1. Which statement is false? A. If a corporation cannot pay its debts,...

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Finance

1. Which statement is false?

  • A. If a corporation cannot pay its debts, then the shareholders must pay them.
  • B. You buy gas for your car at spot.
  • C. A high P/E ratio generally indicates that a stock is riskier than if the P/E ratio were low.
  • D. Ask Bid
  • E. Stocks in the Dow 30 are all large-cap.

2. Which statement is correct?

  • A. Open market operations are the most frequently used tool of monetary policy conducted by the Federal Reserve.
  • B. The Federal Reserve Board of Governors has seven Governors plus a Chairman.
  • C. The Federal Reserve Open Market Committee sets the discount rate and the Federal Funds rate.
  • D. The Federal Reserve District Banks regulate all U.S. banks, and the Federal Reserve Board of Governors supervises all U.S. banks.

3. In order from smallest to largest:

  • A. burn, acid, current
  • B. burn, current, acid
  • C. acid, current, burn
  • D. current, acid, burn
  • E. current, burn, acid

4.

rf + s[E(rm) - rf] is the...

  • A. risk-free rate.
  • B. expected market premium.
  • C. capital asset pricing model.
  • D. none of the above.

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