When an owner or creditor sells securities to another, the transaction takes place in the Blank_ market. Multiple choice question. secondary primary rudimentary underwriting
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- In order for the seller of securitized securities to remove the assets (i.e. mortgages) from the balance sheet, the sale must a. have a service agreement b. be overcollateralized c. be without recourse d. be made at a discount (original issue discount)When receivables are bundled and transferred to another organization that issues securities collateralized by the transferred receivables, the arrangement is defined as: Multiple Choice: A. collateralization. B.discounting. C. factoring. D.securitization.Collateral may mean the acquisition of rights over either assets belonging to a borrower and/or the acquisition of rights against third parties. a. True b. False
- Financial Market for previously issued securities are bought sold in: a. Secondary market O b. Primary market C. Money market O d. Capital marketOrganized securities markets a. are examples of financial intermediaries. b. are secondary markets. c. are not subject to regulation. d. transfer resources from savers to borrowers.These types of services may be reported as off-balance sheet items except: a. Intangible assets e.g., mortgage servicing rights. b. Standby letter of credit agreement. c. Securitization of collateral. d. Derivatives, hedge funds agreement, futures.
- Investment bank trade securities in the ? a. Secondary market b. Primary and secondary market c. Primary market d. Investment bank typacally do not trade securitiesWhich of the following is not true with a broker Select one: a. Safeguards the interests of the investor b. Is a middleman c. Maintains inventories and takes position of assets d. Buys and sells on behalf of investorWhich of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment
- Can I Dr. Investment also? (for Avaliable for sale securities?)Differentiate between money market and capital market securities by givingappropriate examples.Marketable securities are accounted for at their current fair value using mark-to-market accounting. Discuss why mark-to-market accounting is superior to accounting for mar- ketable securities at their historical cost. Should mark-to-market accounting be adopted to account for all assets on the balance sheet? Why or why not?
