How is known the process in which an investment company continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies ?

Related Mcqs:

1. A firm whose average total cost continually declines at least to the quantity that could supply the entire market is known as a ?

   A. natural monopoly
   B. perfect competitor
   C. government monopoly
   D. regulated monopoly

2. What is called when a private company first offers shares to the public market and investors ?

   A. Public offering
   B. Public floating
   C. going public
   D. Coming public

3. For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?

   A. the United States to Switzerland causing the dollar to depreciate
   B. the United States to Switzerland causing the dollar to appreciate
   C. Switzerland to the United States causing the franc to depreciate
   D. Switzerland to the United States causing the franc to appreciate

4. For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?

   A. The United States to Japan causing the dollar to depreciate
   B. The United States to Japan causing the dollar to appreciate
   C. The Japan to United States, causing the dollar to depreciate
   D. The Japan to United States, causing the dollar to appreciate

5. If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

   A. lender of less resort
   B. financial intermediation
   C. Open Market operations
   D. Financial regulation

6. In 1985, the Coca-cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New Coke Analysts now believe that most of the company’s problems resulted from poor marketing research. As the public demanded their old Coke back the company relented and reintroduced Coca-Cola Classic (which has regained and surpassed its former position) while New Coke owns only 0.1 percent of the market Which of the following marketing research mistakes did Coca-Cola make ?

   A. They did not investigate pricing correctly and priced the product too high
   B. They did not investigate dealer reaction and had inadequate distribution
   C. They defined their marketing research problem too narrowly
   D. They failed to account for the Pepsi Challenge taste test in their marketing efforts

7. Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?

   A. lower return and a lower level or risk
   B. lower return and a higher level of risk
   C. higher return and a lower level or risk
   D. higher return and a higher level of risk

8. If a cobbler buys leather for Rs100 and thread for Rs50 and uses them to produce and sell Rs500 worth of shoes to consumers the contribution to GDP is ?

   A. Rs50
   B. Rs100
   C. Rs650
   D. Rs500

9. Pick out the generic term for the securities industry firms that buy sell and underwrite securities ?

   A. Wall street
   B. NASDAQ
   C. Nikkei index
   D. Yahoo index

10. Due to Japan’s high saving rate, suppose that the Japanese invest abroad. This investment may result in a/an _______ of the Japanese yen and therefore a for Japan?

    A. appreciation; trade surplus
    B. appreciation; trade deficit
    C. depreciation; trade surplus
    D. depreciation; trade deficit