Topic
Q:
A brokerage firm that buys stocks using clients' deposits in order to earn a
profit is which type of financial institution?
A. Depository institution
B. Fractional institution
C. Contractual institution
D. Investment institution
Q:
Why do banks practice fractional reserve banking?
A. It increases the value of collateral used to secure mortgages.
B. It encourages customers to accept higher interest rates on loans.
C. It allows them to lend more money than they hold in deposits.
D. It ensures that all customers can withdraw their funds at once.
Q:
If you are long an at the money calendar spread your position would be measured at which of the following greeks?a. Long vega, short γ, positive θ Mb. Short vega, short γ, positive θ Mc. Long vega, long γ, positive θ Md. Long vega, short γ, negative θ M
Q:
A person earns \( \$ 50,000 \) per year. She deducts \( \$ 3,000 \) for charitable
donations. She also receives a \( \$ 2,000 \) tax credit.
What is the person's taxable income?
A. \( \$ 47,000 \)
B. \( \$ 48,000 \)
C. \( \$ 52,000 \)
D. \( \$ 50,000 \)
Q:
A loan taken out by a government that is repaid in a fixed amount at a specific
time is a
A. savings account
B. stock
c. hedge fund
D. bond
Q:
A student borrows \( \$ 20,000 \) from a bank but ends up paying \( \$ 25,000 \) on the
loan over the next five years. How much interest did the student pay?
A. \( \$ 45,000 \)
B. \( \$ 5,000 \)
C. \( \$ 20,000 \)
D. \( \$ 25,000 \)
Q:
Getting a home mortgage would most likely be a better choice than renting
for a person who:
A. may have to relocate to a new city for work in the next few years.
B. has a large amount of savings and wants to make an investment.
C. often gets bored of living in the same place for too long.
D. has no interest in maintaining or personalizing property.
Q:
A person wants to buy a violin that costs \( \$ 400 \). When he goes to buy it, the
clerk tells him that he will need to pay \( \$ 440 \).
Which type of tax explains the extra cost?
A. Corporate tax
B. Sales tax
C. Property tax
D. Income tax
Q:
A title pawn lender is a financial institution that:
A. specializes in financial services for small businesses.
B. accepts deposits and makes loans without earning profits.
C. uses a person's car as collateral to secure a loan.
D. offers short-term loans with high interest rates.
Q:
Which person would most likely want to invest all of his or her savings in an
IRA?
A. A student who wants his money to grow as quickly as possible
B. A doctor who wants to avoid paying taxes on retirement income
C. A teacher who would like to have a diversified set of investments
D. A retiree who is most interested in keeping her deposits safd
Ask Tutors
Ask AI
10x
Fastest way to Get Answers & Solutions
By text
Enter your question here…
By image
Re-Upload
Uploaded Files
xxxx.png0%
Submit
