Problem 1: Which of the following ratios measures an organization's liquidity?
a. Acid test ratio
b. Debt ratio
c. Return on equity
d. Times interest earned
e. Return on assets
Problem 2. Which of the following ratios would tell an investor about the profitability of the organization?
a. Acid test ratio
b. Debt ratio
c. Return on equity
d. Times interest earned
e. Current ratio
Problem 3. Which of the following is the function of investment bankers?
a. Distributing
b. Making commercial loans
c. Taking deposits
d. Cash flow management
e. Auditing
Problem 4. Which of the following is a method by which securities are distributed to final investors?
a. Negotiated purpose
b. Commission or best effort basis
c. Direct sale
d. Competitive bid purchase
e. All of the above
Problem 5. Which sector of the economy supplied the largest amount of funds in US financial markets in the second half of the 90's?
a. State governments
b. Corporate business
c. U.S. Government
d. Foreign
e. Household