Question 1

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 2

Describe the sources of investment information investors can use to evaluate a potential investment.

Accepted Answer

In Chapter 13,the following sources of i

Question 3

An investor concerned with a predictable source of income provided by an investment would choose:

Accepted Answer

A) government bonds. 
B) commodities. 
C) options. 
D) common stocks. 
E) speculative investments. 
A) government bonds. 
B) commodities. 
C) options. 
D) common stocks. 
E) speculative investments.

Question 4

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 5

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 6

Today,federal,state,and local governments and most corporations have a home page where you can obtain valuable information.

Accepted Answer

A) True 
 B)False

Question 7

A bankruptcy will remain on your credit report for __________ year(s).

Accepted Answer

A) 2 
B) up to 10 
C) no more than 7 
D) 20 or more 
E) 2 to 4 
A) 2 
B) up to 10 
C) no more than 7 
D) 20 or more 
E) 2 to 4

Question 8

Potential investors should not wait until they put their financial affairs in order before starting to invest.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

Choose four of the investment alternatives presented in Chapter 13 and describe how the factors of safety,risk,income,growth,and liquidity affect that investment alternative.

Accepted Answer

The answer to this question depends on w

Question 12

One risk associated with a global investment is the difficulty of obtaining reliable accounting information needed to evaluate stocks issued by international companies.

Accepted Answer

A) True 
 B)False

Question 13

There is no relationship between risk and safety.

Accepted Answer

A) True 
 B)False

Question 14

All of the following statements are considered to be good advice for a potential investor starting an investment program except:

Accepted Answer

A) Work to balance your budget. 
B) Increase credit purchases to conserve cash. 
C) Establish specific and measurable investment goals. 
D) Start an emergency funD. 
E) Establish a line of credit. 
A) Work to balance your budget. 
B) Increase credit purchases to conserve cash. 
C) Establish specific and measurable investment goals. 
D) Start an emergency funD. 
E) Establish a line of credit.

Question 15

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 16

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 17

Alice Cooper contributes ten percent of her monthly earnings to her 401(k)plan at work.The plan allows her to invest in several different types of mutual funds and her employer matches up to 5% of her salary.Which suggestion for obtaining the money she needs for investing is she following?

Accepted Answer

A) paying herself 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 herself 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

Question 18

The fees for investor services and newsletters generally range from ____________ a year.

Accepted Answer

A) $10 to $20 
B) $20 to $30 
C) $30 to $1,000 
D) $300 to $1,000 
E) over $1,000 
A) $10 to $20 
B) $20 to $30 
C) $30 to $1,000 
D) $300 to $1,000 
E) over $1,000

Question 19

The average investor cannot afford to purchase much of the investment information available from the U.S.government.

Accepted Answer

A) True 
 B)False

Question 20

All except which one of the following are good ways to acquire money for starting an investment program?

Accepted Answer

A) pay bills first,and then save a reasonable amount of money for investment 
B) participate in an elective savings program offered by your employer 
C) make a special savings effort one month per year 
D) borrow money specifically for investment purposes 
E) take advantage of gifts,inheritances,and windfalls 
A) pay bills first,and then save a reasonable amount of money for investment 
B) participate in an elective savings program offered by your employer 
C) make a special savings effort one month per year 
D) borrow money specifically for investment purposes 
E) take advantage of gifts,inheritances,and windfalls

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

Describe the sources of investment information investors can use to evaluate a potential investment.

An investor concerned with a predictable source of income provided by an investment would choose:

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?

What is the primary goal of asset allocation?

Today,federal,state,and local governments and most corporations have a home page where you can obtain valuable information.

A bankruptcy will remain on your credit report for __________ year(s).

Potential investors should not wait until they put their financial affairs in order before starting to invest.

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?

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

Choose four of the investment alternatives presented in Chapter 13 and describe how the factors of safety,risk,income,growth,and liquidity affect that investment alternative.

One risk associated with a global investment is the difficulty of obtaining reliable accounting information needed to evaluate stocks issued by international companies.

There is no relationship between risk and safety.

All of the following statements are considered to be good advice for a potential investor starting an investment program except:

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

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

Alice Cooper contributes ten percent of her monthly earnings to her 401(k)plan at work.The plan allows her to invest in several different types of mutual funds and her employer matches up to 5% of her salary.Which suggestion for obtaining the money she needs for investing is she following?

The fees for investor services and newsletters generally range from ____________ a year.

The average investor cannot afford to purchase much of the investment information available from the U.S.government.

All except which one of the following are good ways to acquire money for starting an investment program?

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

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

Describe the sources of investment information investors can use to evaluate a potential investment.

An investor concerned with a predictable source of income provided by an investment would choose:

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?

What is the primary goal of asset allocation?

Today,federal,state,and local governments and most corporations have a home page where you can obtain valuable information.

A bankruptcy will remain on your credit report for __________ year(s).

Potential investors should not wait until they put their financial affairs in order before starting to invest.

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?

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

Choose four of the investment alternatives presented in Chapter 13 and describe how the factors of safety,risk,income,growth,and liquidity affect that investment alternative.

One risk associated with a global investment is the difficulty of obtaining reliable accounting information needed to evaluate stocks issued by international companies.

There is no relationship between risk and safety.

All of the following statements are considered to be good advice for a potential investor starting an investment program except:

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

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

Alice Cooper contributes ten percent of her monthly earnings to her 401(k)plan at work.The plan allows her to invest in several different types of mutual funds and her employer matches up to 5% of her salary.Which suggestion for obtaining the money she needs for investing is she following?

The fees for investor services and newsletters generally range from ____________ a year.

The average investor cannot afford to purchase much of the investment information available from the U.S.government.

All except which one of the following are good ways to acquire money for starting an investment program?

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