A derivative B. secondary C. primary D. monetary instruments alternative mechanisms of fundraising financing A. direct, indirect

A) extremely volatile.
B relatively stable, trending downward at a moderate rate
C) relatively stable, trending upward at a steady pace
D) unstable. trending downward at a moderate rate
89) The largest one-day drop in the history of the American stock markets occurred in
A) 1987.
B) 1922.
C) 2000.
D) 2001.
90) A declining stock market index due to lower share prices
A) both A and C of the above.
B) increases people s wealth and as a result may increase their willingness to spend
C) decreases the amount of funds that business firms can raise by selling newly issued stock.
D) reduces people's wealth and as a result may reduce their willingness to spend
91. ___ is putting money at risk by betting on an uncertain outcome with the hope that you might win money.
a) Investment
b) Gambling
c) Financing
d) Portfolio
92. IPO stands for:
a) Initial Public Offer
b) Initial Public Office
c) Internal Public Office
d) Internal Police Office
93. Which of the following are common errors in investment management?
a) Both B&C
b) Not Having a Clearly Defined Investment Plan
c) Investors often overdose themselves on Information
d) None B&C
94. Which of the following is the quality of a smart investor required.
a) Smart Investor Invest Consistency.
b) Smart Investors Are Important
c) Smart Investors Are Emotionally Tied to Their Investment Position.
d) All of the Above.
95. ___ is the variability in a security’s returns resulting from fluctuations in the aggregate market.
a) Market Risk
b) Inflation risk
c) Credit Risk
d) Intend rate risk
96. ___ are the short-term unsecured promissory notes issued by a company to raise short-term cash.
a) CP
b) CD
c) Treasury bills
d) All of the Above
97. ___ Are financial investments that have no intrinsic value but drive their value from something else.
a) Derivatives
b) Bonds
c) Commercial Bills
d) Shares
98. ___ Analysis is a method that is used to evaluate the worth of security by analyzing the statistics that are generated by market activity, such as the past price of volume.
a) Technical
b) Economic
c) Financial
d) None of Above
99. Po=D/R is the formula for the calculation of the present value of money in case of:
a) Zero growth of dividend.
b) Constant growth of dividend
c) Valuable growth of dividend
d) None of the Above.
100. CAPM stands for:
a) Capital assets pricing model.
b) Capital assets products method.
c) Capitalization assets of product market.
d) None of the Above.