Who are the main actors in the international capital market?
What will be an ideal response?
(1 ) Commercial banks
(2 ) Corporations
(3 ) Non-bank financial institutions, such as insurance companies, pension funds, and mutual funds. This includes investment banks, which specialize in underwriting sales of stocks and bonds by corporations and in some cases governments.
(4 ) Central banks and other government agencies
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The above figures show the market for HD televisions. If there are severe earthquakes that destroy a significant number of HD television manufacturing plants, which figure shows the effect of the earthquake?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.
If person A sells a 2003 Treasury bond futures contract to person B, in market terminology,
A) A is long and B is short. B) A is short and B is long. C) A is short and B is the broker. D) A is long and B is the dealer.
A person buys a bond with a face value of $10,000 for $9,325. Each year until the maturity date the bond buyer receives a coupon payment of $650 from the issuer of the bond. The coupon rate on the bond is
A) 9.11 percent. B) 6.5 percent. C) 7.0 percent. D) 6.75 percent.
If demand for Tesla automobiles rises in an area where incomes have increased, this tells us that a Tesla is
A. a substitute good. B. a complementary good. C. a normal good. D. an inferior good.