Financial Management - Study Mode

[#861] Markets dealing loans of autos, education, vacations and appliances are considered as
Correct Answer

(A) consumer credit loans

Explanation

Solution: Markets dealing loans of autos, education, vacations and appliances are considered as consumer credit loans. Consumer credit is personal debt taken on to purchase goods and services. A credit card is one form of consumer credit.

[#862] If a market is inefficient, as new information is received about a security____________.
Correct Answer

(C) there will be a lag in the adjustment of the stock price

Explanation

Solution: If a market is inefficient, as new information is received about a security there will be a lag in the adjustment of the stock price.

[#863] The bonus issue is permitted to be made out of __________ and premium collected in cash.
Correct Answer

(A) free reserves

Explanation

Solution: The bonus issue is permitted to be made out of free reserves and premium collected in cash. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders.

[#864] The bonus issue is made to make the nominal value and the __________ value of the shares of the company.
Correct Answer

(B) Market

Explanation

Solution: The bonus issue is made to make the nominal value and the Market value of the shares of the company. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders.

[#865] The highest level of market efficiency is_____________.
Correct Answer

(D) strong form efficiency

Explanation

Solution: The highest level of market efficiency is strong form efficiency. Market efficiency refers to the degree to which market prices reflect all available, relevant information.