Finance Questions
Explore questions in the Finance category that you can ask Spark.E!
Which of the following is true for derivatives? a. They are often used for hedging. b. They can be used to speculate. c. They are risky in that there is often the potential for a 100% loss. d. All of the above.
True or False: A type of absentee ballot that allows a representative to vote on behalf of the stockholder is called a proxy.
True or False: GNMA offers timing and principle insurance to investors in mortgages.
Mortgage payments are _____ on a 15 year fixed rate mortgage than on a 30 year fixed rate mortgage, and _____ is paid on a 15 year mortgage than on a 30 year mortgage, ceteris paribus a. Lower; less interest b. Lower; less principal c. Higher; less interest d. Higher; more principal e. Higher; more interest
True or False: Limit orders are almost exclusively used by institutional investors, who rarely use market orders.
True or False: If a homeowner has less than 20% equity in their home, the lender will often require private mortgage insurance (PMI) to protect them in case the loan goes bad.
Which one of the following types or mortgages is likely to become more popular as the average age of the U.S. population increases? a. GEM b. GPM c. SAM d. PLA e. RAM
True or False: Seasoned equity offerings (SEOs) tend to outperform the market as management would not issue new shares if it believed the firm would underperform.
True or False: The way stockholders control a large firm is by electing a board of directors.
True or False: A long term investor in a high marginal tax bracket will often prefer a dollar of capital gain to a dollar of dividend yield.
True or False: A subprime mortgage is a mortgage made to borrower who has poor credit.
True or False: Adjustable-rate mortgages can increase default risk.
True or False: Flash trading is typically initiated manually by traders who are watching the market closely.
True or False: In mortgage loans, the collateral is rarely the property for which the loan was made.
True or False: When retail investors use limit orders, they place themselves at an informational advantage relative to informed traders.
True or False: At year end a firm has assets of $100 and debts due of $120. In this situation the stockholders must pay an additional $20 out of their own pocket.
Hagger Sounds has accumulated the following cost and market data on March 31: Cost Data Market DataiPods $24,000 $20,400Cell phones 18,000 19,000DVDs 28,000 25,600Using the lower-of-cost-or-market, how much is the value of the ending inventory? (Apply LCM to each category)
Crowder Corporation recorded the return of $200 of goods originally sold on credit to Discount Industries. Using the periodic inventory approach, Crowder would record this transaction as:
Assume Grammar Company uses the periodic inventory system and has a beginning inventory balance of $5,000, purchases of $75,000, and sales of $125,000. Grammar closes its records once a year on December 31. In the accounting records, the inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was
A company just starting business made the following purchases in August:August 1 300 units $1,560August 12 400 units 2,340August 24 400 units 2,520August 30 300 units 1,980 1,400 units $8,400A physical count of the inventory on August 31 reveals that there are 500 units on hand. Using the FIFO inventory method in a perpetual inventory system, how much is the value of the ending inventory on August 31?