Security Investment Quiz Chap 1
Course | SECURITIES INVEST (Fa12) | Test | Chapter 1 self assessment | Started | 9/8/12 4:38 PM | Submitted | 9/8/12 5:00 PM | Status | Completed | Score | 34 out of 34 points | Time Elapsed | 21 minutes. | Instructions | | * Question 1
1 out of 1 points | | | Corporate shareholders are best protected from incompetent management decisions by Answer | | | | | Selected Answer: | the threat of takeover by other firms. | Correct Answer: | the threat of takeover by other firms. | Response Feedback: | Proxy fights are expensive and seldom successful, and management may often control the board or own significant shares. It is the threat of takeover of underperforming firms that has the strongest ability to keep management on their toes. | | | | | * Question 2
1 out of 1 points | | | _________ financial asset(s). Answer | | | | | Selected Answer: | Derivatives and U.S. Agency bonds are | Correct Answer: | Derivatives and U.S. Agency bonds are | Response Feedback: | Land and Buildings are real assets. | | | | | * Question 3
1 out of 1 points | | | The sale of a mortgage portfolio by setting up mortgage pass-through securities is an example of ________. Answer | | | | | Selected Answer: | securitization | Correct Answer: | securitization | Response Feedback: | The financial asset is secured by the mortgages backing the instrument. | | | | | * Question 4
1 out of 1 points | | | Financial intermediaries exist because small investors cannot efficiently ________. Answer | | | | | Selected Answer: | diversify their portfolios, assess credit risk of borrowers, or advertise for needed investments | Correct Answer: | diversify their portfolios, assess credit risk of borrowers, or advertise for needed investments | Response Feedback: | The individual investor cannot efficiently and effectively perform any of the tasks above without more
1 out of 1 points | | | Corporate shareholders are best protected from incompetent management decisions by Answer | | | | | Selected Answer: | the threat of takeover by other firms. | Correct Answer: | the threat of takeover by other firms. | Response Feedback: | Proxy fights are expensive and seldom successful, and management may often control the board or own significant shares. It is the threat of takeover of underperforming firms that has the strongest ability to keep management on their toes. | | | | | * Question 2
1 out of 1 points | | | _________ financial asset(s). Answer | | | | | Selected Answer: | Derivatives and U.S. Agency bonds are | Correct Answer: | Derivatives and U.S. Agency bonds are | Response Feedback: | Land and Buildings are real assets. | | | | | * Question 3
1 out of 1 points | | | The sale of a mortgage portfolio by setting up mortgage pass-through securities is an example of ________. Answer | | | | | Selected Answer: | securitization | Correct Answer: | securitization | Response Feedback: | The financial asset is secured by the mortgages backing the instrument. | | | | | * Question 4
1 out of 1 points | | | Financial intermediaries exist because small investors cannot efficiently ________. Answer | | | | | Selected Answer: | diversify their portfolios, assess credit risk of borrowers, or advertise for needed investments | Correct Answer: | diversify their portfolios, assess credit risk of borrowers, or advertise for needed investments | Response Feedback: | The individual investor cannot efficiently and effectively perform any of the tasks above without more