Question

QUESTION 2

Securities that trade in the money markets are an example of what major asset class?

		Cash
		Fixed Income
		Bonds
		None of the above

QUESTION 12

Common stock is included in the equity asset class and represents a share of ownership rights in a company.

True

False

QUESTION 15

Which answer best describes a Yankee bond?

		A bond issued in US dollars by a non-US company.
		A bond issued in US dollars by a US company.
		A bond issued in Euros by a US company.
		A bond issued Euros by a non-US company

QUESTION 16

Which of the following securities is in the alternative investments asset class?

Treasury bills

Collectible art

STRIPS

Convertible corporate bond

QUESTION 17

Which of the following statements about mortgage-backed securities is FALSE?

When you buy a mortgage-backed security, you are getting a share of the cash flows from many mortgages.

The process of securitizing mortgages into mortgage-backed securities has helped to lower interest rates on mortgages.

You can buy different tranches of mortgage-backed securities which vary in riskiness

Mortgage-backed securities are classified under the alternative investments asset class.

QUESTION 18

If you own a call option on a stock, you would exercise your right to ________________________ .

sell the underlying stock if the current price is lower than the exercise price.

buy the underlying stock if the current price exceeds the exercise price.

sell the underlying stock if the current price exceeds the exercise price.

buy the underlying stock if the current price is lower than the exercise price.

QUESTION 19

Put options are entered into ____________. Futures are entered into _________.

		without cost ; without cost
		without cost ; by paying a premium
		by paying a premium ; by paying a premium
		by paying a premium ; without cost

Answer 1

Ans 2) money market instruments are part of fixed income asset class.

Ans 12) Statement is true. common stock is a part of equity and tells the ownership of the shareholders.

Ans 15) Yankee bond is bond issues in US dollar by a non - US company.

Ans 16) Collectible art is an example of alternative investment asset class.

Ans 17) MBS is not a alternative investment asset class. Option D is false.

Ans 18) If you own a call option on a stock, you would exercise your right to buy the underlying stock if the current price exceeds the exercise price.

Ans 19) correct option will be forth one where we pay permium for put option but entered into future contract without cost.