Financial Management - Study Mode
[#721] In financial markets, period of maturity within one to five years of financial instruments is classified as
Correct Answer
(C) intermediate term
Explanation
Solution: In financial markets, period of maturity within one to five years of financial instruments is classified as intermediate term. A term is an intermediate (or innominate) term if the remedy for its breach depends on the effect of the breach at the time it happens.
[#722] Collection of money from investors and spending money in other investment activities is classified as
Correct Answer
(B) hedge funds
Explanation
Solution: Collection of money from investors and spending money in other investment activities is classified as hedge funds. A hedge fund is basically a fancy name for an investment partnership. It's the marriage of a professional fund manager, who can often be known as the general partner, and the investors, sometimes known as the limited partners, who pool their money together into the fund.
[#723] Markets for products such as wheat, rice, cotton, real estate and autos dealing is classified as
Correct Answer
(A) physical asset markets
Explanation
Solution: Markets for products such as wheat, rice, cotton, real estate and autos dealing is classified as physical asset markets. Physical asset markets are for physical products such as wheat, autos, real estate, computers, and machinery.
[#724] Price of stock that companies observe in financial markets is called
Correct Answer
(A) market price
Explanation
Solution: Price of stock that companies observe in financial markets is called market price. The market price for goods and services is the current price it can be bought or sold for.
[#725] Stock portfolio with lowest book for market ratios is considered as
Correct Answer
(D) L portfolio
Explanation
Solution: Stock portfolio with lowest book for market ratios is considered as L portfolio.