Question 1

An unmarried investor with few responsibilities should be able to accept ____ better than two people who are married with young children.

Accepted Answer

A)  return 
B)  risk 
C)  maturity 
D)  diversification 
E)  balance 
A)  return 
B)  risk 
C)  maturity 
D)  diversification 
E)  balance

Question 2

In addition to a description of any investments owned,the worksheet listing your investments should include

Accepted Answer

A)  the purchase price. 
B)  the original amount of the investment. 
C)  the current annual income. 
D)  the latest market value. 
E)  all of the above. 
A)  the purchase price. 
B)  the original amount of the investment. 
C)  the current annual income. 
D)  the latest market value. 
E)  all of the above.

Question 3

Discount brokers discount the price of securities to below the prevailing market price.

Accepted Answer

A) True 
 B)False

Question 4

A stock portfolio containing 80% common stocks is most likely to be appropriate for

Accepted Answer

A)  a retired couple who needs a high return 
B)  a divorced middle-aged mother who needs a high return 
C)  a blue-collar, two-income family with five kids 
D)  a young single worker putting money aside for retirement 
E)  a portfolio with 80% in common stocks is not suitable for anyone under any circumstances 
A)  a retired couple who needs a high return 
B)  a divorced middle-aged mother who needs a high return 
C)  a blue-collar, two-income family with five kids 
D)  a young single worker putting money aside for retirement 
E)  a portfolio with 80% in common stocks is not suitable for anyone under any circumstances

Question 5

The first step in asset allocation is selecting the securities that should go into your portfolio.

Accepted Answer

A) True 
 B)False

Question 6

When you buy 300 shares of a company you have purchased

Accepted Answer

A)  an odd lot. 
B)  a round lot. 
C)  both an odd lot and a round lot. 
D)  a combined lot. 
E)  none of these. 
A)  an odd lot. 
B)  a round lot. 
C)  both an odd lot and a round lot. 
D)  a combined lot. 
E)  none of these.

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Brokerage commissions on [stock | bond] transactions are likely to be a flat fee per unit.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The single most important reason for investing is for [a down payment on a home | a down payment on an automobile | retirement].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

Which of the following terms best describes a day trader

Accepted Answer

A)  Speculator 
B)  Long-term investor 
C)  Money market maker 
D)  Buy and hold mentality 
E)  Illegal gambler 
A)  Speculator 
B)  Long-term investor 
C)  Money market maker 
D)  Buy and hold mentality 
E)  Illegal gambler

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-When you sell short,the proceeds of the sale will be [held until the sale is covered | given to you immediately after the sale].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

The ____ is not an organized security exchange.

Accepted Answer

A)  New York Stock Exchange 
B)  American Stock Exchange 
C)  Midwest Stock Exchange 
D)  Pacific Stock Exchange 
E)  Over-the-Counter Exchange 
A)  New York Stock Exchange 
B)  American Stock Exchange 
C)  Midwest Stock Exchange 
D)  Pacific Stock Exchange 
E)  Over-the-Counter Exchange

Question 12

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Day trading is [illegal | risky].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

Accepted Answer

A) True 
 B)False

Question 14

Common stock pays interest payments on a quarterly basis.

Accepted Answer

A) True 
 B)False

Question 15

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-If you want to set a specific price in your order,you will use a [market | limit] order.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The closing price of this stock on the previous day was [higher | lower] than today's close.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

Accepted Answer

A)  Full service broker 
B)  Bank broker 
C)  Futures broker 
D)  Online broker 
E)  Market maker 
A)  Full service broker 
B)  Bank broker 
C)  Futures broker 
D)  Online broker 
E)  Market maker

Question 18

A diversified securities portfolio is characterized by

Accepted Answer

A)  dissimilar risk and return characteristics of the securities. 
B)  concentrating on a single industry. 
C)  minimal loss potential. 
D)  stable earnings. 
E)  formula timing. 
A)  dissimilar risk and return characteristics of the securities. 
B)  concentrating on a single industry. 
C)  minimal loss potential. 
D)  stable earnings. 
E)  formula timing.

Question 19

The Standard and Poor's Index includes 30 industrial stocks.

Accepted Answer

A) True 
 B)False

Question 20

An individual is more likely to use the secondary markets than the primary market.

Accepted Answer

A) True 
 B)False

An unmarried investor with few responsibilities should be able to accept ____ better than two people who are married with young children.

In addition to a description of any investments owned,the worksheet listing your investments should include

Discount brokers discount the price of securities to below the prevailing market price.

A stock portfolio containing 80% common stocks is most likely to be appropriate for

The first step in asset allocation is selecting the securities that should go into your portfolio.

When you buy 300 shares of a company you have purchased

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Brokerage commissions on [stock | bond] transactions are likely to be a flat fee per unit.

Which of the following terms best describes a day trader

The ____ is not an organized security exchange.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Day trading is [illegal | risky].

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

Common stock pays interest payments on a quarterly basis.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If you want to set a specific price in your order,you will use a [market | limit] order.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The closing price of this stock on the previous day was [higher | lower] than today's close.

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

A diversified securities portfolio is characterized by

The Standard and Poor's Index includes 30 industrial stocks.

An individual is more likely to use the secondary markets than the primary market.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 11: Investment Planning

An unmarried investor with few responsibilities should be able to accept ____ better than two people who are married with young children.

In addition to a description of any investments owned,the worksheet listing your investments should include

Discount brokers discount the price of securities to below the prevailing market price.

A stock portfolio containing 80% common stocks is most likely to be appropriate for

The first step in asset allocation is selecting the securities that should go into your portfolio.

When you buy 300 shares of a company you have purchased

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Brokerage commissions on [stock | bond] transactions are likely to be a flat fee per unit.

Which of the following terms best describes a day trader

The ____ is not an organized security exchange.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Day trading is [illegal | risky].

The Securities Investor Protection Corporation insurance guarantees the dollar value of your securities will not dip below a certain level.

Common stock pays interest payments on a quarterly basis.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If you want to set a specific price in your order,you will use a [market | limit] order.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The closing price of this stock on the previous day was [higher | lower] than today's close.

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

A diversified securities portfolio is characterized by

The Standard and Poor's Index includes 30 industrial stocks.

An individual is more likely to use the secondary markets than the primary market.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters