Study Guide
HOMEWORK 1 - MONEY AND BANKING * uestion 1
4 out of 4 points Correct The periodic payments on equity securities are called Answer Selected Answer: dividends. Correct Answer: dividends. * Question 2
0 out of 4 points Incorrect In the United States, the biggest issuers of debt securities are Answer Selected Answer: households. Correct Answer: financial intermediaries. * Question 3
4 out of 4 points Correct In the United States, the biggest issuers of equity securities are Answer Selected Answer: business firms. Correct Answer: business firms. * Question 4
4 out of 4 points Correct Maturity is Answer Selected Answer: the length of time until borrowed funds are repaid. Correct Answer: the length of time until borrowed funds are repaid. * Question 5
4 out of 4 points Correct In the event that a firm goes bankrupt and is liquidated, who is paid off first, second, and third between workers, debt holders, and stockholders? Answer Selected Answer: (1) workers; (2) debt holders; (3) stockholders Correct Answer: (1) workers; (2) debt holders; (3) stockholders * Question 6
4 out of 4 points Correct Joe E. Conomist purchased 100 shares of stock in the IBM corporation in 2008 for $10,000. In 2011 Joe sells his IBM stock to Sally Forth for $15,000. How does this sale of stock in 2011 affect the IBM corporation? Answer Selected Answer: IBM is unaffected. Correct Answer: IBM is unaffected. * Question 7
4 out of 4 points
4 out of 4 points Correct The periodic payments on equity securities are called Answer Selected Answer: dividends. Correct Answer: dividends. * Question 2
0 out of 4 points Incorrect In the United States, the biggest issuers of debt securities are Answer Selected Answer: households. Correct Answer: financial intermediaries. * Question 3
4 out of 4 points Correct In the United States, the biggest issuers of equity securities are Answer Selected Answer: business firms. Correct Answer: business firms. * Question 4
4 out of 4 points Correct Maturity is Answer Selected Answer: the length of time until borrowed funds are repaid. Correct Answer: the length of time until borrowed funds are repaid. * Question 5
4 out of 4 points Correct In the event that a firm goes bankrupt and is liquidated, who is paid off first, second, and third between workers, debt holders, and stockholders? Answer Selected Answer: (1) workers; (2) debt holders; (3) stockholders Correct Answer: (1) workers; (2) debt holders; (3) stockholders * Question 6
4 out of 4 points Correct Joe E. Conomist purchased 100 shares of stock in the IBM corporation in 2008 for $10,000. In 2011 Joe sells his IBM stock to Sally Forth for $15,000. How does this sale of stock in 2011 affect the IBM corporation? Answer Selected Answer: IBM is unaffected. Correct Answer: IBM is unaffected. * Question 7
4 out of 4 points