Question 1

The goal of sheltering income from taxes is an illegitimate goal.

Accepted Answer

A) True 
 B)False

Question 2

James purchased five bonds with a face value of $1,000 that paid 5% annual interest rate. The total annual interest income of James for each year is:

Accepted Answer

A) $50. 
B) $175. 
C) $250. 
D) $100. 
E) $500. 
A) $50. 
B) $175. 
C) $250. 
D) $100. 
E) $500.

Question 3

You have been offered an opportunity to buy shares of a collection of diversified securities. You will be investing in:

Accepted Answer

A) bonds. 
B) common stocks. 
C) mutual funds. 
D) real estate. 
E) stock options. 
A) bonds. 
B) common stocks. 
C) mutual funds. 
D) real estate. 
E) stock options.

Question 4

Online trading is the only valuable investment service available through the Internet.

Accepted Answer

A) True 
 B)False

Question 5

The Securities and Exchange Commission was established as a result of the:

Accepted Answer

A) Investment Company Act of 1940. 
B) Securities Exchange Act of 1934. 
C) Securities Exchange Commission Act of 1940. 
D) Sarbanes-Oxley Act of 2002. 
E) Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. 
A) Investment Company Act of 1940. 
B) Securities Exchange Act of 1934. 
C) Securities Exchange Commission Act of 1940. 
D) Sarbanes-Oxley Act of 2002. 
E) Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Question 6

The New York Stock Exchange (NYSE)is a part of the broker market.

Accepted Answer

A) True 
 B)False

Question 7

Stockbrokers are also known as:

Accepted Answer

A) market makers. 
B) account executives. 
C) underwriters. 
D) commission sellers. 
E) traders. 
A) market makers. 
B) account executives. 
C) underwriters. 
D) commission sellers. 
E) traders.

Question 8

A diversified portfolio of securities is characterized by:

Accepted Answer

A) dissimilar risk-return characteristics of the financial instruments. 
B) concentration on a single industry which has the highest growth rate. 
C) erratic loss potential due to investment in the latest financial vehicles. 
D) unstable earnings for the entire investment horizon. 
E) investing on a single security which has the lowest risk and the highest returns. 
A) dissimilar risk-return characteristics of the financial instruments. 
B) concentration on a single industry which has the highest growth rate. 
C) erratic loss potential due to investment in the latest financial vehicles. 
D) unstable earnings for the entire investment horizon. 
E) investing on a single security which has the lowest risk and the highest returns.

Question 9

Online calculators and worksheets can help you find answers to financial planning and investing questions.

Accepted Answer

A) True 
 B)False

Question 10

Mathew purchased 100 shares of Blue Corporation for $100 per share. Currently, the stocks of Blue Corporation are trading at $150. Which of the following is the return on Mathew's investment in one share?

Accepted Answer

A) 65% 
B) 50% 
C) 75% 
D) 80% 
E) 40% 
A) 65% 
B) 50% 
C) 75% 
D) 80% 
E) 40%

Question 11

Which of the following best describes portfolio management?

Accepted Answer

A) The management of a marketplace in which stocks, bonds, and other financial instruments are traded 
B) A procedure used to settle disputes between a brokerage firm and its clients, which makes a final and usually binding decision on the matter 
C) The management of an agency of the federal government that regulates the disclosure of information about securities and generally oversees the operation of the securities exchanges and markets 
D) The process of creation of a document that is made available to prospective security buyers that describes the firm and a new security issue 
E) The buying, selling, and holding of various securities in order to meet a set of predetermined investment needs and objectives 
A) The management of a marketplace in which stocks, bonds, and other financial instruments are traded 
B) A procedure used to settle disputes between a brokerage firm and its clients, which makes a final and usually binding decision on the matter 
C) The management of an agency of the federal government that regulates the disclosure of information about securities and generally oversees the operation of the securities exchanges and markets 
D) The process of creation of a document that is made available to prospective security buyers that describes the firm and a new security issue 
E) The buying, selling, and holding of various securities in order to meet a set of predetermined investment needs and objectives

Question 12

The first thing you need to determine in order to reach an investment goal after accumulating the capital is the:

Accepted Answer

A) rate of return. 
B) rate of savings. 
C) rate of inflation. 
D) rate of consumption. 
E) rate of interest. 
A) rate of return. 
B) rate of savings. 
C) rate of inflation. 
D) rate of consumption. 
E) rate of interest.

Question 13

Which of the following types of brokers enables an investor to trade electronically from his or her personal computer?

Accepted Answer

A) A full-service broker 
B) A bank broker 
C) A futures broker 
D) An online broker 
E) A market maker 
A) A full-service broker 
B) A bank broker 
C) A futures broker 
D) An online broker 
E) A market maker

Question 14

Online trading is financially safer than trading with a human broker.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements regarding bonds is true?

Accepted Answer

A) Bonds are liabilities of the issuer. 
B) Individuals investing in bonds receive dividends. 
C) Bonds cannot be purchased or sold prior to maturity. 
D) Income from bonds varies every year. 
E) The principal invested in bonds is not returned at the time of maturity. 
A) Bonds are liabilities of the issuer. 
B) Individuals investing in bonds receive dividends. 
C) Bonds cannot be purchased or sold prior to maturity. 
D) Income from bonds varies every year. 
E) The principal invested in bonds is not returned at the time of maturity.

Question 16

Retired people prefer an investment offering:

Accepted Answer

A) high current income at low risk. 
B) low current income at low risk. 
C) high current income at high risk. 
D) low current income at high risk. 
E) variable income at variable risk. 
A) high current income at low risk. 
B) low current income at low risk. 
C) high current income at high risk. 
D) low current income at high risk. 
E) variable income at variable risk.

Question 17

_____  have no maturity date.

Accepted Answer

A) Common stocks 
B) Bonds 
C) Corporate deposits 
D) Insurance policies 
E) Equity loans 
A) Common stocks 
B) Bonds 
C) Corporate deposits 
D) Insurance policies 
E) Equity loans

Question 18

Clara's portfolio is worth $200,000, and her portfolio consists of common stocks worth $56,000. Therefore, equity constitutes _____ of Clara's portfolio.

Accepted Answer

A) 10% 
B) 33% 
C) 28% 
D) 56% 
E) 61% 
A) 10% 
B) 33% 
C) 28% 
D) 56% 
E) 61%

Question 19

Which of the following sections in the annual report gives information on ongoing litigation?

Accepted Answer

A) The chief executive's letter 
B) Management's discussion and analysis 
C) Income statement 
D) Auditor's report 
E) Notes about the financial statements 
A) The chief executive's letter 
B) Management's discussion and analysis 
C) Income statement 
D) Auditor's report 
E) Notes about the financial statements

Question 20

Exchange traded notes (ETN)face both market risk and the risk of default of the issuing bank.

Accepted Answer

A) True 
 B)False

The goal of sheltering income from taxes is an illegitimate goal.

James purchased five bonds with a face value of $1,000 that paid 5% annual interest rate. The total annual interest income of James for each year is:

You have been offered an opportunity to buy shares of a collection of diversified securities. You will be investing in:

Online trading is the only valuable investment service available through the Internet.

The Securities and Exchange Commission was established as a result of the:

The New York Stock Exchange (NYSE)is a part of the broker market.

Stockbrokers are also known as:

A diversified portfolio of securities is characterized by:

Online calculators and worksheets can help you find answers to financial planning and investing questions.

Mathew purchased 100 shares of Blue Corporation for $100 per share. Currently, the stocks of Blue Corporation are trading at $150. Which of the following is the return on Mathew's investment in one share?

Which of the following best describes portfolio management?

The first thing you need to determine in order to reach an investment goal after accumulating the capital is the:

Which of the following types of brokers enables an investor to trade electronically from his or her personal computer?

Online trading is financially safer than trading with a human broker.

Which of the following statements regarding bonds is true?

Retired people prefer an investment offering:

_____ have no maturity date.

Clara's portfolio is worth $200,000, and her portfolio consists of common stocks worth $56,000. Therefore, equity constitutes _____ of Clara's portfolio.

Which of the following sections in the annual report gives information on ongoing litigation?

Exchange traded notes (ETN)face both market risk and the risk of default of the issuing bank.

Understanding the Financial 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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 11: Investment Planning

The goal of sheltering income from taxes is an illegitimate goal.

James purchased five bonds with a face value of $1,000 that paid 5% annual interest rate. The total annual interest income of James for each year is:

You have been offered an opportunity to buy shares of a collection of diversified securities. You will be investing in:

Online trading is the only valuable investment service available through the Internet.

The Securities and Exchange Commission was established as a result of the:

The New York Stock Exchange (NYSE)is a part of the broker market.

Stockbrokers are also known as:

A diversified portfolio of securities is characterized by:

Online calculators and worksheets can help you find answers to financial planning and investing questions.

Mathew purchased 100 shares of Blue Corporation for $100 per share. Currently, the stocks of Blue Corporation are trading at $150. Which of the following is the return on Mathew's investment in one share?

Which of the following best describes portfolio management?

The first thing you need to determine in order to reach an investment goal after accumulating the capital is the:

Which of the following types of brokers enables an investor to trade electronically from his or her personal computer?

Online trading is financially safer than trading with a human broker.

Which of the following statements regarding bonds is true?

Retired people prefer an investment offering:

_____ have no maturity date.

Clara's portfolio is worth $200,000, and her portfolio consists of common stocks worth $56,000. Therefore, equity constitutes _____ of Clara's portfolio.

Which of the following sections in the annual report gives information on ongoing litigation?

Exchange traded notes (ETN)face both market risk and the risk of default of the issuing bank.

Understanding the Financial 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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters