Question 1

Stocks that are purchased primarily for dividend payouts rather than capital gains potential are known as ________ stocks.

Accepted Answer

A)  blue chip 
B)  growth 
C)  income 
D)  penny 
E)  defensive 
A)  blue chip 
B)  growth 
C)  income 
D)  penny 
E)  defensive

Question 2

The annual interest rate that an issuer offers when a bond is first sold is known as the ________.

Accepted Answer

A)  current yield 
B)  coupon 
C)  market yield 
D)  par value 
E)  market value 
A)  current yield 
B)  coupon 
C)  market yield 
D)  par value 
E)  market value

Question 3

No-load funds are mutual funds that ________.

Accepted Answer

A)  do not charge sales commission 
B)  offer high rates of interest 
C)  offer low rates of interest 
D)  do not invest in equity shares 
E)  offer huge tax benefits to investors 
A)  do not charge sales commission 
B)  offer high rates of interest 
C)  offer low rates of interest 
D)  do not invest in equity shares 
E)  offer huge tax benefits to investors

Question 4

________ refer to treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation.

Accepted Answer

A)  Treasury notes 
B)  Treasury bills 
C)  Treasury bonds 
D)  TIPS 
E)  Municipal bonds 
A)  Treasury notes 
B)  Treasury bills 
C)  Treasury bonds 
D)  TIPS 
E)  Municipal bonds

Question 5

You ask your broker to buy 500 shares of Microsoft,if it is available,at a price less than or equal to $26.This is an example of a ________ order.

Accepted Answer

A)  market 
B)  limit 
C)  discount 
D)  stop 
E)  control 
A)  market 
B)  limit 
C)  discount 
D)  stop 
E)  control

Question 6

Compare and contrast a money market and derivatives market.

Accepted Answer

The money market is an over-the-counter

Question 7

Global funds are funds that ________.

Accepted Answer

A)  invest in U.S. securities from foreign countries 
B)  invest in special sectors or industries 
C)  invest in foreign and U.S. securities 
D)  invest strictly in foreign securities 
E)  make investment choices based on social responsibility 
A)  invest in U.S. securities from foreign countries 
B)  invest in special sectors or industries 
C)  invest in foreign and U.S. securities 
D)  invest strictly in foreign securities 
E)  make investment choices based on social responsibility

Question 8

You invest $6,000 in a no-load mutual fund whose net asset value per share is $36.How many shares of the mutual fund will you receive if the coupon is 8 percent?

Accepted Answer

A)  4.92 
B)  166.66 
C)  750 
D)  288 
E)  20.83 
A)  4.92 
B)  166.66 
C)  750 
D)  288 
E)  20.83

Question 9

Investing in bonds typically has higher risk than investing in stocks.

Accepted Answer

A) True 
 B)False

Question 10

Preferred stock owners have no voting rights in a corporation.

Accepted Answer

A) True 
 B)False

Question 11

Albert buys the stock of an established corporation,mainly to obtain good dividends.However,the corporation's growth is limited.This stock is an example of a defensive stock.

Accepted Answer

A) True 
 B)False

Question 12

Stop order is an order to sell a stock when its price falls to a particular point.

Accepted Answer

A) True 
 B)False

Question 13

________ value is an estimate of what a company is actually worth,independent of other values.

Accepted Answer

A)  Intrinsic 
B)  Face 
C)  Par 
D)  Book 
E)  Market 
A)  Intrinsic 
B)  Face 
C)  Par 
D)  Book 
E)  Market

Question 14

Funds that invest in foreign and U.S.securities are called international funds.

Accepted Answer

A) True 
 B)False

Question 15

________ refer to debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

Accepted Answer

A)  Municipal bonds 
B)  Treasury bills 
C)  Treasury bonds 
D)  TIPS 
E)  Treasury notes 
A)  Municipal bonds 
B)  Treasury bills 
C)  Treasury bonds 
D)  TIPS 
E)  Treasury notes

Question 16

A stock split is performed if a company's management team believes that the firm's shares are undervalued.

Accepted Answer

A) True 
 B)False

Question 17

The amount of money that the bond buyer is lending to the bond issuer is known as the ________.

Accepted Answer

A)  par value 
B)  yield 
C)  dividend 
D)  coupon rate 
E)  intrinsic value 
A)  par value 
B)  yield 
C)  dividend 
D)  coupon rate 
E)  intrinsic value

Question 18

Treasury bills are sold at a discount and redeemed at face value.

Accepted Answer

A) True 
 B)False

Question 19

Compare and contrast stock market and bond markets.

Accepted Answer

Organizations that facilitate the buying

Question 20

An investor buys a right and obligation when he or she buys an option.

Accepted Answer

A) True 
 B)False

Stocks that are purchased primarily for dividend payouts rather than capital gains potential are known as ________ stocks.

The annual interest rate that an issuer offers when a bond is first sold is known as the ________.

No-load funds are mutual funds that ________.

________ refer to treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation.

You ask your broker to buy 500 shares of Microsoft,if it is available,at a price less than or equal to $26.This is an example of a ________ order.

Compare and contrast a money market and derivatives market.

Global funds are funds that ________.

You invest $6,000 in a no-load mutual fund whose net asset value per share is $36.How many shares of the mutual fund will you receive if the coupon is 8 percent?

Investing in bonds typically has higher risk than investing in stocks.

Preferred stock owners have no voting rights in a corporation.

Albert buys the stock of an established corporation,mainly to obtain good dividends.However,the corporation's growth is limited.This stock is an example of a defensive stock.

Stop order is an order to sell a stock when its price falls to a particular point.

________ value is an estimate of what a company is actually worth,independent of other values.

Funds that invest in foreign and U.S.securities are called international funds.

________ refer to debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

A stock split is performed if a company's management team believes that the firm's shares are undervalued.

The amount of money that the bond buyer is lending to the bond issuer is known as the ________.

Treasury bills are sold at a discount and redeemed at face value.

Compare and contrast stock market and bond markets.

An investor buys a right and obligation when he or she buys an option.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

The Money Supply and Banking Systems

Filters

Exam 19: Financial Markets and Investment Strategies

Stocks that are purchased primarily for dividend payouts rather than capital gains potential are known as ________ stocks.

The annual interest rate that an issuer offers when a bond is first sold is known as the ________.

No-load funds are mutual funds that ________.

________ refer to treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation.

You ask your broker to buy 500 shares of Microsoft,if it is available,at a price less than or equal to $26.This is an example of a ________ order.

Compare and contrast a money market and derivatives market.

Global funds are funds that ________.

You invest $6,000 in a no-load mutual fund whose net asset value per share is $36.How many shares of the mutual fund will you receive if the coupon is 8 percent?

Investing in bonds typically has higher risk than investing in stocks.

Preferred stock owners have no voting rights in a corporation.

Albert buys the stock of an established corporation,mainly to obtain good dividends.However,the corporation's growth is limited.This stock is an example of a defensive stock.

Stop order is an order to sell a stock when its price falls to a particular point.

________ value is an estimate of what a company is actually worth,independent of other values.

Funds that invest in foreign and U.S.securities are called international funds.

________ refer to debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

A stock split is performed if a company's management team believes that the firm's shares are undervalued.

The amount of money that the bond buyer is lending to the bond issuer is known as the ________.

Treasury bills are sold at a discount and redeemed at face value.

Compare and contrast stock market and bond markets.

An investor buys a right and obligation when he or she buys an option.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

The Money Supply and Banking Systems

Filters