Question 1

Which one of the following is false regarding sources of investment information?

Accepted Answer

A) You can obtain recommendations to buy or sell stocks and other securities by accessing internet sites. 
B) Personal subscriptions to investor services are relatively inexpensive. 
C) You can obtain current price information for stocks,bonds,and mutual funds by using the internet. 
D) You can trade securities online. 
E) Federal,state,and local governments have a home page where you can obtain investment information. 
A) You can obtain recommendations to buy or sell stocks and other securities by accessing internet sites. 
B) Personal subscriptions to investor services are relatively inexpensive. 
C) You can obtain current price information for stocks,bonds,and mutual funds by using the internet. 
D) You can trade securities online. 
E) Federal,state,and local governments have a home page where you can obtain investment information. B

Question 2

Bill Teague has just gotten a gift of $15,000 from his parents and is trying to decide how to invest it.He is thinking about investing in a money market mutual fund,because he knows he can withdraw the money whenever he needs it with little chance of a loss in value.What aspect of investing is Bill most concerned about?

Accepted Answer

A) Risk 
B) Return 
C) Diversification 
D) Liquidity 
E) Investment growth 
A) Risk 
B) Return 
C) Diversification 
D) Liquidity 
E) Investment growth D

Question 3

Twenty years ago,you began investing $200 a month.Because your investments earned an average of 8 percent a year,your investment portfolio has a current dollar value of $128,000.How much did you earn on your investments over the 20-year period of time?

Accepted Answer

A) $48,000 
B) $60,000 
C) $80,000 
D) $100,000 
E) $128,000 
A) $48,000 
B) $60,000 
C) $80,000 
D) $100,000 
E) $128,000 C

Question 4

James Gray has a mutual fund that automatically takes $50 out of his paycheck each month.Which suggestion for obtaining the money he needs for investing is he following?

Accepted Answer

A) Taking advantage of gifts,inheritance and other windfalls 
B) Taking advantage of employer-sponsored retirement programs 
C) Participating in an elective savings program 
D) Making a special effort once or twice a year to save 
E) Using financial leverage to increase investment returns 
A) Taking advantage of gifts,inheritance and other windfalls 
B) Taking advantage of employer-sponsored retirement programs 
C) Participating in an elective savings program 
D) Making a special effort once or twice a year to save 
E) Using financial leverage to increase investment returns

Question 5

A corporation must give each potential investor an annual report.

Accepted Answer

A) True 
 B)False

Question 6

Alice Cooper contributes six percent of her monthly earnings to her 401k plan at work.The plan allows her to invest in several different types of mutual funds and her employer matches up to 3% of her salary.Which suggestion for obtaining the money she needs for investing is she following?

Accepted Answer

A) Paying herself first 
B) Taking advantage of employer-sponsored retirement programs 
C) Participating in an elective savings program 
D) Making a special effort once or twice a year to save 
E) Taking advantage of gifts,inheritance and other windfalls 
A) Paying herself first 
B) Taking advantage of employer-sponsored retirement programs 
C) Participating in an elective savings program 
D) Making a special effort once or twice a year to save 
E) Taking advantage of gifts,inheritance and other windfalls

Question 7

For an investor who wants to be conservative,which of the following investments would not be appropriate?

Accepted Answer

A) U)S.government bonds 
B) Coins and stamps 
C) U)S.securities 
D) CDs 
E) Conservative mutual funds 
A) U)S.government bonds 
B) Coins and stamps 
C) U)S.securities 
D) CDs 
E) Conservative mutual funds

Question 8

To avoid the financial problems associated with excessive credit card debt,you should:

Accepted Answer

A) Pay your credit card balance in full each month 
B) Use your credit card to pay for small purchases 
C) Take advantage of the cash advance feature 
D) Use a large number of credit cards 
E) Avoid getting help if you think you are in trouble 
A) Pay your credit card balance in full each month 
B) Use your credit card to pay for small purchases 
C) Take advantage of the cash advance feature 
D) Use a large number of credit cards 
E) Avoid getting help if you think you are in trouble

Question 9

Generally,options are conservative,long-term investments.

Accepted Answer

A) True 
 B)False

Question 10

An investment program can be seen as a pyramid consisting of ________ levels.

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) 5 
A) 1 
B) 2 
C) 3 
D) 4 
E) 5

Question 11

If you do not pay for products or services purchased on credit,then all of the following can occur,except:

Accepted Answer

A) Merchandise can be repossessed. 
B) You can develop a good relationship with creditors. 
C) A business can sue to recover the cost of the product or service. 
D) Your credit score can be lowered to reflect late or missed payments. 
E) The cost of additional credit may be higher. 
A) Merchandise can be repossessed. 
B) You can develop a good relationship with creditors. 
C) A business can sue to recover the cost of the product or service. 
D) Your credit score can be lowered to reflect late or missed payments. 
E) The cost of additional credit may be higher.

Question 12

Mergent and Value Line are companies that would be examples of:

Accepted Answer

A) stockbrokers. 
B) securities exchanges. 
C) stock regulations. 
D) investor services. 
E) stock underwriters. 
A) stockbrokers. 
B) securities exchanges. 
C) stock regulations. 
D) investor services. 
E) stock underwriters.

Question 13

In the beginning of 2018,the average balance on credit cards for U.S.families was about how much?

Accepted Answer

A) $6,354 
B) $7,500 
C) $10,000 
D) $15,400 
E) $18,000 
A) $6,354 
B) $7,500 
C) $10,000 
D) $15,400 
E) $18,000

Question 14

Bob and Mary Martin are both 32 years old.Although they graduated from college almost 10 years ago,they have never developed a diversified investment program.What extra money they had was invested in high-tech stocks that did quite well until the last five years.Then,with the economic downturn,they encountered major losses.How could asset allocation have reduced the dollar amounts of the Martins' losses?

