BUSN11 - Module 3 Exam Questions With Revised Answers
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Course
BUSN 11
Institution
BUSN 11
BUSN11 - Module 3 Exam Questions With
Revised Answers
Which of the following is a key difference between a line of credit and a revolving credit
agreement? - answerUnder a line of credit, the bank involved agrees to make funds available
as long as the borrower's credit rating doesn't deteriorat...
BUSN11 - Module 3 Exam Questions With
Revised Answers
Which of the following is a key difference between a line of credit and a revolving credit
agreement? - answer✔✔Under a line of credit, the bank involved agrees to make funds available
as long as the borrower's credit rating doesn't deteriorate, while in a revolving credit agreement,
the bank guarantees that the funds will be available.
The price at which shares of an open-end mutual fund are issued and redeemed is based on the
fund's _____. - answer✔✔net asset value per share
Mr. Arne Freidrich looks at SoTon Co.'s latest annual report and feels that the company is
performing well. However, he believes it is not worth spending more than $70 per share of
SoTon. He contacts his broker and tells him to acquire 50 shares of SoTon only if they are less
than $70 a share. Which of the following orders has Mr.Freidrich placed to acquire the shares? -
answer✔✔A buy order limit order
Which of the following was the major outcome of the Financial Services Modernization Act of
1999? - answer✔✔It reversed the Glass-Steagall Act's prohibition of commercial banks selling
insurance or acting as investment banks.
The _____ of 2010 expanded the Fed's regulatory authority over nondepository financial
institutions, such as hedge funds and mortgage brokers that had previously operated with little
regulatory oversight or accountability. - answer✔✔Dodd-Frank Act
Which of the following is true of a securities broker? - answer✔✔They act as agents for
investors who want to buy or sell financial securities.
A(n) _____ is the first time a company issues stock that may be bought by the general public. -
answer✔✔Initial Public Offering
Kun works for PowTran Corp. Her primary responsibilities include managing the firm's working
capital and analyzing long-term investment opportunities for PowTran. Kun is part of the firm's
_____ management team. - answer✔✔financial
Investors who use analytical techniques to try to predict when prices of particular stocks are
likely to rise and fall are relying on the _________ strategy. - answer✔✔market timing
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