Question 1

New Treasury securities can be purchased online by using the Treasury Direct Plan.

Accepted Answer

A) True 
 B)False

Question 2

Individual junk bonds are riskier than junk bond mutual funds.

Accepted Answer

A) True 
 B)False

Question 3

All bonds now issued are registered bonds rather than bearer bonds.

Accepted Answer

A) True 
 B)False

Question 4

Unless otherwise indicated,any order received by a stockbroker is assumed to be a good-til-canceled order.

Accepted Answer

A) True 
 B)False

Question 5

The ____ of a bond is variable.

Accepted Answer

A) stated coupon rate of interest 
B) face value 
C) maturity date 
D) market price 
A) stated coupon rate of interest 
B) face value 
C) maturity date 
D) market price

Question 6

You bought a GMI bond for $1,000 that has a coupon rate of 7.75 percent.If you were to sell this bond several years before maturity when the interest rate on comparable new issues was 9.5 percent,you would probably get

Accepted Answer

A) $1,000. 
B) less than $1,000. 
C) more than $1,000. 
D) Not enough information is given to answer the question. 
A) $1,000. 
B) less than $1,000. 
C) more than $1,000. 
D) Not enough information is given to answer the question.

Question 7

____ is (are) normally provided by both general brokerage firms and discount brokerage firms.

Accepted Answer

A) Execution of buy and sell orders 
B) Personal advice about investments 
C) Research analysis of investments 
D) Investment newsletters 
A) Execution of buy and sell orders 
B) Personal advice about investments 
C) Research analysis of investments 
D) Investment newsletters

Question 8

The asked price is the highest price anyone has declared he or she wants to pay for a particular security.

Accepted Answer

A) True 
 B)False

Question 9

Selling stocks short is very risky

Accepted Answer

A) True 
 B)False

Question 10

An order that can be used to protect profits or to limit losses is called a ____ order.

Accepted Answer

A) market 
B) limit 
C) stop 
D) fill-or-kill 
A) market 
B) limit 
C) stop 
D) fill-or-kill

Question 11

Fran and Ollie purchased a $1,000,20-year bond with a coupon rate of 6.5 percent.They paid $1,050 for the bond.What is this bond's yield to maturity?

Accepted Answer

A) 6.5 percent 
B) 6.1 percent 
C) 6.2 percent 
D) 6.8 percent 
A) 6.5 percent 
B) 6.1 percent 
C) 6.2 percent 
D) 6.8 percent

Question 12

Negotiable instruments of ownership or debt such as stocks and bonds are examples of

Accepted Answer

A) debentures. 
B) portfolios. 
C) securities. 
D) collateral. 
A) debentures. 
B) portfolios. 
C) securities. 
D) collateral.

Question 13

The higher the beta on a stock,the higher the rate of return an investor should require.

Accepted Answer

A) True 
 B)False

Question 14

Common stock and bond investments are suitable for only speculative investors.

Accepted Answer

A) True 
 B)False

Question 15

Treasury securities are difficult to sell if an investor wants to get his or her money prior to maturity.

Accepted Answer

A) True 
 B)False

Question 16

It is less expensive to purchase stock shares in multiples of 100 shares.

Accepted Answer

A) True 
 B)False

Question 17

Common stockholders elect

Accepted Answer

A) the corporation's president. 
B) the corporation's board of directors. 
C) the top management of the corporation. 
D) the CEO of the company. 
A) the corporation's president. 
B) the corporation's board of directors. 
C) the top management of the corporation. 
D) the CEO of the company.

Question 18

Long-term capital gain tax rates for investors in tax brackets higher than 15 percent is

Accepted Answer

A) 0 percent. 
B) 10 percent 
C) 15 percent. 
D) 25 percent. 
A) 0 percent. 
B) 10 percent 
C) 15 percent. 
D) 25 percent.

Question 19

The numbers in the YTD% Change column of the stock quotes report the year to date as a percentage change in the price.

Accepted Answer

A) True 
 B)False

Question 20

Market risk,also known as unsystematic risk,is the risk associated with the impact of the overall economy on securities markets.

Accepted Answer

A) True 
 B)False

New Treasury securities can be purchased online by using the Treasury Direct Plan.

Individual junk bonds are riskier than junk bond mutual funds.

All bonds now issued are registered bonds rather than bearer bonds.

Unless otherwise indicated,any order received by a stockbroker is assumed to be a good-til-canceled order.

The ____ of a bond is variable.

You bought a GMI bond for $1,000 that has a coupon rate of 7.75 percent.If you were to sell this bond several years before maturity when the interest rate on comparable new issues was 9.5 percent,you would probably get

____ is (are) normally provided by both general brokerage firms and discount brokerage firms.

The asked price is the highest price anyone has declared he or she wants to pay for a particular security.

Selling stocks short is very risky

An order that can be used to protect profits or to limit losses is called a ____ order.

Fran and Ollie purchased a $1,000,20-year bond with a coupon rate of 6.5 percent.They paid $1,050 for the bond.What is this bond's yield to maturity?

Negotiable instruments of ownership or debt such as stocks and bonds are examples of

The higher the beta on a stock,the higher the rate of return an investor should require.

Common stock and bond investments are suitable for only speculative investors.

Treasury securities are difficult to sell if an investor wants to get his or her money prior to maturity.

It is less expensive to purchase stock shares in multiples of 100 shares.

Common stockholders elect

Long-term capital gain tax rates for investors in tax brackets higher than 15 percent is

The numbers in the YTD% Change column of the stock quotes report the year to date as a percentage change in the price.

Market risk,also known as unsystematic risk,is the risk associated with the impact of the overall economy on securities markets.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

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Exam 14: Investing in Stocks and Bonds

New Treasury securities can be purchased online by using the Treasury Direct Plan.

Individual junk bonds are riskier than junk bond mutual funds.

All bonds now issued are registered bonds rather than bearer bonds.

Unless otherwise indicated,any order received by a stockbroker is assumed to be a good-til-canceled order.

The ____ of a bond is variable.

You bought a GMI bond for $1,000 that has a coupon rate of 7.75 percent.If you were to sell this bond several years before maturity when the interest rate on comparable new issues was 9.5 percent,you would probably get

____ is (are) normally provided by both general brokerage firms and discount brokerage firms.

The asked price is the highest price anyone has declared he or she wants to pay for a particular security.

Selling stocks short is very risky

An order that can be used to protect profits or to limit losses is called a ____ order.

Fran and Ollie purchased a $1,000,20-year bond with a coupon rate of 6.5 percent.They paid $1,050 for the bond.What is this bond's yield to maturity?

Negotiable instruments of ownership or debt such as stocks and bonds are examples of

The higher the beta on a stock,the higher the rate of return an investor should require.

Common stock and bond investments are suitable for only speculative investors.

Treasury securities are difficult to sell if an investor wants to get his or her money prior to maturity.

It is less expensive to purchase stock shares in multiples of 100 shares.

Common stockholders elect

Long-term capital gain tax rates for investors in tax brackets higher than 15 percent is

The numbers in the YTD% Change column of the stock quotes report the year to date as a percentage change in the price.

Market risk,also known as unsystematic risk,is the risk associated with the impact of the overall economy on securities markets.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters