Which of the following is FALSE?A.In comparison to a typical commercial bank, an investment bank is likely to have a higher level of equity capital. B.Commercial banks and investment companies often invest in existing firms while venture capital firms often invest in new, young, and risky firms. C.The most common benchmark of relative size of a firm in the securities trading and underwriting industry is based on total equity. D.The largest source of funding for securities firms and investment banks as an industry is repurchase agreements. E.In a private offering, the investment banker acts as a private placement agent for a fee, placing securities with one or a few institutional investors such as life insurance companies.

Which of the following statements is FALSE?A.Securities firms and investment banks perform only the brokerage function.B.Venture capital firms do not make outright loans.C.The value of assets is the traditional measure of size in the securities brokerage and investment banking industry. D.Investment banks specialize in the raising of debt and equity securities for corporations and governments.E.Securities firms specialize in the trading and brokerage of existing securities.

QUESTION 1Which of the following statements is FALSE?A.Securities firms and investment banks perform only the brokerage function.B.Venture capital firms do not make outright loans.C.The value of assets is the traditional measure of size in the securities brokerage and investment banking industry. D.Investment banks specialize in the raising of debt and equity securities for corporations and governments.E.Securities firms specialize in the trading and brokerage of existing securities.1 points   QUESTION 2AllStarBank has the following balance sheet (in millions):          Assets                                         Liabilities and Equity         Cash                $30            Deposits                                $110         Loans                90            Borrowed funds                       40         Securities         50            Equity                                         20        Total assets    $170            Total liabilities and equity   $170AllStarBank’s largest customer decides to exercise a $15 million loan commitment. How will the new balance sheet appear if AllStar uses the purchased liquidity management liquidity?A.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $110         Loans                       105            Borrowed funds                       55         Securities                  50             Equity                                        20              Total assets     $185             Total liabilities and equity  $185B.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $105         Loans                         75            Borrowed funds                       55            Securities                80            Equity                                        25                Total assets     $185           Total liabilities and equity   $185C.                               Assets                               Liabilities and Equity                 Cash                         $15            Deposits                                $110         Loans                       105            Borrowed funds                       55         Securities                   50            Equity                                          5       Total assets            $170            Total liabilities and equity    $170D.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $110         Loans                         75            Borrowed funds                       55            Securities                80            Equity                                        20                Total assets     $185           Total liabilities and equity   $185E.                               Assets                               Liabilities and Equity                 Cash                         $15            Deposits                                $110         Loans                       105            Borrowed funds                       40         Securities                   50            Equity                                       20       Total assets            $170            Total liabilities and equity    $170

Finance companies are more likely to A.have more product expertise because they generally are subsidiaries of industrial companies.B.accept depositsC.make equipment leases to consumers.D.have higher overhead than commercial banks.E.have the extensive regulatory monitoring.

(I) Banks are financial intermediaries that accept deposits and make loans. (II) The term "banks" includes firms such as commercial banks, savings and loan associations, mutual savings banks, credit unions, insurance companies, and pension funds.Question 7Answera.Both are false.b.Both are true.c.(I) is true, (II) false.d.(I) is false, (II) true.

Which of the following statements is NOT TRUE?Debt is costlier than equity.For the same business the firm can choose between the use of debt capital versus equity capital.Net profit can be substantially higher if debt is usedAll of the above