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please give me the correct answerWhich of the following statement isincorrect?1. Most traditional mutual funds allow investors to redeem theirshare of the fund only at the close of business.2. Investment banks underwrite security offerings, advisecorporations regarding the design and pricing of new securities,buy these securities from the issuing corporation, and resell themto investors.3. When a firm sells goods and services to public first time andthe Federal Reserve issues IPOs for the firm, but an investmentbank helps with the IPO to overprice the issues.4. Most of the answers are correct.5. The foreign trade balance describes the level of importsrelative to exports.Which of the following statement isincorrect?1. Most of the answers are correct.2. The average rate of return required by investors is calledthe weighted average cost of capital (WACC).3. A partnership exists whenever two or more persons or entitiesassociate to conduct a noncorporate business for profit.4. Derivatives are securities whose values depend on the valuesof some other traded assets.5. Public markets are where transactions are worked out directlybetween two parties and these transactions are called privateplacements.Which of the following statement iscorrect?1. Corporate bonds are riskier than U.S. government debt and theriskiness depends on strength of issuer.2. Like typical mutual funds, which can have thousands ofinvestors, hedge funds have many small investors and a relativelylarge number of low-net-worth individuals.3. U.S. Treasury notes and bonds are issued by the largest U.S.corporations.4. All the answers are incorrect.5. The prime rate is the rate that U.K. banks report for loansmade to other U.K. banks.Which of the following statement iscorrect?1. If the Federal Reserve Board purchases Treasury securitiesheld by banks, then the increased demand causes Treasurysecurities’ prices to go up.2. Some securities are created from packages of other realassets, a process called simulation.3. All the answers are incorrect.4. Most traditional mutual funds allow investors to buy and selltheir shares during normal trading hours as opposed to ETFs whichcan be bought and sold after markets are closed.5. The larger the federal deficit, other things held constant,the lower the level of interest rates.Which of the following statement iscorrect?1. All the answers are incorrect.2. Capital markets are the markets for debt securities withmaturities of less than a year.3. Investment banks take premiums, invest these funds in stocks,bonds, real estate, and mortgages, and then make payments tobeneficiaries.4. Because these investors are supposed to be sophisticated,hedge funds are much less regulated than mutual funds.5. The common stocks of a corporation is about a set of rulesdrawn up by the founders of the corporation and guides corporatemanagers to follow.Which of the following statement isincorrect?1. If the Fed wishes to slow down the economy and reduceinflation, the Fed sells Treasury securities to banks, whichreduces banking reserves and causes an increase in short-terminterest rates but a decrease in long-term inflationarypressures.2. Money markets are the markets for corporate stocks and debtmaturing more than a year in the future.3. general partners potentially can lose all of their personalassets in the event of bankruptcy because each general partner isliable for the business’s debts.4. One of the properties of cash flows that determine acompany’s value is about the risk of the cash flows—safer cashflows are worth more than uncertain cash flows.5. Most of the answers are correct.Which of the following statement iscorrect?1. All the answers are incorrect.2. The intrinsic value of a firm is obtained using the expectedsales and the cost of goods when all relevant information isincorporated.3. The Federal Deposit Insurance Corporation (FDIC), which isbacked by the U.S. government, insures up to $250,000 perdepositor.4. The fundamental value of a firm is obtained using theexpected cash reserves and past dividends when all relevantinformation is incorporated.5. Investment banks are cooperative associations whose membershave a common bond, such as being employees of the same firm orliving in the same geographic area.Which of the following statement isincorrect?1. If debt matures in more than a year, it is called a capitalmarket security.2. Commercial banks help companies raise capital throughunderwriting activities.3. Some securities are created from packages of other financialassets, a process called securitization.4. Most of the answers are correct.5. One of the advantages of a corporation is that it is easytransfers of ownership interests.
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