Reference no: EM133070700

Choose the correct answer

1. Long-term debt issued by either the government or a corporation that pays fixed payments based on a preset schedule is called a(n):

a. future contract.

b. option contract.

c. fixed-income security.

d. preferred stock.

e. money market instrument.

2.The right, but not the obligation, to purchase an asset at a specified price is called a:

a futures contract.

b fixed-income security.

c primary contract.

d call option.

e put option.

3. A closed-end fund is a fund which:

a. trades only with a pre-selected group of investors.

b. will no longer issue new shares but will still redeem existing shares.

c. issues new shares only when old shares are redeemed by the fund.

d. has a fixed net asset value.

e. issues a fixed number of shares.

4. If you redeem a large quantity of ETF shares, you will:

a need to do so over a period of time rather than all in one day.

b be paid in cash on the second trading day following the trade date.

c pay a redemption fee based on the size of the transaction.

d receive the underlying stock.

e be paid in cash the following day.