Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A [bull | bear] market is characterized by falling stock prices.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 2

____ is not a normal brokerage service.

Accepted Answer

A)  Providing investment information 
B)  Buying and selling securities 
C)  Managing your portfolio 
D)  Storing security certificates 
E)  Providing market quotations 
A)  Providing investment information 
B)  Buying and selling securities 
C)  Managing your portfolio 
D)  Storing security certificates 
E)  Providing market quotations

Question 3

Diversification increases risk.

Accepted Answer

A) True 
 B)False

Question 4

According to recent legislation,under the FDIC each brokerage account is insured up to $250,000.

Accepted Answer

A) True 
 B)False

Question 5

Common stock generally allows the stockholder to vote on issues of corporate governance.

Accepted Answer

A) True 
 B)False

Question 6

A systematic investment routine involves investing similar sums in regular intervals.

Accepted Answer

A) True 
 B)False

Question 7

Monte wants to save for his daughter's college education.He would like to have $85,000 in 15 years.If Monte can earn an average of 8.5% on this fund,how much would he need to deposit in the account today to meet his goal?
If Monte has no money to set aside now but wants to save at the end of each month for this goal,how much would he need to add to the account each month?

Accepted Answer

The answer of Monte wants to save for his daughter's...

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The issuer of the security would get no money from a trade in the [primary | secondary] market.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 9

The federal government regulates securities markets through the Securities and Exchange Commission.

Accepted Answer

A) True 
 B)False

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Stockbrokers prefer clients who [buy and hold | trade actively.]

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Fifty shares of stock would constitute [an odd lot | a round lot].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 12

____ is a short-term investment activity.

Accepted Answer

A)  Buying life insurance 
B)  Buying bonds 
C)  Investing in common stock 
D)  Speculating in common stock 
E)  Saving 
A)  Buying life insurance 
B)  Buying bonds 
C)  Investing in common stock 
D)  Speculating in common stock 
E)  Saving

Question 13

Which of the following is a characteristic of an organized securities exchange?

Accepted Answer

A)  they facilitate trading unlisted securities 
B)  municipal bonds are primarily traded in organized exchanges 
C)  pink sheets are commonly used in these markets 
D)  the NASDAQ is an example of an organized exchange 
E)  trading in securities is carried out in a physical location 
A)  they facilitate trading unlisted securities 
B)  municipal bonds are primarily traded in organized exchanges 
C)  pink sheets are commonly used in these markets 
D)  the NASDAQ is an example of an organized exchange 
E)  trading in securities is carried out in a physical location

Question 14

The bid price would be the price paid by an investor for an OTC stock.

Accepted Answer

A) True 
 B)False

Question 15

Newly issued securities are sold to the public in the secondary market.

Accepted Answer

A) True 
 B)False

Question 16

There are 50 shares in a round lot.

Accepted Answer

A) True 
 B)False

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A [bull | bear] market is characterized by falling stock prices.

____ is not a normal brokerage service.

Diversification increases risk.

According to recent legislation,under the FDIC each brokerage account is insured up to $250,000.

Common stock generally allows the stockholder to vote on issues of corporate governance.

A systematic investment routine involves investing similar sums in regular intervals.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The issuer of the security would get no money from a trade in the [primary | secondary] market.

The federal government regulates securities markets through the Securities and Exchange Commission.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Stockbrokers prefer clients who [buy and hold | trade actively.]

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Fifty shares of stock would constitute [an odd lot | a round lot].

____ is a short-term investment activity.

Which of the following is a characteristic of an organized securities exchange?

The bid price would be the price paid by an investor for an OTC stock.

Newly issued securities are sold to the public in the secondary market.

There are 50 shares in a round lot.

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

Planning for Retirement

Preserving Your Estate

Filters

Exam 11: Investment Planning

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A [bull | bear] market is characterized by falling stock prices.

____ is not a normal brokerage service.

Diversification increases risk.

According to recent legislation,under the FDIC each brokerage account is insured up to $250,000.

Common stock generally allows the stockholder to vote on issues of corporate governance.

A systematic investment routine involves investing similar sums in regular intervals.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The issuer of the security would get no money from a trade in the [primary | secondary] market.

The federal government regulates securities markets through the Securities and Exchange Commission.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Stockbrokers prefer clients who [buy and hold | trade actively.]

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Fifty shares of stock would constitute [an odd lot | a round lot].

____ is a short-term investment activity.

Which of the following is a characteristic of an organized securities exchange?

The bid price would be the price paid by an investor for an OTC stock.

Newly issued securities are sold to the public in the secondary market.

There are 50 shares in a round lot.

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

Planning for Retirement

Preserving Your Estate

Filters