Quiz Ch 02 – T/F Derivatives Market as a Financing Option for Corporations
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: The derivatives market can also serve as a financing source for corporations.
True or false: The derivatives market can also serve as a financing source for corporations.
True or false: Exchange-traded funds are linked to an index or a collection of securities.
True or false: Investment projects within the corporation must meet a minimum return requirement set by the rates of return on external investments.
True or false: Hedge fund managers don’t typically earn performance-related fees, as compared to mutual fund managers.
True or false: The financial crisis of 2007-2009 partly resulted from the stringent monetary policies of the U.S. Federal Reserve and other central banks following the tech bubble burst, making money relatively expensive.
True or false: Private companies typically rely on financial intermediaries like mutual funds for their financing.
True or false: Financial markets are the primary avenue for funding public corporations.
True or false: The majority of foreign exchange trading takes place on the trading floors of FOREX exchanges in New York and London.
True or false: The 2007-2009 financial crisis had a limited impact, primarily within the U.S. and domestic companies.
True or false: The U.S. government intervened with bailouts for all at-risk firms in the midst of the 2007-2009 Financial Crisis.