Question 1

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

Accepted Answer

A) A market order 
B) A limit order 
C) A stop-loss order 
D) A fill or kill order 
E) A day order 
A) A market order 
B) A limit order 
C) A stop-loss order 
D) A fill or kill order 
E) A day order

Question 2

The goal of sheltering income from taxes is an illegitimate goal.

Accepted Answer

A) True 
 B)False

Question 3

The __________ of securities in a worksheet of investments will help in calculating the cumulative return on investments. ​

Accepted Answer

A) type 
B) market value 
C) description 
D) date of purchase 
A) type 
B) market value 
C) description 
D) date of purchase

Question 4

The federal government regulates the disclosure of information about securities through the:

Accepted Answer

A) Department of Commerce. 
B) Federal Reserve System. 
C) National Association of Securities Dealers. 
D) Securities and Exchange Commission. 
E) Federal Securities Agency. 
A) Department of Commerce. 
B) Federal Reserve System. 
C) National Association of Securities Dealers. 
D) Securities and Exchange Commission. 
E) Federal Securities Agency.

Question 5

Which of the following is true of a securities exchange?

Accepted Answer

A) The stocks are traded on a securities exchange using pink slips only. 
B) The traded securities change hands right there on the floor of the securities exchange. 
C) The buyer and the seller in a securities exchange underwrite shares with the investment banker. 
D) The securities exchange acts as a market maker where new securities are sold to the public. 
E) The securities exchange is a primary market for sale of securities on the over-the-counter bulletin board (OTCB
B) . 
A) The stocks are traded on a securities exchange using pink slips only. 
B) The traded securities change hands right there on the floor of the securities exchange. 
C) The buyer and the seller in a securities exchange underwrite shares with the investment banker. 
D) The securities exchange acts as a market maker where new securities are sold to the public. 
E) The securities exchange is a primary market for sale of securities on the over-the-counter bulletin board (OTCB
B) .

Question 6

The New York Stock Exchange (NYSE)is a part of the dealer market.

Accepted Answer

A) True 
 B)False

Question 7

_____ is a process to settle disputes between a brokerage firm and its clients.

Accepted Answer

A) Diversification 
B) Estate planning 
C) Arbitration 
D) Asset allocation 
E) Portfolio tracking 
A) Diversification 
B) Estate planning 
C) Arbitration 
D) Asset allocation 
E) Portfolio tracking

Question 8

Retired people prefer an investment offering __________. ​

Accepted Answer

A) high current income at low risk 
B) low current income at low risk 
C) high current income at high risk 
D) low current income at high risk 
A) high current income at low risk 
B) low current income at low risk 
C) high current income at high risk 
D) low current income at high risk

Question 9

The _____ reflects the total market value of over 98 percent to 99 percent of all publicly traded stock in the United States.

Accepted Answer

A) Dow Jones Industrial Average Index 
B) Standard & Poor 500 Index 
C) National Association of Securities Dealers Automated Quotations Index 
D) Dow Jones Wilshire 5000 Index 
E) New York Stock Exchange Index 
A) Dow Jones Industrial Average Index 
B) Standard & Poor 500 Index 
C) National Association of Securities Dealers Automated Quotations Index 
D) Dow Jones Wilshire 5000 Index 
E) New York Stock Exchange Index

Question 10

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in:

Accepted Answer

A) bonds. 
B) common stocks. 
C) mutual funds. 
D) real estate. 
E) stock options. 
A) bonds. 
B) common stocks. 
C) mutual funds. 
D) real estate. 
E) stock options.

Question 11

A market order is transacted at the:

Accepted Answer

A) lowest price of the day. 
B) best price when the order is entered. 
C) limit price. 
D) price quoted by the broker. 
E) average price of the stock on the transaction day. 
A) lowest price of the day. 
B) best price when the order is entered. 
C) limit price. 
D) price quoted by the broker. 
E) average price of the stock on the transaction day.

Question 12

A stock portfolio containing 80 percent common stocks is appropriate for:

Accepted Answer

A) a retired couple who needs a stable return. 
B) a divorced middle-aged mother who needs a high current income. 
C) a blue-collar,two-income family with five kids. 
D) a young worker with a secure job putting money aside for retirement. 
E) a couple in their mid-50s with dependent parents. 
A) a retired couple who needs a stable return. 
B) a divorced middle-aged mother who needs a high current income. 
C) a blue-collar,two-income family with five kids. 
D) a young worker with a secure job putting money aside for retirement. 
E) a couple in their mid-50s with dependent parents.

Question 13

Clara's portfolio is worth $200,000 and her portfolio consists of common stocks worth $56,000.Therefore,equity constitutes _____ of Clara's portfolio.

Accepted Answer

A) 10% 
B) 33% 
C) 28% 
D) 56% 
E) 61% 
A) 10% 
B) 33% 
C) 28% 
D) 56% 
E) 61%

Question 14

__________ was designed to improve the transparency and accountability of the financial system in the U.S.The legislation contains the Volcker rule,which prohibits depository banks from proprietary trading. ​

Accepted Answer

A) The Dodd-Frank Wall Street and Consumer Protection Act of 2010 
B) The Sarbanes-Oxley and Investment Company Regulation Act of 2002 
C) The Investment and Exchanges Regulation and Protection Act of 2005 
D) The Patrick-Miller Exchange Regulation and Protection Act of 2011 
A) The Dodd-Frank Wall Street and Consumer Protection Act of 2010 
B) The Sarbanes-Oxley and Investment Company Regulation Act of 2002 
C) The Investment and Exchanges Regulation and Protection Act of 2005 
D) The Patrick-Miller Exchange Regulation and Protection Act of 2011

Question 15

A young investor with a secure job is:

Accepted Answer

A) more concerned about current income. 
B) more able to bear risk. 
C) less oriented toward investments with capital gains. 
D) less interested in stock markets. 
E) more skillful in tax evasion. 
A) more concerned about current income. 
B) more able to bear risk. 
C) less oriented toward investments with capital gains. 
D) less interested in stock markets. 
E) more skillful in tax evasion.

Question 16

A retired couple can probably bear more risk in their portfolio than a young investor with a secure job.

Accepted Answer

A) True 
 B)False

Question 17

Ownership in a corporation would be represented by __________. ​

Accepted Answer

A) bonds 
B) stocks 
C) real estate 
D) current accounts 
A) bonds 
B) stocks 
C) real estate 
D) current accounts

Question 18

Which of the following sections in the annual report gives information on ongoing litigation?

Accepted Answer

A) The Chief executive's letter 
B) Management's discussion and analysis 
C) Income statement 
D) Auditor's report 
E) Notes about the financial statements 
A) The Chief executive's letter 
B) Management's discussion and analysis 
C) Income statement 
D) Auditor's report 
E) Notes about the financial statements

Question 19

Subscription advisory services provide information and recommendations on various industries and specific securities.

Accepted Answer

A) True 
 B)False

Question 20

Reallocation of the assets in a portfolio is called rebalancing.

Accepted Answer

A) True 
 B)False

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

The goal of sheltering income from taxes is an illegitimate goal.

The __________ of securities in a worksheet of investments will help in calculating the cumulative return on investments.

The federal government regulates the disclosure of information about securities through the:

Which of the following is true of a securities exchange?

The New York Stock Exchange (NYSE)is a part of the dealer market.

_____ is a process to settle disputes between a brokerage firm and its clients.

Retired people prefer an investment offering __________.

The _____ reflects the total market value of over 98 percent to 99 percent of all publicly traded stock in the United States.

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in:

A market order is transacted at the:

A stock portfolio containing 80 percent common stocks is appropriate for:

Clara's portfolio is worth $200,000 and her portfolio consists of common stocks worth $56,000.Therefore,equity constitutes _____ of Clara's portfolio.

__________ was designed to improve the transparency and accountability of the financial system in the U.S.The legislation contains the Volcker rule,which prohibits depository banks from proprietary trading.

A young investor with a secure job is:

A retired couple can probably bear more risk in their portfolio than a young investor with a secure job.

Ownership in a corporation would be represented by __________.

Which of the following sections in the annual report gives information on ongoing litigation?

Subscription advisory services provide information and recommendations on various industries and specific securities.

Reallocation of the assets in a portfolio is called rebalancing.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 11: Investment Planning

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

The goal of sheltering income from taxes is an illegitimate goal.

The __________ of securities in a worksheet of investments will help in calculating the cumulative return on investments. ​

The federal government regulates the disclosure of information about securities through the:

Which of the following is true of a securities exchange?

The New York Stock Exchange (NYSE)is a part of the dealer market.

_____ is a process to settle disputes between a brokerage firm and its clients.

Retired people prefer an investment offering __________. ​

The _____ reflects the total market value of over 98 percent to 99 percent of all publicly traded stock in the United States.

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in:

A market order is transacted at the:

A stock portfolio containing 80 percent common stocks is appropriate for:

Clara's portfolio is worth $200,000 and her portfolio consists of common stocks worth $56,000.Therefore,equity constitutes _____ of Clara's portfolio.

__________ was designed to improve the transparency and accountability of the financial system in the U.S.The legislation contains the Volcker rule,which prohibits depository banks from proprietary trading. ​

A young investor with a secure job is:

A retired couple can probably bear more risk in their portfolio than a young investor with a secure job.

Ownership in a corporation would be represented by __________. ​

Which of the following sections in the annual report gives information on ongoing litigation?

Subscription advisory services provide information and recommendations on various industries and specific securities.

Reallocation of the assets in a portfolio is called rebalancing.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

The __________ of securities in a worksheet of investments will help in calculating the cumulative return on investments.

Retired people prefer an investment offering __________.

__________ was designed to improve the transparency and accountability of the financial system in the U.S.The legislation contains the Volcker rule,which prohibits depository banks from proprietary trading.

Ownership in a corporation would be represented by __________.