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41.Preference in position among creditors when it comes to repayment

Question : 41.Preference in position among creditors when it comes to repayment : 1409484

 

41.Preference in position among creditors when it comes to repayment is called: 
 
 

A. seniority.

B. securitization.

C. time preference.

D. absolute return.

42.Suppose a firm sets aside assets to protect particular investors. These assets are called: 
 
 

A. repurchased shares.

B. senior debt.

C. subordinated debt.

D. collateral.

43.If a bond is junior or subordinated, it: 
 
 

A. has a higher priority status than specified creditors.

B. has been issued because the company is in default.

C. must give preference to senior creditors in the event of default.

D. is secondary to equity.

44.U.S. dollars deposited in a German bank are called: 
 
 

A. Deutsche dollars.

B. American depositing receipts.

C. Eurodollars.

D. mark dollars.

45.When completing a large debt issue, financial managers of large firms will usually consider the following questions EXCEPT:

I) Should the firm borrow short term or long term?
II) Should the firm issue fixed- or floating-rate debt?
III) Should the firm borrow in foreign currency? 
 
 

A. I only

B. II only

C. III only

D. I, II, and III

46.Which of the following instruments gives the owner the right to purchase securities directly from the firm at a fixed price during a specified period of time? 
 
 

A. warrant

B. Treasury stock

C. subordinated debt

D. short-term bank loan

47.A corporate bond that can be exchanged for a fixed number of shares of stock is called a: 
 
 

A. callable bond.

B. debenture.

C. convertible bond.

D. warrant.

48.When new securities are sold by a firm, it is termed a: 
 
 

A. primary market transaction.

B. secondary market transaction.

C. OTC market transaction.

D. Open market operations.

49.The following are debts in disguise except:

I) accounts payable
II) leases
III) underfunded pensions 
 
 

A. I only

B. II only

C. III only

D. I, II, and III

50.The following are the main characteristics of financial intermediaries except:
I) they raise money from investors; II) they invest in financial assets; III) they mainly invest in real assets 
 
 

A. I only

B. I and II only

C. II only

D. III only

51.The following functions, provided by financial intermediaries, enable the smooth functioning of the economy:
I) processing of payments; II) borrowing and lending; III) pooling risks 
 
 

A. I only

B. I and II only

C. I, II, and III

D. III only

52.Which of the following investments allows investors to own assets indirectly via shares that are part of a pool of other investors?
I) REIT; II) trust; III) option 
 
 

A. I only

B. I and II only

C. I, II, and III

D. III only

53.Which type of voting allows minority shareholders to allocate their votes in a manner to increase the chance of electing a director? 
 
 

A. majority voting

B. cumulative voting

C. representative voting

D. executive voting

 

 

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