Davidson; Management - 3rd Australasian Edition



1.
Capital market securities are used to finance real capital investments.
A. True
B. False


2.
Capital market securities have better liquidity than money market securities.
A. True
B. False


3.
Money market securities are all debt securities, while capital market securities are either debt or equity securities.
A. True
B. False


4.
Treasury bonds (T-bonds) are similar to Treasury Notes (T-Notes).
A. True
B. False


5.
Investors may invest in capital market securities either directly or indirectly.
A. True
B. False


6.
Both governments and businesses issue both debt and equity capital market securities
A. True
B. False


7.
Treasury Bonds are similar to Treasury Notes.
A. True
B. False


8.
Treasury Indexed Bonds (TIBs) is a zero-coupon bond.
A. True
B. False


9.
Bonds classified as senior debt means bondholders are paid last in the event of default.
A. True
B. False


10.
A debenture comes in two forms, fixed and floating.
A. True
B. False


11.
Convertible notes are similar to Treasury notes.
A. True
B. False


12.
Life insurance companies are more likely to invest in corporate capital market securities than commercial banks.
A. True
B. False


13.
Junk bonds are similar to samurai bonds.
A. True
B. False


14.
Public sales of bonds are usually made through commercial banks.
A. True
B. False


15.
Securitisation of assets involves turning fixed assets into liquid assets.
A. True
B. False


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