Question 1

When a company issues bonds,financial advisors buy the bonds at face value.

Accepted Answer

A) True 
 B)False

Question 2

List the main types of stocks and discuss the important characteristics of each.

Accepted Answer

Income stocks pay a good and usually ste

Question 3

An asset allocation of 50% stocks,45% bonds,and 5% cash is considered ________ risk.

Accepted Answer

A)  conservative low 
B)  moderate 
C)  moderate high 
D)  aggressive high 
E)  zero 
A)  conservative low 
B)  moderate 
C)  moderate high 
D)  aggressive high 
E)  zero

Question 4

If you want a bond that you can exchange into stock of a given company,you should buy a ________.

Accepted Answer

A)  revenue bond 
B)  serial bond 
C)  convertible bond 
D)  secured bond 
E)  debenture bond 
A)  revenue bond 
B)  serial bond 
C)  convertible bond 
D)  secured bond 
E)  debenture bond

Question 5

Owning ten stocks rather than two illustrates the concept of ________.

Accepted Answer

A)  asset allocation 
B)  the risk return relationship 
C)  diversification 
D)  money market funds 
E)  prospecting 
A)  asset allocation 
B)  the risk return relationship 
C)  diversification 
D)  money market funds 
E)  prospecting

Question 6

Which federal agency oversees and regulates the buying and selling of stocks and bonds?

Accepted Answer

A)  Federal Trade Commission 
B)  Commerce Department 
C)  Federal Reserve Board 
D)  Securities and Exchange Commission 
E)  New York Stock Exchange 
A)  Federal Trade Commission 
B)  Commerce Department 
C)  Federal Reserve Board 
D)  Securities and Exchange Commission 
E)  New York Stock Exchange

Question 7

A(n)________ stock's price is greatly affected by the state of the economy because the company makes a product that can have highly variable demand.

Accepted Answer

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

Question 8

An asset allocation of 95% stocks and 5% bonds is considered ________ risk.

Accepted Answer

A)  conservative low 
B)  moderate 
C)  moderate high 
D)  aggressive high 
E)  zero 
A)  conservative low 
B)  moderate 
C)  moderate high 
D)  aggressive high 
E)  zero

Question 9

Which of the following is NOT one of four main reasons why mutual funds are popular with investors?

Accepted Answer

A)  government guarantees that minimize risk 
B)  professional management by experienced people 
C)  professional assurance of diversification 
D)  ease of buying into it with little money 
E)  high level of liquidity 
A)  government guarantees that minimize risk 
B)  professional management by experienced people 
C)  professional assurance of diversification 
D)  ease of buying into it with little money 
E)  high level of liquidity

When a company issues bonds,financial advisors buy the bonds at face value.

List the main types of stocks and discuss the important characteristics of each.

An asset allocation of 50% stocks,45% bonds,and 5% cash is considered ________ risk.

If you want a bond that you can exchange into stock of a given company,you should buy a ________.

Owning ten stocks rather than two illustrates the concept of ________.

Which federal agency oversees and regulates the buying and selling of stocks and bonds?

A(n)________ stock's price is greatly affected by the state of the economy because the company makes a product that can have highly variable demand.

An asset allocation of 95% stocks and 5% bonds is considered ________ risk.

Which of the following is NOT one of four main reasons why mutual funds are popular with investors?

Business Basics

Economics and Banking

Ethics in Business

Business in a Global Economy

Small Business and the Entrepreneur

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Business Law

Constructing an Effective Business Plan

Business Communications

Finding a Job

Personal Finance

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Exam 16: Investment Opportunities in the Securities Market

When a company issues bonds,financial advisors buy the bonds at face value.

List the main types of stocks and discuss the important characteristics of each.

An asset allocation of 50% stocks,45% bonds,and 5% cash is considered ________ risk.

If you want a bond that you can exchange into stock of a given company,you should buy a ________.

Owning ten stocks rather than two illustrates the concept of ________.

Which federal agency oversees and regulates the buying and selling of stocks and bonds?

A(n)________ stock's price is greatly affected by the state of the economy because the company makes a product that can have highly variable demand.

An asset allocation of 95% stocks and 5% bonds is considered ________ risk.

Which of the following is NOT one of four main reasons why mutual funds are popular with investors?

Business Basics

Economics and Banking

Ethics in Business

Business in a Global Economy

Small Business and the Entrepreneur

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Business Law

Constructing an Effective Business Plan

Business Communications

Finding a Job

Personal Finance

Filters