GCU FIN 451 CHAPTER 3-6_74 EXAM
QUESTIONS WITH VERIFIED ANSWERS
the means through which buyers and sellers are brought together to aid in the
transfer of goods/services - CORRECT ANSWER define market
details on past transactions and prevailing buy and sell orders to determine the
appropriate price - CORRECT ANSWER define timely and accurate info
the ability to buy or sell an asset quickly and at a reasonable price based on
information - CORRECT ANSWER define liquidity
when an asset has a likelihood of being sold quickly - CORRECT ANSWER what
does marketability mean
a feature of a liquid market in which there are small price changes from one
transaction to the next due to the depth of the market - CORRECT ANSWER define
price continuity
the cost of executing a trade. low costs characterize an operationally efficient
market - CORRECT ANSWER define transaction cost and what do low cost mean
the attribute where participants want prevailing market prices to reflect all
available information - CORRECT ANSWER define informational efficiency
- timely and accurate information on the price and volume of past transactions
-liquidity
-low transaction costs like brokerage costs and cost of transferring the asset
, - prices that rapidly change adjust to new information - CORRECT ANSWER what
are the characteristics of a good market
investors can easily and compare prices - CORRECT ANSWER for what reasons did
the u.s go to decimal pricing instead of fractions ( reason 1 )
decimal pricing reduces the minimum variation of 6.25 cents to 1 cent - CORRECT
ANSWER for what reasons did the u.s go to decimal pricing instead of fractions
( reason 2 )
it made the u.s market more competitive - CORRECT ANSWER for what reasons
did the u.s go to decimal pricing instead of fractions ( reason 3 )
the market in which newly issued securities are sold by their issuers who receive
the profits ex: ipo's - CORRECT ANSWER define primary markets
the market in which outstanding securities are bought and sold by owners other
than the issuers.
ex: robinhood, nyse - CORRECT ANSWER define secondary markets
to provide liquidiity for investors - CORRECT ANSWER in terms of purpose, what is
the purpose in the secondary market?
-treasury bills
-treasury notes
-treasury bonds - CORRECT ANSWER what are the three government bond issues
QUESTIONS WITH VERIFIED ANSWERS
the means through which buyers and sellers are brought together to aid in the
transfer of goods/services - CORRECT ANSWER define market
details on past transactions and prevailing buy and sell orders to determine the
appropriate price - CORRECT ANSWER define timely and accurate info
the ability to buy or sell an asset quickly and at a reasonable price based on
information - CORRECT ANSWER define liquidity
when an asset has a likelihood of being sold quickly - CORRECT ANSWER what
does marketability mean
a feature of a liquid market in which there are small price changes from one
transaction to the next due to the depth of the market - CORRECT ANSWER define
price continuity
the cost of executing a trade. low costs characterize an operationally efficient
market - CORRECT ANSWER define transaction cost and what do low cost mean
the attribute where participants want prevailing market prices to reflect all
available information - CORRECT ANSWER define informational efficiency
- timely and accurate information on the price and volume of past transactions
-liquidity
-low transaction costs like brokerage costs and cost of transferring the asset
, - prices that rapidly change adjust to new information - CORRECT ANSWER what
are the characteristics of a good market
investors can easily and compare prices - CORRECT ANSWER for what reasons did
the u.s go to decimal pricing instead of fractions ( reason 1 )
decimal pricing reduces the minimum variation of 6.25 cents to 1 cent - CORRECT
ANSWER for what reasons did the u.s go to decimal pricing instead of fractions
( reason 2 )
it made the u.s market more competitive - CORRECT ANSWER for what reasons
did the u.s go to decimal pricing instead of fractions ( reason 3 )
the market in which newly issued securities are sold by their issuers who receive
the profits ex: ipo's - CORRECT ANSWER define primary markets
the market in which outstanding securities are bought and sold by owners other
than the issuers.
ex: robinhood, nyse - CORRECT ANSWER define secondary markets
to provide liquidiity for investors - CORRECT ANSWER in terms of purpose, what is
the purpose in the secondary market?
-treasury bills
-treasury notes
-treasury bonds - CORRECT ANSWER what are the three government bond issues
