Input: Which of the following statements is (are) true concerning multiuser database management systems? I. They increase the standardization of data. II. They increase the need to store data in many different locations in the database. III. They can increase access to and availability of information. [Optical Mouse]

Output: I and III only

Information Systems & Computer Applications Flashcards - Cram.com


Input: A manager of a small business wants to use a computer to store information about clients, vendors, inventory (item, number, price), and orders. The manager needs to be able to sort and group data for various reports. Which of the following types of software packages would be best for this task? [Optical Mouse]

Output: Database management system

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following is the major advantage of indexed file organization over sequential file organization? [Optical Mouse]

Output: Faster access to individual records

Information Systems & Computer Applications Flashcards - Cram.com


Input: The maintenance phase of the system development process could include all of the following activities EXCEPT? [Optical Mouse]

Output: Performing a major rewrite for anexisting system

Information Systems & Computer Applications Flashcards - Cram.com


Input: A company is planning to connect data communications devices in a new building by using either fi ber-optic cable or twisted-pair cable. Which of the following is NOT true of fiber-optic cable when compared with twisted-pair cable? [Optical Mouse]

Output: Fiber-optic cable connections are easier to install.

Information Systems & Computer Applications Flashcards - Cram.com


Input: The ability of computerized systems to store and exchange information represents a potential threat to the individuals’ right to? [Optical Mouse]

Output: Privacy

Information Systems & Computer Applications Flashcards - Cram.com


Input: http://www.mywebsite.com:8080/homepage/mine/index.html Which part of the URL above is the domain name? [Optical Mouse]

Information Systems & Computer Applications Flashcards - Cram.com


Input: The required components for a functional LAN include each of the following EXCEPT a? [Optical Mouse]

Output: Print server

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following statements concerning real-time processing is generally NOT true? [Optical Mouse]

Output: A real-time system uses sequential file access.

Information Systems & Computer Applications Flashcards - Cram.com


Input: Data values A and B are stored in spreadsheet cells C1 and D2, respectively. After a cut operation on C1 followed by a paste operation on D2, which of the following will be true? I. Data value B is overwritten. II. Data value A is in location C1. III. Data value A is in location D2. [Optical Mouse]

Output: I and III only

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following statements is true regarding client/server architecture? [Optical Mouse]

Output: The server computer accepts commands from a number of computers that are its clients.

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following is true of C++? [Optical Mouse]

Output: It is an object-oriented, real-time, general purpose programming language.

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following is a protocol used to route an e-mail message through the Internet? [Optical Mouse]

Output: SMTP

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which DBMS data model uses two-dimensional tables to display data structures? [Optical Mouse]

Output: Relational

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following is NOT true of expert systems? [Optical Mouse]

Output: They can use commonsense knowledge.

Information Systems & Computer Applications Flashcards - Cram.com


Input: The sharing of a computer’s resources by allowing the running of two or more programs concurrently on a computer with a single CPU is called? [Optical Mouse]

Output: Multiprogramming

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following is NOT an advantage of having an entire department using the same office software suite? [Optical Mouse]

Output: Optimal functionality of individual application packages

Information Systems & Computer Applications Flashcards - Cram.com


Input: How many 8-bit characters (ASCII) could be placed in the same amount of memory as 300 16-bit characters (Unicode)? [Optical Mouse]

Output: 32,768

Information Systems & Computer Applications Flashcards - Cram.com


Input: A company is planning to automate the importation of data into its mainframe-based system. The data are to be received from several offices, each using PCs. This process will occur on a set schedule without any human intervention at either end. Which of the following is most likely to be used? [Optical Mouse]

Output: FTP

Information Systems & Computer Applications Flashcards - Cram.com


Input: A computer-based information system consists of which of the following elements? [Optical Mouse]

Output: People, procedures, data, programs, and computers

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following characteristics of a system reflects the fact that all systems are comprised of subsystems? [Optical Mouse]

Output: Hierarchy

Information Systems & Computer Applications Flashcards - Cram.com


Input: The particular form that information technology takes to achieve selected goals of an organization is known as information? [Optical Mouse]

Output: Architecture

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following is NOT a benefit of electronic data interchange (EDI)? [Optical Mouse]

Output: It reduces the volume of invoices or orders

Information Systems & Computer Applications Flashcards - Cram.com


Input: A data-base management system must include which of the following components? I. A data definition language II. A data manipulation language III. A data dictionary IV. A data redundancy protocol [Optical Mouse]

Output: I, II, and III only

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following terms is used to describe the transmission of data one character at a time? [Optical Mouse]

Output: Asynchronous

Information Systems & Computer Applications Flashcards - Cram.com


Input: Multiplexors and concentrators are used in telecommunication systems to do which of the following? [Optical Mouse]

Output: Increase utilization of the communication lines

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following systems development approaches involves a highly irerative process of building, usingm evaluationg, and refining? [Optical Mouse]

Output: Prototyping

Information Systems & Computer Applications Flashcards - Cram.com


Input: The process by which workers develope their own applications, with or without the help of professional MIS staff, is called? [Optical Mouse]

Output: End-user computing

Information Systems & Computer Applications Flashcards - Cram.com


Input: In MIS the concept of "outsourcing" can be best defined as which of the following? I. An option that some organizations use to control data processing costs. II. A process of releasing an organization's computer operations to an external vendor III. A data support and retrieval system that organizations can acess electronically [Optical Mouse]

Output: I and II only

Information Systems & Computer Applications Flashcards - Cram.com


Input: Which of the following is NOT a characteristic of a decision support system (DDS)? [Optical Mouse]

Output: It produces final solutions for wide-ranging managerial problems

Information Systems & Computer Applications Flashcards - Cram.com


Input: What is the most widely used coding scheme used to represent data? [Optical Mouse]

Output: Unicode

Information Systems & Computer Applications Flashcards - Cram.com


Input: What is the smallest element in an electronic image? [Optical Mouse]

Output: Pixel

Information Systems & Computer Applications Flashcards - Cram.com


Input: A _____ is a network that connects computers and devices in a limited geographical area, such as a home, school computer laboratory, or office building? [Optical Mouse]

Output: Local area network (LAN)

Information Systems & Computer Applications Flashcards - Cram.com


Input: A ring network _____ to install. [Optical Mouse]

Output: can span a larger distance than a bus network, and it is easier to install.

Information Systems & Computer Applications Flashcards - Cram.com


Input: Internet transmissions commonly use? [Optical Mouse]

Output: TCP/IP

Information Systems & Computer Applications Flashcards - Cram.com


Input: The most popular T-carrier line is the? [Optical Mouse]

Output: T1 Line

Information Systems & Computer Applications Flashcards - Cram.com


Input: A _____ is any computer that directly connects to a network. [Optical Mouse]

Output: Host

Information Systems & Computer Applications Flashcards - Cram.com


Input: A program that stores and distributes newsgroup messages is called a _____. [Optical Mouse]

Output: News server

Information Systems & Computer Applications Flashcards - Cram.com


Input: A(n) _____ is an interpreted program that runs on the server. [Optical Mouse]

Output: Script

Information Systems & Computer Applications Flashcards - Cram.com


Input: A ____ network is an Internet network on which users connect directly to each other’s hard disks and exchange files directly. [Optical Mouse]

Output: P2P

Information Systems & Computer Applications Flashcards - Cram.com


Input: where all components of blood, except cells and large proteins, are forced out of the capillaries by blood pressure [glomerulus]

Output: Glomerulus capsule


Input: 1. fluid in glomerular capsule 2. identical chemical composition to blood plasma without the large proteins [glomerulus]

Output: primary filtrate


Input: blood pressure drives convective flow through pores in glomerulus [glomerulus]

Output: filtration


Input: total rate at which fluid passes through all the glomeruli in both kidneys, moving from blood into the proximal tubule. [glomerulus]

Output: Glomerular filtration rate (GFR)


Input: 1.lined with smooth muscle so they can vasodilate or constrict 2. dillation of afferent arterioles = increase in glomerular pressure and GFR, constriction does the opposite [glomerulus]

Output: afferent arterioles


Input: 1. dilation of efferent arterioles = decrease in glomerular pressure and GFR, constriction does the opposite [glomerulus]

Output: efferent arterioles


Input: relative constiction of the afferent and efferent arterioles provides a strong control on GFR and urine formation rate [glomerulus]

Output: afferent and efferent arterioles and GFR


Input: occurs in the arterioles [glomerulus]

Output: drops in blood pressure within the kidney =


Input: [Heart function?] Spleen function?

Output: Produces and removes blood cells

Circulatory System Vocabulary Foreign Language Flashcards - Cram.com


Input: [Heart function?] Liver function?

Output: Detoxify the chyme before it reaches into the small intestine

Circulatory System Vocabulary Foreign Language Flashcards - Cram.com


Input: [Heart function?] Atrium function?

Output: Chamber of the heart

Circulatory System Vocabulary Foreign Language Flashcards - Cram.com


Input: [Heart function?] Ventricles function?

Output: Help the heart pump the blood

Circulatory System Vocabulary Foreign Language Flashcards - Cram.com


Input: [Heart function?] Aortic Arch function?

Output: Brings blood to the head

Circulatory System Vocabulary Foreign Language Flashcards - Cram.com


Input: [Heart function?] Vena Cava function?

Output: Takes de-oxygen blood away from the left part of the body

Circulatory System Vocabulary Foreign Language Flashcards - Cram.com


Input: Martin Luther King Jr.

Output: Led the SCLC dedicated to ending discrimination

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Nonviolent resistance

Output: Required that protesters not resort to violence even when others attacked them

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Sit-ins

Output: Demonstrators protest by sitting down in a location and refusing to leave

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Student Nonviolent Coordinating Committee

Output: A loose association of student activists from throughout the South

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Congress of Racial Equality

Output: Northern-based civil rights group that hoped to launch new nonviolent protests against racial discrimination

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Freedom Riders

Output: Sent on bus trips through the South to draw attention to violations of the Supreme Court ruling

An alliance of church-based African American organizations dedicated to ending discrimination


Input: T. Eugene "Bull" Connor

Output: Birmingham's city commissioner of public safety that blamed the Freedom Riders for violence

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Diane Nash

Output: Leader of the SNCC who refused to comply with Kennedy's request of ending the rides

An alliance of church-based African American organizations dedicated to ending discrimination


Input: James Meredith

Output: An African American applicant to the University of Mississippi that was accepted and went to class with armed guards

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Medgar Evers

Output: NAACP field secretary that was killed by a white

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Laurie Pritchett

Output: Police Chief in Georgia who arranged to fill all the surrounding jails with protestors and did

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Civil Rights Act of 1964

Output: Banned discrimination in employment on the basis of race, color, religion, sex, or national origin

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Robert Moses

Output: Tried hard to help register black voters

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Council of Federated Organizations

Output: Coordinated voter registration drives that was put together by several civil rights organizations

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Twenty-fourth Amendment

Output: Banned the payment of poll taxes as a condition for voting in federal elections

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Freedom Summer

Output: Moses's plan that recruited volunteers on university campuses in northern states that attending training classes in Ohio before going to Mississippi

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Andrew Goodman

Output: A white college student from New York that disappeared in Mississippi

An alliance of church-based African American organizations dedicated to ending discrimination


Input: James Chaney

Output: A CORE worker that disappeared in Mississippi and his body was discovered six weeks later

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Michael Schwerner

Output: A CORE worker that disappeared in Mississippi and his body was discovered six weeks later

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Mississippi Freedom Democratic Party

Output: Group that sent its own delegates to the Democratic National Convention in 1964 to protest discrimination against black voters in Mississippi

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Fannie Lou Hamer

Output: An African American MFDP delegate who lost her job and her house when she registered to vote in 1962

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Voting Rights Act

Output: Put the entire registration process under federal control

An alliance of church-based African American organizations dedicated to ending discrimination


Input: James Farmer

Output: CORE director

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Nation of Islam

Output: Black Muslims; black nationalist religious group founded by Wallace D. Fard in 1930

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Elijah Muhammad

Output: Became the leader of the Nation of Islam and preached about black nationalism

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Malcolm X

Output: A charismatic young minister that helped the growth of the Nation of Islam during the 1950s

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Stokely Charmichael

Output: Part of the SNCC who sent out a great message that inspired many people

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Black Power

Output: A movement that called for black separatism

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Bobby Seale

Output: Worked at an antipoverty center in California and created the Black Panther Party

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Huey Newton

Output: Worked at an antipoverty center in California and created the Black Panther Party

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Black Panther Party

Output: A political organization that called for land, bread, housing, education, clothing, justice, and peace for African Americans

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Kerner Commission

Output: A group appointed by President Johnson to investigate the violence that broke out in cities

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Poor People's Campaign

Output: A march on Washington, D.C. to protest a misuse of government spending led by King

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Ralph Abernathy

Output: Part of the Poor People's Campaign who was determined to continue King's work

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Busing

Output: Sending children to schools outside of their neighborhoods


Input: Affirmative Action

Output: Programs that gave preference to ethnic minorities and women in admission and hiring

An alliance of church-based African American organizations dedicated to ending discrimination


Input: University of California v. Bakke

Output: Supreme Court decision that established that while some forms of affirmative action were legal, quota systems were not

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Allan Bakke

Output: Unfairly denied admission to medical school on the basis of quotas

An alliance of church-based African American organizations dedicated to ending discrimination


Input: Quotas

Output: System of reserving a fixed number of openings in schools or jobs for certain groups of people


Input: Carl Stokes

Output: First African American to be elected major of a major US city

An alliance of church-based African American organizations dedicated to ending discrimination


Input: National Black Political Convention

Output: Meeting of civil rights activists to ensure that African Americans would continue to gain political influence

An alliance of church-based African American organizations dedicated to ending discrimination


Input: [1] Pertaining to the central part of the body [2]

Output: Axial


Input: [1] Pertaining to the Head [2]

Output: Cephaic


Input: [1] Pertaining to the Face [2]

Output: Facial


Input: [1] Pertaining to the Forhead [2]

Output: Frontal


Input: [1] Pertaining to the Eye [2]

Output: Orbital


Input: [1] Pertaining to the Ear [2]

Output: Otic


Input: [1] Pertaining to the Nose [2]

Output: Nasal


Input: [1] Pertaining to the Cheek [2]

Output: Buccal


Input: [1] Pertaining to the Mouth [2]

Output: Oral


Input: [1] Pertaining to the Chin [2]

Output: Mental


Input: [1] Pertaining to the Skull [2]

Output: Cranial


Input: [1] Pertaining to the Back of the Head [2]

Output: Occipital


Input: [1] Pertaining to th Neck [2]

Output: Cervical


Input: [1] Pertaining to the Breast [2]

Output: Pectoral


Input: [1] Pertaining to the Breast Bone [2]

Output: Sternal


Input: [1] Pertaining to the Chest [2]

Output: Thoracic


Input: [1] Pertaining to the abdomen [2]

Output: Abdominal


Input: [1] Pertaining to the Naval [2]

Output: Umbillical


Input: [1] Pertaining to the Hip [2]

Output: Coxal


Input: [1] Pertaining to the Pelvis [2]

Output: Pelvic


Input: [1] Pertaining to the Genital Area [2]

Output: Pubic


Input: [1] Pertaining to the Back [2]

Output: Dorsal


Input: [1] Pertaining to the Shoulder Blade Region [2]

Output: Scapular


Input: [1] Pertaining to the Spinal Column [2]

Output: Vertebral


Input: [1] Pertaining to the Lower Back [2]

Output: Lumbar


Input: [1] Pertaining to the Extremeties or limbs [2]

Output: Appendicular


Input: [1] Pertaining to the Highest point of the Shoulder [2]

Output: Acromial


Input: [1] Pertaining to the Armpit [2]

Output: Axillary


Input: [1] Pertaining to the Arm [2]

Output: Brachial


Input: [1] Pertaining to the Elbow [2]

Output: Cubital


Input: [1] Pertaining to the Anterior (front) Surface of the Elbow [2]

Output: Antecubital


Input: [1] Pertaining to the Posterior (back) Surface of the Elbow [2]

Output: Olecranal


Input: [1] Pertaining to the Forearm [2]

Output: Antebrachial


Input: [1] Pertaining to the Wrist [2]

Output: Carpal


Input: [1] Pertaining to the Hand [2]

Output: Manual


Input: [1] Pertaining to the Palm [2]

Output: Palmar


Input: [1] Pertaining to the Digits [2]

Output: Digital


Input: [1] Pertaining to the Groin where the thigh attaches to the pelvis [2]

Output: Inguinal


Input: [1] Pertaining to the Buttocks [2]

Output: Gluteal


Input: [1] Pertaining to the Thigh [2]

Output: Femoral


Input: [1] Pertaining to the Anterior (front) surface of the knee [2]

Output: Patellar


Input: [1] Pertaining to the posterior (back) surface of the knee [2]

Output: Popliteal


Input: [1] Pertaining to the Anterior surface of the leg [2]

Output: Crural


Input: [1] Pertaining to the Posterior surface of the lege [2]

Output: Sural


Input: [1] Pertaining to the Lateral side of the leg [2]

Output: Fibular/Peroneal


Input: [1] Pertaining to the ankle [2]

Output: Tarsal


Input: [1] Pertaining to the Foot [2]

Output: Pedal


Input: [1] Pertaining to the Heel [2]

Output: Calcaneal


Input: [1] Pertaining to the Sole of the Foot [2]

Output: Plantar


Input: [1] Pertaining to the digits [2]

Output: Digital


Input: [1] Superior [2]

Output: Above


Input: [1] Inferior [2]

Output: Below


Input: [1] Anterior [2]

Output: Front


Input: [1] Posterior [2]

Output: Back


Input: [1] MEdial [2]

Output: Closer to the midline of the Body


Input: [1] Lateral [2]

Output: Farther from the midline


Input: [1] Intermediate [2]

Output: Between two structures


Input: [1] Ipsilateral [2]

Output: On the same side of the body


Input: [1] Contralateral [2]

Output: On opposite sides of the body


Input: [1] Proximal [2]

Output: Nearer to the point of attachment


Input: [1] Distal [2]

Output: Farther from the point of attachment


Input: [1] Superficial [2]

Output: Closer to the surface of the body


Input: [1] Deep [2]

Output: Farther from the surface of the body


Input: [1] Transports nutrients, chemical messenters, gases, and wasts in the blood [2]

Output: Cardiovascular


Input: [1] Adds oxygen to blood and removes carbon dioxide from blood; Maintenance of carbon dioxide [2]

Output: Respiratory


Input: [1] Breaks down food into units that can be absorbed in to the body; eliminates wasres and nondigestable fiber in food [2]

Output: Digestive


Input: [1] Removes nitrogenous wastes; maintains body fluid volume, ph, and eloectrolyte levels through urin productoin [2]

Output: Urinary


Input: [1] Provides a protective barrier fo the body and aids in producton of vitamin D; contains sensory receptors for pain, touch, and temperature;, thermoregulation [2]

Output: Integumentary


Input: [1] Returns fluid to cardiovascular system; detects, filters, and eliminates diseaseauseing organisms, including cancer cells [2]

Output: Lymphatic and Immune


Input: [1] Protects mjor organs, provieds levers and support for body movements [2]

Output: Skeletal


Input: [1] Moves bones and maintains posture [2]

Output: Muscular


Input: [1] Controls cell functon with electrical signals; helps control body homeostasis [2]

Output: Nervous


Input: [1] Controls ells function with hormones; helps control body homeostais [2]

Output: Endocrine


Input: [1] Produces gamests; female uterus provides invironment for developement of fetus. [2]

Output: Reproductive


Input: [1] Visceral [2]

