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Chapter 1: 1) The material wealth of a society is a function of A) all financial assets. B) all real assets. C) all financial and real assets. D) all physical assets.

are real assets. A) Land B) Machines C) Stocks and bonds D) Knowledge E) Land, machines, and knowledge

3) The means by which individuals hold their claims on real assets in a well-developed

economy are A) investment assets. B) depository assets. C) derivative assets. D) financial assets. E) exchange-driven assets.

are financial assets. A) Bonds B) Machines C) Stocks D) Bonds and stocks E) Bonds, machines, and stocks

5) ______ financial asset(s). A) Buildings are B) Land is a C) Derivatives are D) Canadian T-Bills are E) Derivatives and Canadian bonds are

6) Financial assets A) directly contribute to the country's productive capacity. B) indirectly contribute to the country's productive capacity. C) contribute to the country's productive capacity, both directly and indirectly. D) do not contribute to the country's productive capacity, either directly or indirectly. E) are of no value to anyone.

7) A security that pays a specified cash flow over a specific period is called A) fixed income. B) stock option. C) mutual fund. D) real estate. E) index.

8) ______ is a commodity. A) Money B) Forward contract C) Natural gas D) A bond E) Treasury-bill

9) Compared to investments in debt securities, equity investments tend to be A) equally risky. B) riskier. C) less risky. D) more important.

10) Which one of the following is not a role of the financial markets? A) Consumption timing B) Information C) Separation of ownership and control D) Increasing wealth of the economy E) Risk allocation

11) Holding highly diversified portfolios without spending effort or other resources attempting to

improve investment performance through security analysis is a characteristic of A) Active management. B) Passive management. C) Both active and passive management. D) Risk-return trade-off. E) Efficient markets.

12) The attempt to improve performance either by identifying mispriced securities or by timing

the performance of broad asset classes is a characteristic of: A) Active management B) Passive management C) Both active and passive management D) Risk-return trade-off E) Efficient markets

13) A common measure of credit risk in the banking sector is A) systemic Risk. B) treasury-bill. C) TED spread. D) LIBOR. E) yield curve.

14) ______ is in an insurance contract against the default of one or more borrowers. A) Collateralized debt obligation B) credit default swap C) Freddie Mac D) Adjustable-rate mortgage E) Fannie Mae

15) Systemic risk is A) credit risk. B) an insurance contract against the default of one or more borrowers. C) firm-specific risk. D) default risk. E) the potential breakdown of the financial system when problems in one market spill

over and disrupt others.

16) A fixed-income security pays A) a fixed level of income for the life of the owner. B) a fixed stream of income or a stream of income that is determined according to a

specified formula for the life of the security. C) a variable level of income for owners on a fixed income. D) a fixed or variable income stream at the option of the owner.

17) A debt security pays A) a fixed level of income for the life of the owner. B) a variable level of income for owners on a fixed income. C) a fixed or variable income stream at the option of the owner. D) a fixed stream of income or a stream of income that is determined according to a

specified formula for the life of the security.

18) Money market securities A) are short term. B) are highly marketable. C) are medium risk. D) are highly marketable and are short term. E) All of the options.

19) An example of a derivative security is A) a common share of Amazon. B) a call option on the S&P500 Index. C) A crude oil futures contract. D) a call option on S&P500 Index and a crude oil futures contract. E) a common share of Amazon and a call option on the S&P500 Index.

20) The value of a derivative security A) depends on the value of the related security. B) is unable to be calculated. C) is unrelated to the value of the related security. D) has been enhanced due to the recent misuse and negative publicity regarding these

instruments. E) is worthless today.

21) Although derivatives can be used as speculative instruments, businesses most often use them

to A) B) C) D) E)

attract customers. appease stockholders. offset debt. hedge risks. enhance their balance sheets.

22) Financial assets permit all of the following except A) consumption timing. B) allocation of risk. C) separation of ownership and control. D) elimination of risk.

23) The ______ refers to the potential conflict between management and shareholders. A) agency problem B) diversification problem C) liquidity problem D) solvency problem E) regulatory problem

24) A disadvantage of using stock options to compensate managers is that A) it encourages managers to undertake projects that will increase stock price. B) it encourages managers to engage in empire building. C) it can create an incentive for managers to manipulate information to prop up a stock

price temporarily, giving them a chance to cash out before the price returns to a level reflective of the firm's true prospects. D) All the options are true.

25) Which of the following are mechanisms that have evolved to mitigate potential agency

problems? I) Using the firm's stock options for compensation II) Hiring bickering family members as corporate spies III) Boards of directors forcing out underperforming management IV) Security analysts monitoring the firm closely V) Takeover threats A) II and V B) I, III, and IV C) I, III, IV, and V D) III, IV, and V E) I, III, and V

26) Corporate shareholders are best protected from incompetent management decisions by A) the ability to engage in proxy fights. B) management's control of pecuniary rewards. C) the ability to call shareholder meetings. D) the threat of takeover by other firms. E) one-share/one-vote election rules.

27) Theoretically, takeovers should result in A) improved management. B) increased stock price. C) increased benefits to existing management of the taken-over firm. D) improved management and increased stock price. E) All of the options.

28) During the period between 2000 and 2002, a large number of scandals were uncovered. Most

of these scandals were related to I) manipulation of financial data to misrepresent the actual condition of the firm. II) misleading and overly optimistic research reports produced by analysts. III) allocating IPOs to executives as a quid pro quo for personal favors. IV) greenmail. A) II, III, and IV B) I, II, and IV C) II and IV D) I, III, and IV E) I, II, and III

29) The Sarbanes-Oxley Act A) requires corporations to have more independent directors. B) requires the firm's CFO to personally vouch for the firm's accounting statements. C) prohibits auditing firms from providing other services to clients. D) requires corporations to have more independent directors and requires the firm's CFO

to personally vouch for the firm's accounting statements. E) All of the options are true.

30) Asset allocation refers to A) choosing which securities to hold based on their valuation. B) investing only in "safe" securities. C) the allocation of assets into broad asset classes. D) bottom-up analysis. E) Asset allocation refers to the allocation of assets into broad asset classes.

31) Security selection refers to A) choosing which securities to hold based on their valuation. B) investing only in "safe" securities. C) the allocation of assets into broad asset classes. D) top-down analysis.

32) Which of the following portfolio construction methods starts with security analysis? A) Top-down B) Bottom-up C) Middle-out D) Buy and hold E) Asset allocation

33) Which of the following portfolio construction methods starts with asset allocation? A) Top-down B) Bottom-up C) Middle-out D) Buy and hold E) Asset allocation

34) ______ are examples of financial intermediaries. A) Commercial banks B) Insurance companies C) Investment companies D) Credit unions E) All of the options

35) Financial intermediaries exist because small investors cannot efficiently A) diversify their portfolios. B) assess credit risk of borrowers. C) advertise for needed investments. D) diversify their portfolios and assess credit risk of borrowers. E) All of the options.

36) ______ specialize in helping companies raise capital by selling securities. A) Commercial bankers B) Investment bankers C) Investment issuers D) Credit raters

37) Commercial banks differ from other businesses in that both their assets and their liabilities

are mostly A) illiquid. B) financial. C) real. D) owned by the government. E) regulated.

38) In 2016, _______ was(were) the most significant financial asset(s) of U.S. commercial banks

in terms of total value. A) loans and leases B) cash C) real estate D) deposits E) investment securities

39) In 2016, _______ was(were) the most significant liability(ies) of U.S. commercial banks in

terms of total value. A) loans and leases B) cash C) real estate D) deposits E) investment securities

40) In 2016, _______ was(were) the most significant real asset(s) of U.S. nonfinancial businesses

in terms of total value. A) equipment and software B) inventory C) real estate D) trade credit E) marketable securities

41) In 2016, _______ was(were) the least significant real asset(s) of U.S. nonfinancial businesses

in terms of total value. A) equipment and software B) inventory C) real estate D) trade credit E) marketable securities

42) In 2016, _______ was(were) the least significant liability(ies) of U.S. nonfinancial businesses

in terms of total value. A) bonds and mortgages B) bank loans C) inventories D) trade debt E) marketable securities

43) In terms of total value, the most significant liability(ies) of U.S. nonfinancial businesses in

2016 was(were) A) bank loans. B) bonds and mortgages. C) trade debt. D) other loans. E) marketable securities.

44) In 2016, _______ was(were) the least significant financial asset(s) of U.S. nonfinancial

businesses in terms of total value. A) cash and deposits B) trade credit C) trade debt D) inventory E) marketable securities

45) New issues of securities are sold in the ______ market(s). A) primary B) secondary C) over-the-counter D) primary and secondary

46) Investors trade previously issued securities in the ______ market(s). A) primary B) secondary C) primary and secondary D) derivatives

47) Investment bankers perform which of the following role(s)? A) Market new stock and bond issues for firms B) Provide advice to the firms as to market conditions, price, etc. C) Design securities with desirable properties D) All of the options E) None of the options

48) Until 1999, the ______ Act(s) prohibited banks in the United States from both accepting

deposits and underwriting securities. A) Sarbanes-Oxley B) Glass-Steagall C) SEC D) Sarbanes-Oxley and SEC E) None of the options

49) The spread between the LIBOR and the Treasury-bill rate is called the A) term spread. B) T-bill spread. C) LIBOR spread. D) TED spread.

50) Mortgage-backed securities were created when _______ began buying mortgage loans from

originators and bundling them into large pools that could be traded like any other financial asset. A) GNMA B) FNMA C) FHLMC D) FNMA and FHLMC E) GNMA and FNMA

51) The sale of a mortgage portfolio by setting up mortgage pass-through securities is an

example of A) credit enhancement. B) credit swap. C) unbundling. D) derivatives.

52) Which of the following is true about mortgage-backed securities?

I) They aggregate individual home mortgages into homogeneous pools. II) The purchaser receives monthly interest and principal payments received from payments made on the pool. III) The banks that originated the mortgages maintain ownership of them. IV) The banks that originated the mortgages may continue to service them. A) II, III, and IV B) I, II, and IV C) II and IV D) I, III, and IV E) I, II, III, and IV

53) _______ were designed to concentrate the credit risk of a bundle of loans on one class of

investor, leaving the other investors in the pool relatively protected from that risk. A) Stocks B) Bonds C) Derivatives D) Collateralized debt obligations E) All of the options

54) _______ are, in essence, an insurance contract against the default of one or more borrowers. A) Credit default swaps B) CMOs C) ETFs D) Collateralized debt obligations E) All of the options

55) What fueled the stock market rally that took hold in April 2020 during the COVID-19

Pandemic? A) Massive vaccinations across the world B) Indication from central banks that interest rates would remain low C) Expectations of a strong recovery in economic growth D) Indications that rates would remain low and the expectation of strong economic recovery E) All of the options

56) The Canadian equity market, with its relatively high weight in resource stocks, tends to

perform well in ______ A) An inflationary environment. B) A financial crisis. C) A global pandemic. D) A deflationary environment. E) All of the options

57) Most venture capital funds are set up as A) An insurance company B) Sole Proprietorships. C) Corporations. D) Limited partnerships. E) None of the options

58) The so-called Volcker Rule, named after former chair of the Federal Reserve Paul Volcker,

prohibits banks from trading for their own accounts and restricts their investments in _____. A) hedge funds and equity funds B) private equity or mutual funds C) mutual funds or hedge funds D) equity funds and mutual funds E) hedge funds or private equity

59) Mortgage-backed securities A) aggregate individual home mortgages into homogeneous pools B) Are owned by the banks that originated the mortgages maintain ownership of them. C) Are derivatives D) insurance contract against the default of one or more borrowers

Answer Key Test name: Chapter 1 1) B 2) E 3) D 4) D 5) E 6) B 7) A 8) C 9) B 10) D 11) B 12) A 13) C 14) B 15) E 16) B 17) D 18) D 19) D 20) A 21) D 22) D 23) A 24) C 25) C 26) D 27) D 28) E 29) E 30) C 31) A 32) B 33) A 34) E 35) E 36) B 37) B

38) A 39) D 40) C 41) B 42) B 43) B 44) E 45) A 46) B 47) D 48) B 49) D 50) D 51) B 52) B 53) D 54) A 55) D 56) A 57) D 58) E 59) A

Chapter 2:__________ 1) Which of the following is not a characteristic of a money market instrument? A) Liquidity B) Marketability C) Long maturity D) Liquidity premium E) Long maturity and liquidity premium

2) The money market is a subsector of the A) commodity market. B) capital market. C) derivatives market. D) equity market. E) None of the options are correct.

3) Which one of the following is not a money market instrument? A) Treasury bill B) Negotiable certificate of deposit C) Commercial paper D) Treasury bond E) Eurodollar account

4) T-bills are financial instruments initially sold by ______ to raise funds. A) commercial banks B) the Canadian government C) state and local governments D) agencies of the federal government E) the Canadian government and agencies of the federal government

5) The bid price of a T-bill in the secondary market is A) the price at which the dealer in T-bills is willing to sell the bill. B) the price at which the dealer in T-bills is willing to buy the bill. C) greater than the asked price of the T-bill. D) the price at which the investor can buy the T-bill. E) never quoted in the financial press.

6) The smallest component of the money market is A) repurchase agreements. B) small-denomination time deposits. C) savings deposits. D) money market mutual funds. E) commercial paper.

7) The smallest component of the fixed-income market is _______ debt. A) Treasury B) other asset-backed C) corporate D) tax-exempt E) mortgage-backed

8) The largest component of the fixed-income market is _______ debt. A) Treasury B) asset-backed C) corporate D) tax-exempt E) mortgage-backed

9) Which of the following is not a component of the money market? A) Repurchase agreements B) Eurodollars C) Real estate investment trusts D) Money market mutual funds E) Commercial paper

10) Commercial paper is a short-term security issued by ________ to raise funds. A) the Federal Reserve Bank B) commercial banks C) large, well-known companies D) the New York Stock Exchange E) state and local governments

11) Which one of the following terms best describes Eurodollars? A) Dollar-denominated deposits only in European banks. B) Dollar-denominated deposits at branches of foreign banks in the U.S. C) Dollar-denominated deposits at foreign banks and branches of American banks

outside the U.S. D) Dollar-denominated deposits at American banks in the U.S. E) Dollars that have been exchanged for European currency.

12) Deposits of commercial banks at the Federal Reserve Bank are called A) bankers' acceptances. B) repurchase agreements. C) time deposits. D) federal funds. E) reserve requirements.

13) The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks

needing overnight loans to meet reserve requirements is called the A) prime rate. B) discount rate. C) federal funds rate. D) call money rate. E) money market rate.

14) Which of the following statement(s) is (are) true regarding municipal bonds?

I) A municipal bond is a debt obligation issued by state or local governments. II) A municipal bond is a debt obligation issued by the federal government. III) The interest income from a municipal bond is exempt from federal income taxation. IV) The interest income from a municipal bond is exempt from state and local taxation in the issuing state. A) I and II only B) I and III only C) I, II, and III only D) I, III, and IV only E) I and IV only

15) Which of the following statements is true regarding a corporate bond? A) A corporate callable bond gives the holder the right to exchange it for a specified

number of the company's common shares. B) A corporate debenture is a secured bond. C) A corporate indenture is a secured bond. D) A corporate convertible bond gives the holder the right to exchange the bond for a specified number of the company's common shares. E) Holders of corporate bonds have voting rights in the company.

16) In the event of the firm's bankruptcy, A) the most shareholders can lose is their original investment in the firm's stock. B) common shareholders are the first in line to receive their claims on the firm's assets. C) bondholders have claim to what is left from the liquidation of the firm's assets after

paying the shareholders. D) the claims of preferred shareholders are honored before those of the common shareholders. E) the most shareholders can lose is their original investment in the firm's stock and the claims of preferred shareholders are honored before those of the common shareholders.

17) Which of the following is true regarding a firm's securities? A) Common dividends are paid before preferred dividends. B) Preferred stockholders have voting rights. C) Preferred dividends are usually cumulative. D) Preferred dividends are contractual obligations. E) Common dividends can usually be paid if preferred dividends have been skipped.

18) Which of the following is true of the Dow Jones Industrial Average? A) It is a value-weighted average of 30 large industrial stocks. B) It is a price-weighted average of 30 large industrial stocks. C) The divisor must be adjusted for stock splits. D) It is a value-weighted average of 30 large industrial stocks, and the divisor must be

adjusted for stock splits. E) It is a price-weighted average of 30 large industrial stocks, and the divisor must be adjusted for stock splits.

19) Which of the following indices is(are) market-value weighted?

I) The New York Stock Exchange Composite Index II) The S&P/TSX Composite Index III) The Dow Jones Industrial Average A) I only B) I and II only C) I and III only D) I, II, and III E) II and III only

20) The Dow Jones Industrial Average (DJIA) is computed by A) adding the prices of 30 large "blue-chip" stocks and dividing by 30. B) calculating the total market value of the 30 firms in the index and dividing by 30. C) adding the prices of the 30 stocks in the index and dividing by a divisor. D) adding the prices of the 500 stocks in the index and dividing by a divisor. E) adding the prices of the 30 stocks in the index and dividing by the value of these

stocks as of some base date period.

21) Consider the following three stocks: Stock

Price

Number of Shares Outstanding

Stock A

$50

200

Stock B

$80

500

Stock C

$20

600

The price-weighted index constructed with the three stocks is A) 30. B) 40. C) 50. D) 60. E) 70.

22) Consider the following three stocks: Stock

Price

Number of Shares Outstanding

Stock A

$40

300

Stock B

$70

400

Stock C

$10

500

The value-weighted index constructed with the three stocks using a divisor of 100 is A) 1.2. B) 1200. C) 450 D) 4900. E) 49.

