The fundamental value of a share of stock is equal to which of the following?
A) the sum of expected dividends
B) the present value of expected dividends
C) the sum of coupon payments
D) the present value of coupon payments
E) the present value of the expected yield
B
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Speculators in the financial market are:
A. debated by some as to whether they contribute to the financial system's success. B. seen by most as necessary for the health of the financial system. C. largely thought to be detrimental to the overall health of the financial system. D. illegal, and often work in the "grey" markets despite this.
In the United States, which of the following is an example of a government-sponsored good?
A) wireless networks B) community college education C) cigarettes D) marijuana
To say that the Federal Reserve Banks are quasi-public banks means that:
A. they are privately owned but managed in the public interest. B. they deal only with banks of foreign nations and do not have direct business contact with U.S. banks. C. they deal only with commercial banks, and not the public. D. they are publicly owned but privately managed.
Financial securities that represent promises to repay a specified amount of money at a particular point in the future are
A) bonds. B) stocks. C) commodities. D) mutual funds.