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17 Cards in this Set
- Front
- Back
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What is the forecast move for a head and shoulders pattern when it completes?
-break the neckline down and move the length of a shoulder down -break the neckline down and move the length of a head as measured by the neckline down -move about half the length of the previous up -break up and move the length of the head as measured by the neckline up -none of the above |
break the neckline down and move the length of the head as measured by the neckline down
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When a stock moves below it's moving average, this is a signal to:
-buy -sell |
sell
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A downtrend is signified by what pattern?
-lower highs and higher low -lower lows and higher highs -lower lows and lower highs -higher lows and higher highs -none of the above |
lower lows and higher highs
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You own a stock that has been in a long-term uptrend. Yesterday, the stock broke the trendline. What should you probably do?
-feint -buy more -sell the stock -It is probably too early to make a decision based on one indicator. Look at other indicators and assess what they are saying as well -none of the above |
It is probably too early to make a decision based on one indicator. Look at other indicators and assess what they are saying as well
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Just recently the DJIA went down to 7,392. We traded back up to around 8,400. If we go back down, the 7,392 level would be considered.
-resistance -continuation -support -none of the above |
support
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Which of the following statements is most correct?
-If the maturity risk premium is greater than zero, the yield curve must be upward sloping. -if the maturity risk premium equals zero, the yield curve must be flat -If interest rates are expected to increase in the future and the maturity risk premium is greater than zero, the yield curve will be upward sloping. -If the expectations theory holds, the yield curve will never be downward sloping -All of the above statement are correct |
If interest rates are expected to increase in the future and the maturity risk premium is greater than zero, the yield curve will be upward sloping.
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The one-year government bill yields 5.5 percent and the 2-year government bond yield 6 percent. Assume that the Pure Expectations theory holds. Approx, what does the market believe the rate on 1-year government bills will be one year from today?
-5.00% -5.50% -5.75% -6.00% -7.50% |
Actually 6.5%
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If we believe that the Liquidity Preference Theory (there is an MRP) of the term structure of interest rates is correct, a flat yield curve would imply:
-the future short term interest rate will be lower -the future short term interest rate will be higher -the future economic growth should higher -the demand for money in the short term market is greater relative to the demand for money in the long term market -b and c |
b&c
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If we believe that the Market Segmentation Hypothesis of the term structure of interest rates is correct, an inverted (downward sloping) yield curve would imply:
-the future short term interest rate will be higher -the future economic growth should be positive -the future economic growth should be slower and maybe negative -the demand for money in the short term market is greater relative to the demand for money in the long term market -a & b |
the demand for money in the short term market is greater relative to the demand for money in the long term market
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Which of the following is not a money market instrument?
-a Treasury bill -a negotiable certificate of deposit -commercial paper -a Treasury bond -a Eurodollar account |
a Treasury bond
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Which of the following is not a characteristic of a money market instrument?
-low relative interest rate -large denomination -long maturity -a liquidity premium -C & D |
C & D
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A municipal revenue bond is backed by the full faith and credit of the issuer.
T/F? |
false
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T-bills are financial instruments initially sold by ____ to raise funds.
-commercial banks -the U.S. government -state and local governments -agencies of the federal government -B & D |
the U.S. government
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Bond yields are related to the expectations of default for the issue.
T/F? |
true
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A call provision on a bond allows the issuer to refinance if interest rates increase.
T/F? |
false
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A US Treasury debt security with 7 years to maturity is called a:
-bill -note -bond -all of the above -none of the above |
note
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A common bond investing strategy is a laddered strategy.
T/F? |
true
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