23) Consider the following three stocks: Stock

Price

Number of Shares Outstanding

Stock A

$40

300

Stock B

$70

500

Stock C

$10

600

Assume at these prices that the value-weighted index constructed with the three stocks is 530. What would the index be if stock B is split 2 for 1 and stock C 4 for 1? A) 265 B) 430 C) 355 D) 530 E) 1000

24) The price quotations of Treasury bonds in the Wall Street Journal show an ask price of

104.50 and a bid price of 104.25. As a buyer of the bond, what is the dollar price you expect to pay? A) $1,048.00 B) $1045.00 C) $1,044.00 D) $1,041.25 E) $1,040.40

25) The price quotations of Treasury bonds in the Wall Street Journal show an ask price of

104.25 and a bid price of 104.125. As a seller of the bond, what is the dollar price you expect to receive? A) $1,048.00 B) $1,042.50 C) $1,041.25 D) $1,041.75 E) $1,040.40

26) An investor purchases one municipal and one corporate bond that pay rates of return of 7.5%

and 10.3%, respectively. If the investor is in the 24% marginal tax bracket, his or her aftertax rates of return on the municipal and corporate bonds would be ______ and ______, respectively. A) 7.5%; 10.3% B) 7.5%; 7.83% C) 5.63%; 7.73% D) 5.63%; 10.3% E) 10%; 10%

27) An investor purchases one municipal and one corporate bond that pay rates of return of 8%

and 10%, respectively. If the investor is in the 25% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ______ and ______, respectively. A) 8%; 10% B) 8%; 7.5% C) 6.4%; 8% D) 5.4%; 10% E) 10%; 10%

28) If a Treasury note has a bid price of $975, the quoted bid price in the Wall Street Journal

would be A) 97:50. B) 97:16. C) 97:80. D) 94:24. E) 97:75.

29) If a Treasury note has a bid price of $995, the quoted bid price in the Wall Street Journal

would be A) 99:50. B) 99:16. C) 99:80. D) 99:24. E) 99:32.

30) In calculating the Standard and Poor's stock price indices, the adjustment for stock split

occurs A) B) C) D)

by adjusting the divisor. automatically. by adjusting the numerator. quarterly on the last trading day of each quarter.

31) Which of the following statements regarding the Dow Jones Industrial Average (DJIA) is

false? A) B) C) D) E)

The DJIA is a measure of the performance of the stock market. The DJIA consists of 30 blue chip stocks. The DJIA is affected equally by changes in low- and high-priced stocks. The DJIA divisor needs to be adjusted for stock splits. The value of the DJIA is much higher than individual stock prices.

32) The index that includes the largest number of actively-traded stocks is A) the NASDAQ Composite Index. B) the NYSE Composite Index. C) the Wilshire 5000 Index. D) the Value Line Composite Index. E) the Russell Index.

33) A 5.5%, 20-year municipal bond is currently priced to yield 7.5%. For a taxpayer in the 32%

marginal tax bracket, this bond would offer an equivalent taxable yield of A) 8.20%. B) 11.03%. C) 11.40%. D) 4.82%.

34) If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all

change by the same percentage amount during a given day, which stock will have the greatest impact on the DJIA? A) The stock trading at the highest dollar price per share B) The stock having the greatest amount of debt in its capital structure C) The stock having the greatest amount of equity in its capital structure D) The stock having the lowest volatility

35) The stocks on the Dow Jones Industrial Average A) have remained unchanged since the creation of the index. B) include most of the stocks traded on the NYSE. C) are changed occasionally as circumstances dictate. D) consist of stocks on which the investor cannot lose money. E) include most of the stocks traded on the NYSE and are changed occasionally as

circumstances dictate.

36) Federally-sponsored agency debt A) is legally insured by the U.S. Treasury. B) would probably be backed by the U.S. Treasury in the event of a near-default. C) has a small positive yield spread relative to U.S. Treasuries. D) would probably be backed by the U.S. Treasury in the event of a near-default and has

a small positive yield spread relative to U.S. Treasuries. E) is legally insured by the U.S. Treasury and has a small positive yield spread relative to U.S. Treasuries.

37) Brokers' calls A) are funds used by individuals who wish to buy stocks on margin. B) are funds borrowed by the broker from the bank, with the agreement to repay the

bank immediately if requested to do so. C) carry a rate that is usually about one percentage point lower than the rate on Canadian T-bills. D) are funds used by individuals who wish to buy stocks on margin and are funds borrowed by the broker from the bank, with the agreement to repay the bank immediately if requested to do so. E) are funds used by individuals who wish to buy stocks on margin and carry a rate that is usually about one percentage point lower than the rate on Canadian T-bills.

38) A form of short-term borrowing by dealers in government securities is (are) A) reserve requirements. B) repurchase agreements. C) bankers' acceptances. D) commercial paper. E) brokers' calls.

39) Which of the following securities is a money market instrument? A) Treasury note B) Treasury bond C) Municipal bond D) Commercial paper E) Mortgage security

40) The yield to maturity reported in the financial pages for Treasury securities A) is calculated by compounding the semiannual yield. B) is calculated by doubling the semiannual yield. C) is also called the bond equivalent yield. D) is calculated as the yield-to-call for premium bonds. E) is calculated by doubling the semiannual yield and is also called the bond equivalent

yield.

41) Which of the following is not a mortgage-related government or government-sponsored

agency? A) The Federal Home Loan Bank B) The Federal National Mortgage Association C) The U.S. Treasury D) Freddie Mac E) Ginnie Mae

42) In order for you to be indifferent between the after-tax returns on a corporate bond paying

7.9% and a tax-exempt municipal bond paying 5.925%, what would your tax bracket need to be? A) 33% B) 72% C) 15% D) 25% E) Cannot be determined from the information given.

43) What does the term negotiable mean, with regard to negotiable certificates of deposit? A) The CD can be sold to another investor if the owner needs to cash it in before its

maturity date. B) The rate of interest on the CD is subject to negotiation. C) The CD is automatically reinvested at its maturity date. D) The CD has staggered maturity dates built in. E) The interest rate paid on the CD will vary with a designated market rate.

44) Freddie Mac and Ginnie Mae were organized to provide A) a primary market for mortgage transactions. B) liquidity for the mortgage market. C) a primary market for farm loan transactions. D) liquidity for the farm loan market. E) a source of funds for government agencies.

45) The type of municipal bond that is used to finance commercial enterprises, such as the

construction of a new building for a corporation, is called A) a corporate courtesy bond. B) a revenue bond. C) a general-obligation bond. D) a tax-anticipation note. E) an industrial-development bond.

46) Suppose an investor is considering a corporate bond with a 7.7% before-tax yield and a

municipal bond with a 5.95% before-tax yield. At what marginal tax rate would the investor be indifferent between investing in the corporate and investing in the muni? A) 15.4% B) 23.7% C) 39.5% D) 22.73% E) 12.4%

47) Which of the following are characteristics of preferred stock?

