Question 1: 30 year corporate bonds are an example of a
a. money market security
b. capital market security
c. mutual fund
d. marketable option
Question 2: Assuming the current ratio is currently 2.0, which of the following actions will increase the ratio?
a. purchasing inventory with cash
b. purchasing inventory with short-term credit
c. paying off a short-term bank loan with a long-term debt
d. a customer paying an overdue bill
e. all of the above will increase the current ratio
Question 3: In a reasonably efficient market, at the time of an announcement, market prices react to;
a. The announcement of new information that was unanticipated
b. The announcement of new information that was previously fully anticipated
c. Both, i. e., both the announcement of new information that was previously fully anticipated, as well as information that was unanticipated
d. neither, because market price movements are random