11. Posting is the process of transferring information from the ______.
A. journal to the trial balance
B. ledger to the financial statements
C. ledger to the trial balance
D. journal to the ledger
12. A long call option is ______.
A. the right to buy the underlying instrument
B. the right to sell the underlying instrument
C. the obligation to buy the underlying instrument
D. the obligation to sell the underlying instrument
13. Which of the following $1 000 face-value securities has the highest yield to maturity? ______.
A. A 5% coupon bond selling for $1000
B. A 15% coupon bond selling for $1000
C. A 10% coupon bond selling for $1000
D. A 15% coupon bond selling for $900
14. When the price of a bond is ______ the equilibrium price, there is an excess demand of bonds and the price will ______.
A. above...rise
B. above...fall
C. below...fall
D. below...rise
15. Which of the following accounts is not closed? ______.
A. Supplies Expense
B. Prepaid Insurance
C. Interest Revenue
D. Dividends
16. Which of the following instruments is traded in a capital market? ______.
A. Bankers acceptance
B. S. Treasury Bill
C. Eurodollar
D. Commercial paper
E. None of the above
17. Which of the following is generally true of all bonds? ______.
A. The longer a bond maturity, the lower is the rate of return that occurs as a result of the increase in an interest rate
B. Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise
C. Prices and returns for long-term bonds are more volatile than those for shorter-term bonds
D. All of the above
E. Only A and B
18. According to the market segmentation theory of the term structure, ______.
A. investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope downward
B. bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time
C. the interest rate for bonds of one maturity is determined by supply and demand for bonds of that maturity
D. all of the above
E. only B and C
19. Successful financial intermediaries have higher earnings on their investments because they are better equipped than individuals to screen out good from bad risks, thereby reducing losses due to .
A. moral hazard
B. adverse selection
C. bad luck
D. financial panics
20. A long-term debt instrument is best defined as one with maturity ______.
A. of more than one year
B. of more than five years
C. of more than ten years
D. of thirty years or more
责任编辑：mman