I) It pays its holder a fixed amount of income each year at the discretion of its managers. II) It gives its holder voting power in the firm. III) Its dividends are usually cumulative. IV) Failure to pay dividends may result in bankruptcy proceedings. A) I, III, and IV B) I, II, and III C) I and III D) I, II, and IV E) I, II, III, and IV

48) Bond market indexes can be difficult to construct because A) they cannot be based on firms' market values. B) bonds tend to trade infrequently, making price information difficult to obtain. C) there are so many different kinds of bonds. D) prices cannot be obtained for companies that operate in emerging markets. E) corporations are not required to disclose the details of their bond issues.

49) With regard to a futures contract, the long position is held by A) the trader who bought the contract at the largest discount. B) the trader who has to travel the farthest distance to deliver the commodity. C) the trader who plans to hold the contract open for the lengthiest time period. D) the trader who commits to purchasing the commodity on the delivery date. E) the trader who commits to delivering the commodity on the delivery date.

50) In order for you to be indifferent between the after-tax returns on a corporate bond paying

8% and a tax-exempt municipal bond paying 6%, what would your tax bracket need to be? A) 17.6% B) 27% C) 25% D) 19.8% E) Cannot be determined from the information given.

51) In order for you to be indifferent between the after-tax returns on a corporate bond paying

7% and a tax-exempt municipal bond paying 5.5%, what would your tax bracket need to be? A) 22.6% B) 21.4% C) 26.2% D) 19.8% E) Cannot be determined from the information given.

52) An investor purchases one municipal and one corporate bond that pay rates of return of 6%

and 8%, respectively. If the investor is in the 24% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ______ and ______, respectively. A) 6%; 8% B) 4.5%; 6% C) 4.5%; 8% D) 6%; 6.08%

53) An investor purchases one municipal and one corporate bond that pay rates of return of 7.2%

and 9.1%, respectively. If the investor is in the 12% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ______ and ______, respectively. A) 7.2%; 9.1% B) 7.2%; 8.008% C) 6.12%; 7.735% D) 8.471%; 9.1%

54) For a taxpayer in the 24% marginal tax bracket, a 20-year municipal bond currently yielding

5.5% would offer an equivalent taxable yield of A) 7.24%. B) 10.75%. C) 5.5%. D) 4.125%.

55) For a taxpayer in the 12% marginal tax bracket, a 15-year municipal bond currently yielding

6.2% would offer an equivalent taxable yield of A) 6.2%. B) 5.27%. C) 8.32%. D) 7.05%.

56) With regard to a futures contract, the short position is held by A) the trader who bought the contract at the largest discount. B) the trader who has to travel the farthest distance to deliver the commodity. C) the trader who plans to hold the contract open for the lengthiest time period. D) the trader who commits to purchasing the commodity on the delivery date. E) the trader who commits to delivering the commodity on the delivery date.

57) A call option allows the buyer to A) sell the underlying asset at the exercise price on or before the expiration date. B) buy the underlying asset at the exercise price on or before the expiration date. C) sell the option in the open market prior to expiration. D) sell the underlying asset at the exercise price on or before the expiration date and sell

the option in the open market prior to expiration. E) buy the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.

58) A put option allows the holder to A) buy the underlying asset at the strike price on or before the expiration date. B) sell the underlying asset at the strike price on or before the expiration date. C) sell the option in the open market prior to expiration. D) sell the underlying asset at the strike price on or before the expiration date and sell the

option in the open market prior to expiration. E) buy the underlying asset at the strike price on or before the expiration date and sell the option in the open market prior to expiration.

59) The _____ index represents the performance of the German stock market. A) DAX B) FTSE C) Nikkei D) Hang Seng

60) The _____ index represents the performance of the Japanese stock market. A) DAX B) FTSE C) Nikkei D) Hang Seng

61) The _____ index represents the performance of the U.K. stock market. A) DAX B) FTSE C) Nikkei D) Hang Seng

62) The _____ index represents the performance of the Hong Kong stock market. A) DAX B) FTSE C) Nikkei D) Hang Seng

63) The _____ index represents the performance of the Canadian stock market. A) DAX B) FTSE C) S&P/TSX D) Hang Seng E) DOW

64) The ultimate stock index in the U.S. is the A) Wilshire 5000. B) DJIA. C) S&P 500. D) Russell 2000.

65) The _____ is an example of a U.S. index of large firms. A) Wilshire 5000 B) DJIA C) DAX D) Russell 2000 E) All of the options.

66) The _____ is an example of a Canadian index of small firms. A) TSX 60 B) TSX C) TSX SmallCap D) TSX MidCap E) All of the options are correct.

67) The largest component of the money market is/are A) repurchase agreements. B) money market mutual funds. C) T-bills. D) Eurodollars. E) savings deposits.

68) Certificates of deposit are insured by the A) SPIC. B) CFTC. C) Lloyds of London. D) FDIC. E) All of the options are correct.

69) Certificates of deposit are insured for up to ________ in the event of bank insolvency. A) $10,000 B) $100,000 C) $250,000 D) $500,000

70) Canada's best-known stock market indicator is A) Wilshire 5000. B) DJIA. C) S&P/TSX Composite Index. D) Russell 2000. E) S&P 500

71) Which of the following is used extensively in foreign trade when the creditworthiness of one

trader is unknown to the trading partner? A) Repos B) Bankers' acceptances C) Eurodollars D) Federal funds

72) A U.S. dollar-denominated bond that is sold in Singapore is a(n) A) Eurobond. B) Yankee bond. C) Samurai bond. D) Bulldog bond.

73) A municipal bond issued to finance an airport, hospital, turnpike, or port authority is

typically a A) revenue bond. B) general-obligation bond. C) industrial-development bond. D) revenue bond or general-obligation bond.

74) Unsecured bonds are called A) junk bonds. B) debentures. C) indentures. D) subordinated debentures. E) either debentures or subordinated debentures.

