mutual fund sharesReal estatePension reservesCorporate equity

According to the flow of funds accounts of the united states, the largest liability of U.S Households is MortgagesConsumer creditBank loansGambling debts

______ is not a derivative security A share of common stockA call optionA futures conractNone of the options

Accourding to the flow of funds accounts of the united states, the largest financial asset of U.S households is Mutual fund sharesCorporate equityPension reservesDeposits

Active trading in markets and competition among securities analyst helps ensure that: 1.security prices approach informational efficiency2. riskier securities are priced to offer higher potential returns.3 investors are unlikely to be able to consistently find under- or overvalued securities 1 only1 and 2 only2 and 3 only 1 2 and 3

The material wealth of society is determined by the economy's ______ which is a function of the economy's _________ Investment bankers, financial assetsInvestmen bankers, real assetsProductive capacity; financial assetsProductive capacity; real assets

Which of the following is not a money security 1.U.S treasury bill 2.6- month maturity cetificate of deposit 3.common stock 4.All of the options

________ assets generate net income to the economy, and_______ assets define allocation of the income among investors 1.Financial, Financial 2. Financial, Real3. Real Financial4. Real, real

Which of the following are financial assets? 1. debt securities2. equity securities 3. derivative securities 1 only1 and 2 only2 and 3 only1 2 and 3 only

______ are examples of financial intermediaries 1. Commercial Banks2. Insurance companies3. Investment companies4. All of the options

Asset allocation refers to _______ 1. The allocation of the investment portofolio across broad asset classes2. The analysis of the value of securities3.The choice of specific assets within each asset4. None of the options

Which on of the following best describes the purpose of derivatives markets? 1.Transferring risk from one party to another2.Investing for a short time period to earn a small rate of return3.investing for retirement4. earning interest income