How much does iris have to deposit into a savings account

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Reference no: EM132579073

Question 1. Which of the following is a criterion that must be met if a private company wants to issue securities in the exempt market without a prospectus?

a) The company is issuing only debt.

b) The company will only spend the minimum allowable amounts on marketing and promoting the securities.

c) The company has fewer than 40 shareholders.

d) The company is raising less than $3 million.

Question 2. Which of the following statements regarding an allocationally efficient market is true?

a) The market price reflects all available information.

b) The resources are given to the most promising investment opportunities.

c) There is competition between buyers and sellers within a particular stock exchange and also between exchanges.

d) The financial intermediaries pool savings from various sectors and then lend the pooled funds to borrowers.

Question 3. Which of the following investments has the lowest risk associated with it from the investor's perspective?

a) Commercial paper

b) Banker's acceptances

c) Treasury bills

d) Money market securities

Question 4. Swimmers Inc. (SI) recently issued a security that allows the holder to purchase common shares for cash at a fixed price for a specified period. Which of the following correctly describes the type of security that was issued by SI?

a) Convertible preferred shares

b) Share rights

c) Warrants

d) Retractable bonds

Question 5. Iris is planning to take a leave from work in order to travel for nine months. She estimates that she will need $75,000 for this trip, which she hopes to start in six years. How much does Iris have to deposit into a savings account at the end of each month (starting next month) in order to have the amount she needs, assuming she will earn 0.5% per month?

a) $ 115.22

b) $ 867.97

c) $1,074.96

d) $1,242.97

Reference no: EM132579073

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