Question 1

In the beginning of 2013, the average credit card debt for U.S. families was about how much?

Accepted Answer

A)  $5,400 
B)  $7,500 
C)  $10,200 
D)  $15,400 
E)  $18,100 
A)  $5,400 
B)  $7,500 
C)  $10,200 
D)  $15,400 
E)  $18,100

Question 2

A firm is short on cash. Which of the following would be paid first?

Accepted Answer

A)  Dividends to common stock owners 
B)  Cash to buy shares of stock from shareholders 
C)  Cash to buy bonds from current bondholders 
D)  Interest to bond owners 
E)  Dividends to preferred stock owners 
A)  Dividends to common stock owners 
B)  Cash to buy shares of stock from shareholders 
C)  Cash to buy bonds from current bondholders 
D)  Interest to bond owners 
E)  Dividends to preferred stock owners

Question 3

An investment that an investor expects will increase in value is known as a growth investment.

Accepted Answer

A) True 
 B)False

Question 4

Mutual funds range from very conservative to extremely speculative investments.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following features does not accurately describe a line of credit?

Accepted Answer

A)  Credit line approved before the money is actually needed 
B)  Funds available immediately when needed 
C)  Obtainable from a credit union, savings and loan association, or bank 
D)  Alternative source of emergency funds 
E)  Long-term loan 
A)  Credit line approved before the money is actually needed 
B)  Funds available immediately when needed 
C)  Obtainable from a credit union, savings and loan association, or bank 
D)  Alternative source of emergency funds 
E)  Long-term loan

Question 6

Audrey is thinking about an investment that involves buying a written pledge by a corporation to repay a specified amount of money. It also pays interest every 6 months until it matures. What investment is Audrey thinking about purchasing?

Accepted Answer

A)  Common stock 
B)  Preferred stock 
C)  Corporate bond 
D)  Real estate 
E)  Mutual fund 
A)  Common stock 
B)  Preferred stock 
C)  Corporate bond 
D)  Real estate 
E)  Mutual fund

Question 7

Equity capital is money:

Accepted Answer

A)  obtained from the owners of a business. 
B)  borrowed through banks. 
C)  obtained by employee benefit programs. 
D)  that has to be repaid. 
E)  that has been allocated to a retirement program. 
A)  obtained from the owners of a business. 
B)  borrowed through banks. 
C)  obtained by employee benefit programs. 
D)  that has to be repaid. 
E)  that has been allocated to a retirement program.

Question 8

Which of the following types of investment information can be found on the Internet?

Accepted Answer

A)  Interest rates for certificates of deposit 
B)  Current price information for stocks, bonds, and mutual funds 
C)  Broker's buy and sell recommendations 
D)  Financial calculators 
E)  All of these 
A)  Interest rates for certificates of deposit 
B)  Current price information for stocks, bonds, and mutual funds 
C)  Broker's buy and sell recommendations 
D)  Financial calculators 
E)  All of these

Question 9

Over the past 50 years, stocks and U.S. government bonds have returned about the same rate of return.

Accepted Answer

A) True 
 B)False

Question 10

To manage a financial crisis, many experts recommend that you take action to make sure your financial affairs are in order. Name and describe five steps you can take to ensure that your financial affairs are in order.

Accepted Answer

Students may choose from the list of eig

Question 11

When investing in global investments, changes in the currency exchange rate may affect the return on your investment.

Accepted Answer

A) True 
 B)False

Question 12

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

Accepted Answer

A)  market 
B)  interest 
C)  inflation 
D)  business failure 
E)  current 
A)  market 
B)  interest 
C)  inflation 
D)  business failure 
E)  current

Question 13

Garrett Jennings is thinking about buying an investment that represents the most basic form of business ownership and pays a dividend. The dividend on this investment is paid after all other payments and dividends have been made. Which investment is Garrett thinking about purchasing?

Accepted Answer

A)  Common stock 
B)  Preferred stock 
C)  Corporate bond 
D)  Option 
E)  Mutual fund 
A)  Common stock 
B)  Preferred stock 
C)  Corporate bond 
D)  Option 
E)  Mutual fund

Question 14

There is no relationship between risk and safety.

Accepted Answer

A) True 
 B)False

Question 15

James Gripka has a mutual fund that automatically takes $50 out of his checking account each month. Which suggestion for obtaining the money he needs for investing is he following?

Accepted Answer

A)  Taking advantage of gifts, inheritance and other windfalls 
B)  Taking advantage of employer-sponsored retirement programs 
C)  Participating in an elective savings program 
D)  Making a special effort once or twice a year to save 
E)  Using financial leverage to increase investment returns 
A)  Taking advantage of gifts, inheritance and other windfalls 
B)  Taking advantage of employer-sponsored retirement programs 
C)  Participating in an elective savings program 
D)  Making a special effort once or twice a year to save 
E)  Using financial leverage to increase investment returns

Question 16

Generally, options are conservative, long-term investment techniques.

Accepted Answer

A) True 
 B)False

Question 17

Mike Lively is thinking about buying an investment that represents an ownership claim on a company. The most important priority he has with this investment is receiving his dividends before dividends are paid on other types of investments. What investment is Mike thinking about purchasing?

Accepted Answer

A)  Common stock 
B)  Preferred stock 
C)  Corporate bond 
D)  Option 
E)  Mutual fund 
A)  Common stock 
B)  Preferred stock 
C)  Corporate bond 
D)  Option 
E)  Mutual fund

Question 18

Hugh Jackman is thinking about buying an investment. The investment option that he is thinking about buying is an investment where investors pool their money. One of the key features is that it is managed by professional managers. What investment is Hugh thinking about purchasing?

Accepted Answer

A)  Common stock 
B)  Preferred stock 
C)  Corporate bond 
D)  Real estate 
E)  Mutual fund 
A)  Common stock 
B)  Preferred stock 
C)  Corporate bond 
D)  Real estate 
E)  Mutual fund

Question 19

Which one of the following statements is true?

Accepted Answer

A)  Global investments must be evaluated just like other investment alternatives. 
B)  Since global investments can only be bought in the U.S., there is no need to worry about currency exchange rates. 
C)  Today, very few investors are investing in stocks and bonds issued by foreign firms or in global mutual funds. 
D)  For most small investors, it makes more sense to invest in stocks and bonds issued by individual foreign firms, rather than in global mutual funds. 
E)  Evaluating global investments is easy because there is plenty of good information available. 
A)  Global investments must be evaluated just like other investment alternatives. 
B)  Since global investments can only be bought in the U.S., there is no need to worry about currency exchange rates. 
C)  Today, very few investors are investing in stocks and bonds issued by foreign firms or in global mutual funds. 
D)  For most small investors, it makes more sense to invest in stocks and bonds issued by individual foreign firms, rather than in global mutual funds. 
E)  Evaluating global investments is easy because there is plenty of good information available.

Question 20

After Christmas is over, Ted Riley works hard to control his expenses in February so that he can make an extra payment into a mutual fund. Which suggestion for obtaining the money needs for investing is he following?

Accepted Answer

A)  Paying himself first 
B)  Taking advantage of employer-sponsored retirement programs 
C)  Participating in an elective savings program 
D)  Making a special effort once or twice a year to save 
E)  Taking advantage of gifts, inheritance and other windfalls 
A)  Paying himself first 
B)  Taking advantage of employer-sponsored retirement programs 
C)  Participating in an elective savings program 
D)  Making a special effort once or twice a year to save 
E)  Taking advantage of gifts, inheritance and other windfalls

In the beginning of 2013, the average credit card debt for U.S. families was about how much?

A firm is short on cash. Which of the following would be paid first?

An investment that an investor expects will increase in value is known as a growth investment.

Mutual funds range from very conservative to extremely speculative investments.

Which of the following features does not accurately describe a line of credit?

Audrey is thinking about an investment that involves buying a written pledge by a corporation to repay a specified amount of money. It also pays interest every 6 months until it matures. What investment is Audrey thinking about purchasing?

Equity capital is money:

Which of the following types of investment information can be found on the Internet?

Over the past 50 years, stocks and U.S. government bonds have returned about the same rate of return.

To manage a financial crisis, many experts recommend that you take action to make sure your financial affairs are in order. Name and describe five steps you can take to ensure that your financial affairs are in order.

When investing in global investments, changes in the currency exchange rate may affect the return on your investment.

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

Garrett Jennings is thinking about buying an investment that represents the most basic form of business ownership and pays a dividend. The dividend on this investment is paid after all other payments and dividends have been made. Which investment is Garrett thinking about purchasing?

There is no relationship between risk and safety.

James Gripka has a mutual fund that automatically takes $50 out of his checking account each month. Which suggestion for obtaining the money he needs for investing is he following?

Generally, options are conservative, long-term investment techniques.

Mike Lively is thinking about buying an investment that represents an ownership claim on a company. The most important priority he has with this investment is receiving his dividends before dividends are paid on other types of investments. What investment is Mike thinking about purchasing?

Hugh Jackman is thinking about buying an investment. The investment option that he is thinking about buying is an investment where investors pool their money. One of the key features is that it is managed by professional managers. What investment is Hugh thinking about purchasing?

Which one of the following statements is true?

After Christmas is over, Ted Riley works hard to control his expenses in February so that he can make an extra payment into a mutual fund. Which suggestion for obtaining the money needs for investing is he following?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 13: Investing Fundamentals

In the beginning of 2013, the average credit card debt for U.S. families was about how much?

A firm is short on cash. Which of the following would be paid first?

An investment that an investor expects will increase in value is known as a growth investment.

Mutual funds range from very conservative to extremely speculative investments.

Which of the following features does not accurately describe a line of credit?

Audrey is thinking about an investment that involves buying a written pledge by a corporation to repay a specified amount of money. It also pays interest every 6 months until it matures. What investment is Audrey thinking about purchasing?

Equity capital is money:

Which of the following types of investment information can be found on the Internet?

Over the past 50 years, stocks and U.S. government bonds have returned about the same rate of return.

To manage a financial crisis, many experts recommend that you take action to make sure your financial affairs are in order. Name and describe five steps you can take to ensure that your financial affairs are in order.

When investing in global investments, changes in the currency exchange rate may affect the return on your investment.

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

Garrett Jennings is thinking about buying an investment that represents the most basic form of business ownership and pays a dividend. The dividend on this investment is paid after all other payments and dividends have been made. Which investment is Garrett thinking about purchasing?

There is no relationship between risk and safety.

James Gripka has a mutual fund that automatically takes $50 out of his checking account each month. Which suggestion for obtaining the money he needs for investing is he following?

Generally, options are conservative, long-term investment techniques.

Mike Lively is thinking about buying an investment that represents an ownership claim on a company. The most important priority he has with this investment is receiving his dividends before dividends are paid on other types of investments. What investment is Mike thinking about purchasing?

Hugh Jackman is thinking about buying an investment. The investment option that he is thinking about buying is an investment where investors pool their money. One of the key features is that it is managed by professional managers. What investment is Hugh thinking about purchasing?

Which one of the following statements is true?

After Christmas is over, Ted Riley works hard to control his expenses in February so that he can make an extra payment into a mutual fund. Which suggestion for obtaining the money needs for investing is he following?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters