答案和详解如下： 1.Which of the following is least likely a characteristic of a well-functioning market? A) Reliable information is available on price and volume. B) Prices change significantly from one transaction to the next. C) Participants can buy and sell quickly. D) Prices adjust quickly when new information becomes available. The correct answer was B) In a well-functioning market, prices should not typically change much from one transaction to the next because many buyers and sellers are willing to trade at prices near the current price. Characteristics of a well-functioning market include availability of reliable information on prices and transaction volume; liquidity (marketability and price continuity); prices that react quickly to new information; and low transactions costs.
2.Which of the following are characteristics of a well-functioning securities market?
A) Provides liquidity. B) All of these choices are correct. C) Provides timely and accurate information. D) Gives the lowest possible transactions costs. The correct answer was B) Another characteristic of a well-functioning market is informational or external efficiency meaning that prices rapidly adjust to new information so that the prevailing market price reflects all available information regarding the asset.
3.In a well-functioning securities market:
A) major news announcements usually coincide. B) there are many buyers/sellers willing to trade at prices below/above current market prices and participants have timely information on the prices and volumes of transactions. C) portfolio managers assist clients with diversifying globally to reduce systematic risk. D) a limit sell order and a stop sell order are both placed above the current market price. The correct answer was B) The other statements are false. A limit sell order is placed above the market price, but a stop sell order is placed below the current market price. In an efficient market, portfolio managers assist clients with diversifying globally to reduce unsystematic risk. Systematic risk is not diversifiable. One assumption of efficient markets is that the timing of a news announcement is independent of the timing of other news announcements.
4.Which of the following statements about the financial markets is least accurate?
A) When exchange listed stocks are traded OTC, it is designated as a third market trade. B) Block houses are brokerage firms that buy and sell large blocks of stock for institutions. C) The National Association of Securities Dealers Automated Quotation system (NASDAQ) is an electronic quotation system for the OTC market. D) The New York Stock Exchange sets the initial margin requirements for stocks. The correct answer was D) The Federal Reserve sets margin requirements.
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发表于 2008-4-4 17:31
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