Question 1

Subscription advisory services provide information and recommendations on various industries and specific securities.

Accepted Answer

A) True 
 B)False

Question 2

A bull market is characterized by:

Accepted Answer

A) investor optimism. 
B) low returns. 
C) economic slowdown. 
D) falling stock prices. 
E) lack of growth. 
A) investor optimism. 
B) low returns. 
C) economic slowdown. 
D) falling stock prices. 
E) lack of growth.

Question 3

Your goals tend to set the tone for your investment program, and they play a major role in determining how conservative or aggressive you're likely to be in making investment decisions.

Accepted Answer

A) True 
 B)False

Question 4

Common stocks are liabilities.

Accepted Answer

A) True 
 B)False

Question 5

_____  is one of the most frequent investment objectives of an individual.

Accepted Answer

A) Exceeding the credit limit 
B) Obtaining a loan 
C) Paying more taxes 
D) Enhancing current income 
E) Business expansion 
A) Exceeding the credit limit 
B) Obtaining a loan 
C) Paying more taxes 
D) Enhancing current income 
E) Business expansion

Question 6

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

Accepted Answer

A) True 
 B)False

Question 7

Diversification of investment securities increases risk.

Accepted Answer

A) True 
 B)False

Question 8

The Securities Investor Protection Corporation (SIPC)provides insurance to protect the investor from:

Accepted Answer

A) declining security prices. 
B) the company's failure to make dividend payments. 
C) a brokerage firm's financial failure. 
D) the loss of the marginal investment on the stock exchange. 
E) the loss of the security deposit with the broker. 
A) declining security prices. 
B) the company's failure to make dividend payments. 
C) a brokerage firm's financial failure. 
D) the loss of the marginal investment on the stock exchange. 
E) the loss of the security deposit with the broker.

Question 9

A fixed dividend would be received with :

Accepted Answer

A) common stocks. 
B) preferred stocks. 
C) bonds. 
D) insurance policies. 
E) real estate investments. 
A) common stocks. 
B) preferred stocks. 
C) bonds. 
D) insurance policies. 
E) real estate investments.

Question 10

_____ are senior, unsecured, unsubordinated debt securities issued by an underwriting bank.

Accepted Answer

A) Mutual funds 
B) Exchange traded notes 
C) Corporate bonds 
D) Collateral debt obligations 
E) Treasury bills 
A) Mutual funds 
B) Exchange traded notes 
C) Corporate bonds 
D) Collateral debt obligations 
E) Treasury bills

Question 11

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

Accepted Answer

A) A market order 
B) A limit order 
C) A stop-loss order 
D) A fill or kill order 
E) A day order 
A) A market order 
B) A limit order 
C) A stop-loss order 
D) A fill or kill order 
E) A day order

Question 12

Maria has invested $200,000 in mutual funds and $20,000 in bonds. The total value of her portfolio is:

Accepted Answer

A) $220,000. 
B) $130,000. 
C) $250,000. 
D) $400,000. 
E) $310,000. 
A) $220,000. 
B) $130,000. 
C) $250,000. 
D) $400,000. 
E) $310,000.

Question 13

The _____  is based on 500 different stocks.

Accepted Answer

A) Standard & Poor's index 
B) Dow Jones Industrial Average 
C) New York Stock Exchange index 
D) Wall Street Commercial Average 
E) NASDAQ 
A) Standard & Poor's index 
B) Dow Jones Industrial Average 
C) New York Stock Exchange index 
D) Wall Street Commercial Average 
E) NASDAQ

Question 14

The Dow Jones Industrial Average is based on:

Accepted Answer

A) 50 stocks. 
B) 30 stocks. 
C) 500 stocks. 
D) 200 stocks. 
E) 100 stocks. 
A) 50 stocks. 
B) 30 stocks. 
C) 500 stocks. 
D) 200 stocks. 
E) 100 stocks.

Question 15

A convertible bond would let the investor exchange it for:

Accepted Answer

A) common stock. 
B) preferred stock. 
C) a mutual fund. 
D) an exchange traded fund. 
E) an exchange traded note. 
A) common stock. 
B) preferred stock. 
C) a mutual fund. 
D) an exchange traded fund. 
E) an exchange traded note.

Question 16

Reallocation of the assets in a portfolio is called rebalancing.

Accepted Answer

A) True 
 B)False

Question 17

Monte wants to save for his daughter's college education. He would like to have $85,000 in 15 years. If Monte can earn an average of 8.5% on this fund, how much would he need to deposit in the account today to meet his goal?  If Monte has $5,000 set aside now and  can earn an average of 8.5% on this fund, how much would he need to add to the account each month? (Round to the nearest whole number.)

Accepted Answer

Using a financial calculator, Monte has

Question 18

Discount brokers will:

Accepted Answer

A) charge low commissions. 
B) give a commission to the investment bankers. 
C) issue a prospectus of the new issue in the primary market. 
D) provide finances to underwrite the shares issued for the first time. 
E) maintain a minimum balance of unsold shares of loss-making corporations. 
A) charge low commissions. 
B) give a commission to the investment bankers. 
C) issue a prospectus of the new issue in the primary market. 
D) provide finances to underwrite the shares issued for the first time. 
E) maintain a minimum balance of unsold shares of loss-making corporations.

Question 19

The owner of a bond would expect to receive _____ annual income.

Accepted Answer

A) an increasing 
B) a steady 
C) a decreasing 
D) an erratic 
E) no 
A) an increasing 
B) a steady 
C) a decreasing 
D) an erratic 
E) no

Question 20

A collection of securities assembled to meet common investment goals is called a(n):

Accepted Answer

A) treasury. 
B) diversification. 
C) grouping. 
D) envelope. 
E) portfolio. 
A) treasury. 
B) diversification. 
C) grouping. 
D) envelope. 
E) portfolio.

Subscription advisory services provide information and recommendations on various industries and specific securities.

A bull market is characterized by:

Your goals tend to set the tone for your investment program, and they play a major role in determining how conservative or aggressive you're likely to be in making investment decisions.

Common stocks are liabilities.

_____ is one of the most frequent investment objectives of an individual.

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

Diversification of investment securities increases risk.

The Securities Investor Protection Corporation (SIPC)provides insurance to protect the investor from:

A fixed dividend would be received with :

_____ are senior, unsecured, unsubordinated debt securities issued by an underwriting bank.

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

Maria has invested $200,000 in mutual funds and $20,000 in bonds. The total value of her portfolio is:

The _____ is based on 500 different stocks.

The Dow Jones Industrial Average is based on:

A convertible bond would let the investor exchange it for:

Reallocation of the assets in a portfolio is called rebalancing.

Discount brokers will:

The owner of a bond would expect to receive _____ annual income.

A collection of securities assembled to meet common investment goals is called a(n):

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

Subscription advisory services provide information and recommendations on various industries and specific securities.

A bull market is characterized by:

Your goals tend to set the tone for your investment program, and they play a major role in determining how conservative or aggressive you're likely to be in making investment decisions.

Common stocks are liabilities.

_____ is one of the most frequent investment objectives of an individual.

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

Diversification of investment securities increases risk.

The Securities Investor Protection Corporation (SIPC)provides insurance to protect the investor from:

A fixed dividend would be received with :

_____ are senior, unsecured, unsubordinated debt securities issued by an underwriting bank.

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

Maria has invested $200,000 in mutual funds and $20,000 in bonds. The total value of her portfolio is:

The _____ is based on 500 different stocks.

The Dow Jones Industrial Average is based on:

A convertible bond would let the investor exchange it for:

Reallocation of the assets in a portfolio is called rebalancing.

Discount brokers will:

The owner of a bond would expect to receive _____ annual income.

A collection of securities assembled to meet common investment goals is called a(n):

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