PRMIA Exam 8006 Topic 6 Question 71 Discussion

Actual exam question for PRMIA's 8006 exam

Question #: 71
Topic #: 6

[All 8006 Questions]

Of the following, which measures can debt holders adopt to protect against a transfer of wealth to their detriment to the shareholders:

1. Restrictive covenants limiting dividends

II. Insisting on professional management separate from owners

III. Higher interest rates

IV. Periodic audits

AI, II, III and IV

BI and III

CI, II and III

DI, III and IV

Show Suggested Answer

Suggested Answer: A

Over the counter and electronic communication networks match buyers and sellers. However, there is no market making function, ie, in periods of stress liquidity may completely disappear from these markets. Exchanges normally have market makers that are required to present two way quotes on the securities they are making the market for. Therefore Choice 'a' is the correct answer.

by Dulce at Jul 07, 2023, 10:41 PM

Limited Time Offer

25%

Off

Get Premium 8006 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!