Question 1

The rate of return on an investment has no affect on a long-term investment program.

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following is false?

Accepted Answer

A) Most mutual funds invest in stocks,bonds,and other securities. 
B) Diversification provided by a mutual fund reduces risk. 
C) The goals of one mutual fund investor may differ from those of another. 
D) Since mutual fund managers are professionals,there is no need to evaluate a mutual funD. 
E) Mutual fund investments range from very conservative to very speculative investments. 
A) Most mutual funds invest in stocks,bonds,and other securities. 
B) Diversification provided by a mutual fund reduces risk. 
C) The goals of one mutual fund investor may differ from those of another. 
D) Since mutual fund managers are professionals,there is no need to evaluate a mutual funD. 
E) Mutual fund investments range from very conservative to very speculative investments.

Question 3

An emergency fund is an amount of money that can be obtained quickly in case of immediate need.

Accepted Answer

A) True 
 B)False

Question 4

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 
A) $400 
B) $1,100 
C) $900 
D) $1,000 
E) $700

Question 5

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 6

After graduating from a community college,you obtain a job as a medical records technician.Your monthly take-home salary is $2,000.Your monthly expenses are $1,600.Based on this information,what steps should you take to establish a long-term investment program?

Accepted Answer

The following steps for establishing an

Question 7

Mutual funds range from very conservative to extremely speculative investments.

Accepted Answer

A) True 
 B)False

Question 8

Bob McDowell is thinking about buying an investment.The most important consideration when making this investment is the location of the investment.What investment is Bob 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 9

The amount of time that your investments have to work for you is an important factor when managing your investment portfolio.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Bondholders generally receive interest payments every six months.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

A short-term investment objective 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 15

Which one of the following statements is true?

Accepted Answer

A) Investors should put all of their "eggs in one basket." 
B) Individuals can ignore their tolerance for risk when selecting specific investments. 
C) Diversification is one way to lessen systematic risk. 
D) The amount of time a specific investment has to work is an important consideration when developing an investment portfolio. 
E) Younger investors should invest a large percentage of their portfolio in income-producing securities. 
A) Investors should put all of their "eggs in one basket." 
B) Individuals can ignore their tolerance for risk when selecting specific investments. 
C) Diversification is one way to lessen systematic risk. 
D) The amount of time a specific investment has to work is an important consideration when developing an investment portfolio. 
E) Younger investors should invest a large percentage of their portfolio in income-producing securities.

The rate of return on an investment has no affect on a long-term investment program.

Which one of the following is false?

An emergency fund is an amount of money that can be obtained quickly in case of immediate need.

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?

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

After graduating from a community college,you obtain a job as a medical records technician.Your monthly take-home salary is $2,000.Your monthly expenses are $1,600.Based on this information,what steps should you take to establish a long-term investment program?

Mutual funds range from very conservative to extremely speculative investments.

Bob McDowell is thinking about buying an investment.The most important consideration when making this investment is the location of the investment.What investment is Bob thinking about purchasing?

The amount of time that your investments have to work for you is an important factor when managing your investment portfolio.

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?

Bondholders generally receive interest payments every six months.

A corporation selling stock is obligated to:

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

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

Which one of the following statements is true?

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 rate of return on an investment has no affect on a long-term investment program.

Which one of the following is false?

An emergency fund is an amount of money that can be obtained quickly in case of immediate need.

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?

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

After graduating from a community college,you obtain a job as a medical records technician.Your monthly take-home salary is $2,000.Your monthly expenses are $1,600.Based on this information,what steps should you take to establish a long-term investment program?

Mutual funds range from very conservative to extremely speculative investments.

Bob McDowell is thinking about buying an investment.The most important consideration when making this investment is the location of the investment.What investment is Bob thinking about purchasing?

The amount of time that your investments have to work for you is an important factor when managing your investment portfolio.

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?

Bondholders generally receive interest payments every six months.

A corporation selling stock is obligated to:

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

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

Which one of the following statements is true?

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