Answer the following statements true (T) or false (F)
1. As interest rates begin to rise, this provides motivation for companies to issue long-term debt.
2. The major suppliers of funds to the U.S. credit markets are foreign suppliers, mutual funds, and federal, state, and local governments.
3. Financial intermediaries help eliminate inefficiencies such as indirect investment by households.
4. Brokers on the organized stock exchange act as an agent for the person buying or selling securities.
5. Brokers actually own the securities they buy and sell on the floor of the exchange.
1. TRUE
2. FALSE
-In this case, the governments are not direct suppliers of funds into the U.S. credit markets.
3. FALSE
-While intermediaries do reduce inefficiencies, indirect investment by households is not inefficiency.
4. TRUE
5. FALSE
-While "brokers" in general act as agents for buyers and sellers, those who actually take title to and maintain inventories of shares are referred to as "specialists," "dealers," or more recently, "designated market-makers."
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A minority active investment is accounted for by the:
A. lower of cost or market method. B. equity method. C. speculative investment method. D. cost method.
If the sales effect for period 5 is $125 million and the carryover effect is 0.25, calculate the total sales impact for period 5
A) $500 million B) $31.25 million C) $166.67 million D) $93.75 million E) $156.25 million
Corporations and businesses can seek protection under privilege against self-incrimination
Indicate whether the statement is true or false
An off-site meeting
a. is often called a retreat. b. may be used as a motivational tool or to build team spirit. c. may vary in length. d. all of these choices.