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5. The Fisher Effect is a theory which measures:

a. The national per capita income with a given inflation rate in a country

b. The money supply controlled by the Central Bank of a particular country

c. The relationships between nominal rate, real rate of interest and inflation rate

d. The velocity of money in the economy in the economy of a particular country

e. The effect of a systematc risk on the comon stock of a multinational firm

6. Which one of the following stock markets is located in Paris France?

a. IBEX 35

b. CAC 40

c. XEXTRA DAX 30

d. BOVESPA

e. SMI 400

7. IBM Company buys $ 50 million of Intel Companys common stock in the financial markets for its equity portfolio. What kind of market transaction is it ?

a. Bond market transaction

b. Secondary market transaction

c. Primary market transaction

d. Derivative market, swap transaction

e. Overthe-Counter market trandsaction

8. A financial contract that gives the holder the right but not the obligation, to buy or sell the underlying asset at a specified price within a specified period of time is called:

a. Forwards contract

b. Options contract

c. Swaps contract

d. Futures contract

e. Repurchase contract

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