Question 1

Which one of the following investments would rank the highest with regard to safety?

Accepted Answer

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

Question 2

Which of the following does not offer investor services?

Accepted Answer

A) Standard & Poor's Stock Reports 
B) www.yahoo.com 
C) Morningstar Investment Reports 
D) Mergent 
E) Lipper Reports 
A) Standard & Poor's Stock Reports 
B) www.yahoo.com 
C) Morningstar Investment Reports 
D) Mergent 
E) Lipper Reports

Question 3

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 4

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 5

Bill Teague has just gotten a gift of $20,000 from his parents and is trying to decide how to invest it.He is thinking about investing in a money market mutual fund because he knows he can withdraw the money whenever he needs it with little chance of a loss in value.What aspect of investing is Bill most concerned about?

Accepted Answer

A) Risk 
B) Return 
C) Diversification 
D) Liquidity 
E) Investment growth 
A) Risk 
B) Return 
C) Diversification 
D) Liquidity 
E) Investment growth

Question 6

Generally,options are conservative,long-term investments.

Accepted Answer

A) True 
 B)False

Question 7

If you need to withdraw your investment money in two years,you should probably invest in:

Accepted Answer

A) stocks. 
B) mutual funds. 
C) certificates of deposits. 
D) long-term government bonds. 
E) long-term corporate bonds. 
A) stocks. 
B) mutual funds. 
C) certificates of deposits. 
D) long-term government bonds. 
E) long-term corporate bonds.

Question 8

Based on historical performance,which one of the following investments is most likely to provide an average return of 10 percent a year between now and the year 2025?

Accepted Answer

A) U.S.Treasury bills 
B) Corporate bonds 
C) Stocks 
D) Options 
E) Zero-coupon bonds 
A) U.S.Treasury bills 
B) Corporate bonds 
C) Stocks 
D) Options 
E) Zero-coupon bonds

Question 9

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) Corporations are required to pay dividends every year. 
E) There are no guarantees that a stock's value will go up after a stock split. 
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) Corporations are required to pay dividends every year. 
E) There are no guarantees that a stock's value will go up after a stock split.

Question 10

Which one of the following individuals should have a higher tolerance for risk?

Accepted Answer

A) Joan Cummings, who is a single mother with two small children 
B) Darren Carter, who works for American Airlines and is worried that he is going to be laid off soon 
C) Barry Parks, who is an investment banker and earns over $200,000 per year 
D) Michael Clark, who is 74 years old and has been retired for 6 years 
E) Fred Funderbunk, who is a pizza delivery person and makes about $15,000 per year 
A) Joan Cummings, who is a single mother with two small children 
B) Darren Carter, who works for American Airlines and is worried that he is going to be laid off soon 
C) Barry Parks, who is an investment banker and earns over $200,000 per year 
D) Michael Clark, who is 74 years old and has been retired for 6 years 
E) Fred Funderbunk, who is a pizza delivery person and makes about $15,000 per year

Question 11

Choose four of the six traditional investments and describe how the factors of safety,risk,income,and growth are ranked for evaluating each of these investments.

Accepted Answer

Common stock: average safety,average ris

Question 12

What is the primary goal of asset allocation?

Accepted Answer

A) Investment income 
B) Growth 
C) Liquidity 
D) Return 
E) Risk reduction 
A) Investment income 
B) Growth 
C) Liquidity 
D) Return 
E) Risk reduction

Question 13

With most investments,more information is available than you can read and comprehend.

Accepted Answer

A) True 
 B)False

Question 14

If you seek financial security,which investments are appropriate for you?

Accepted Answer

A) Speculative stocks, options, and commodities 
B) Growth stocks and rental property 
C) U.S.securities and conservative mutual funds 
D) CDs and U.S.government bonds 
E) All of these are appropriate for financial security. 
A) Speculative stocks, options, and commodities 
B) Growth stocks and rental property 
C) U.S.securities and conservative mutual funds 
D) CDs and U.S.government bonds 
E) All of these are appropriate for financial security.

Question 15

A corporation must give each potential investor an annual report.

Accepted Answer

A) True 
 B)False

Question 16

The U.S.government is the world's largest provider of investment information.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Carl Reimer has just received an inheritance of $40,000 from his mother and is trying to decide how to invest it.Carl is young and earns a good salary.Carl wants to invest in a small cap mutual fund.While he won't receive much in the way of cash dividends,the companies are reinvesting significant amounts so the sales revenue and earnings in the future will be much larger.What aspect of investing is Carl most concerned about?

Accepted Answer

A) Risk 
B) Return 
C) Diversification 
D) Liquidity 
E) Investment growth 
A) Risk 
B) Return 
C) Diversification 
D) Liquidity 
E) Investment growth

Question 19

A short-term investment goal is one that will be accomplished within a period of:

Accepted Answer

A) one year or less. 
B) two to five years. 
C) more than five years. 
D) three years or less. 
E) two years or less. 
A) one year or less. 
B) two to five years. 
C) more than five years. 
D) three years or less. 
E) two years or less.

Question 20

Which one of the following investments offers the greatest opportunity for growth?

Accepted Answer

A) Bank accounts 
B) Common stock 
C) Corporate bonds 
D) Government bonds 
E) Options 
A) Bank accounts 
B) Common stock 
C) Corporate bonds 
D) Government bonds 
E) Options

Which one of the following investments would rank the highest with regard to safety?

Which of the following does not offer investor services?

A corporation selling stock is obligated to:

An emergency fund should be deposited in a:

Generally,options are conservative,long-term investments.

If you need to withdraw your investment money in two years,you should probably invest in:

Based on historical performance,which one of the following investments is most likely to provide an average return of 10 percent a year between now and the year 2025?

Which of the following is a true statement?

Which one of the following individuals should have a higher tolerance for risk?

Choose four of the six traditional investments and describe how the factors of safety,risk,income,and growth are ranked for evaluating each of these investments.

What is the primary goal of asset allocation?

With most investments,more information is available than you can read and comprehend.

If you seek financial security,which investments are appropriate for you?

A corporation must give each potential investor an annual report.

The U.S.government is the world's largest provider of investment information.

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?

A short-term investment goal is one that will be accomplished within a period of:

Which one of the following investments offers the greatest opportunity for growth?

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 Stock

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 investments would rank the highest with regard to safety?

Which of the following does not offer investor services?

A corporation selling stock is obligated to:

An emergency fund should be deposited in a:

Generally,options are conservative,long-term investments.

If you need to withdraw your investment money in two years,you should probably invest in:

Based on historical performance,which one of the following investments is most likely to provide an average return of 10 percent a year between now and the year 2025?

Which of the following is a true statement?

Which one of the following individuals should have a higher tolerance for risk?

Choose four of the six traditional investments and describe how the factors of safety,risk,income,and growth are ranked for evaluating each of these investments.

What is the primary goal of asset allocation?

With most investments,more information is available than you can read and comprehend.

If you seek financial security,which investments are appropriate for you?

A corporation must give each potential investor an annual report.

The U.S.government is the world's largest provider of investment information.

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?

A short-term investment goal is one that will be accomplished within a period of:

Which one of the following investments offers the greatest opportunity for growth?

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters