Question 1

An emergency fund should

Accepted Answer

A) be able to cover 1 month of living expense. 
B) begin after you invest in the stock market. 
C) consist of mutual funds primarily 
D) be able to cover a minimum of 3 months of living expense 
E) not be required if you have unused credit card debt. 
A) be able to cover 1 month of living expense. 
B) begin after you invest in the stock market. 
C) consist of mutual funds primarily 
D) be able to cover a minimum of 3 months of living expense 
E) not be required if you have unused credit card debt.

Question 2

The amount put aside as an emergency fund should be equal to 3 to 9 months of living expenses.

Accepted Answer

A) True 
 B)False

Question 3

What is an example of television as a source of investment information?

Accepted Answer

A) National Post 
B) Business News Network 
C) Business Week 
D) Globe and Mail's Report on business 
E) MoneySaver 
A) National Post 
B) Business News Network 
C) Business Week 
D) Globe and Mail's Report on business 
E) MoneySaver

Question 4

Derivatives are securities such as options, and forward and futures contracts, whose value depends on the performance of an underlying security.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following investments has the highest risk?

Accepted Answer

A) preferred stock 
B) common stock 
C) corporate bonds 
D) options 
E) real estate 
A) preferred stock 
B) common stock 
C) corporate bonds 
D) options 
E) real estate

Question 6

An investor concerned with a predictable source of income provided by an investment would choose

Accepted Answer

A) options. 
B) commodities. 
C) government bonds. 
D) common stocks. 
E) speculative investments. 
A) options. 
B) commodities. 
C) government bonds. 
D) common stocks. 
E) speculative investments.

Question 7

Which of the following was not found to be a critical factor in investing psychology?

Accepted Answer

A) greed 
B) stubbornness 
C) loss aversion 
D) endowment effect 
E) cognitive bias 
A) greed 
B) stubbornness 
C) loss aversion 
D) endowment effect 
E) cognitive bias

Question 8

A corporation selling stock is obligated to

Accepted Answer

A) guarantee your investment. 
B) repay money obtained from the sale of stock. 
C) repurchase shares of stock at a later date. 
D) pay dividends to preferred stockholders before dividends are paid to common stockholders. 
E) pay dividends. 
A) guarantee your investment. 
B) repay money obtained from the sale of stock. 
C) repurchase shares of stock at a later date. 
D) pay dividends to preferred stockholders before dividends are paid to common stockholders. 
E) pay dividends.

Question 9

During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 10

You're down $500 in a poker game.How much more would a conservative investor be willing to put up to win the $500 back?

Accepted Answer

A) More than $500. 
B) $500. 
C) $250. 
D) $100. 
E) Nothing-cut your losses now 
A) More than $500. 
B) $500. 
C) $250. 
D) $100. 
E) Nothing-cut your losses now

Question 11

Which of the following is not a determinant of investor risk tolerance?

Accepted Answer

A) goals and time frames 
B) economy 
C) income and asset base 
D) personality 
E) income 
A) goals and time frames 
B) economy 
C) income and asset base 
D) personality 
E) income

Question 12

The fees for investor services and newsletters generally range from ____________ a year.

Accepted Answer

A) $10 to $20, or free 
B) $20 to $30, or free 
C) $30 to $750, or free 
D) $300 to $1,000, or free 
E) over $1,,000, or free 
A) $10 to $20, or free 
B) $20 to $30, or free 
C) $30 to $750, or free 
D) $300 to $1,000, or free 
E) over $1,,000, or free

Question 13

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

Accepted Answer

A) True 
 B)False

Question 14

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

Accepted Answer

A) True 
 B)False

Question 15

What is step 7 of the steps for effective investment planning?

Accepted Answer

A) Determine the amount of money you need to obtain your goals. 
B) Specify the amount of money you currently have available to fund your investments. 
C) List different investments that you want to evaluate. 
D) Reduce possible investments to a reasonable number. 
E) Choose at least two different investments. 
A) Determine the amount of money you need to obtain your goals. 
B) Specify the amount of money you currently have available to fund your investments. 
C) List different investments that you want to evaluate. 
D) Reduce possible investments to a reasonable number. 
E) Choose at least two different investments.

Question 16

What is an example of newspaper as a source of investment information?

Accepted Answer

A) National Post 
B) Business News Network 
C) Business Week 
D) Globe and Mail's Report on business 
E) MoneySaver 
A) National Post 
B) Business News Network 
C) Business Week 
D) Globe and Mail's Report on business 
E) MoneySaver

Question 17

Which of the following is not a true statement?

Accepted Answer

A) It is estimated that there are over 100 million Internet users worldwide. 
B) There is a wealth of investment information available, but most small investors cannot afford to use it. 
C) You can obtain current price information for stocks, bonds, and mutual funds by using the Internet. 
D) A search engine is a research tool that helps you move through a menu system until you find the information you want. 
E) Both government and businesses provide individuals with investment information. 
A) It is estimated that there are over 100 million Internet users worldwide. 
B) There is a wealth of investment information available, but most small investors cannot afford to use it. 
C) You can obtain current price information for stocks, bonds, and mutual funds by using the Internet. 
D) A search engine is a research tool that helps you move through a menu system until you find the information you want. 
E) Both government and businesses provide individuals with investment information.

Question 18

What is the dividend tax gross up rate, as per the publication?

Accepted Answer

A) 25% 
B) 30% 
C) 35% 
D) 38% 
E) 45% 
A) 25% 
B) 30% 
C) 35% 
D) 38% 
E) 45%

Question 19

Leveraged investing in common shares is expected to increase your net worth.

Accepted Answer

A) True 
 B)False

Question 20

The maturity dates for most bonds range between ____________ years.

Accepted Answer

A) 0 to 5 
B) 5 to 15 
C) 10 to 15 
D) 1 to 30 
E) 1 to 40 
A) 0 to 5 
B) 5 to 15 
C) 10 to 15 
D) 1 to 30 
E) 1 to 40

An emergency fund should

The amount put aside as an emergency fund should be equal to 3 to 9 months of living expenses.

What is an example of television as a source of investment information?

Derivatives are securities such as options, and forward and futures contracts, whose value depends on the performance of an underlying security.

Which of the following investments has the highest risk?

An investor concerned with a predictable source of income provided by an investment would choose

Which of the following was not found to be a critical factor in investing psychology?

A corporation selling stock is obligated to

During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

You're down $500 in a poker game.How much more would a conservative investor be willing to put up to win the $500 back?

Which of the following is not a determinant of investor risk tolerance?

The fees for investor services and newsletters generally range from ____________ a year.

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

What is step 7 of the steps for effective investment planning?

What is an example of newspaper as a source of investment information?

Which of the following is not a true statement?

What is the dividend tax gross up rate, as per the publication?

Leveraged investing in common shares is expected to increase your net worth.

The maturity dates for most bonds range between ____________ years.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 10: Fundamentals of Investing

An emergency fund should

The amount put aside as an emergency fund should be equal to 3 to 9 months of living expenses.

What is an example of television as a source of investment information?

Derivatives are securities such as options, and forward and futures contracts, whose value depends on the performance of an underlying security.

Which of the following investments has the highest risk?

An investor concerned with a predictable source of income provided by an investment would choose

Which of the following was not found to be a critical factor in investing psychology?

A corporation selling stock is obligated to

During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

You're down $500 in a poker game.How much more would a conservative investor be willing to put up to win the $500 back?

Which of the following is not a determinant of investor risk tolerance?

The fees for investor services and newsletters generally range from ____________ a year.

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

What is step 7 of the steps for effective investment planning?

What is an example of newspaper as a source of investment information?

Which of the following is not a true statement?

What is the dividend tax gross up rate, as per the publication?

Leveraged investing in common shares is expected to increase your net worth.

The maturity dates for most bonds range between ____________ years.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters