Finc 3310 - Study guides, Class notes & Summaries

FINC 3310 Leavell - All Possible Exams 1, 2, 3, & 4 - Final Exam Preparation The ______ is the financial market in which only short-term debt instruments are traded. money market ______ are agents of investors who match buyers with sellers of securities. Brokers The _____ interest rate more accurately reflects the total cost of borrowing. real Bonds with relatively low risk of default are called _____. investment grade bonds Financial institutions exist to _____. lower transactions c...

FINC 3310 Exam 1 Questions & Answers 2023/2024 The _____ is a place where financial assets are exchanged. - ANSWER-equity market foreign exchange bond market All of the above. A(n) ____ is the cost of borrowing money. - ANSWER-interest rate The _____ uses Monetary Policy to help control the money supply. - ANSWER-Fed _______ represents an ownership in a company. - ANSWER-A share of stock A ________ functions as a middleman in the transfer of funds from lenders to borrowers. -...

The _____ uses Monetary Policy to help control the Money Supply. - Fed The price of one country's currency in terms of another's currency is the ___ rate. - foreign exchange ___ represents an ownership position in a corporation. - Stock A(n) _____ is an obligation of the borrower. - bond A(n) ___ functions as a middle man in the transfer of funds from lenders to borrowers. - financial intermediary A(n) ___ is the cost of borrowing money. - interest rate If your country has a strong cur...

FINC 3310 Exam 2 Questions & Answers 2023/2024 Intrinsic value: - ANSWER-value which justified by facts for example: assets,earnings, dividends,future earning power. including other factors: management strategies, etc. Discrepancies between price and value originate: - ANSWER-First: price above value or overvaluation Second: value above price undervaluation Securities are divided into two main groups: - ANSWER-first: bonds (civil obligation or bonds of corporation) Second: Stocks (...

FINC 3310 - Leavell - Actual Final Exam Questions & Answers 2023/2024 The concept of Time Value of Money means ____. - ANSWER-a dollar today is worth more than a dollar tomorrow What is the feature of a corporate bond that protects the purchaser for the bond from moral hazard problems on the part of the borrower? - ANSWER-Restrictive Covenants Which of the following best explains why municipal bonds have lower interest rates than Treasury bonds? - ANSWER-The lower federal tax rate assoc...

FINC 3310 - Leavell - Actual Exam 4 Questions & Answers 2023/2024 Commercial paper is issued by ________. - ANSWER-corporations ________ imposes rules and restrictions on managers designed to protect bondholders' interests. - ANSWER-Restrictive covenants Which of the following best explains why municipal bonds have lower interest rates than Treasury bonds? - ANSWER-The lower federal tax rate associated with municipal bonds. Which of the following is the mission of the Securities &...

FINC 3310 Leavell All Actual Exams 1, 2, 3, & 4 Final Exam Preparation(Chapters 1, 2, 3, 5, 7, 9, 10, 11, 12, 13, 14, 20 & 21)With Complete Solutions. Larry can borrow $1,000 from Mary. She wants him to pay her $1,290 in 3 years. About what would the YTM be for the loan? 8.86% The _____ interest rate more accurately reflects the total cost of borrowing. real

FINC 3310/Leavell - Quizzes Chapters 7,9 & 10 (Exam 2 Preparation) 2023/2024 ____ are provisions that restrict and specify certain activities in which the borrower can engage. - ANSWER-Restrictive covenants A(n) _____________ is a contractual agreement by the borrower to pay the lender fixed dollar amounts at periodic intervals. - ANSWER-debt contract ____ financing is many times more important than ______ financing. - ANSWER-Indirect; direct Investors use _____ that reflect the pr...

FINC 3310 Exam Questions & Answers 2023/2024 Which banks are required to be members of the Fed? Can other banks be members? Are there disadvantages for a bank to be a member? - ANSWER-National Banks are required to be members of the Fed. Other banks can be members but it's not required. No disadvantages for banks to be members, they are both subject to the same reserve requirements. Explain the structure of the Fed and the basic roles of ea. entity - ANSWER-Structure of the Fed was desi...