Question 1

Which of the following is considered by many to be the BEST single indicator of the U.S.equities market?

Accepted Answer

A)  NASDAQ Composite 
B)  Russell 2000 
C)  Dow Jones Industrial Average 
D)  Standard & Poor's 500 
E)  New York Stock Exchange 
A)  NASDAQ Composite 
B)  Russell 2000 
C)  Dow Jones Industrial Average 
D)  Standard & Poor's 500 
E)  New York Stock Exchange

Question 2

The investment industry categorizes firms according to size of capitalization.

Accepted Answer

A) True 
 B)False

Question 3

Although advising and underwriting may be tasks of an investment bank,distribution of new securities is NOT one of their services.

Accepted Answer

A) True 
 B)False

Question 4

The New York Stock Exchange is one of the smaller exchanges.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a requirement for a firm to be listed on the New York Stock Exchange?

Accepted Answer

A)  headquarters in New York 
B)  total value of outstanding stock 
C)  industry in which the company operates 
D)  minimum number of shares of stock 
E)  global operations 
A)  headquarters in New York 
B)  total value of outstanding stock 
C)  industry in which the company operates 
D)  minimum number of shares of stock 
E)  global operations

Question 6

Before Allied Corporation sells securities,it is required by law to offer future investors the opportunity to read through a document which contains complete information on both the offered security and the issuing company.What is that required document called?

Accepted Answer

A)  book report 
B)  affidavit 
C)  prospectus 
D)  portfolio 
E)  balance sheet 
A)  book report 
B)  affidavit 
C)  prospectus 
D)  portfolio 
E)  balance sheet

Question 7

Differentiate between market value and book value.

Accepted Answer

Market value is the current price of a s

Question 8

Which of the following assumptions does Groh make?

Accepted Answer

A)  Inflation can outpace any interest rate. 
B)  Given enough time, any stock will eventually go up in value. 
C)  The riskier the investment, the more value it will have over a long period of time. 
D)  The more stocks you invest in, the higher their value will be. 
E)  The stock market overall will experience net growth over time. 
A)  Inflation can outpace any interest rate. 
B)  Given enough time, any stock will eventually go up in value. 
C)  The riskier the investment, the more value it will have over a long period of time. 
D)  The more stocks you invest in, the higher their value will be. 
E)  The stock market overall will experience net growth over time.

Question 9

Which of the following receives and executes buy-and-sell orders for other people in return for commissions?

Accepted Answer

A)  stock exchanges 
B)  stock brokers 
C)  investment banks 
D)  stock agents 
E)  savings banks 
A)  stock exchanges 
B)  stock brokers 
C)  investment banks 
D)  stock agents 
E)  savings banks

Question 10

"I am a chemist with the nation's largest chemical company.We have secretly developed a cure for three of the world's most serious epidemics.Before this news breaks out,I'm going to buy as many shares of stock in my company as I can get my hands on.Then I'll sit back and watch the stock price head for the sky." What is the person making this statement about to engage in?

Accepted Answer

A)  selling shares of stock 
B)  insider trading 
C)  blue-sky trading 
D)  open-market operations 
E)  investment banking 
A)  selling shares of stock 
B)  insider trading 
C)  blue-sky trading 
D)  open-market operations 
E)  investment banking

Question 11

Explain the difference between debt financing and equity financing.

Accepted Answer

Firms can meet their capital needs throu

Question 12

While it's invested,money grows by earning interest or yielding some other form of return.What is this known as?

Accepted Answer

A)  compound growth 
B)  dividend 
C)  capital gains 
D)  security 
E)  diversity 
A)  compound growth 
B)  dividend 
C)  capital gains 
D)  security 
E)  diversity

Question 13

Which is the MOST widely cited U.S.stock market index?

Accepted Answer

A)  Standard & Poor's Composite Index of 500 Stocks 
B)  the NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's Stock List 
E)  the NASDAQ 
A)  Standard & Poor's Composite Index of 500 Stocks 
B)  the NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's Stock List 
E)  the NASDAQ

Question 14

What are low grade bonds usually called?

Accepted Answer

A)  bankruptcy 
B)  default bonds 
C)  junk bonds 
D)  corporate bonds 
E)  grade B bonds 
A)  bankruptcy 
B)  default bonds 
C)  junk bonds 
D)  corporate bonds 
E)  grade B bonds

Question 15

Which of the following issues do Ryerson and Groh disagree about?

Accepted Answer

A)  whether the risk of investing is worthwhile 
B)  whether savings accounts bear interest 
C)  whether companies issue stocks in order to raise funds 
D)  whether anyone makes money by investing in stocks 
E)  whether investing always carries risk with it 
A)  whether the risk of investing is worthwhile 
B)  whether savings accounts bear interest 
C)  whether companies issue stocks in order to raise funds 
D)  whether anyone makes money by investing in stocks 
E)  whether investing always carries risk with it

Question 16

A bond is said to be in default if the borrower fails to make payment when due to lenders.

Accepted Answer

A) True 
 B)False

Question 17

Tonio has some stocks and is carefully watching the stock market.Which of the following should he pay attention to in order to find out the performance of the largest companies?

Accepted Answer

A)  Standard & Poor's 500 
B)  the NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's Stock List 
E)  the NASDAQ 
A)  Standard & Poor's 500 
B)  the NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's Stock List 
E)  the NASDAQ

Question 18

Twenty-six-year-old Lisa Lamont became an investor one day after a friend explained that there was a much better way to make her money work for her than by letting it sit in a savings account earning a very low rate of interest.Lisa decided to withdraw $10,000 from her savings account and invest it in stocks.She wanted to invest it in such a way as to minimize her risk.Which one of the following strategies makes the MOST sense for a new investor like Lisa?

Accepted Answer

A)  Invest all $10,000 in a small fast-growing computer company. 
B)  Invest $5,000 in a gold mining company and $5,000 in a silver mine. 
C)  Invest the $10,000 in four different home builders. 
D)  Invest $10,000 in ten different oil companies. 
E)  Invest $10,000 in a large-cap mutual fund. 
A)  Invest all $10,000 in a small fast-growing computer company. 
B)  Invest $5,000 in a gold mining company and $5,000 in a silver mine. 
C)  Invest the $10,000 in four different home builders. 
D)  Invest $10,000 in ten different oil companies. 
E)  Invest $10,000 in a large-cap mutual fund.

Question 19

The New York Stock Exchange,the world's oldest electronic stock market,has orders gathered and executed on a computer network.

Accepted Answer

A) True 
 B)False

Question 20

What is the term for buying several different kinds of investments rather than just one?

Accepted Answer

A)  spreading 
B)  shorting 
C)  margin buying 
D)  diversification 
E)  management 
A)  spreading 
B)  shorting 
C)  margin buying 
D)  diversification 
E)  management

Which of the following is considered by many to be the BEST single indicator of the U.S.equities market?

The investment industry categorizes firms according to size of capitalization.

Although advising and underwriting may be tasks of an investment bank,distribution of new securities is NOT one of their services.

The New York Stock Exchange is one of the smaller exchanges.

Which of the following is a requirement for a firm to be listed on the New York Stock Exchange?

Before Allied Corporation sells securities,it is required by law to offer future investors the opportunity to read through a document which contains complete information on both the offered security and the issuing company.What is that required document called?

Differentiate between market value and book value.

Which of the following assumptions does Groh make?

Which of the following receives and executes buy-and-sell orders for other people in return for commissions?

Explain the difference between debt financing and equity financing.

While it's invested,money grows by earning interest or yielding some other form of return.What is this known as?

Which is the MOST widely cited U.S.stock market index?

What are low grade bonds usually called?

Which of the following issues do Ryerson and Groh disagree about?

A bond is said to be in default if the borrower fails to make payment when due to lenders.

Tonio has some stocks and is carefully watching the stock market.Which of the following should he pay attention to in order to find out the performance of the largest companies?

The New York Stock Exchange,the world's oldest electronic stock market,has orders gathered and executed on a computer network.

What is the term for buying several different kinds of investments rather than just one?

The U.S.Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality for Producing Goods and Services

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

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Exam 17: Managing Business Finances

Which of the following is considered by many to be the BEST single indicator of the U.S.equities market?

The investment industry categorizes firms according to size of capitalization.

Although advising and underwriting may be tasks of an investment bank,distribution of new securities is NOT one of their services.

The New York Stock Exchange is one of the smaller exchanges.

Which of the following is a requirement for a firm to be listed on the New York Stock Exchange?

Before Allied Corporation sells securities,it is required by law to offer future investors the opportunity to read through a document which contains complete information on both the offered security and the issuing company.What is that required document called?

Differentiate between market value and book value.

Which of the following assumptions does Groh make?

Which of the following receives and executes buy-and-sell orders for other people in return for commissions?

Explain the difference between debt financing and equity financing.

While it's invested,money grows by earning interest or yielding some other form of return.What is this known as?

Which is the MOST widely cited U.S.stock market index?

What are low grade bonds usually called?

Which of the following issues do Ryerson and Groh disagree about?

A bond is said to be in default if the borrower fails to make payment when due to lenders.

Tonio has some stocks and is carefully watching the stock market.Which of the following should he pay attention to in order to find out the performance of the largest companies?

The New York Stock Exchange,the world's oldest electronic stock market,has orders gathered and executed on a computer network.

What is the term for buying several different kinds of investments rather than just one?

The U.S.Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality for Producing Goods and Services

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters