I. are about two kinds of money: your money (debt) and my money (equity)
II. are about allocating money for its most productive use
III. are motivated by greed
IV. ultimately lead to a crisis
1 point
B) I & II only
C) III & IV only
D) I, II & III only
E) None of the above
2.Which markets differentiate securities according to their maturity?
1 point
A) Primary versus secondary
B) Money versus capital
C) Debt versus equity
D) Auction versus dealer
E) Money versus capital AND debt versus equity
3.What is the ultimate financial goal of the firm?
1 point
A) To maximize profits
B) To maximize earnings per share
C) To maximize the interests of all stakeholders
D) To maximize the price of the shares
E) To maximize its social responsibility
4.Some of the repercussions of free and unregulated markets include:
1 point
A) High unemployment, inflation and interest rates
B) Inequity and wealth concentrated for the few
C) Overextended Debt markets
D) High unemployment, inflation and interest rates AND inequity and wealth concentrated for the few
E) Inequity and wealth concentrated for the few AND overextended Debt markets
5.The most important predictor of a market crash is:
1 point
A) High unemployment, inflation and interest rates
B) Inequity and wealth concentrated for the few
C) Overextended Debt markets
D) High unemployment, inflation and interest rates AND inequity and wealth concentrated for the few
Inequity and wealth concentrated for the few AND overextended Debt markets
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