Security Industry Essentials Exam2
|Questions and Answers Verified 100%
Correct
The USA PATRIOT Act (Partially based on the Bank Secrecy Act of 1970) - ANSWER -
Covers anti-money laundering (AML) policies and procedures that must be followed
by financial firms
Capital Market - ANSWER What market can be used to raise the money needed to
build the new plant?
The primary market - ANSWER When securities are sold to the investing public in
what are known as issuer transactions, the transactions are being done in..
The fourth market - ANSWER If an investment company bought stock directly from
a bank, bypassing any intermediary or broker, this trade took place in..
True statements regarding the third market - ANSWER - It is composed of
listed securities traded OTC
The secondary market - ANSWER One investor enter an order to purchase. Another
investor enters a order to sell. The two orders meet on the floor of the U.S stock
exchange where they are executed. This transaction took place in...
Interpret factors impacting the securities market - ANSWER - Supply and Demand:
, affect the prices of company's product as well as the prices of their equity and
debt securities
- Economic Climate:
enormous effect on the conditions of individual companies
company's earning and business prospect, any changes in business cycle the money
supply, and FRB actions
- Economic Conditions Abroad:
can influence the conditions domestically and in turn will impact our securities markets.
Components of the business cycle - ANSWER 1. Expansion
2. Peak
3. Contraction
4. Trough
Name the types of interest rates - ANSWER 1. Federal Fund Rate
2. Discount Rate
3. Prime Rate
4. Broker Loan Rate
The Money Supply divided up in three categories - ANSWER M1
M2
M3
|Questions and Answers Verified 100%
Correct
The USA PATRIOT Act (Partially based on the Bank Secrecy Act of 1970) - ANSWER -
Covers anti-money laundering (AML) policies and procedures that must be followed
by financial firms
Capital Market - ANSWER What market can be used to raise the money needed to
build the new plant?
The primary market - ANSWER When securities are sold to the investing public in
what are known as issuer transactions, the transactions are being done in..
The fourth market - ANSWER If an investment company bought stock directly from
a bank, bypassing any intermediary or broker, this trade took place in..
True statements regarding the third market - ANSWER - It is composed of
listed securities traded OTC
The secondary market - ANSWER One investor enter an order to purchase. Another
investor enters a order to sell. The two orders meet on the floor of the U.S stock
exchange where they are executed. This transaction took place in...
Interpret factors impacting the securities market - ANSWER - Supply and Demand:
, affect the prices of company's product as well as the prices of their equity and
debt securities
- Economic Climate:
enormous effect on the conditions of individual companies
company's earning and business prospect, any changes in business cycle the money
supply, and FRB actions
- Economic Conditions Abroad:
can influence the conditions domestically and in turn will impact our securities markets.
Components of the business cycle - ANSWER 1. Expansion
2. Peak
3. Contraction
4. Trough
Name the types of interest rates - ANSWER 1. Federal Fund Rate
2. Discount Rate
3. Prime Rate
4. Broker Loan Rate
The Money Supply divided up in three categories - ANSWER M1
M2
M3
