CAPITAL MARKETS EXAM QUESTIONS AND ANSWERS LATEST UPDATE
2024/2025 ALL ANSWERS 100% CORRECT BEST GRADED A+ FOR
EXCELLENT PASS
capital market - CORRECT ANSWERS long term, like bonds, common stock,
preferred stock
international capital markets emerged as result - CORRECT ANSWERS
adoption of principles of capitalism. global privatization of government owned
enterprises. "free trade"
internat. cap. markets as source of funds - CORRECT ANSWERS opportunity
for companies to raise debt and equity capital at lowest cost.
Government securities - CORRECT ANSWERS treasury- manages fed. gov.
debt in order to balance flow of funds.
Treasury - CORRECT ANSWERS sells short or long term securities to finance
deficits or retire debt in case of surplus
federally sponsored credit agencies - CORRECT ANSWERS governmental
units issuing securities on a separate basis from those sold by US treasury
Fannie Mae - CORRECT ANSWERS Federal National Mortgage Association
state and local securities - CORRECT ANSWERS municipal securities or tax-
exempt offerings
local securities purchased by - CORRECT ANSWERS investors in high
marginal tax brackets. supported by revenue, generating projects, general
revenue
corporate bonds - CORRECT ANSWERS debt instruments having a fixed life
and to be repaid at maturity
, CAPITAL MARKETS EXAM QUESTIONS AND ANSWERS LATEST UPDATE
2024/2025 ALL ANSWERS 100% CORRECT BEST GRADED A+ FOR
EXCELLENT PASS
as bonds come due and are paid - CORRECT ANSWERS corporation
normally replaces debt with new bonds
preferred stock - CORRECT ANSWERS least used since the dividend is not
tax-deductible to the corporation
common stock - CORRECT ANSWERS sold by companies desiring new
equity capital
common stock sold as either - CORRECT ANSWERS 1. new issue in an
initial public offering or
2. as a secondary offering
treasury stock - CORRECT ANSWERS company purchases its own stock
internally generated funds include - CORRECT ANSWERS retained earnings
and cash flow added back from depreciation
composition of internal funds is function of - CORRECT ANSWERS
corporate profitability
dividends paid
resultant retained earnings
depreciation tax shield
supply of capital funds - CORRECT ANSWERS household sector, direct
investment, indirect investment
household sector - CORRECT ANSWERS major supplier of capital funds
direct investment - CORRECT ANSWERS households purchasing individual
stocks and debt securities (bonds)
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