Use the Following Two Columns of Items to Answer the Matching

question 53

Multiple Choice

Use the following two columns of items to answer the matching questions below:
-web site

• A)determining how your wealth will be distributed before or upon your death
• B)what you owe
• C)forecasting future expenses and savings
• D)source of current information about a variety of topics
• E)value of what you on minus what you owe
• F)determining how much money you should set aside for retirement
• G)access to funds to cover any short-term cash deficiencies
• H)uncertainty on a potential return on an investment
• I)decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
• J)what you own

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Definitions:

Warrants

Call options issued by a company allowing the holder to buy a stated number of shares of stock from a company at a specified price. Warrants are generally distributed with debt, or preferred stock, to induce investors to buy those securities at a lower cost.

Option

A contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time.

Sweetener

A feature that makes a security more attractive to some investors, thereby inducing them to accept a lower current yield. Convertible features and warrants are examples of sweeteners.

Bankers' Acceptance

A short-term debt instrument issued by a company that is guaranteed by a commercial bank, commonly used in international trade.