Question 1

A _________ is the most common depository institution.

Accepted Answer

A) not-for-profit organization 
B) savings and loan association 
C) credit union 
D) commercial bank 
A) not-for-profit organization 
B) savings and loan association 
C) credit union 
D) commercial bank

Question 2

Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ)has never:

Accepted Answer

A) maintained a physical trading location where dealers meet to trade securities. 
B) listed stocks of large, well-known firms. 
C) established formal listing requirements. 
D) used a computerized network to trade securities. 
A) maintained a physical trading location where dealers meet to trade securities. 
B) listed stocks of large, well-known firms. 
C) established formal listing requirements. 
D) used a computerized network to trade securities.

Question 3

Which of the following was a major outcome of the Banking Act of 1933?

Accepted Answer

A) It established the Federal Reserve as the central bank in the U.S. 
B) It banned commercial banks from competing with non-depository institutions. 
C) It prohibited fraud in the sale of newly issued stocks and bonds. 
D) It created the Securities and Exchange Commission to oversee the securities industry. 
A) It established the Federal Reserve as the central bank in the U.S. 
B) It banned commercial banks from competing with non-depository institutions. 
C) It prohibited fraud in the sale of newly issued stocks and bonds. 
D) It created the Securities and Exchange Commission to oversee the securities industry.

Question 4

Which of the following is a difference between credit unions and commercial banks?

Accepted Answer

A) Unlike commercial banks, credit unions are not-for-profit organizations. 
B) Unlike credit unions, commercial banks are non-depository organizations. 
C) Unlike credit unions, commercial banks are owned by their depositors. 
D) Unlike commercial banks, credit unions charge very high interest rates on loans. 
A) Unlike commercial banks, credit unions are not-for-profit organizations. 
B) Unlike credit unions, commercial banks are non-depository organizations. 
C) Unlike credit unions, commercial banks are owned by their depositors. 
D) Unlike commercial banks, credit unions charge very high interest rates on loans.

Question 5

If Carl is a preferred stockholder at Cedia Inc.and Cedia goes out of business, Carl's claim on the firm's assets:

Accepted Answer

A) takes precedence over common stockholders. 
B) takes precedence over the claims of any creditors. 
C) can be fulfilled only after the firm has paid dividends on its common stock. 
D) is limited to any preferred dividends the company has not paid. 
A) takes precedence over common stockholders. 
B) takes precedence over the claims of any creditors. 
C) can be fulfilled only after the firm has paid dividends on its common stock. 
D) is limited to any preferred dividends the company has not paid.

Question 6

The stocks of firms that do not meet the listing requirements of stock exchanges are traded on the _____.

Accepted Answer

A) over-the-counter market 
B) money market 
C) margin market 
D) private-player market 
A) over-the-counter market 
B) money market 
C) margin market 
D) private-player market

Question 7

The objective of the market timing strategy is to:

Accepted Answer

A) predict changes in stock prices in order to earn a quick profit by buying low and selling high. 
B) minimize risk by getting completely out of the stock market when stock prices fall and investing heavily once prices begin to rise. 
C) quickly identify new companies with long-term growth potential and buy their stock before other investors notice them. 
D) hold a diversified portfolio of stocks for a long period of time in order to take advantage of the long-run upward trend in the stock market. 
A) predict changes in stock prices in order to earn a quick profit by buying low and selling high. 
B) minimize risk by getting completely out of the stock market when stock prices fall and investing heavily once prices begin to rise. 
C) quickly identify new companies with long-term growth potential and buy their stock before other investors notice them. 
D) hold a diversified portfolio of stocks for a long period of time in order to take advantage of the long-run upward trend in the stock market.

Question 8

Institutional investors amass large pools of financial capital by accepting savings account deposits.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following was the major outcome of the Financial Services Modernization Act of 1999?

Accepted Answer

A) It reversed the Glass-Steagall Act's prohibition of commercial banks selling insurance or acting as investment banks. 
B) It established the Federal Reserve Insurance Corporation, which insured depositors against financial losses when a bank failed. 
C) It prohibited misrepresentation or other forms of fraud in the sale of newly issued stocks and bonds. 
D) It required that all publicly traded firms with at least 500 shareholders and $10 million in assets file quarterly and annual financial reports with the SEC. 
A) It reversed the Glass-Steagall Act's prohibition of commercial banks selling insurance or acting as investment banks. 
B) It established the Federal Reserve Insurance Corporation, which insured depositors against financial losses when a bank failed. 
C) It prohibited misrepresentation or other forms of fraud in the sale of newly issued stocks and bonds. 
D) It required that all publicly traded firms with at least 500 shareholders and $10 million in assets file quarterly and annual financial reports with the SEC.

Question 10

Investors who use analytical techniques to try to predict when prices of particular stocks are likely to rise and fall are relying on the _________ strategy.

Accepted Answer

A) market timing 
B) buy-and-hold 
C) market making 
D) value investing 
A) market timing 
B) buy-and-hold 
C) market making 
D) value investing

A _________ is the most common depository institution.

Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ)has never:

Which of the following was a major outcome of the Banking Act of 1933?

Which of the following is a difference between credit unions and commercial banks?

If Carl is a preferred stockholder at Cedia Inc.and Cedia goes out of business, Carl's claim on the firm's assets:

The stocks of firms that do not meet the listing requirements of stock exchanges are traded on the _____.

The objective of the market timing strategy is to:

Institutional investors amass large pools of financial capital by accepting savings account deposits.

Which of the following was the major outcome of the Financial Services Modernization Act of 1999?

Investors who use analytical techniques to try to predict when prices of particular stocks are likely to rise and fall are relying on the _________ strategy.

Business Now: Change Is the Only Constant

Economics: The Framework for Business

The World Marketplace: Business Without Borders

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Business Formation: Choosing the Form that Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

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Exam 10: Financial Markets: Allocating Financial Resources

A _________ is the most common depository institution.

Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ)has never:

Which of the following was a major outcome of the Banking Act of 1933?

Which of the following is a difference between credit unions and commercial banks?

If Carl is a preferred stockholder at Cedia Inc.and Cedia goes out of business, Carl's claim on the firm's assets:

The stocks of firms that do not meet the listing requirements of stock exchanges are traded on the _____.

The objective of the market timing strategy is to:

Institutional investors amass large pools of financial capital by accepting savings account deposits.

Which of the following was the major outcome of the Financial Services Modernization Act of 1999?

Investors who use analytical techniques to try to predict when prices of particular stocks are likely to rise and fall are relying on the _________ strategy.

Business Now: Change Is the Only Constant

Economics: The Framework for Business

The World Marketplace: Business Without Borders

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Business Formation: Choosing the Form that Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Filters