75) A bond that can be retired prior to maturity by the issuer is a(n) ______ bond. A) convertible B) secured C) unsecured D) callable E) Yankee

76) Corporations can exclude ______% of the dividends received from preferred stock from

taxes. A) B) C) D) E)

50 70 20 15 62

77) You purchased a futures contract on corn at a futures price of 3.50, and at the time of

expiration, the price was 3.52. What was your profit or loss? A) $2.00 B) -$2.00 C) $100 D) -$100

78) You purchased a futures contract on corn at a futures price of 3.31, and at the time of

expiration, the price was 3.43. What was your profit or loss? A) -$12.00 B) $12.00 C) -$600 D) $600

79) You sold a futures contract on corn at a futures price of 3.50, and at the time of expiration,

the price was 3.52. What was your profit or loss? A) $2.00 B) -$2.00 C) $100 D) -$100

80) You sold a futures contract on corn at a futures price of 3.31, and at the time of expiration,

the price was 3.43. What was your profit or loss? A) -$12.00 B) $12.00 C) -$600 D) $600

81) You purchased a futures contract on oats at a futures price of 2.30, and at the time of

expiration, the price was 2.60. What was your profit or loss? A) $1500 B) -$1375.00 C) -$27.50 D) $27.50

82) You sold a futures contract on oats at a futures price of 2.30, and at the time of expiration, the

price was 2.60. What was your profit or loss? A) $1375.00 B) -$1500 C) -$27.50 D) $27.50

83) What short term interest rate was proposed to be phased out by 2021? A) SONIA B) LIBOR C) Tokyo Interbank rate D) Euribor E) US Treasury Repo

84) What interest rate have British regulators proposed be the new short term benchmark rate? A) SONIA B) LIBOR C) Tokyo Interbank rate D) Euribor E) US Treasury Repo

85) What interest rate have US regulators proposed be the new short term benchmark rate? A) SONIA B) LIBOR C) Tokyo Interbank rate D) Euribor E) US Treasury Repo

86) A corporate bond is listed in the Wall Street Journal and shows an ask price of 98.62. If the

corporate bonds have a par value of $1,000, what dollar amount should a buyer expect to pay? A) $98.62 B) $986.20 C) $1000.00 D) $1081.25 E) $1140.40

87) In Canada, Canadian-dollar denominated bonds issued by foreign borrowers in the domestic

Canadian fixed-income market are called A) Euroyen bonds. B) Maple Bonds. C) Samurai bond. D) Bulldog bonds. E) Beaver bonds.

Answer Key Test name: Chapter 2 1) E 2) E 3) D 4) B 5) B 6) E 7) B 8) A 9) C 10) C 11) C 12) D 13) C 14) D 15) D 16) E 17) C 18) E 19) B 20) C 21) C 22) C 23) D 24) B 25) C 26) B 27) B 28) B 29) B 30) B 31) C 32) C 33) B 34) A 35) C 36) D 37) D

38) B 39) D 40) E 41) C 42) D 43) A 44) B 45) E 46) D 47) C 48) B 49) D 50) C 51) B 52) D 53) B 54) A 55) D 56) E 57) B 58) B 59) A 60) C 61) B 62) D 63) C 64) A 65) B 66) C 67) E 68) D 69) C 70) C 71) B 72) A 73) A 74) E 75) D 76) B 77) C

78) D 79) D 80) C 81) A 82) B 83) B 84) A 85) E 86) B 87) B

Chapter 3:__________ 1) The trading of stock that was previously issued takes place A) in the secondary market. B) in the primary market. C) usually with the assistance of an investment banker. D) in the secondary and primary markets.

2) A purchase of a new issue of stock takes place A) in the secondary market. B) in the primary market. C) usually with the assistance of an investment banker. D) in the secondary and primary markets. E) in the primary market and usually with the assistance of an investment banker.

3) Firms raise capital by issuing stock A) in the secondary market. B) in the primary market. C) to unwary investors. D) only on days when the market is up.

4) Which of the following statements regarding the specialist are true? A) Specialists maintain a book listing outstanding, unexecuted limit orders. B) Specialists earn income from commissions and spreads in stock prices. C) Specialists stand ready to trade at quoted bid and ask prices. D) Specialists cannot trade in their own accounts. E) Specialists maintain a book listing outstanding, unexecuted limit orders, earn income

from commissions and spreads in stock prices, and stand ready to trade at quoted bid and ask prices.

5) Investment bankers A) act as intermediaries between issuers of stocks and investors. B) act as advisors to companies in helping them analyze their financial needs and find

buyers for newly-issued securities. C) accept deposits from savers and lend them out to companies. D) act as intermediaries between issuers of stocks and investors and act as advisors to companies in helping them analyze their financial needs and find buyers for newlyissued securities.

6) In a "firm commitment," the investment banker A) buys the stock from the company and resells the issue to the public. B) agrees to help the firm sell the stock at a favorable price. C) finds the best marketing arrangement for the investment-banking firm. D) agrees to help the firm sell the stock at a favorable price and finds the best marketing

arrangement for the investment-banking firm.

7) The secondary market consists of A) transactions on the AMEX. B) transactions in the OTC market. C) transactions through the investment banker. D) transactions on the AMEX and in the OTC market. E) transactions on the AMEX, through the investment banker, and in the OTC market.

8) Initial margin requirements are determined by A) the Securities and Exchange Commission. B) the Federal Reserve System. C) the New York Stock Exchange. D) the Federal Reserve System and the New York Stock Exchange.

9) You purchased JNJ stock at $50 per share. The stock is currently selling at $65. Your gains

may be protected by placing a A) stop-buy order. B) limit-buy order. C) market order. D) limit-sell order. E) None of these options are correct.

10) You sold JCP stock short at $80 per share. Your losses could be minimized by placing a A) limit-sell order. B) limit-buy order. C) stop-buy order. D) day-order. E) None of the options are correct.

11) Which one of the following statements regarding orders is false? A) A market order is simply an order to buy or sell a stock immediately at the prevailing

market price. B) A limit-sell order is where investors specify prices at which they are willing to sell a security. C) If stock ABC is selling at $50, a limit-buy order may instruct the broker to buy the stock if and when the share price falls below $45. D) A market order is an order to buy or sell a stock on a specific exchange (market).

12) Restrictions on trading involving insider information apply to the following, except A) corporate officers. B) corporate directors. C) major stockholders. D) All of the individuals. E) None of the options.

