Loanable Funds Demand Notes Questions with Answers PDF Download - 95

The sum of past deficit of budget if accumulated is considered as

1. global surplus
2. national debt
3. international debt
4. global debt

The convertible bonds are considered as hybrid bonds because they have properties of

1. debts
2. common equity
3. both debt and equity
4. ordinate and subordinated

The agreement which incurs the transaction between two parties and promise held that second party will repurchase security at specific price is classified as

1. repurchasing commercial notes
2. repurchase bills
3. repurchase agreement
4. reverse repurchase agreement

The number of shares outstanding are 10000 and the price of stock is $50 then the current market price is

1. 10000
2. 100000
3. 500000
4. 200000

Consider buying the put option, if the price is lower at the expiration date of option then the

1. liquidity will be higher
2. loss will be higher
3. profit will be lower
4. profit will be higher