MONEY AND CAPITAL MARKETS

A

100

It is issued by the national government with maturity of less than a year. 

TREASURY BILLS

200

Pertains to the bonds internal rate of return

YIELD TO MATURITY

300

A form of secured bonds wherein the real property of the issuer serves as the collateral

MORTGAGE BONDS

500

A type of bond with the interest rate dependent on the market conditions

A. JUNK BONDS

B. FLOATING RATE OR VARIABLE BONDS

B. FLOATING RATE BONDS / VARIABLE RATE BONDS

B

100

A type of market which provides the investor with short term sources of capital

MONEY MARKETS

200

TRUE OR FALSE

One of the bond trading processses wherein the underwriting bank purchases the bonds through competitive bidding is known as the negotiated scale trading

FALSE, it is COMPETITIVE SCALE

300

This mortgage bond has a senior claim over the other bonds when the same asset secures numerous bonds.

A. First Mortgage Bonds

B. Second Mortgage Bonds

C. Open-end Mortgage Bonds

D. Close-end Mortgage Bonds

A. FIRST MORTGAGE BONDS

500

A feature of the preferred shares wherein it entitles the shareholder to share in profit above the declared dividends

A. Cumulative Feature

B. Participating Feature

B. PARTICIPATING FEATURE

C

100

TRUE OR FALSE

Commercial paper has a maturity ranging from 90 days to 9 months

TRUE

200

This type of equity security generally has limited voting rights as compared to the other equity shares.

PREFERRED SHARES

300

TRUE OR FALSE

One of the rights a preferred shareholder have is the right to share in the residual assets in the event of liquidation

FALSE

500

Ordinary shareholders are called the _________________ since they are the least priority in payment when the company liquidated

RESIDUAL OWNERS

D

100

A formal unconditional promise, made under seal, to pay a specified sum of money at a determinable future date, and to make periodic interest payment at a stated rate until the principal sum is paid

BONDS

200

A type of bond that is unsecured and is backed only by the reputation of the issuing corporation

DEBENTURES

300

A type of unsecured bond wherein interest will only be paid when the issuer recognized earnings.

A. DEBENTURE BONDS

B. INCOME BONDS

B. INCOME BONDS

500

It pertains to the maximum number of shares that the corporation may issue without amending its charter

A. Outstanding

B. Issued

C. Authorized

C. AUTHORIZED

E

100

Financial market in which longer-term debt and equity instruments are traded

CAPITAL MARKETS

200

A type of equity shares that can be traded with or without par value

ORDINARY SHARES

300

A type of bonds issued that is consider to be the safest fixed income investments in the world.

TREASURY BONDS

500

TRUE OR FALSE:

Issued shares is equal to outstanding shares

FALSE, issued shares can be equal or greater than outstanding shares considering the existence of the treasury shares