Question 1

Compare and contrast options and futures.

Accepted Answer

An option is the purchased right-but not the obligation-to buy or sell a specified number of shares of a stock or other security at a predetermined price during a specified period.Investors who trade options are betting that the price of the stock will either rise or decline.The seller will get a premium if an option is not exercised.
Financial futures are similar to options,but they are legally binding contracts to buy or sell a financial instrument (such as stocks,Treasury bonds,and foreign currencies)for a set price at a future date.

Question 2

Annual interest/closing price = ________.

Accepted Answer

A)  current yield 
B)  maturity 
C)  coupon 
D)  par value 
E)  face value 
A)  current yield 
B)  maturity 
C)  coupon 
D)  par value 
E)  face value A

Question 3

The amount of money that the bond buyer is lending to the bond issuer is known as the ________.

Accepted Answer

A)  par value 
B)  yield 
C)  dividend 
D)  coupon rate 
E)  intrinsic value 
A)  par value 
B)  yield 
C)  dividend 
D)  coupon rate 
E)  intrinsic value A

Question 4

Compare and contrast growth funds,income funds,and value funds.

Accepted Answer

Growth funds invest in stocks of rapidly

Question 5

A stock split is performed if a company's management team believes that the firm's shares are undervalued.

Accepted Answer

A) True 
 B)False

Question 6

An investor buys a right and obligation when he or she buys an option.

Accepted Answer

A) True 
 B)False

Question 7

What is load? What are no-load funds?

Accepted Answer

Load is the sales commission c

Question 8

Treasury bills are sold at a discount and redeemed at face value.

Accepted Answer

A) True 
 B)False

Question 9

________ are contracts whose value is derived from some other entity.

Accepted Answer

A)  Preference shares 
B)  Derivatives 
C)  Equities 
D)  Secured bonds 
E)  Unsecured bonds 
A)  Preference shares 
B)  Derivatives 
C)  Equities 
D)  Secured bonds 
E)  Unsecured bonds

Question 10

Albert buys the stock of an established corporation,mainly to obtain good dividends.However,the corporation's growth is limited.This stock is an example of a defensive stock.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following markets includes exchange trading and over-the-counter trading?

Accepted Answer

A)  derivatives market 
B)  bond market 
C)  money market 
D)  stock market 
E)  currency market 
A)  derivatives market 
B)  bond market 
C)  money market 
D)  stock market 
E)  currency market

Question 12

Compare and contrast a money market and derivatives market.

Accepted Answer

The money market is an over-the-counter

Question 13

Defensive stocks represent companies with earnings that tend to track the ups and downs of the economy in a predictable pattern.

Accepted Answer

A) True 
 B)False

Question 14

What are derivatives?

Accepted Answer

Derivatives are contracts whose value is

Question 15

Money-market funds are financial instruments that invest in stocks considered to be selling below their true value.

Accepted Answer

A) True 
 B)False

Question 16

Describe the different order types you can use when you buy or sell a stock.

Accepted Answer

A market order tells the broker to buy o

Question 17

Compare and contrast call options and put options.

Accepted Answer

All stock options fall into tw

Question 18

________ funds attempt to maintain a desirable balance of risk and growth potential based on a planned retirement date.

Accepted Answer

A)  Balanced 
B)  Sector 
C)  International 
D)  Specialty 
E)  Target-date 
A)  Balanced 
B)  Sector 
C)  International 
D)  Specialty 
E)  Target-date

Question 19

________ refer to treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation.

Accepted Answer

A)  Treasury notes 
B)  Treasury bills 
C)  Treasury bonds 
D)  TIPS 
E)  Municipal bonds 
A)  Treasury notes 
B)  Treasury bills 
C)  Treasury bonds 
D)  TIPS 
E)  Municipal bonds

Question 20

Suppliers use futures contracts to protect themselves from future price decreases.

Accepted Answer

A) True 
 B)False

Compare and contrast options and futures.

Annual interest/closing price = ________.

The amount of money that the bond buyer is lending to the bond issuer is known as the ________.

Compare and contrast growth funds,income funds,and value funds.

A stock split is performed if a company's management team believes that the firm's shares are undervalued.

An investor buys a right and obligation when he or she buys an option.

What is load? What are no-load funds?

Treasury bills are sold at a discount and redeemed at face value.

________ are contracts whose value is derived from some other entity.

Albert buys the stock of an established corporation,mainly to obtain good dividends.However,the corporation's growth is limited.This stock is an example of a defensive stock.

Which of the following markets includes exchange trading and over-the-counter trading?

Compare and contrast a money market and derivatives market.

Defensive stocks represent companies with earnings that tend to track the ups and downs of the economy in a predictable pattern.

What are derivatives?

Money-market funds are financial instruments that invest in stocks considered to be selling below their true value.

Describe the different order types you can use when you buy or sell a stock.

Compare and contrast call options and put options.

________ funds attempt to maintain a desirable balance of risk and growth potential based on a planned retirement date.

________ refer to treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation.

Suppliers use futures contracts to protect themselves from future price decreases.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

The Money Supply and Banking Systems

Filters

Exam 19: Financial Markets and Investment Strategies

Compare and contrast options and futures.

Annual interest/closing price = ________.

The amount of money that the bond buyer is lending to the bond issuer is known as the ________.

Compare and contrast growth funds,income funds,and value funds.

A stock split is performed if a company's management team believes that the firm's shares are undervalued.

An investor buys a right and obligation when he or she buys an option.

What is load? What are no-load funds?

Treasury bills are sold at a discount and redeemed at face value.

________ are contracts whose value is derived from some other entity.

Albert buys the stock of an established corporation,mainly to obtain good dividends.However,the corporation's growth is limited.This stock is an example of a defensive stock.

Which of the following markets includes exchange trading and over-the-counter trading?

Compare and contrast a money market and derivatives market.

Defensive stocks represent companies with earnings that tend to track the ups and downs of the economy in a predictable pattern.

What are derivatives?

Money-market funds are financial instruments that invest in stocks considered to be selling below their true value.

Describe the different order types you can use when you buy or sell a stock.

Compare and contrast call options and put options.

________ funds attempt to maintain a desirable balance of risk and growth potential based on a planned retirement date.

________ refer to treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation.

Suppliers use futures contracts to protect themselves from future price decreases.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

The Money Supply and Banking Systems

Filters