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Money and credit - Ivanov V.M.

test questions

1. The definition of the securities market.

2. What are securities?

3. What details should the promotion contain?

4. How much can joint stock companies issue bonds?

5. Give a definition of treasury bills.

6. Types of savings certificates.

7. Give a typical pattern of domicile bills in Ukraine.

Tests for self-control

1. The securities market is divided into:

a) public and private;

b) enterprises and financial institutions;

c) primary and secondary;

d) production and non-production capital investments;

e) the answers a), b), d) are correct;

e) all answers are correct.

2. Indicate the main participants in the securities market:

a) issuers;

b) the government;

c) commercial banks;

d) investors;

e) investment institutions;

e) the answers a), b), c), d) are correct;

g) all answers are incorrect.

3. Under the maturity of a security is understood:

a) a period of 5 years;

b) the date of repayment in cash;

c) a period of 100 years;

d) the date of sale of the security on the market;

e) the period indicated in the security itself;

e) the answers b), d), e) are correct;

g) all answers are correct.

4. Securities differ from each other:

a) by issuers;

b) names, ratings, degree of protection;

c) maturity, breadth of markets, denominations;

d) levels of credit risk and rate of return;

e) all answers are correct;

e) the answers a), b), d) are correct.

5. Typically, at auctions for the sale of securities, investors make bids:

a) for a certain amount (for example, UAH 1,000,000);

b) for certain lots;

c) competitive;

d) non-competitive;

e) the answers a), b), c) are correct;

e) all answers are correct.

Tasks

1. It is known that the average offer price for a treasury bill is 97, 231 UAH, maturity - 81 days. Define:

• income that the buyer will receive if he holds a bill with a face value of UAH 1,000,000 until repayment;

• rate on the bill.

2. Determine the coupon equivalent income using the data from task 1.

3. The coupon rate on the bill is 11.75%, face value - 97.231 UAH. Determine the income for six months, a year.

4. The dealer buys a lot (100 pieces) of securities with a face value of UAH 1,000,000 each. Determine the spread for the entire lot if the proposed price is 109 11/32% of the nominal and the asking price is 109 15/32%

5. Determine the income at the time of repayment, if the asking price

amounts to 109 15/32%, the coupon rate is 11.75%, the face value is 97.231 UAH, and the period until maturity is 2 years and 138 days.