Accepted Answer

Answers will vary.Asset allocation is th

Question 15

Lester McCann wants to invest but is worried about risk.In particular,he is worried that the money he invests today will not buy as much ten years from now.What type of risk concerns Lester?

Accepted Answer

A) Inflation risk 
B) Interest rate risk 
C) Business failure 
D) Market risk 
E) Global investment 
A) Inflation risk 
B) Interest rate risk 
C) Business failure 
D) Market risk 
E) Global investment

Question 16

If you need to withdraw your investment money in two years,you should probably invest in:

Accepted Answer

A) stocks. 
B) mutual funds. 
C) certificates of deposits. 
D) long-term government bonds. 
E) long-term corporate bonds. 
A) stocks. 
B) mutual funds. 
C) certificates of deposits. 
D) long-term government bonds. 
E) long-term corporate bonds.

Question 17

When a bond decreases in value because interest rates in the economy increase,it is an example of ________ risk.

Accepted Answer

A) market 
B) interest rate 
C) inflation 
D) business failure 
E) current 
A) market 
B) interest rate 
C) inflation 
D) business failure 
E) current

Question 18

Both fiscal policy and monetary policy are used on a regular basis to stabilize the economy and encourage economic growth.

Accepted Answer

A) True 
 B)False

Question 19

A good rule of thumb is to limit consumer credit payments to no more than ________ percent of your net (after tax)income.

Accepted Answer

A) 20 
B) 30 
C) 40 
D) 50 
E) 60 
A) 20 
B) 30 
C) 40 
D) 50 
E) 60

Question 20

Eric Patterson earns $80,000 a year.His monthly expenses total $4,500.What is the minimum amount of money that he should set aside in an emergency fund?

Accepted Answer

A) $2,150 
B) $4,500 
C) $9,000 
D) $13,500 
E) $40,000 
A) $2,150 
B) $4,500 
C) $9,000 
D) $13,500 
E) $40,000

Which one of the following is false regarding sources of investment information?

Twenty years ago,you began investing $200 a month.Because your investments earned an average of 8 percent a year,your investment portfolio has a current dollar value of $128,000.How much did you earn on your investments over the 20-year period of time?

James Gray has a mutual fund that automatically takes $50 out of his paycheck each month.Which suggestion for obtaining the money he needs for investing is he following?

A corporation must give each potential investor an annual report.

Alice Cooper contributes six percent of her monthly earnings to her 401k plan at work.The plan allows her to invest in several different types of mutual funds and her employer matches up to 3% of her salary.Which suggestion for obtaining the money she needs for investing is she following?

For an investor who wants to be conservative,which of the following investments would not be appropriate?

To avoid the financial problems associated with excessive credit card debt,you should:

Generally,options are conservative,long-term investments.

An investment program can be seen as a pyramid consisting of ________ levels.

If you do not pay for products or services purchased on credit,then all of the following can occur,except:

Mergent and Value Line are companies that would be examples of:

In the beginning of 2018,the average balance on credit cards for U.S.families was about how much?

Lester McCann wants to invest but is worried about risk.In particular,he is worried that the money he invests today will not buy as much ten years from now.What type of risk concerns Lester?

If you need to withdraw your investment money in two years,you should probably invest in:

When a bond decreases in value because interest rates in the economy increase,it is an example of ________ risk.

Both fiscal policy and monetary policy are used on a regular basis to stabilize the economy and encourage economic growth.

A good rule of thumb is to limit consumer credit payments to no more than ________ percent of your net (after tax)income.

Eric Patterson earns $80,000 a year.His monthly expenses total $4,500.What is the minimum amount of money that he should set aside in an emergency fund?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 13: Investing Fundamentals

Which one of the following is false regarding sources of investment information?

Twenty years ago,you began investing $200 a month.Because your investments earned an average of 8 percent a year,your investment portfolio has a current dollar value of $128,000.How much did you earn on your investments over the 20-year period of time?

James Gray has a mutual fund that automatically takes $50 out of his paycheck each month.Which suggestion for obtaining the money he needs for investing is he following?

A corporation must give each potential investor an annual report.

Alice Cooper contributes six percent of her monthly earnings to her 401k plan at work.The plan allows her to invest in several different types of mutual funds and her employer matches up to 3% of her salary.Which suggestion for obtaining the money she needs for investing is she following?

For an investor who wants to be conservative,which of the following investments would not be appropriate?

To avoid the financial problems associated with excessive credit card debt,you should:

Generally,options are conservative,long-term investments.

An investment program can be seen as a pyramid consisting of ________ levels.

If you do not pay for products or services purchased on credit,then all of the following can occur,except:

Mergent and Value Line are companies that would be examples of:

In the beginning of 2018,the average balance on credit cards for U.S.families was about how much?

Lester McCann wants to invest but is worried about risk.In particular,he is worried that the money he invests today will not buy as much ten years from now.What type of risk concerns Lester?

If you need to withdraw your investment money in two years,you should probably invest in:

When a bond decreases in value because interest rates in the economy increase,it is an example of ________ risk.

Both fiscal policy and monetary policy are used on a regular basis to stabilize the economy and encourage economic growth.

A good rule of thumb is to limit consumer credit payments to no more than ________ percent of your net (after tax)income.

Eric Patterson earns $80,000 a year.His monthly expenses total $4,500.What is the minimum amount of money that he should set aside in an emergency fund?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters