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ECO 316 Version 1 Week 2 Chapter 9 Derivative Securities and Derivative Markets Quiz
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Download answer at https://www.examtutorials.com/course/eco-316-version-1-week-2-chapter-9-derivative-securities-and-derivative-markets-quiz/
Chapter 9 DERIVATIVE SECURITIES AND DERIVATIVE MARKETS 15 correct answers9.1 Multiple Choice Questions1) In derivative markets, trade takes place inA) assets such as bonds or common stock that derive their value from the value of thecompanies which issue them.B) assets whose rates of returns must be derived from information published in financialtables.C) assets that derive their value from underlying assets.D) assets which are not allowed to be traded on organized exchanges.2) The improper use of derivatives was blamed in part for all of the following EXCEPTA) the stock market crash following September 11.B) the bankruptcy of Enron.C) the downfall of Long Term Capital Management.D) the bankruptcy of Orange County in California.3) Derivative instruments areA) assets such as bonds or common stock that derive their value from the value of thecompanies which issue them.B) assets whose rates of returns must be derived from information published in financialtables.C) assets which derive their value from underlying assets.D) computers which display real-time financial information.4) Spot transactionsA) involve immediate settlement.B) may only take place in face-to-face trading.C) take place on-the-spot, rather than on an organized exchange.D) are relatively unimportant in financial markets.5) Forward transactionsA) allow savers and borrowers to conduct a transaction now and settle in the future.B) allow savers and borrowers to postpone a transaction from now to the future.C) always involve increased risk compared with spot transactions.D) may not be conducted on organized exchanges. https://www.examtutorials.com/course/eco-316-version-1-week-2-chapter-9-derivative-securities-and-derivative-markets-quiz/ |
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