Not what you're looking for?
Subject: Financial Management
Details: 1.A prpoperty and casualty company's revenue for a year is generated from _________.
a. the premium income for policies written during the year
b. claim expenses depreciated against the real assets of the company
c. investment income resulting from the investment of both the reserves established to pay off future claims and the property and casualty company's surplus
d. Both a cnd c
2. The prices of bonds with ________ are most sensitive to interest rate movements.
a. zero-coupon payments
b. small-coupon payments
c. high-coupon payments
d. None of the above; the size of the coupon does not affect sensitivity of the bond prices
3.Bought deals expose investment banking firms to ___________ capital risk than traditional underwriting.
c. the same
d. none of the above
4. Because of imperfections in markets, investors needs the services of _________.
c. seurity regulators
d. All of the above
5. Which of the following is false?
a. The dominant OTC market for stock in the U. S. is the NASDAQ.
b. One effect of operational efficency has been the decline in bid-ask spread to a level of one cent.
c. If securities are more liquid, a call auction trading system is more appropriate.
d. The minimum bid-offer spread in 2001 is one cent.
e. None of the above.
Purchase this Solution
1.A property and casualty company's revenue for a year is generated from
<br>Answer) Think about who there clients are. There clients are people/institutions who buy policies from them. Hence there primary source of income is from premiums. Hence part a is right. Now, the question comes, is it likely that the premium collected for this year will all be used to satisfy claims? Answer is no, if they are any good at what they are doing, they should have surplus. Thus, they will invest the surplus and get additional income ...
Purchase this Solution
Free BrainMass Quizzes
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
This quiz intended to help students understand change and resistance in organizations
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.