Output: covers the Organ


Input: [1] Parietal [2]

Output: Attaches to and covers the ventral body wall


Input: [1] Pluera [2]

Output: covers the Lung


Input: [1] Pericardium [2]

Output: Covers the Heart


Input: [1] Peritonium [2]

Output: Covers the Stomache


Input: [1] Retroperitonium [2]

Output: Located posterior to the Peritonium


Input: [1] Mesentary [2]

Output: Encircles and holds thesmall intestine to the dorsal body wall


Input: [1] Greater Omentum [2]

Output: Suspended from the inferior portoin of the stomache and covers the intestines in a similar mannar to an aprob


Input: [1] Lesser Omentum [2]

Output: Suspends the superior portion of the stomache to the liver


Input: No framework of knowledge. We observe a large number of facts and put them together for a conclusion. Facts may be valid and the conclusion not valid. - Allows for possibility that conclusions are not valid when observations are valid. **Uses empirical evidence. EX: All of the ice I measured is cold. = true. therefore all ice is cold= true. EX: Certain minerals are found together. = true. Therefore, all minerals are like that = UNTRUE!! [Deductive reasoning]

Output: Inductive Reasoning

Science Vs. NonSense Flashcards - Cram.com


Input: When we observe nature and explain the causes. calmly observe nature and what is/has happened. [Deductive reasoning]

Output: Natural Experiments

Science Vs. NonSense Flashcards - Cram.com


Input: set up systems and see what happens. You expose nature to something it would not normally experience. Torture Nature. Chemist, biologist, geologist. Deals wish controlled studies. Control group is not affected and noe one group has the actual tests. [Deductive reasoning]

Output: Manipulative Experiments

Science Vs. NonSense Flashcards - Cram.com


Input: the researcher does not know which group is affected to avoid bias. Used in medical fields and such. [Deductive reasoning]

Output: Blind Control study

Science Vs. NonSense Flashcards - Cram.com


Input: when researcher nor subjects know if they are affected. [Deductive reasoning]

Output: Double Blind Control Study

Science Vs. NonSense Flashcards - Cram.com


Input: the tendancy for looking for confirming evidence and ignoring nonconfirming. maybe more powerful. maybe not. Dont just observe what you believe or suspect. [Deductive reasoning]

Output: Confirmation Bias

Science Vs. NonSense Flashcards - Cram.com


Input: you see what you expect to see [Deductive reasoning]

Output: expectation bias.

Science Vs. NonSense Flashcards - Cram.com


Input: noticing or remembering what we believe to be true. [Deductive reasoning]

Output: selective memory

Science Vs. NonSense Flashcards - Cram.com


Input: Use as evidence is very questionable. - this is where people witness accounts. Ex: I saw bigfoot, lochness monster especially when caught off gaurd. Eye witnesses are valuable when prepared. [Deductive reasoning]

Output: Testimonials

Science Vs. NonSense Flashcards - Cram.com


Input: an illusion is clear to us in objects. Most common= faces. We are trained to remember faces. Imbread from child hood. [Deductive reasoning]

Output: paraidolia

Science Vs. NonSense Flashcards - Cram.com


Input: Speculating about what is unknown. cannot be tested but is not bad science. EX: the drake equation = how many places in the universe have civilizations advanced enough to communicate with us. Posing questions that cannot be answered does not mean its bad science. [Deductive reasoning]

Output: Not Bad Science Speculation

Science Vs. NonSense Flashcards - Cram.com


Input: that cannot be tested with present technology. Ex: is there life on jupiters moon's? [Deductive reasoning]

Output: Not Bad science Posing a hypothesis...

Science Vs. NonSense Flashcards - Cram.com


Input: misreadings, faulty equipment unknown to the user, bad readings... [Deductive reasoning]

Output: Not bad science Honest Mistakes

Science Vs. NonSense Flashcards - Cram.com


Input: ...of best available data. Not burdoned by prior comitment, tentative. [Deductive reasoning]

Output: Not Bad science Wrong interpretations

Science Vs. NonSense Flashcards - Cram.com


Input: also using semantic arguments. Ex: changing wrong answers into correct ones by changing a definition or changing numbers. AVOID DOUBLE MEANING IN SCIENCE AND AMBIGUITY. [Deductive reasoning]

Output: Bad arguments: Twisting the evidence

Science Vs. NonSense Flashcards - Cram.com


Input: the boss or smart guy spoke so it is correct. = wrong. A conviction of belief based on some authority. Ex: some big univerisity says something and you believe 100% [Deductive reasoning]

Output: Bad arguments: Authoritarian

Science Vs. NonSense Flashcards - Cram.com


Input: Scientist were not laughing because they knew of the bernoulis equation. (principle behind air flight) If scientists are laughing at my idea this means there is no priciple behind it- no supporting principle. There is no reason to trust a new idea, you must have scientific principles backing it [Deductive reasoning]

Output: Bad arguments "they laughed at the wright brothers"

Science Vs. NonSense Flashcards - Cram.com


Input: sooner or later they will say it is a conspiracy against me by scientist. Don't want you to know. "Right to be heard" by scientists (no they don't) Science does not have bill of rights. scientist wouldn't listen because of violation of scientific priciples and not explained properly or correctly [Deductive reasoning]

Output: Bad arguments Conspiracy

Science Vs. NonSense Flashcards - Cram.com


Input: of violation of scientific priciples and not explained properly or correctly [Deductive reasoning]

Output: scientist wouldn't listen because

Science Vs. NonSense Flashcards - Cram.com


Input: When 95% of observations are incorrect, flase, or hoazes. What do you do with the residue of 5%. chances are they are not valid (mistakes, hoazes...and cannot be demonstrated.) Should not trust them! CAVEOT = WARNING! SCIENCE PROCEEDS ON ANOMOLIES. [Deductive reasoning]

Output: Bad Arguments Residue

Science Vs. NonSense Flashcards - Cram.com


Input: Things that don't fit. Need to sudy this and explain this. Good credible data are not found in piles of junk VS. finding an anomolie in a pile of good data [Deductive reasoning]

Output: Anomalies

Science Vs. NonSense Flashcards - Cram.com


Input: Science can't explain it so I must be correct = EX. wrong. Science can;t explain it YET. [Deductive reasoning]

Output: BAd ARguments Explanation by default

Science Vs. NonSense Flashcards - Cram.com


Input: Wrongly assuming that only two explanations exist. -Politicians do thsi all the time. Ex. my idea is not so bad because yours is worse. [Deductive reasoning]

Output: BA False dilemma

Science Vs. NonSense Flashcards - Cram.com


Input: Circular argument. the answer is simply a rewrite of the question. - Provides a conclusion in a new form. Ex: can you be precise and incorrect at the same time. [Deductive reasoning]

Output: BA begging the question

Science Vs. NonSense Flashcards - Cram.com


Input: A follows B. Does B cause A? no not neccessarily. Possibly C causes all to move. First you need a principle of science as to how cause and effect for how it happens. Ex: do cell phones cause cancer? we need a medical explanation of how it works [Deductive reasoning]

Output: BA False Cause

Science Vs. NonSense Flashcards - Cram.com


Input: very importnant when not explained you jump to conclusions [Deductive reasoning]

Output: BA Not fully explaining the phenominom

Science Vs. NonSense Flashcards - Cram.com


Input: need to boil down to the truth. Ex: mmost midical costs occuiur in the last 2 months of life. = wrong. YOu find something the very last place you look. [Deductive reasoning]

Output: BA Gee whiz facts, anecdotal, popularity, apeal to tradition.

Science Vs. NonSense Flashcards - Cram.com


Input: identifying distinct groups of consumers whose purchasing behavior differs from others in important ways [What Is The Marketing Mix?]

Output: What Is Market Segmentation?


Input: geography demography socio-cultural factors psychological factors [What Is The Marketing Mix?]

Output: Markets can be segmented by


Input: The differences between countries in the structure of market segments The existence of segments that transcend national borders when segments transcend national borders, a global strategy is possible [What Is The Marketing Mix?]

Output: Two key market segmentation issues


Input: A product is like a bundle of attributes Products sell well when their attributes match consumer needs [What Is The Marketing Mix?]

Output: How Do Product Attributes Influence Marketing Strategy?


Input: Culture Level of economic development Product and technical standards [What Is The Marketing Mix?]

Output: consumer needs depend on


Input: the means the firm chooses for delivering the product to the consumer [What Is The Marketing Mix?]

Output: Distribution strategy


Input: firms that manufacturer the product locally can sell directly to the consumer, to the retailer, or to the wholesaler firms that manufacture outside the country have the same options plus the option of selling to an import agent [What Is The Marketing Mix?]

Output: How a product is delivered depends on the firm’s market entry strategy


Input: Retail concentration Channel length Channel exclusivity Channel quality [What Is The Marketing Mix?]

Output: There are four main differences in distribution systems


Input: concentrated or fragmented in a concentrated retail system, a few retailers supply most of the market – common in developed countries in a fragmented retail system there are many retailers, no one of which has a major share of the market – common in developing countries [What Is The Marketing Mix?]

Output: Retail concentration


Input: the number of intermediaries between the producer and the consumer short channel - when the producer sells directly to the consumer – common with concentrated systems long channel - when the producer sells through an import agent, a wholesaler, and a retailer – common with fragmented retail systems [What Is The Marketing Mix?]

Output: Channel length


Input: how difficult it is for outsiders to access [What Is The Marketing Mix?]

Output: Channel exclusivity


Input: the expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international businesses [What Is The Marketing Mix?]

Output: Channel quality


Input: The optimal strategy depends on the relative costs and benefits of each alternative When price is important, a shorter channel is better each intermediary in a channel adds its own markup to the products When the retail sector is very fragmented, a long channel can be beneficial economizes on selling costs can offer access to exclusive channels [What Is The Marketing Mix?]

Output: Which Distribution Strategy Should A Firm Choose?


Input: Communicating product attributes to prospective customers is a critical element in the marketing mix [What Is The Marketing Mix?]

