Answer key- revision questions in financial markets, Esercizi di Finanza Aziendale

Scarica Answer key- revision questions in financial markets e più Esercizi in PDF di Finanza Aziendale solo su Docsity! Answer key 1. A. Lower interest rates 2. C. The price at which the option holder can buy or sell the underlying asset 3. A. Higher nominal interest rates 4. D. Forward contracts are marked to market daily, while futures contracts are not. 5. C. Capital structure 6. B. Stock prices fully reflect all available information. 7. B. The sensitivity of a bond's price to changes in interest rates. 8. B. Dividends paid to shareholders are tax-deductible for the shareholders. 9. C. The risk that borrowers may take on greater risks because they do not bear the full consequences. 10. B. The market risk premium. 11. A. Current assets minus current liabilities. 12. C. An increase in the money supply. 13. A. The percentage change in quantity demanded for a one percent change in price. 14. A. Expenses should be recognized when incurred, not when cash is paid. 15. C. The value of the best alternative forgone when a decision is made. 16. A. Describe a situation where all other relevant factors are constant. 17. B. Economic recession. 18. C. A persistent decline in the general price level. 19. D. Tax policy. 20. A. At a lower opportunity cost than another country. 21. B. No one can be made better off without making someone else worse off. 22. A. High inflation and low unemployment. 23. B. A decrease in private investment due to government borrowing. 24. A. Inflation and unemployment. 25. B. A fixed exchange rate system where a country's currency is tied to another major currency.