13) The cost of buying and selling a stock consists of A) broker's commissions. B) dealer's bid-asked spread. C) a price concession an investor may be forced to make. D) broker's commissions and dealer's bid-asked spread. E) broker's commissions, dealer's bid-asked spread, and a price concession an investor

may be forced to make.

14) Assume you purchased 200 shares of GE common stock on margin at $65 per share from

your broker. If the initial margin is 55%, how much did you borrow from the broker? A) $6,000 B) $4,000 C) $5850 D) $7,000 E) $6,300

15) You sold short 100 shares of common stock at $80 per share. The initial margin is 60%. Your

initial investment was A) $8,000. B) $12,000. C) $5,600. D) $4,800. E) $6,000

16) You purchased 100 shares of RBC common stock on margin at $84 per share. Assume the

initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. A) $21 B) $50 C) $60 D) $80 E) $64

17) You purchased 100 shares of common stock on margin at $40 per share. Assume the initial

margin is 50%, and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $27.78? Ignore interest on margin. A) 0.33 B) 0.28 C) 0.43 D) 0.23 E) 0.25

18) You purchased 300 shares of common stock on margin for $50 per share. The initial margin

is 60%, and the stock pays no dividend. What would your rate of return be if you sell the stock at $40 per share? Ignore interest on margin. A) 25.00% B) -33.33% C) 44.31% D) -41.67% E) -54.22%

19) Assume you sell short 100 shares of common stock at $45 per share, with initial margin at

50%. What would be your rate of return if you repurchase the stock at $40 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction. A) 20.03% B) 29.79% C) 22.22% D) 77.46%

20) You sold short 300 shares of common stock at $55 per share. The initial margin is 60%. At

what stock price would you receive a margin call if the maintenance margin is 35%? A) $51.00 B) $65.19 C) $35.22 D) $40.36

21) Assume you sold short 100 shares of common stock at $70 per share. The initial margin is

60%. What would be the maintenance margin if a margin call is made at a stock price of $80? A) 40% B) 33% C) 35% D) 25% E) 70%

22) Specialists on stock exchanges perform which of the following functions? A) Act as dealers in their own accounts B) Analyze the securities in which they specialize C) Provide liquidity to the market D) Act as dealers in their own accounts and analyze the securities in which they

specialize E) Act as dealers in their own accounts and provide liquidity to the market

23) Shares for short transactions A) are usually borrowed from other brokers. B) are typically shares held by the short seller's broker in street name. C) are borrowed from commercial banks. D) are typically shares held by the short seller's broker in street name and are borrowed

from commercial banks. E) Are lended to the broker

24) Which of the following orders is most useful to short sellers who want to limit their potential

losses? A) B) C) D) E)

Limit order Discretionary order Limit-loss order Stop-buy order Market order

25) Which of the following orders instructs the broker to buy at the current market price? A) Limit order B) Discretionary order C) Limit-loss order D) Stop-buy order E) Market order

26) Which of the following orders instructs the broker to buy at or below a specified price? A) Limit-loss order B) Discretionary order C) Limit-buy order D) Stop-buy order E) Market order

27) Which of the following orders instructs the broker to sell at or below a specified price? A) Limit-sell order B) Stop-loss C) Limit-buy order D) Stop-buy order E) Market order

28) Which of the following orders instructs the broker to sell at or above a specified price? A) Limit-buy order B) Discretionary order C) Limit-sell order D) Stop-buy order E) Market order

29) Which of the following orders instructs the broker to buy at or above a specified price? A) Limit-buy order B) Discretionary order C) Limit-sell order D) Stop-buy order E) Market order

30) Shelf registration A) is a way of placing issues in the primary market. B) allows firms to register securities for sale over a two-year period. C) increases transaction costs to the issuing firm. D) is a way of placing issues in the primary market and allows firms to register securities

for sale over a two-year period. E) is a way of placing issues in the primary market and increases transaction costs to the issuing firm.

31) Block transactions are transactions for more than _______ shares, and they account for about

_____ percent of all trading on the NYSE. A) 1,000; 5 B) 500; 10 C) 100,000; 50 D) 10,000; 30 E) 5,000; 23

32) A ECN is A) a trade of 10,000 (or more) shares of a stock. B) a trade of many shares of one stock for one other stock. C) a trade of analytic programs between financial analysts. D) a fully automated market. E) not feasible with current technology but is expected to be popular in the near future.

33) When stocks are held in street name, A) the investor receives a stock certificate with the owner's street address. B) the investor receives a stock certificate without the owner's street address. C) the investor does not receive a stock certificate. D) the broker holds the stock in the brokerage firm's name on behalf of the client. E) the investor does not receive a stock certificate, and the broker holds the stock in the

brokerage firm's name on behalf of the client.

34) NASDAQ subscriber levels A) permit those with the highest level, 3, to "make a market" in the security. B) permit those with a level 2 subscription to receive all bid and ask quotes but not to

enter their own quotes. C) permit level 1 subscribers to receive general information about prices. D) include all OTC stocks. E) permit those with the highest level, 3, to "make a market" in the security; permit those with a level 2 subscription to receive all bid and ask quotes but not to enter their own quotes; and permit level 1 subscribers to receive general information about prices.

35) You want to buy 100 shares of Hotstock Inc. at the best possible price as quickly as possible.

You would most likely place a A) stop-loss order. B) stop-buy order. C) market order. D) limit-sell order. E) limit-buy order.

36) You want to purchase XON stock at $60 from your broker using as little of your own money

as possible. If initial margin is 50% and you have $3,000 to invest, how many shares can you buy? A) 100 shares B) 200 shares C) 50 shares D) 500 shares E) 25 shares

37) A sale by IBM of new stock to the public would be a(n) A) short sale. B) seasoned equity offering. C) private placement. D) secondary-market transaction. E) initial public offering.

38) The finalized registration statement for new securities approved by the SEC is called A) a red herring. B) the preliminary statement. C) the prospectus. D) a best-efforts agreement. E) a firm commitment.

39) One outcome from the SEC investigation of the "Flash Crash of 2010" was A) a prohibition of short selling. B) higher margin requirements. C) approval of new circuit breakers. D) establishment of electronic communications networks (ECNs). E) passage of the Sarbanes-Oxley Act.

40) All of the following are considered new trading strategies, except A) high frequency trading. B) algorithmic trading. C) dark pools. D) short selling.

