322-9

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Author:
SAngell3
ID:
222694
Filename:
322-9
Updated:
2013-06-06 13:25:07
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322
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Description:
322-9
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  1. Interest rates tend to fall during a period of economic expansion.  

    A) True  
    B) False
    B) False
  2. Long-term security prices tend to be less volatile than the prices of short-term securities.  

    A) True  
    B) False
    B) False
  3. The result of an interest-rate swap is usually a higher interest rate for both swap partners and a better balance between cash inflows and outflows for both parties to the swap.  

    A) True  
    B) False
    B) False
  4. One-year T-bill futures contracts carry denominations of $250M.  

    A) True  
    B) False
    B) False
  5. Interest rates are notoriously difficult to predict; however, they do tend to run counter to the business cycle.  

    A) True  
    B) False
    B) False
  6. The basis for a futures contract is the:  

    A) sum of the cash and futures market price.  
    B) contract denomination currently traded.  
    C) price of contract agreed upon between buyer and seller.  
    D) lowest price set the day the contract was traded.  
    E) none of the above
    E) none of the above
  7. In the financial futures markets, the length of contracts normally ranges from three months to:  

    A) 9 months.  
    B) 1 year.  
    C) 18 months.  
    D) 2 years.  
    E) none of the above
    E) none of the above
  8. More recently, options have been offered on:  
    A) LEAPs.  
    B) FLEM.  
    C) APTs.  
    D) all of the above  
    E) none of the above
    A) LEAPs.  
    (this multiple choice question has been scrambled)
  9. When interest rates rise:  

    A) asset prices normally fall.  
    B) A and B only  
    C) fixed income securities normally rise.  
    D) asset prices normally increase.  
    E) none of the above
    A) asset prices normally fall.  
    (this multiple choice question has been scrambled)
  10. Hedging in the futures market:  

    A) reduces the overall risk in the market.  
    B) shifts the risk in the market.  
    C) does not reduce the risk in the market.   D) B and C only  
    E) none of the above
    D) B and C only  

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