Question 1

________ refer to short-term debt securities issued by the federal government.

Accepted Answer

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

Question 2

Norbon Securities is a financial intermediary.The firm facilitates the sale of mutual funds and charges commission when selling mutual funds to investors.This commission is referred to as ________.

Accepted Answer

A)  bill 
B)  index 
C)  load 
D)  yield 
E)  coupon 
A)  bill 
B)  index 
C)  load 
D)  yield 
E)  coupon

Question 3

Explain the advantages and disadvantages of investing in mutual funds rather than in individual stocks.

Accepted Answer

The answer of Explain the advantages and disadvantages of investing...

Question 4

________ ratio is calculated by dividing the market value per share by the earnings per share.

Accepted Answer

A)  Return on capital 
B)  Price/earnings 
C)  Sales/income 
D)  Gross value 
E)  Gross margin 
A)  Return on capital 
B)  Price/earnings 
C)  Sales/income 
D)  Gross value 
E)  Gross margin

Question 5

Explain the advantages and disadvantages of investing in bonds rather than in stocks.

Accepted Answer

Advantages: 1)Bonds are less risky than

Question 6

Jackson Associates is a firm that owns many stationary stores across the United States.The company's stock performance is highly linked to the overall performance of the stock market.The company's stock performs well when the economy and the stock market perform well and vice-versa.Jackson Associates is an example of a(n)________ stock.

Accepted Answer

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

Question 7

A bond's face value is $2000.Its coupon is 9 percent.The bond's present market value is $1800.What is the current yield of the bond?

Accepted Answer

A)  12 percent 
B)  6 percent 
C)  9 percent 
D)  8.1 percent 
E)  10 percent 
A)  12 percent 
B)  6 percent 
C)  9 percent 
D)  8.1 percent 
E)  10 percent

Question 8

The value assigned to each share of stock when it is first issued is known as its book value.

Accepted Answer

A) True 
 B)False

Question 9

Compare and contrast stock market and bond markets.

Accepted Answer

Organizations that facilitate the buying

Question 10

Stock exchanges are organizations that ________.

Accepted Answer

A)  issue cash in exchange for pledging stock 
B)  function as underwriters in public issues 
C)  facilitate the buying and selling of stock 
D)  issue stock on behalf of small companies 
E)  combine multiple stocks to create mutual funds 
A)  issue cash in exchange for pledging stock 
B)  function as underwriters in public issues 
C)  facilitate the buying and selling of stock 
D)  issue stock on behalf of small companies 
E)  combine multiple stocks to create mutual funds

Question 11

________ refers to shares of ownership without voting rights but with defined dividends.

Accepted Answer

A)  Treasury bond 
B)  Preferred stock 
C)  Derivative 
D)  Equity stock 
E)  Common stock 
A)  Treasury bond 
B)  Preferred stock 
C)  Derivative 
D)  Equity stock 
E)  Common stock

Question 12

Compare and contrast blue chip,income,growth and cyclical stocks.

Accepted Answer

Blue chip: Stocks of major,well-establis

Question 13

A buyer engages in short selling when he or she ________.

Accepted Answer

A)  thinks that a stock has high long-term growth potential 
B)  wants to diversify his or her portfolio 
C)  believes that a stock's price is about to drop 
D)  wants to partially liquidate his or her portfolio 
E)  thinks that a stock has high short-term growth potential 
A)  thinks that a stock has high long-term growth potential 
B)  wants to diversify his or her portfolio 
C)  believes that a stock's price is about to drop 
D)  wants to partially liquidate his or her portfolio 
E)  thinks that a stock has high short-term growth potential

Question 14

A bear market is characterized by ________.

Accepted Answer

A)  a long-term trend of stable stock prices 
B)  a long-term trend of rising stock prices 
C)  a short-term trend of volatile stock prices 
D)  a long-term trend of falling stock prices 
E)  a short-term trend of stable stock prices 
A)  a long-term trend of stable stock prices 
B)  a long-term trend of rising stock prices 
C)  a short-term trend of volatile stock prices 
D)  a long-term trend of falling stock prices 
E)  a short-term trend of stable stock prices

Question 15

Mutual fund's assets - its liabilities = ________.

