29 true or false questions on financial markets, Esercizi di Finanza Aziendale

Scarica 29 true or false questions on financial markets e più Esercizi in PDF di Finanza Aziendale solo su Docsity! 29 true or false questions on financial markets 1. **In an efficient market, prices always reflect all available information.** - True - False 2. **A callable bond gives the issuer the right to buy back the bond before its maturity date.** - True - False 3. **A credit default swap involves the exchange of fixed interest rate payments for floating rate payments.** - True - False 4. **Commercial paper is a short-term debt instrument typically issued by the government.** - True - False 5. **In a fractional reserve banking system, banks hold a fraction of their deposits as reserves and can lend the rest.** - True - False 6. **The Fisher effect suggests that an increase in expected inflation will lead to a decrease in nominal interest rates.** - True - False 7. **A forward contract is a standardized financial instrument traded on organized exchanges.** - True - False 8. **Systematic risk can be eliminated through diversification.** - True - False 9. **The term "LIBOR" stands for London Interbank Offered Rate.** - True - False 10. **A put option gives the holder the right to sell an asset at a specified price before a specified expiration date.** - True - False 11. **In a repo agreement, one party agrees to buy securities from another party and sell them back at a higher price later.** - True - False 12. **High-frequency trading typically involves holding assets for long periods to capture long- term trends.** - True - False 13. **The term "moral hazard" refers to the risk that a borrower may engage in risky behavior because they do not bear the full consequences of that risk.** - True - False 14. **The Dow Jones Industrial Average (DJIA) is a price-weighted stock market index.** - True - False 15. **A money market mutual fund invests primarily in long-term government securities.** - True - False 16. **In the Basel III framework, Tier 1 capital includes common equity and preferred stock.** - True - False 17. **A stock split increases a company's market capitalization.** - True - False 18. **The Sharpe ratio measures the risk-adjusted return of an investment.** - True - False 19. **The term "liquidity risk" refers to the risk of not being able to sell an asset quickly without causing a significant price decline.** - True - False 20. **Exchange-traded funds (ETFs) can be bought and sold throughout the trading day like individual stocks.**