Exam 13: Investing Fundamentals

In the beginning of 2016,the average balance on bank cards for U.S.families was about how much?

Once you have developed an asset allocation plan for your investments,you never need to adjust it.

Many financial planners typically charge hourly consulting fees in the following range:

Establishing a ___________ ensures that you will have an amount of money that can be obtained quickly in case of immediate need.

Which one of the following is a true statement?

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

Stocks provide average safety while government bonds provide _____ safety.

For an investor who wants to be conservative,which of the following investments would not be appropriate?

Jack Masters earns $40,000 a year.His monthly expenses total $2,100.What is the minimum amount of money that Mr.Masters should set aside in an emergency fund?

Which one of these investments pools the funds of many investors,hires a professional money manager to manage those funds,and offers diversification to investors?

Which one of the following is not a business periodical?

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 one of the following is a true statement?

Asset allocation is the process of spreading your assets among several different types of investments to lessen risk.

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

The money obtained by a company from selling corporate bonds:

After the death of her husband,Gina Baker,35,received a check for $350,000 from a life insurance company.Gina has two small children and wants to make sure that both she and the children are taken care of in the future.Based on this information,which of the investment factors listed below would be the most important to Gina in her investment program?

The investment pyramid describes four levels of investment.State the name of each level and provide examples of investments at each level.

Eric Peltz earns $80,000 a year.His monthly expenses total $4,300.What is the minimum amount of money that Mr.Peltz should set aside in an emergency fund?

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?