Output: Why Is Communication Strategy Important?


Input: Cultural barriers Source and country of origin effects Noise levels [What Is The Marketing Mix?]

Output: What Are The Barriers to International Communication?


Input: it can be difficult to communicate messages across cultures a message that means one thing in one country may mean something quite different in another [What Is The Marketing Mix?]

Output: Cultural barriers


Input: Source effects occur when the receiver of the message evaluates the message on the basis of status or image of the sender [What Is The Marketing Mix?]

Output: Source and country of origin effects


Input: the amount of other messages competing for a potential consumer’s attention in highly developed countries, noise is very high in developing countries, noise levels tend to be lower [What Is The Marketing Mix?]

Output: Noise levels


Input: Push strategy - emphasizes personnel selling Pull strategy - emphasizes mass media advertising [What Is The Marketing Mix?]

Output: Firms have to choose between two types of communication strategies


Input: The choice between strategies depends on product type and consumer sophistication a pull strategy works well for firms in consumer goods selling to a large market segment a pull strategy works better with longer distribution channels Media availability a pull strategy relies on access to advertising media a push strategy works well for industrial products Channel length a push strategy may be better when media is not easily available [What Is The Marketing Mix?]

Output: Which Is Better – Push Versus Pull?


Input: for industrial products and/or complex new products when distribution channels are short when few print or electronic media are available [What Is The Marketing Mix?]

Output: What Is The Optimal Mix? In general, a push strategy is better


Input: consumer goods products when distribution channels are long when sufficient print and electronic media are available to carry the marketing message [What Is The Marketing Mix?]

Output: A pull strategy is better for..


Input: makes sense when it has significant economic advantages creative talent is scarce and one large effort to develop a campaign will be more successful than numerous smaller efforts [What Is The Marketing Mix?]

Output: Should A Firm Use Standardized Advertising?


Input: Price discrimination Strategic pricing Regulations that affect pricing decisions [What Is The Marketing Mix?]

Output: In regard to pricing strategy firms need to consider 3 key points..


Input: occurs when firms charge consumers in different countries different prices for the same product [What Is The Marketing Mix?]

Output: Price discrimination


Input: must be able to keep national markets separate countries must have different price elasticities of demand - measure of the responsiveness of demand for a product to changes in price demand is elastic when a small change in price produces a large change in demand demand is inelastic when a large change in price produces only a small change in demand Typically, price elasticities are greater in countries with lower income levels and larger numbers of competitors [What Is The Marketing Mix?]

Output: For price discrimination to work


Input: Predatory pricing Multi-point pricing Experience curve pricing [What Is The Marketing Mix?]

Output: Strategic pricing has three aspects


Input: use profit gained in one market to support aggressive pricing designed to drive competitors out in another market [What Is The Marketing Mix?]

Output: Predatory pricing


Input: a firm’s pricing strategy in one market may have an impact on a rival’s pricing strategy in another market [What Is The Marketing Mix?]

Output: Multi-point pricing


Input: price low worldwide in an attempt to build global sales volume as rapidly as possible, even if this means taking large losses initially [What Is The Marketing Mix?]

Output: Experience curve pricing


Input: Antidumping regulations – Competition policy – regulations designed to promote competition and restrict monopoly practices [What Is The Marketing Mix?]

Output: A firm’s ability to set its own prices may be limited by


Input: New product ideas come from the interactions of scientific research, demand conditions, and competitive conditions The rate of new product development is greater in countries where more money is spent on basic and applied research and development demand is strong consumers are affluent competition is intense [What Is The Marketing Mix?]

Output: Where Should R&D Be Located?


Input: [1] Photoreceptors are stimulated by______ [2]

Output: light


Input: [1] Chemoreceptors are stimulated by ________ [2]

Output: chemicals


Input: [1] Pain receptors are stimulated by_______ [2]

Output: injury


Input: [1] Thermoreceptors are stimulated by ________ [2]

Output: temperature changes


Input: [1] Mechanoreceptors are stimulated by ________ [2]

Output: movement or deforming of capsule


Input: [1] Proprioceptors are stimulated by ________ [2]

Output: position of body parts or changes in muscle length or tension


Input: [1] General sense organs are found________ [2]

Output: throughout the body


Input: [1] Free nerve endings (naked nerve ending) can sense ______ on the skin [2]

Output: pain, itch, tickle, crude touch


Input: [1] Meissner’s corpuscles can sense ______ on the skin [2]

Output: fine touch and vibration


Input: [1] Pacinian & Ruffini’s corpuscles can sense ________. on the skin [2]

Output: pressure and vibration


Input: [1] Ruffini corpuscles can sense _______ on the skin [2]

Output: touch and pressure


Input: [1] Pacini Corpuscles can sense______ on the skin [2]

Output: high frequency vibration and touch


Input: [1] Krause End bulbs can sense _______ [2]

Output: touch


Input: [1] Muscles Spindles can sense ________ [2]

Output: muscle length


Input: [1] Golgi tendon organs can sense _________ [2]

Output: muscle tension


Input: [1] _____________ is the awareness of our posture, weight, movement and position of limbs, both in relation to our environment and in relation to other parts of our bodies. Also known as the "sixth sense" [2]

Output: Propioception


Input: [1] ________slows down communication between the central and peripheral nervous systems through a process known as demyelination. [2]

Output: MS - Multiple Sclerosis


Input: [1] _____ is the loss of myelin (the fatty protective sheath surrounding nerve cells) caused by multiple sclerosis (MS). [2]

Output: Demyelination


Input: [1] ______results in disruptions in the ability of nerves to communicate with one another, as it slows down signals traveling along the nerves [2]

Output: Demyelination


Input: [1] Rods and cones are the receptors for the ______. [2]

Output: Eye


Input: [1] ____ is the innermost layer of the eyeball [2]

Output: retina


Input: [1] The _____ of the eyes lye directly behind the pupil [2]

Output: lens


Input: [1] ______, _______, and _______ are the 3 layers of tissue that form the eyeball [2]

Output: sclera choroid retina


Input: [1] It is known as the window to the eye because it is transparent and lacks blood vessels and lymphatics [2]

Output: cornea


Input: [1] A mucous membrane known as the ______ lines the eyelids and covers the sclera in front [2]

Output: conjuctiva


Input: [1] Tears are formed in the _________ [2]

Output: lacrimal gland


Input: [1] rods for _____ [2]

Output: rotten light for dim vision or night vision, see in shades of gray. They are sensitive to light and to motion


Input: [1] cones for_____ [2]

Output: color They function in bright light


Input: [1] Ciliary Body [2]

Output: controls lens shape


Input: [1] Iris [2]

Output: visible colored portion of the eye. It regulates the size of the pupil. Muscles in the iris constrict or dilate to regulate pupil size


Input: [1] Cornea [2]

Output: transparent bulge in the front. It bends light rays


Input: [1] Sclera [2]

Output: the white of the eye


Input: [1] Retina [2]

Output: contains specialized neurons called photoreceptors. rod cells and cone cells


Input: [1] There are 2 types of photoreceptors: [2]

Output: rod cells and cone cells


Input: [1] Aqueous humor (Eye fluids) [2]

Output: fills the anterior chamber (in front of the lens). It is continuously made and drained.


Input: [1] Vitreous humor (Eye fluids) [2]

Output: fills the posterior chamber (behind the lens). It is gel-like.


Input: [1] The ciliary muscles is relaxed, lens is flattened, and the suspensory ligament taut when the eye is focusing on a ________ ________. [2]

Output: distant object


Input: [1] The ciliary muscles is contracted, lens is rounded, and the suspensory ligament is relaxed when the eye is focusing on a ________ ________. [2]

Output: near object


Input: [1] ___________ connects the middle ear to the throat [2]

Output: Eustachian tube


Input: [1] Outer ear [2]

Output: auricle (pinna) auditory tube


Input: [1] eardrum [2]

Output: Tympanic Membrane


Input: [1] _________are tiny bones that amplify sound that serve to amplify the sound [2]

Output: Ossicles: malleus, incus, and stapes.


Input: [1] __________the stapes (or stirrup) attaches to this to send vibrations through [2]

Output: oval window


Input: [1] ________ is the inner ear involved in equilibrium (balance) [2]

Output: Semicircular Canals and Vestibule


Input: [1] ________ is the inner ear involved in hearing [2]

Output: Cochlea


Input: [1] Sound waves in the air are conducted to the _______, where the specialized neurons involved in hearing are found. [2]

Output: inner ear


Input: [1] _______is the receptor for hearing [2]

Output: Organ of Corti


Input: [1] The Organ of Corti is found in the ________ of the inner ear [2]

Output: cochlea


Input: [1] ___________ is the path the sound waves take to get to the inner ear [2]

Output: Conduction pathway


Input: [1] The receptors for balance in the semicircular canals of the inner ear are called ___________ __________. [2]

Output: cristae ampullaris


Input: [1] cristae ampullaris detect _____ movements of the head and then sends it to the brain to maintain balance [2]

Output: rotational


Input: [1] ______ cells are the receptors for taste buds to sense taste [2]

Output: gustatory


Input: [1] _________ cells are the receptors for the nose to sense smell [2]

Output: olfactory


Input: buying and selling currencies

Output: foreign exhange intervention

Central banks influence their country's rates


Input: it increases the suppy of US dollars, decreases the supply of the foreign currency, and depreciates the dollar relative to the foreign currency

Output: When the Fed uses US dollars to buy another currency

Central banks influence their country's rates


Input: it decreases the supply of US dollars, increases the supply of the foreign currency and appreciates the dollar relative to the foreign currency

Output: When the Fed uses another currency to buy US dollars

Central banks influence their country's rates


Input: to let exchange rates fluctuate freely

Output: The current US policy on exchange intervention is...

