________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business

If two securities promise the same cash flow at a specific future date, the one with the higher price must have _______ rate of discount:

a) a higher b) a lower c) the same

Regulation limits FI investment in non-investment grade bonds (rated below Baa or non-rated). What kind of risk is this designed to limit?

A. Liquidity risk. B. Interest rate risk C. Credit risk. D. Foreign exchange rate risk. E. Off-balance sheet risk.