Question 1

Which one of the following is not a warning sign that you might be getting into credit card trouble?

Accepted Answer

A)  Paying off your credit card balance off each month 
B)  Using your credit card to pay for small purchases 
C)  Taking advantage of the cash advance feature 
D)  Using a large number of credit cards 
E)  Using the cash advance feature of one credit card to occasionally pay the monthly payment on another credit card 
A)  Paying off your credit card balance off each month 
B)  Using your credit card to pay for small purchases 
C)  Taking advantage of the cash advance feature 
D)  Using a large number of credit cards 
E)  Using the cash advance feature of one credit card to occasionally pay the monthly payment on another credit card

Question 2

Once you have painstakingly developed a financial plan, it is unwise to change it.

Accepted Answer

A) True 
 B)False

Question 3

An emergency fund should be deposited in a:

Accepted Answer

A)  savings account at the highest available interest rate. 
B)  six-month certificate of deposit. 
C)  checking account. 
D)  safe place at home. 
E)  safe deposit box in a bank vault. 
A)  savings account at the highest available interest rate. 
B)  six-month certificate of deposit. 
C)  checking account. 
D)  safe place at home. 
E)  safe deposit box in a bank vault.

Question 4

Because of the age factor, younger investors tend to invest a large percentage of their nest egg in what types of investments?

Accepted Answer

A)  Speculative stocks 
B)  Commodities 
C)  Municipal bonds 
D)  Growth-oriented mutual funds 
E)  Certificates of deposit 
A)  Speculative stocks 
B)  Commodities 
C)  Municipal bonds 
D)  Growth-oriented mutual funds 
E)  Certificates of deposit

Question 5

Accurate recordkeeping can help you spot opportunities to maximize profits or reduce dollar losses when you sell your investments.

Accepted Answer

A) True 
 B)False

Question 6

If interest rates in the overall economy decrease, what will happen to the market value of a corporate bond with a fixed interest rate?

Accepted Answer

A)  The bond will lose all its value. 
B)  The value of the bond will increase. 
C)  The value of the bond will decrease. 
D)  The value of the bond will not change. 
E)  It is impossible to determine if the bond's value will increase, decrease, or remain constant. 
A)  The bond will lose all its value. 
B)  The value of the bond will increase. 
C)  The value of the bond will decrease. 
D)  The value of the bond will not change. 
E)  It is impossible to determine if the bond's value will increase, decrease, or remain constant.

Question 7

Which of the following is a true statement?

Accepted Answer

A)  A corporation generally obtains equity capital from bondholders. 
B)  A corporation must issue either preferred stock or common stock but not both. 
C)  When a corporation is experiencing financial problems, an investor should purchase common rather than preferred stock. 
D)  Most corporations sell options to satisfy a large part of their financing needs. 
E)  A stock split may not cause a stock's value to increase. 
A)  A corporation generally obtains equity capital from bondholders. 
B)  A corporation must issue either preferred stock or common stock but not both. 
C)  When a corporation is experiencing financial problems, an investor should purchase common rather than preferred stock. 
D)  Most corporations sell options to satisfy a large part of their financing needs. 
E)  A stock split may not cause a stock's value to increase.

Question 8

Twenty years ago, you began investing $2,000 a year. Because your investments earned an average of 8 percent a year, your investment portfolio has a current dollar value of $92,000. How much did you earn on your investments over the 20-year period of time?

Accepted Answer

A)  $2,000 
B)  $40,000 
C)  $52,000 
D)  $92,000 
E)  $132,000 
A)  $2,000 
B)  $40,000 
C)  $52,000 
D)  $92,000 
E)  $132,000

Question 9

Which one of these is not an example of systematic risk?

Accepted Answer

A)  Recession 
B)  Inflation 
C)  Political upheaval such as war 
D)  Decline in the auto industry 
E)  Decline in national economy 
A)  Recession 
B)  Inflation 
C)  Political upheaval such as war 
D)  Decline in the auto industry 
E)  Decline in national economy

Question 10

Which one of the following investments would provide the most predictable source of income?

Accepted Answer

A)  Commodities 
B)  Options 
C)  Precious metals 
D)  Common stock 
E)  Government bonds 
A)  Commodities 
B)  Options 
C)  Precious metals 
D)  Common stock 
E)  Government bonds

Question 11

Chris O'Donnell is thinking about investing in an investment that is high-risk in the hopes of earning a relatively large profit in a short amount of time. Which investment is he most likely considering?

Accepted Answer

A)  U.S. Treasury bill 
B)  Certificate of deposit 
C)  Low-growth stock 
D)  Speculative stock 
E)  Low-risk bond 
A)  U.S. Treasury bill 
B)  Certificate of deposit 
C)  Low-growth stock 
D)  Speculative stock 
E)  Low-risk bond

Question 12

If interest rates in the overall economy decrease to 6 percent, which one of the following is most likely to be the market value of a $1,000 corporate bond with a fixed interest rate of 7 percent?

Accepted Answer

A)  $400 
B)  $1,100 
C)  $900 
D)  $1,000 
E)  $700
Since the market rate is less than the coupon rate, the market price should exceed $1,000. 
A)  $400 
B)  $1,100 
C)  $900 
D)  $1,000 
E)  $700
Since the market rate is less than the coupon rate, the market price should exceed $1,000.

Question 13

Standard & Poor's and Value Line are companies that would be examples of:

Accepted Answer

A)  stockbrokers. 
B)  securities exchanges. 
C)  stock regulations. 
D)  investors' services. 
E)  stock underwriters. 
A)  stockbrokers. 
B)  securities exchanges. 
C)  stock regulations. 
D)  investors' services. 
E)  stock underwriters.

Question 14

A corporation must give each potential investor an annual report.

Accepted Answer

A) True 
 B)False

Question 15

A good rule of thumb is to limit consumer credit payments to ____________ percent of your net monthly income.

Accepted Answer

A)  20 
B)  30 
C)  40 
D)  50 
E)  60 
A)  20 
B)  30 
C)  40 
D)  50 
E)  60

Question 16

Which type of risk affects only a specific company or a specific industry?

Accepted Answer

A)  Interest rate 
B)  Systematic 
C)  Unsystematic 
D)  Economic 
E)  Inflation 
A)  Interest rate 
B)  Systematic 
C)  Unsystematic 
D)  Economic 
E)  Inflation

Question 17

If interest rates in the overall economy increase to 8 percent, which one of the following is most likely to be the market value of a $1,000 corporate bond with a fixed interest rate of 7 percent?

Accepted Answer

A)  $0 
B)  $1,100 
C)  $900 
D)  $1,000 
E)  $1,300
Since the market rate is greater than the coupon rate, the market price should be less than $1,000. 
A)  $0 
B)  $1,100 
C)  $900 
D)  $1,000 
E)  $1,300
Since the market rate is greater than the coupon rate, the market price should be less than $1,000.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A corporation selling stock is obligated to:

Accepted Answer

A)  guarantee the shareholders' investment. 
B)  repay money obtained from the sale of that stock. 
C)  repurchase shares of stock at a later date. 
D)  pay dividends to the common shareholders. 
E)  pay dividends to preferred stockholders prior to common stockholders. 
A)  guarantee the shareholders' investment. 
B)  repay money obtained from the sale of that stock. 
C)  repurchase shares of stock at a later date. 
D)  pay dividends to the common shareholders. 
E)  pay dividends to preferred stockholders prior to common stockholders.

Question 20

The maximum dollar amount that can be borrowed using the cash advance provision on a credit card is called the:

Accepted Answer

A)  credit ceiling. 
B)  finance charge. 
C)  interest rate. 
D)  line of credit. 
E)  rate of return. 
A)  credit ceiling. 
B)  finance charge. 
C)  interest rate. 
D)  line of credit. 
E)  rate of return.

Which one of the following is not a warning sign that you might be getting into credit card trouble?

Once you have painstakingly developed a financial plan, it is unwise to change it.

An emergency fund should be deposited in a:

Because of the age factor, younger investors tend to invest a large percentage of their nest egg in what types of investments?

Accurate recordkeeping can help you spot opportunities to maximize profits or reduce dollar losses when you sell your investments.

If interest rates in the overall economy decrease, what will happen to the market value of a corporate bond with a fixed interest rate?

Which of the following is a true statement?

Twenty years ago, you began investing $2,000 a year. Because your investments earned an average of 8 percent a year, your investment portfolio has a current dollar value of $92,000. How much did you earn on your investments over the 20-year period of time?

Which one of these is not an example of systematic risk?

Which one of the following investments would provide the most predictable source of income?

Chris O'Donnell is thinking about investing in an investment that is high-risk in the hopes of earning a relatively large profit in a short amount of time. Which investment is he most likely considering?

If interest rates in the overall economy decrease to 6 percent, which one of the following is most likely to be the market value of a $1,000 corporate bond with a fixed interest rate of 7 percent?

Standard & Poor's and Value Line are companies that would be examples of:

A corporation must give each potential investor an annual report.

A good rule of thumb is to limit consumer credit payments to ____________ percent of your net monthly income.

Which type of risk affects only a specific company or a specific industry?

If interest rates in the overall economy increase to 8 percent, which one of the following is most likely to be the market value of a $1,000 corporate bond with a fixed interest rate of 7 percent?

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

A corporation selling stock is obligated to:

The maximum dollar amount that can be borrowed using the cash advance provision on a credit card is called the:

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

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Exam 13: Investing Fundamentals

Which one of the following is not a warning sign that you might be getting into credit card trouble?

Once you have painstakingly developed a financial plan, it is unwise to change it.

An emergency fund should be deposited in a:

Because of the age factor, younger investors tend to invest a large percentage of their nest egg in what types of investments?

Accurate recordkeeping can help you spot opportunities to maximize profits or reduce dollar losses when you sell your investments.

If interest rates in the overall economy decrease, what will happen to the market value of a corporate bond with a fixed interest rate?

Which of the following is a true statement?

Twenty years ago, you began investing $2,000 a year. Because your investments earned an average of 8 percent a year, your investment portfolio has a current dollar value of $92,000. How much did you earn on your investments over the 20-year period of time?

Which one of these is not an example of systematic risk?

Which one of the following investments would provide the most predictable source of income?

Chris O'Donnell is thinking about investing in an investment that is high-risk in the hopes of earning a relatively large profit in a short amount of time. Which investment is he most likely considering?

If interest rates in the overall economy decrease to 6 percent, which one of the following is most likely to be the market value of a $1,000 corporate bond with a fixed interest rate of 7 percent?

Standard & Poor's and Value Line are companies that would be examples of:

A corporation must give each potential investor an annual report.

A good rule of thumb is to limit consumer credit payments to ____________ percent of your net monthly income.

Which type of risk affects only a specific company or a specific industry?

If interest rates in the overall economy increase to 8 percent, which one of the following is most likely to be the market value of a $1,000 corporate bond with a fixed interest rate of 7 percent?

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

A corporation selling stock is obligated to:

The maximum dollar amount that can be borrowed using the cash advance provision on a credit card is called the:

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