Accepted Answer

A)  net asset value 
B)  face value 
C)  par value 
D)  load value 
E)  market value 
A)  net asset value 
B)  face value 
C)  par value 
D)  load value 
E)  market value

Question 16

Treasury notes are debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

Accepted Answer

A) True 
 B)False

Question 17

________ is an over-the-counter marketplace for short-term debt instruments such as Treasury bills and commercial papers.

Accepted Answer

A)  Options market 
B)  Bond market 
C)  Money market 
D)  Stock market 
E)  Futures market 
A)  Options market 
B)  Bond market 
C)  Money market 
D)  Stock market 
E)  Futures market

Question 18

Arabex is a stock market in one of the developing countries.Most of the stocks listed in the market are increasing in value.Arabex is an example of a(n)________.

Accepted Answer

A)  partial bear market 
B)  bull market 
C)  derivative market 
D)  bear market 
E)  commodity market 
A)  partial bear market 
B)  bull market 
C)  derivative market 
D)  bear market 
E)  commodity market

Question 19

No-load funds are mutual funds that ________.

Accepted Answer

A)  do not charge sales commission 
B)  offer high rates of interest 
C)  offer low rates of interest 
D)  do not invest in equity shares 
E)  offer huge tax benefits to investors 
A)  do not charge sales commission 
B)  offer high rates of interest 
C)  offer low rates of interest 
D)  do not invest in equity shares 
E)  offer huge tax benefits to investors

Question 20

Compare and contrast common stock and preferred stock.

Accepted Answer

The primary reason that people invest in

________ refer to short-term debt securities issued by the federal government.

Norbon Securities is a financial intermediary.The firm facilitates the sale of mutual funds and charges commission when selling mutual funds to investors.This commission is referred to as ________.

Explain the advantages and disadvantages of investing in mutual funds rather than in individual stocks.

________ ratio is calculated by dividing the market value per share by the earnings per share.

Explain the advantages and disadvantages of investing in bonds rather than in stocks.

A bond's face value is $2000.Its coupon is 9 percent.The bond's present market value is $1800.What is the current yield of the bond?

The value assigned to each share of stock when it is first issued is known as its book value.

Compare and contrast stock market and bond markets.

Stock exchanges are organizations that ________.

________ refers to shares of ownership without voting rights but with defined dividends.

Compare and contrast blue chip,income,growth and cyclical stocks.

A buyer engages in short selling when he or she ________.

A bear market is characterized by ________.

Mutual fund's assets - its liabilities = ________.

Treasury notes are debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

________ is an over-the-counter marketplace for short-term debt instruments such as Treasury bills and commercial papers.

Arabex is a stock market in one of the developing countries.Most of the stocks listed in the market are increasing in value.Arabex is an example of a(n)________.

No-load funds are mutual funds that ________.

Compare and contrast common stock and preferred stock.

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

________ refer to short-term debt securities issued by the federal government.

Norbon Securities is a financial intermediary.The firm facilitates the sale of mutual funds and charges commission when selling mutual funds to investors.This commission is referred to as ________.

Explain the advantages and disadvantages of investing in mutual funds rather than in individual stocks.

________ ratio is calculated by dividing the market value per share by the earnings per share.

Explain the advantages and disadvantages of investing in bonds rather than in stocks.

A bond's face value is $2000.Its coupon is 9 percent.The bond's present market value is $1800.What is the current yield of the bond?

The value assigned to each share of stock when it is first issued is known as its book value.

Compare and contrast stock market and bond markets.

Stock exchanges are organizations that ________.

________ refers to shares of ownership without voting rights but with defined dividends.

Compare and contrast blue chip,income,growth and cyclical stocks.

A buyer engages in short selling when he or she ________.

A bear market is characterized by ________.

Mutual fund's assets - its liabilities = ________.

Treasury notes are debt securities issued by the federal government that are repaid within 1 to 10 years after issuance.

________ is an over-the-counter marketplace for short-term debt instruments such as Treasury bills and commercial papers.

Arabex is a stock market in one of the developing countries.Most of the stocks listed in the market are increasing in value.Arabex is an example of a(n)________.

No-load funds are mutual funds that ________.

Compare and contrast common stock and preferred stock.

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