Financial Management - Study Mode
[#491] Trading procedures dimensions include
Correct Answer
(D) Both A and B
Explanation
Solution: Trading procedures dimensions include location dimension and method of matching orders. Trading process consists of two major steps Order openingand Order closing.
[#492] Trading place where traders meet one another to communicate is classified as
Correct Answer
(A) outcry auction system
Explanation
Solution: Trading place where traders meet one another to communicate is classified as outcry auction system. Open outcry is a method of verbal and hand signal communication used by traders at stock and futures exchanges. Signals and shouts convey trading information, intentions, and acceptance in the trading pits.
[#493] Rate of return which is asked by investors is classified as
Correct Answer
(D) weighted average cost of capital
Explanation
Solution: Rate of return which is asked by investors is classified as weighted average cost of capital. The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.
[#494] Characteristic of corporation that it can continue its work even owners are decreased can be classified as
Correct Answer
(B) unlimited life
Explanation
Solution: Characteristic of corporation that it can continue its work even owners are decreased can be classified as unlimited life.
[#495] Type of financial securities that matures in less than a year are classified as
Correct Answer
(A) money market securities
Explanation
Solution: Type of financial securities that matures in less than a year are classified as money market securities. There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.