It represents a loan by the holder to the issuer.
It is a certificate of ownership in the corporation.
It is commonly issued to raise working capital for a corporation.
It is junior in preference to convertible preferred stock.
A) II and III.
B) II and IV.
C) I and III.
D) I and IV.
Answer: C) I and III.
A) limited partnership in rental real estate.
B) U.S. treasury notes.
C) bank insured CDs.
D) NYSE listed common stock.
Answer: B) U.S. treasury notes.
Minimum face value of $100,000.
Maturities rarely extend beyond 360 days.
May be sold on the secondary market.
A) I and III.
B) II and III.
C) I, II and III.
D) I and II.
Answer: C) I, II and III.
A) they usually have maturities of less than 1 year.
B) they are secured obligations of the issuing bank.
C) they are usually issued in denominations of $100,000 to $1 million.
D) they are readily marketable.
Answer: B) they are secured obligations of the issuing bank.
Backed by money market deposits.
Negotiated maturities and yields.
Issued by commercial banks.
Not registered with the SEC.
A) I and II.
B) I and III.
C) III and IV.
D) II and IV.
Answer: D) II and IV.
A) short-term debt.
B) intermediate debt.
C) long-term equity.
D) long-term debt.
Answer: A) short-term debt.