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little dragon
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16. A commodity futures market exists within the broader commodities market for which of the following reasons?
Contracts setting the price and date for a commodity purchase are transferable.
Commodities cannot be sold until they have been extracted from nature.
Forward contracts allow brokers to pay for commodities up front.
The exchange rate for commodities varies as time goes on.
17. Which of the following actions can the government take to raise money?
Sell stocks.
Issue bonds.
Lower interest rates.
Exchange currencies.
18. Which of the following is the act of buying and selling money using other types of money?
Issuing dividends
Decreasing utility
Maximizing profits
Exchanging currency
19. If the exchange rate between the U.S. dollar and the Canadian dollar is 1:1.3, which of the following is true?
It costs less to buy a $5 item in Canada than it does in the United States.
It costs more to buy a $5 item in Canada than it does in the United States.
A $5 item costs three times as much in Canada as it does in the United States.
A $5 item costs three times as much in the United States as it does in Canada.
20. Which of the following best explains how buying on margin increases the leverage of currency traders?
Margin buying gives traders a profit rate that is one unit higher.
Buying on margin allows traders to sell shares in a company that they do not yet own.
Borrowing money allows traders to make large purchases without a large amount of money up front.
Currency purchases can only be made on the large scale, enabled by borrowing from currency brokers.
21. Because banks are often unwilling to loan money to a business in its early stages of development, startup business have a difficult time doing which of the following?
Getting debt financing
Securing venture capital
Finding an angel investor
Conducting an initial public offering
22. Businesses that wish to get loans from a private bank generally need to have which of the following?
An exit strategy
A wealthy startup investor
An online advertising budget
A history of profitable operation
23. Which of the following best describes the meaning of "going public"?
When a company starts offering its products for sale
When a company is bought out by a government agency
When a company begins selling shares of its stock to the public
When a company issues Treasury bonds that can be bought by anyone
24. Which of the following would be most likely to lead to a successful IPO?
An increase in the discount rate by the Fed
A company offering an IPO during a bull market
An Internet company offering a brand new service
A prospectus that is realistic about the company's debts
25. A company can secure additional capital without going into debt by doing which of the following?
Going public
Taking a business loan
Buying out another company
Bargaining for wage reductions
Contracts setting the price and date for a commodity purchase are transferable.
Commodities cannot be sold until they have been extracted from nature.
Forward contracts allow brokers to pay for commodities up front.
The exchange rate for commodities varies as time goes on.
17. Which of the following actions can the government take to raise money?
Sell stocks.
Issue bonds.
Lower interest rates.
Exchange currencies.
18. Which of the following is the act of buying and selling money using other types of money?
Issuing dividends
Decreasing utility
Maximizing profits
Exchanging currency
19. If the exchange rate between the U.S. dollar and the Canadian dollar is 1:1.3, which of the following is true?
It costs less to buy a $5 item in Canada than it does in the United States.
It costs more to buy a $5 item in Canada than it does in the United States.
A $5 item costs three times as much in Canada as it does in the United States.
A $5 item costs three times as much in the United States as it does in Canada.
20. Which of the following best explains how buying on margin increases the leverage of currency traders?
Margin buying gives traders a profit rate that is one unit higher.
Buying on margin allows traders to sell shares in a company that they do not yet own.
Borrowing money allows traders to make large purchases without a large amount of money up front.
Currency purchases can only be made on the large scale, enabled by borrowing from currency brokers.
21. Because banks are often unwilling to loan money to a business in its early stages of development, startup business have a difficult time doing which of the following?
Getting debt financing
Securing venture capital
Finding an angel investor
Conducting an initial public offering
22. Businesses that wish to get loans from a private bank generally need to have which of the following?
An exit strategy
A wealthy startup investor
An online advertising budget
A history of profitable operation
23. Which of the following best describes the meaning of "going public"?
When a company starts offering its products for sale
When a company is bought out by a government agency
When a company begins selling shares of its stock to the public
When a company issues Treasury bonds that can be bought by anyone
24. Which of the following would be most likely to lead to a successful IPO?
An increase in the discount rate by the Fed
A company offering an IPO during a bull market
An Internet company offering a brand new service
A prospectus that is realistic about the company's debts
25. A company can secure additional capital without going into debt by doing which of the following?
Going public
Taking a business loan
Buying out another company
Bargaining for wage reductions