41) You sell short 100 shares of Loser Co. at a market price of $75 per share. Your maximum

possible loss is A) $7,500. B) unlimited. C) zero. D) $15,000. E) Cannot be determined from the information given.

42) You buy 300 shares of Suncor Energy for $25 per share and deposit initial margin of 50%.

The next day, Suncor Energy 's price drops to $20 per share. What is your actual margin the next day? A) 50% B) 40% C) 62.5% D) 60% E) 25%

43) When a firm markets new securities, a preliminary registration statement must be filed with A) the exchange on which the security will be listed. B) the Securities and Exchange Commission. C) the Federal Reserve. D) all other companies in the same line of business. E) the Federal Deposit Insurance Corporation.

44) In a typical underwriting arrangement, the investment-banking firm

I) sells shares to the public via an underwriting syndicate. II) purchases the securities from the issuing company. III) assumes the full risk that the shares may not be sold at the offering price. IV) agrees to help the firm sell the issue to the public but does not actually purchase the securities. A) I, II, and III B) I, III, and IV C) I and IV D) II and III E) I and II

45) Which of the following is true regarding private placements of primary security offerings? A) Extensive and costly registration statements are required by the SEC. B) For very large issues, they are better suited than public offerings. C) They trade in secondary markets. D) The shares are sold directly to a small group of institutional or wealthy investors. E) They have greater liquidity than public offerings.

46) You sold short 100 shares of common stock at $45 per share. The initial margin is 50%. Your

initial investment was A) $4,800. B) $12,000. C) $2,250. D) $7,200. E) $1,200

47) You sold short 150 shares of common stock at $47 per share. The initial margin is 45%. Your

initial investment was A) $4,800.60. B) $12,000.25. C) $3,172.5. D) $1,822.50. E) $1,200.

48) You purchased 200shares of Husky Energy (HSE) common stock on margin at $15 per share.

Assume the initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. A) $12.50 B) $520.75 C) $10.71 D) $30.34 E) $20.00

49) You purchased 1000 shares of CSCO common stock on margin at $19 per share. Assume the

50) You purchased 100 shares of common stock on margin at $40 per share. Assume the initial

margin is 50%, and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $25? Ignore interest on margin. A) 0.33 B) 0.55 C) 0.20 D) 0.23 E) 0.25

51) You purchased 1,000 shares of common stock on margin at $30 per share. Assume the initial

margin is 50%, and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $24? Ignore interest on margin. A) 0.33 B) 0.375 C) 0.20 D) 0.23 E) 0.25

52) You purchased 100 shares of common stock on margin for $75 per share. The initial margin

is 50%, and the stock pays no dividend. What would your rate of return be if you sell the stock at $56 per share? Ignore interest on margin. A) 28% B) 33% C) 14% D) 42% E) -50.67%

53) You purchased 100 shares of common stock on margin for $35 per share. The initial margin

is 50%, and the stock pays no dividend. What would your rate of return be if you sell the stock at $42 per share? Ignore interest on margin. A) 28% B) 33% C) 14% D) 40% E) 24%

54) Assume you sell short 1,000 shares of common stock at $83 per share, with initial margin at

50%. What would be your rate of return if you repurchase the stock at $75 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction. A) 20.47% B) 25.63% C) 57.14% D) 77.23% E) 19.28%

55) Assume you sell short 100 shares of common stock at $30 per share, with initial margin at

50%. What would be your rate of return if you repurchase the stock at $35 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction. A) -33.33% B) -25.63% C) -57.14% D) -77.23% E) -12%

56) You want to purchase Air Canada stock at $25 from your broker using as little of your own

money as possible. If initial margin is 50% and you have $4,000 to invest, how many shares can you buy? A) 100 shares B) 200 shares C) 320 shares D) 500 shares E) 25 shares

57) You want to purchase IBM stock at $80 from your broker using as little of your own money

as possible. If initial margin is 50% and you have $2,000 to invest, how many shares can you buy? A) 100 shares B) 200 shares C) 50 shares D) 500 shares E) 25 shares

58) Assume you sold short 100 shares of common stock at $40 per share. The initial margin is

50%. What would be the maintenance margin if a margin call is made at a stock price of $50? A) 40% B) 20% C) 35% D) 25% E) 15%

59) Assume you sold short 100 shares of common stock at $70 per share. The initial margin is

50%. What would be the maintenance margin if a margin call is made at a stock price of $85? A) 40.5% B) 20.5% C) 35.5% D) 23.5% E) 22.5%

60) You sold short 100 shares of common stock at $55 per share. The initial margin is 50%. At

what stock price would you receive a margin call if the maintenance margin is 37.5%? A) $60 B) $65 C) $35 D) $40 E) $30

61) You sold short 100 shares of common stock at $75 per share. The initial margin is 50%. At

what stock price would you receive a margin call if the maintenance margin is 30%? A) $90.23 B) $88.52 C) $86.54 D) $87.12 E) $78.5

62) The preliminary prospectus is referred to as a(n) A) red herring. B) indenture. C) greenmail. D) tombstone. E) headstone.

63) Bonds are traded A) on exchanges B) Over-the counter C) On a venture exchange D) NYSE E) AMEX

64) An explicit trading cost is A) commission B) Execution cost C) Bid-ask spread D) Annual fee E) Dealer spread

65) Which of the following is not required under the CFA Institute Standards of Professional

Conduct? A) Knowledge of all applicable laws, rules, and regulations B) Disclosure of all personal investments, whether or not they may conflict with a client's investments C) Disclosure of all conflicts to clients and prospects D) Reasonable inquiry into a client's financial situation E) All of the options are required under the CFA Institute standards.

66) According to the CFA Institute Standards of Professional Conduct, CFA Institute members

have responsibilities to all of the following, except A) the government. B) the profession. C) the public. D) the employer. E) clients and prospective clients.

67) When private firms wish to raise funds, they sell shares directly to institutional or wealthy

investors in a A) seasoned equity offering. B) short sale. C) private placement. D) primary-market transaction. E) Initial public offer.

68) The introduction of the _____ allowed brokers to send orders either for immediate electronic

execution or to the specialist, who could seek price improvement from another trader. A) International Exchange B) NYSE Hybrid Market C) Designated Order Turnaround D) NYSE Euronext