Central banks influence their country's rates


Input: 1. bank of Japan's failed attempts to stimulate the Japanese economy by targeting the o/s balance of current accounts (which threw the economy into a deflationary cycle) 2. European Central bank's efforts to set monetary policy to promote economic growth among all 12 European countries that use the euro 3. Bank of China's attempt to slow the overly rapid growth of the Chinese economy

Output: Recent challenges to other major central banks include (3)

Central banks influence their country's rates


Input: 1. Depository institutions 2. Brokerage houses 3. Insurance companies

Output: 3 basic type of financial intermediaries

Central banks influence their country's rates


Input: (banks, credit unions, savings & loans) You loan your money and you get investment back with interest. Your return on investment can be accurately predicted.

Output: Depository Institution

Central banks influence their country's rates


Input: (Merrill Lynch) You invest your money and get it back with interest (bonds), dividents (stocks), and capital gains or losses (options more than stocks more than bonds). Your return on investment can be accurately predicted (bonds) or fluctuate quite widely (stock, options).

Output: Brokerage Houses

Central banks influence their country's rates


Input: You pay your premium an in most cases don't get any back at all. Your return on investment can fluctuate incredibly. Probably you'll get nothing back (if you had no losses) but you could be indemnified hundreds of dollars per dollar paid in premium; hence, your return on investment could exceed 10,000%

Output: Insurance companies

Central banks influence their country's rates


Input: Facilitate the trading of short-term debt instruments, transferring money from those with short-term excess funds to those with short term needs for furnds.

Output: Money Markets

Central banks influence their country's rates


Input: Investors typically invest in both money markts and capital markets to get the higher interest rates of long-term investments (from capital markets) and still preserve liquidity through money markets

Output: Investor behavior in Money Markets

Central banks influence their country's rates


Input: money market instruments generate a higher rate of return than holding cash, coupled with 1. High liquidity 2. littel risk of loss of value 3. a low default risk

Output: Money Market investors reduce opportunity costs because...

Central banks influence their country's rates


Input: the risk of late or non-payment of principal and/or interest

Output: Default risk

Central banks influence their country's rates


Input: low transaction costs and quick transfer of funds. Most individuals participate in money markets indirectly, through money market mutual funds and other financial institutions

Output: Money Market borrowers benefit from

Central banks influence their country's rates


Input: All of the following are issued in large denominations and have low devalut risks and short maturities. Their liquidities vary according to the activity levels of their secondary markets: Treasury bill, Federal (fed) funds, Repurchase agreements (repos), Commercial papers, Negotiable certificates of deposits (CD's), Bankers acceptances.

Output: Types of Money Market Instruments

Central banks influence their country's rates


Input: short term obligations issued by the US treasury dept to cover budget deficits and to refi maturing debt. - have littel default risk because they are issued by the US gov't - have little liquidity risk because they're short term instruments with an active secondary market. - t-bills are sold on a discount basis, and achieve their face value at maturity

Output: Treasury Bills (T-bills)

Central banks influence their country's rates


Input: [(face value - purchase price) / face value] X (360/days to maturity) The discount yield is directly related to the discount from face value. As the discount rises so does the yield. The discount yield is indirectly related to the # of days to maturity. As the length of time to maturity lengthens, the yield falls.

Output: Formula for the discount yield of a T-bill

Central banks influence their country's rates


Input: short-term funds transferred between financial institutions, usually for one day. Fed funds pay interest once at maturity. They are unsecured loans. Financial Institutions borrow fed funds to top up deficient reserves. Traders contact each other directly or through fed funds brokers.

Output: Federal (fed) funds

Central banks influence their country's rates


Input: the one-day interest rate for borrowing fed fund.

Output: The fed funds rate

Central banks influence their country's rates


Input: - 1 party sell securities to another and promise to buy them back at a specified price on a specified date. - Traders contact each other directly or through brokers and dealers. - less risky and have lower interst rates than fed funds - are less liquid than fed funds, and tend to be used by non-banks.

Output: Repurchase Agreements (repos)

Central banks influence their country's rates


Input: has 1 party buy securities from another and promises to sell them back on a given future date.

Output: Reverse repurchase Agreements (reverse repo)

Central banks influence their country's rates


Input: [(repurchase price - selling price) / selling price] x (360/days to maturity)

Output: The formula for the yeild of a repurchase agreement

Central banks influence their country's rates


Input: Overnight funding

Output: Both Fed funds and repurchase agreements are commonly used for

Central banks influence their country's rates


Input: unsecured, short-term promissory note issued to raise short-term cash, usually to finance working capital requirments. -tends to displace bank loans because it offers lower interest rates. - risky because it is unsecured debt with a weak secondary market - The risk of default makes the credit rating of the issuing company an important consideration for the investor; but, the better the credit rating, the lower the interest rate. - It is sold either directly, using the issuer's own sales force, or indirectly, through brokers and dealers. Dealers and brokers charge a fee for their work in return for a guarantee to sell the entire issue.

Output: Commercial paper

Central banks influence their country's rates


Input: [(face value - purchase price) / face value] x (360/days to maturity)

Output: The formula for the discount yield of commercial paper

Central banks influence their country's rates


Input: bank issued, fixed maturity, interest bearing, time deposits that specify their interst rates and maturity dates and are negotiable (can be sold). - It is a bearer instrument. - denominations range from $100,000 to $10 million. - Money market mutual funds buy negotiable CDs and sell them to pools of individual investors. - Issuing bankds post daily rates for CDs and sell them to investors - sometimes a bank & an investor will negotiate the size, rate, and maturity of a CD. - The secondary market for negotiable CDs is small and not very active - Large banks can offer CDs at lower rates than smaller, less well-known banks

Output: Negotialbe certificates of deposit (CDs)

Central banks influence their country's rates


Input: are time drafts payable to sellers of goods, with payment guaranteed by the banks. - bankers' acceptances often finance import-export deals, when foreign exporters want to be sure they'll be paid for their goods. If the importer fails to pay for the goods, the exporter can hold the banker's acceptance until its maturity date or because it is negotiable, sell the acceptance at a discount to a buyer in the money market. - Thus, banker's acceptance not only guarantee payments for imports-exports but also create a secondary market. - Only large US banks are active in teh bankers' acceptances market.

Output: Bankers' acceptances

Central banks influence their country's rates


Input: - The Treasury sells new issues of T-bills through Treasury bill auctions. Every week the Treasury annonces the 13 week and 26 week T-bills it plans to sell. - Interested buyers must get their bids in to a Federal Reserve Bank by 1 pm on the Monday following the announcement. - The Treasury announces the allocations and the prices of its T-bills the next day, and delivers the bills by the following Thursday.

Output: How to trade US treasury bills, the primary market (1 of 2)

Central banks influence their country's rates


Input: Either: Competitive: which specify the desired quantity and price of the T-bills or Noncompetitve: which specify the desired amount of T-bills and agree to pay the weighted-average price of winning competitive bids - The highest competitve bidder gets the first allocation of T-bills - The rest of the T-bills are distributed from highest to lowest bidders - No one bidder may receive more than 35% of the total issue - All bids that are awarded in full are called "winning bids" - Non competitive bids are allocated T-bills before non-winning competitve bids are filled.

Output: Submitted bids are: (2 of 2)

Central banks influence their country's rates


Input: The T-bill secondary market is the largest in the US. The largest dealers are the primary government securities dealers, consisting of about 30 financial institutions named by the Federal Reserve Bank of NY. Those dealers create the T-bill secondary market by buying and selling securities for themselves and for their customers. - Another 500 smaller dealers trade directly in the secondary market. The secondary market is decentralized, with most trading being conducted by telephone or wire.

Output: How to trade US treasury bills: The secondary market

Central banks influence their country's rates


Input: 1. The US treasury 2. The Federal Reserve 3. Commercial banks 4. Brokers and dealers: a. Primary gov't security dealers b. Money and Security brokers c. Smaller brokers and dealers 5. Corporations 6. Other financial instituations a. insurers b. finance companies c. money market mutual funds

Output: Money Market Participants (6)

Central banks influence their country's rates


Input: primarily a seller in money markets. The US Treasury issues T-bills to raise money for short -term expenditures while it waits for tax revenues.

Output: The US Treasury

Central banks influence their country's rates


Input: a major buyer and seller in money markets. The Fed: - buys or sells T-bills to increase or decrease the money supply - buys and sells repurchase agreements to stabilize interst rates and the money supply - affects money market rates by targeting the fed funds rate - affects the deman for and supply of fed funds and repurchase agreements through its operation of its discount window

Output: The Federal Reserve

Central banks influence their country's rates


Input: buy and sell almost all types of money market instruments, usually to meet reserve requirements and make better use of excess reserves

Output: Commercial banks

Central banks influence their country's rates


Input: - market new issues of Treasury securities - run the secondary market for T-bills - help the Federal Reserve use repo markets to affect the supply of bank reserves

Output: Primary Government security dealers

Central banks influence their country's rates


Input: - act as intermediaries for gov't securities dealers, and - link buyers and sellers in the fed funds and others secondary markets

Output: Money and security brokers

Central banks influence their country's rates


Input: link smaller buyers and sellers in several secondary markets

Output: Smaller brodkers and dealers

Central banks influence their country's rates


Input: issue commercial paper and invest excess cash in money market securities

Output: Corporations

Central banks influence their country's rates


Input: Insurers - which use money market instruments to maintain liquidity Finance companies - which raise funds through money markets (primarily by using commercial paper) Money Market mutual funds - which buy money market securities and sell shares of them to small investors

Output: Other financail institutions

Central banks influence their country's rates


Input: Foreign investors are buying and selling more US money market secureities every year. hence foreign money markets are in a growht stage. Becaue many interanational finance contracts call for payment in US dollars, both foreign and US gov't and businesses like to hold European deposits to facilitate spending. Eurodollars trade in the Eurodollar market.

Output: Euro Money Markets

Central banks influence their country's rates


Input: US dollar-denominated deposits in foreign bandks, no just European banks

Output: Eurodollar deposits

Central banks influence their country's rates


Input: London's largest banks operate an interbank Eurodollar market, which is used by banks aroudn the world as a source of overnight funding. The rate in that market is called the LIBOR, which is generally higher than the fed funds rate due to the higher risk of foreign bank deposits.

Output: London Interbank Offered Rate (LIBOR)

Central banks influence their country's rates


Input: 1. Eurodollars CDs (US dollar-denominated CDs in foreign banks) 2. Euronotes (Short-term, dollar-denominated notes similar to commercial paper) 3. Eurocommercial paper (Eurosecurities issued by dealers of commercail paper w/out involving any bank) The rate of return for the Eurodollar CDs was consistently higher than the return rate for the US bank CDs up until the 1990's when the 2 rates became virtually identical.

Output: Euromarket securities

Central banks influence their country's rates


Input: facilitate the trading of stocks, notes, bonds, mortgages, and other long-term debts instruments.

Output: Capital Markets

Central banks influence their country's rates


Input: long term debt instruments issued by corporations and gov't units to raise funds for long-term operations. The bond issuer promises to pay the face value of the bond upon maturity plus coupon interst. Bonds are issued and traded on bond markets.

Output: Bonds

Central banks influence their country's rates


Input: Treasury notes and bonds, municipal bonds and corporate bonds

Output: 3 types of bonds

Central banks influence their country's rates


Input: -backed by the US gov't and thus have no risk of defualt. - pay low interest rates and are subject ot interest rate risk - old notes and monds are not as liquid as new notes and bonds - they pay coupon interst semiannually and are issued in minimum denominations of $1,000 T-note maturities range from 1 to 10 years, while T-bond maturities range from 10 to 30 years.

Output: Treasury notes (T-notes) and Treasury bonds (T-bonds) FEATURES

Central banks influence their country's rates


Input: is a Treasury security that separates the interst payments from each other and from the final principal payment. Each component of a STRIP is called a "Treasury zero-coupon bond" because the investor in an indvidual component receives only the interest payment attached to that component. - sold through financial institutions and gov't securities brokers and dealers. - investor use STRIPS to meet investment duration needs and to reduce interst rate risk. - Investor can buy a STRIP that will pay a specific sum of money at a specified future date. - Because STRIPS involve no intervening payments or reinvestment, they are not affected by interest rate changes. - Most T-notes and T-bonds can be stripped - Their interest payments are exempt from state and local income taxes

Output: STRIP - (Separate Trading of Registered Interest and Principal) Security

Central banks influence their country's rates


Input: in an inflation-indexed bond that provides returns ited to the inflation rate. Teh coupon rate on TIPS is determined by an auction process.

Output: Treasury Inflation Protection Securities (TIPS) bond

Central banks influence their country's rates


Input: Ther present value of a T-bond or T-note equals the present value of its coupon payments plus the present value of its face value. When an investor buys a T-note or T-bond between coupon payments, he must pay the seller accrued interest. The bond price w/out accrued interest is called the clean price. Teh bond price plus accrued interest is called dirty price or full price.

Output: Treasury notes (T-notes) and Treasury bonds (T-bonds) YIELDS

Central banks influence their country's rates


Input: The Treasury sells them through competitve and noncompetitve auctions. Gov't securities dealers, businesses, and individuals submit bids through a Federal Reserve Bank until noon or one the day before the auction. Awards are announced the following day. Highest priority goes to the highest bid prices. Most secondary trading is done through brokers and dealers.

Output: Treasury notes (T-notes) and Treasury bonds (T-bonds) TRADING

Central banks influence their country's rates


Input: Issued by state and local gov't to fund tempoarary imbalances between expenditures and receipts and/or to finance long-term projects.

Output: Municipal Bonds

Central banks influence their country's rates


Input: - repaid out of tax receipts. Their interest payments are exempt from federal income taxes and from most state adn local income taxes. - Municipal bonds are issued in denominations of $5K and larger - There is a secondary market but it is not as active as the Treasury secondary market.

Output: Municipal Bond FEATURES

Central banks influence their country's rates


Input: General obligation bonds are backed by the issuer's full faith and credit and require taxpayer approval before they are issued.

Output: General obligation bonds

Central banks influence their country's rates


Input: -- A revenue bond finances a specific revenue generating project and is paid back from the cash flows from that project. They are riskier thand general obligation bonds because if the project fails the bonds are not repaid.

Output: Revenue bonds

Central banks influence their country's rates


Input: To convert a municipal bond rate to a corporate (taxable) bond rate, divide the municipal bond rate by (1 - marginal income tax rate of the bondholder). To convert a corporate bond rate to a municipal bond rate mulitply the corporate bond rate by (1 - marginal income tax rate of the bondholder)

Output: Municipal Bonds YIELDS

Central banks influence their country's rates


Input: Neew issues are sold publicly, through an investment bank that acts as security underwriter, or by private placement.

Output: Municipal Bonds TRADING

Central banks influence their country's rates


Input: - Large issues can be sold nationally - Small issues can be sold locally - The UW invetment bank uses firm commitment underwriting, - The bank can buy the bonds through competitive bidding or through direct negotiation with the issuer - Some bonds are offered on a best efforts underwriting basis - Publicly traded bonds must be registered with the SEC - There is a thin secondary market

Output: Public Trading

Central banks influence their country's rates


Input: the bank guarantees the issuer a bond price by buying the entire issue and then reselling all the bonds at higher prices

Output: Firm Commitment Underwriting

Central banks influence their country's rates


Input: the bank does not guarantee the issuer a price and places bonds with investors on a fee basis

Output: Best Efforts underwriting

Central banks influence their country's rates


Input: - The municipality, sometimes with the help of an investment bank finds a large buyer or a group of buyers to buy the entire issue - Private placements do not have to be registered with the SEC - Issuers like private placements because they don't have to register the bonds - Investors like private placements because they pay higher interest rates than publicly-traded municipal bonds - There is a very thin secondary market

Output: Private Placement

Central banks influence their country's rates


Input: are long-term bonds issued by corporations. They come with bond indenture. The bond indenture lowers the risk and therefore the interest rate, on the bond. - A trustee, generally a bank trust department, is the bondholders' representative, overseeing the issuer's performance and initiating any legal action against the issuer. - Corporate bond interest payments are raxable at federal, state, and local levels.

Output: Corporate bonds

Central banks influence their country's rates


Input: the contract that specifies the responsibilities and rights of the issuer and of the buyer.

Output: Bond Indenture

Central banks influence their country's rates


Input: Bearer Bond Registered Bond Term Bond Serial bond Mortgage bond Equipment trust certificate Debenture Subordinaed debenture Convertible bond Stock warrant Callable bond Sinking fund provision

Output: Kinds of corporate bonds

Central banks influence their country's rates


Input: has coupons attached to the bond, which the holder presents to the issuer for payment of interest with they come due

Output: Bearer Bond

Central banks influence their country's rates


Input: mails coupon payments to the registered bond owner. Registered bonds have largely replaced bearer bonds because they are more secure (and more easily taxed)

Output: Registered Bond

Central banks influence their country's rates


Input: has the entire bond issue mature on the same date

Output: Term bond

Central banks influence their country's rates


Input: part of an issue with several matuirty dates. Allow repayment over time and hence are better than term bonds for corporations with volatile incomes.

Output: Serial bond

Central banks influence their country's rates


Input: finances a specified project, which is pledged as collateral for th ebond. A mortgage bond is secured debt.

Output: Mortgage bond

Central banks influence their country's rates


Input: collateralized with tangible non-real estate property

Output: Equipment trust certificate

Central banks influence their country's rates


Input: is an unsecured bond backed by the issuer's general credit.

Output: Debenture

Central banks influence their country's rates


Input: an unsecured bond that is junior to mortgage bonds and to regular debentures

Output: Subordinated debenture

Central banks influence their country's rates


Input: may be exchanged for another security (usually common stock) of the issuing firm at the bondholder's discretion. - Interest rates are lower than for nonconvertible bonds because the bondholder also receives an investment opportunity not available to other bondholders

Output: Convertible bond

Central banks influence their country's rates


Input: lets the bondholder buy common stock at a specified price up to a specified date. - The bondholder keeps the bond whether he buys stock or not. - The bondholder may also sell the stock warrant and keep the underlying bond.

Output: Stock Warrant

Central banks influence their country's rates


Input: a bond with a call provision. The issuer calls the bond when the interest rate drops, so it can retire high interest rate bonds and issue new, low-interest bonds.

Output: Callable bond

Central banks influence their country's rates


Input: Lets the issuer force the bondholder to sell the bond back a given (call) price

Output: Call Provision

Central banks influence their country's rates


Input: the difference between the call price and the face value.

Output: Call premium

Central banks influence their country's rates


Input: requires the issuer to retire a certain amount of the issue each year. The issuer makes periodic payments to the sinking fund, which the trustee uses to retire that year's bond. - Investors like sinking fund provisions because they reduce default risk.

Output: Sinking Fund Provision

Central banks influence their country's rates


Input: The issuer sells corporate bonds through a public sale or private placement, just as with municipal bonds.

Output: Corporate bonds - how are they sold

Central banks influence their country's rates


Input: The exchange market and the OTC over the counter market. The OTC market is much more active than the exchange market.

Output: Corporate bonds have 2 secondary markets

Central banks influence their country's rates


Input: Bond rating agencies like Moody's and Standard and Poor's evaluate each bond's risk of default. - Each bond receives a letter grade ranging from AAA to C or D (riskiest) - The agencies evaluate the bond's likelihood of payment, the entire issue's nature and provisions and the protection in the fent of bankruptcy or reorganization

Output: Bond Ratings

Central banks influence their country's rates


Input: Bonds rated Baa or higher by Moody's or BBB or higher by S&P. Financial Institutions are prohibited by law from buying non-investment grade bonds

Output: Investment Grade Bonds

Central banks influence their country's rates


Input: Bonds below investment grade

Output: Junk bonds or higher yield bonds

Central banks influence their country's rates


Input: The major bond issuers are federal, state, and local gov't and corporations. - Foreign investors, gov't units, financial institutions, and households buy most bonds. - Investments by households are sometimes underestimated because household savings deposited in financial institutions often get invested in bonds.

Output: Bond Market Participants

Central banks influence their country's rates


Input: the difference between the highest and lowest interest rates offered by different types of bonds at the same time. Yield spreads change as bonds' default risks, tax status, and marketability change.

Output: Yield Spread

Central banks influence their country's rates


Input: A. Trade bonds that are underwritten by an dinternational syndicate. B. Offer bonds simultaneously to investors in different countries C. Issue bonds in more than one country D . offer unregisterd bonds

Output: International Bond Markets

Central banks influence their country's rates


Input: Before 2004, most international bonds wer denominated in US dollars. The euro is now the most prevalent curreny for denominating international debt.

Output: International Trade In Bonds - CURRENCY

Central banks influence their country's rates


Input: Eurobonds Foreign bonds Brady bonds

Output: International Trade in Bonds TYPES OF BONDS

Central banks influence their country's rates


Input: - Long term bonds sold outside the country of the currency in which they are denominated - They are bearer bonds, traded in over-the-counter markets - Because of the volatility of interest rates in the country of the chosen currency affects the overall cost of the bond, issuers choose currencies with stable interest rates.

Output: Eurobonds

Central banks influence their country's rates


Input: long-term bonds issued by firms and gov't outside the issuer's home country - Foreign bonds are denominated in the currency of the country of issue

Output: Foreign bonds

Central banks influence their country's rates


Input: - bonds backed by US T-bonds as collateral, that are swapped for o/s loans in developing countries. - offer longer maturity and lower yeild than the underlying loan. - let developing contures borros money from longer time periods, at lower interst rateds, and they provide creditor banks securities that can be traded, theus increasing the banks' liquidities. - some have been converted to Sovereign bonds.

Output: Brady Bonds

Central banks influence their country's rates


Input: Brady bonds w/out US T-bond collateral backing

Output: Sovereign bonds

Central banks influence their country's rates


Input: 1. Dividends 2. Residual Claims 3. Limited Liability 4. Voting

Output: Common Stockholders have the rights to...

Central banks influence their country's rates


Input: Stockholders receive a share of the issuing firm's profits once the firm has paid its taxes and interest to bondholders. - The firm's board of directors determines the amount of dividends, and may choose to reinvest all profits instead of paying any dividends at all. - Stockholders are often satisfied with a company that reivests its profits because growing firms also have growing stock prices. - Stockholders can sell their shares and pay capital gains taxes on their profits (gains) instead of paying (higher) income taxes on their dividends (earinings)

Output: Dividends

Central banks influence their country's rates


Input: Stockholders may claim the assets of a failed or dissolved form, after all debt and taxes are paid.

Output: Residual Claims

Central banks influence their country's rates


Input: Stockholders' losses are limted to the amounts of their original investments.

Output: Limited Liability

Central banks influence their country's rates


Input: has 2 classes of common stock o/s with different voting rights. - Classes of stock with inferior voting rights often have higher dividend rights. A stockholder may cast his vote at the firm's annual meeting or by proxy. Teh # of votes each stockholder has equals his number of shares mulitplied by the # of directors up for election, but the stockholder may use all of his votes to vote for one candidate.

Output: Dual Class Firm

Central banks influence their country's rates


Input: all diretors up for election are voted for at the same time. Allows minority stockholders the chance to elect at least soem of the board members.

Output: Cumulative Voting

Central banks influence their country's rates


Input: each director is boted on individually, with one share equaling one vote.

Output: Straight Voting

Central banks influence their country's rates


Input: Bondholders do not own the firm that issues their bonds, but their claims to earnings and assets are superior to those of stockholders.

Output: Bondholders vs. Stockholders

Central banks influence their country's rates


Input: 1. Dividends 2. Residual claims 3. Limited liablity 4. Voting rights

Output: Preferred Stockholders have the right to....

Central banks influence their country's rates


Input: Preferred stockholders are paid before common stockholders

Output: Preferred Stockholders dividends

Central banks influence their country's rates


Input: Preferred stockholders are paid before commond stockholders

Output: Preferred Stockholders Residual claims

Central banks influence their country's rates


Input: Preferred stockholders' losses are limited to their original investments

Output: Preferred Stockholders Limited liability

Central banks influence their country's rates


Input: Preferred stockholders' generally do not have voting rights, unless prior cumulative preferred dividents have not been paid

Output: Preferred Stockholders voting rights

Central banks influence their country's rates


Input: Capital Gains - if the stock appreciates over time Dividends - if declared by the board of directors

Output: Corporate Stocks offer 2 types of returns

Central banks influence their country's rates


Input: Are preset at a fixed rate

Output: Preferred Stock Dividends

Central banks influence their country's rates


Input: bary and are paid at the board's discreation

Output: Common Stock Dividends

Central banks influence their country's rates


Input: confers a fundamental, residual claim of ownership in a public corporation

Output: Common Stock

Central banks influence their country's rates


Input: is a hybrid of bonds and common stocks. - Like bonds, prefered stocks pay fixed periodic payments. - Like common stock, preferred stock represents ownership in teh issuing firm. - Preferred stock is usually nonparticipating (the dividend is fixed, regardless of profits) and cummulative (prior missed dividends must be paid before current common stock dividends can be paid)

Output: Preferred Stock

Central banks influence their country's rates


Input: may pay actual dividents that are greater tha promised dividends

Output: Participating preferred stock

Central banks influence their country's rates


Input: does not pay missed dividends

Output: Noncumulative preferred stock

Central banks influence their country's rates


Input: - missed dividends scare new investors - stockholders must be paid a rate of return that compensates them for the risk of missed dividends - dividends are not tax-deductible expenditures, as are bond payments

Output: Preferred stock can bring disadvantages to corporations because

Central banks influence their country's rates


Input: [(current price - price on year ago) / (price one year ago)] + (last annual dividend / price one year ago)]

Output: The return on a stock over hte past year (formula)

Central banks influence their country's rates


Input: - facilitates the buying and selling of new issues of stocks - Most primary market stock sales go through investment banks which sell securities using either firm commitment underwriting or best effort underwriting

Output: Primary Market

Central banks influence their country's rates


Input: guarantees the issue's selling price - the investement bank buys the entire issue for a guaranteed price (net proceeds) and sells the individual stocks to investors for a higher price (gross proceeds)

Output: Firm commitment underwriting #2

Central banks influence their country's rates


Input: equals the difference between gross proceeds and net proceeds. - Investment bansk often introduce a new issue through a syndicate to spread the risk of selling stocks and to contact a wider pool of investors. - The lead investment bank in syndicate is called the oriinating house.

Output: The underwriter's spread

Central banks influence their country's rates


Input: a group of investment banks that distribute securities

Output: Syndicate

Central banks influence their country's rates


Input: a firm's very first issue of stock

Output: Initial public offering

Central banks influence their country's rates


Input: firms that already have shares trading in the secondary maket offer seasoned shares in the primary market

Output: Seasoned shares

Central banks influence their country's rates


Input: offered to the general investing public

Output: Public sale

Central banks influence their country's rates


Input: offered to a limited number of large investors

Output: private placement

Central banks influence their country's rates


Input: which give stockholders the option (but not the obligation) to buy their proportional shares of any new issues before those new issues are offered for public sale or private placement

Output: Some states and corporate charers give stockholders preemptive right...

Central banks influence their country's rates


Input: - All stocks sold publicly must be registered with the SEC. - The registration statement focuses on full disclosure about the firm and its securities - Since 1982 the SEC has allowed a fater and less expensive form of registration called a shelf registration, which lets the firm register mulitple issues of stock over 2 year period in 1 registration statement.

Output: Registration with SEC

Central banks influence their country's rates


Input: While the firm registers its securities, it can also distribute a preliminary prospectus to prospective investors.

Output: Red Herring Prospectus

Central banks influence their country's rates


Input: facilitates the trading of previoulsy issued stocks

Output: Secondary stock market

Central banks influence their country's rates


Input: 1. The NY stock exchange 2. The American Stock Exchange (AMEX) 3. The National Association of securities Delaers Automatied Quotation (NADAQ) - The NYSE is the best known and one of hte most powerful stock market in the world, the NASDAQ is growing fast, the AMEX is small and getting smaller.

Output: 3 major secondary stock markets

Central banks influence their country's rates


Input: - All transactions occur at trading posts. - Each stock has a specialist - Individual investors cantact their borkers, who send buy and sell orders th their representatives at the NYSE. - The representatives fulfill the orders by dealing with specialist or with other brokers - The are also floor borkers - Investors who use on-line trading bypass the broker and go directly to the floor broker who fulfills their buy and sell orders the same way a commission broker would

Output: NYSE trading process

Central banks influence their country's rates


Input: specific locations on the floor of the exchange

Output: Trading posts

Central banks influence their country's rates


Input: an exchange member who arranges the market for that stock, maintains its liquidity and buys back stock as necessary to stabilize its price.

Output: Specialist

Central banks influence their country's rates


Input: work independently from large brokerage firms

Output: Floor brokers

Central banks influence their country's rates


Input: Market order and limit orders

Output: 2 types of orders sent to floor and commission brokers

Central banks influence their country's rates


Input: asks the broker to transact at the best price available when the order reaches the post

Output: Market Order

Central banks influence their country's rates


Input: asks the broker to transact at a specified price. - Limit orders can be left with the stock's specialist who will execute the trade when the price is reached.

Output: Limit Order

Central banks influence their country's rates


Input: The simultaneous, computer-assisted bying and selling of a portfolio of atleast 15 different stocks valued at more than $1 million.

Output: Program Trading

Central banks influence their country's rates


Input: which equals the company's closing price divided by its earnings per share over the previous year, inidicating the stock's relative profitability and value.

Output: P/E ratio

Central banks influence their country's rates


Input: divide the firm's closing price by it's PE ratio

Output: Earning's per share calculations

Central banks influence their country's rates


Input: indicates high expections of growth in earnings

Output: A high PE ratio

Central banks influence their country's rates


Input: indicates the stock's earnings are not expecte to grow quickly

Output: A low PE ratio

Central banks influence their country's rates


Input: lists stocks of smaller firms with national interest. The AMEX is organized like the NYSE.

Output: The AMEX trading process

Central banks influence their country's rates


Input: The NASDAQ is the world's first electronic stock market. It currently has more firms listed thean the NYSE. - It is a dealers market; Groups of dealers make the market for each stock. - The original UW of a new issue can become a dealer of that stock in the NASDAQ. - All NASDAQ trades are negotiated. Stocks go to the investor with the best price.

Output: The NASDAQ

Central banks influence their country's rates


Input: The NYSE has stringent listing requirements, but firms that list on the NYSE enjoy the benefits of improved marketability, publicity, and access to financial markets. - The AMEX has less stringent listing requirements. - Firms do not meet NYSE or AMEX requirements trade on the NASDAQ.

Output: Market Listing Requirements

Central banks influence their country's rates


Input: a composite value of a group of stocks traded on teh secondary market that indicates the overall market's performance and trend.

Output: Stock Market Indexes

Central banks influence their country's rates


Input: composite of the stocks of 30 large companies, each with a history of successful growth. - That list of 30 companies changes occassionally. - Also publishes indexes for transportation companies, utility companies, and a composite in all of its indexes.

Output: Dow Jones Industrial Average

Central banks influence their country's rates


Input: a composite of all common stocks listed on the NYSE with four sub-indexes for industrial, transportation, utility and financial companies

Output: The NYSE composite Index

Central banks influence their country's rates


Input: a composite of 500 of the largest US corporations each listed on either of the NYSE or the NASDAQ, with sub-indexes for utility companies

Output: The Standard and Poor's 500 Index

Central banks influence their country's rates


Input: a composite of all industiral companies, banks, and insurers listed on the NASDAQ, with sub-indexes for industrial companies, banks, insurers, computer companies, and telecommunications companies.

Output: The NASDAQ composite index

Central banks influence their country's rates


Input: measure the performance of all US headquartered equity securities that are actively traded in an US based stock market and have available price data

Output: The Wilshire 5000 Index

Central banks influence their country's rates


Input: Households are the largest holders of corporate stock. They own more stock through direct holdings than they do through mutual funds. 50% of all stockholders are under 45. Teh major invsetors are between ages 45 and 64

Output: Stock Market Participants

Central banks influence their country's rates


Input: investors expectations of future profitabiity since stock prices increase with expected future dividends. - Investors are willing to pay more for stocks that seem destined to rise, and so the prices of those stocks go up. - Investors shy away from stocks that seem unsafe, and so those prices fall.

Output: Stock prices reflect

Central banks influence their country's rates


Input: - The stock market does not accurately forecast recessions. - Some but not all recessions have been preceded by a decline in stock market indexes. Some declines in indexes have not resuled in recessions at all.

Output: Stock market and recession

Central banks influence their country's rates


Input: The speed with which a stock's price adjusts to interest rate changes or other significant changes that ought to affect the stock's value.

Output: Market efficiency

Central banks influence their country's rates


Input: -Weak form of market efficiency hypothesis -Semi-strong form of market efficiency hypothesis -Strong form of market efficiency hypothesis

Output: 3 Hypotheses of market efficiency

Central banks influence their country's rates


Input: Holds that current stock price reflects all historic public information about a company...that using past information about a company to predict its future stock price is useless. - It is consistent with random walk hypothesis. - Empirical evidence generally supports the weak form of market efficiency hypothesis: price changes are random and therefore are not predictable.

Output: Weak form of market efficiency hypothesis

Central banks influence their country's rates


Input: holds that historical stock prices can not be used to predict future stock prices

Output: Random walk hypothesis

Central banks influence their country's rates


Input: Holds that public information about a company is immediately reflected in its stock price. In other words, stock prices respond immediately to new public information about the company. - Empirical evidence supports the semi-strong form of market efficiency hypothesis.

Output: Semi-strong form of market efficiency hypothesis

Central banks influence their country's rates


Input: holds that a stock's price reflects all public and all private information about the company... that even inside information can not help an investor make better stock choices. - Because inside information is not available to investors, it's difficult to test this hypothesis.

Output: Strong form of market efficinecy hypothesis

Central banks influence their country's rates


Input: requires each SEC-listed compnay to register its stocks and to issue a prospectus with its new stock

Output: The Securitieis Act of 1993

Central banks influence their country's rates


Input: established the Securities and Exchange Commission as the main agency responsible for overseeing the secondary stock market.

Output: The Securities Exchange Act of 1934

Central banks influence their country's rates


Input: outlaws selective disclosure of trading information

Output: Regulation FD (fair disclosure) 2000

Central banks influence their country's rates


Input: created an independent auditing board under the SEC, increased penalties for corporate malfeasance, and created recourse for wronged shareholders

Output: Sarbanes-Oxley Act (2002)

Central banks influence their country's rates


Input: oversees the full and fair disclosure of information on securities issues to actual and potential investors. The SEC delelgates some of its responsibilities, including broker and dealer regulation, to the NYSE and NASDAQ

Output: The Securities and Exchange Commissions (SEC)

Central banks influence their country's rates


Input: regulates brokers and dealers on the NASDAQ market

Output: The National Association of Securities Dealers (NASD)

Central banks influence their country's rates


Input: - US investors use foreign stocks to diversify their risks. While corporate stocks in a coutnry going through a recession may lose value, other corporate stocks in countries enjoying economic growth may increase in value. - But, investment in foreign stocks aslo introduces information risk, foreign exchange risk and political risk

Output: How and Why to invest in international Stocks

Central banks influence their country's rates


Input: a certificate that represents ownership of a foreign stock. ADR's facilitate US investment in foreign stocks.

Output: American Depository Receipt (ADR)

Central banks influence their country's rates


Input: - They are traded in US exchanges in US dollars - foreign companies that use ADRs must file financial statements with the SEC that are consistent witih GAAP (generally accepted accounting principles)

Output: Investors like ADRs because

Central banks influence their country's rates


Input: - reach larger markets and to enhance their interantional reputations. - Foreign stock exchanges sometimes use different regulatory structures from the US. - Investors need to be aware of those structures and the different investment risks they pose.

Output: US companies issue stock globally to....

Central banks influence their country's rates


Input: a security with a payoff that is linked to another previously issued security.

Output: Derivative Security

Central banks influence their country's rates


Input: linked to an underlying mortgage

Output: Mortgage backed security

Central banks influence their country's rates


Input: is linked to the price of an underlying security and to a reference or strike price.

Output: Option

Central banks influence their country's rates


Input: 1. Spot Contract 2. Forward Contract 3. Futures Contract

Output: Types of Derivative securities (3)

Central banks influence their country's rates


Input: an agreement between buyer and seller that includes the immediate exchange of assets and funds. (example) A buyer agrees to buy a used car for $5K hands over the check immediately and receives the keys and title to the car right then and there.

Output: Spot Contract

Central banks influence their country's rates


Input: an agreement between byer and seller to exchange a nonstandardized asset for a certain amount of cash at a future date. (example) A buyer agrees to buy a used car for $5K in 5 months, and the owner agrees to sell the car on that future date. Forward contracts can involve exchange of a stated amoutn of currency at a stated interest rate.

Output: Forward Contract

Central banks influence their country's rates


Input: an agreement between buyer and seller to exchange a standardized asset for cash at a future date. -unlike forward contracts, future contracts exchange standardized assets, with standardized expiration dates, in centralized markets. - Are marked to market daily, their prices being adjusted each day to reflect current futures market conditions. - Buyers only have to post an initial margin in a margin account when they decide to trade. - Buyers must maintain funds in their margin accounts at a stated level - Defaults are rare because the exchange assumes the defaulting party's payment obligations. - The terms are set by the exchange and subject to approval by the Commodity Futures Trading Commissions (CFTC)

Output: Futures contract

Central banks influence their country's rates


Input: Prices being adjusted each day to reflect current future market conditions

Output: Marked to Market

Central banks influence their country's rates


Input: A deposit that represents a portion of the value of a contract

Output: Initial margin

Central banks influence their country's rates


Input: byers must amintain funds in their margina ccounts at a stated level, usually 75% of the initial margin

Output: The maintenance margin

Central banks influence their country's rates


Input: A. hold the contract until it expires B. liquidate his position before the contract's expiration

Output: A futures contract holder may

Central banks influence their country's rates


Input: 1. Interest rate futures 2. Currency futures 3. Equity stock index futures

Output: 3 types of future contracts

Central banks influence their country's rates


Input: The underlying asset is the interst rate on a bond or short-term fixed-interest security

Output: interst rate futures

Central banks influence their country's rates


Input: They underlying asset is the exchange rate of a currency

Output: Currency futures

Central banks influence their country's rates


Input: The underlying asset is a major US or foreign stock market inex

Output: Equity stock index futures

Central banks influence their country's rates


Input: the value of the underlying asset increases before contract expriation

Output: The buyer in a futures contract profits when....

Central banks influence their country's rates


Input: the value of the underlying asset decreases before contract expiration

Output: The seller in a futures contract profits when....

Central banks influence their country's rates


Input: - Forward contracts occur in the over-the-counter market - Major participants are commercial banks, investment banks, and broker-dealers - There is a small secondary market in forward contracts, which has increased the standardization of forward contracts.

Output: The Forward Contract Market

Central banks influence their country's rates


Input: - Uses an open outcry acution in which traders face each other and call out their offers to buy and sell - Only members of the exchange can work on the floor of the exchange - Public buyers and sellers place their orders through floor brokers, who trade with professional traders, who trade for their own accounts.

Output: The Futures Contract Market

Central banks influence their country's rates