Question 1

Investing is considered a short-term activity that involves the buying and selling of securities.

Accepted Answer

A) True 
 B)False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A [bull | bear] market is characterized by rising 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 3

Which of the following terms best describes a day trader

Accepted Answer

A)  Speculator 
B)  Long-term investor 
C)  Money market maker 
D)  Buy and hold mentality 
E)  Illegal gambler 
A)  Speculator 
B)  Long-term investor 
C)  Money market maker 
D)  Buy and hold mentality 
E)  Illegal gambler

Question 4

An individual is more likely to use the secondary markets than the primary market.

Accepted Answer

A) True 
 B)False

Question 5

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a securities market

Accepted Answer

A)  capital market 
B)  money market 
C)  primary market 
D)  secondary market 
E)  Dow Jones market 
A)  capital market 
B)  money market 
C)  primary market 
D)  secondary market 
E)  Dow Jones market

Question 7

You have just bought 100 shares of ABC Corporation common stock at 70.50.The commission is calculated as 1.5% of the total value of the transaction plus $30.What commission will you be charged and how much must you pay the broker for the entire transaction?

Accepted Answer

Market transaction = 100 * $70

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Retired people often choose investments offering [high current income | low current income].

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The [bid | ask] price for a stock sold on the OTC market represents the price you would receive when you sold the stock.

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 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Depositing a lump sum and letting it grow | Making monthly deposits to your investment] would be the least costly way to reach a financial goal.

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. 
-Using margin will magnify [only gains | only losses | gains and losses].

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

If a company's shares are traded on the New York Stock Exchange,the company is a member of the exchange.

Accepted Answer

A) True 
 B)False

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-In terms of market capitalization,[Apple | IBM] is the biggest company in the world.

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 14

Exchange traded notes face both market risk and the risk of the issuing bank defaulting.

Accepted Answer

A) True 
 B)False

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Speculating | Investing] is considered to be a long term activity.

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 16

A market order would be transacted at the

Accepted Answer

A)  lowest price of the day. 
B)  highest price of the day. 
C)  best price when the order is entered. 
D)  limit price. 
E)  none of these. 
A)  lowest price of the day. 
B)  highest price of the day. 
C)  best price when the order is entered. 
D)  limit price. 
E)  none of these.

Question 17

Securities sold in the primary markets are usually handled by a(n)

Accepted Answer

A)  commercial banker. 
B)  broker. 
C)  investment banker. 
D)  dealer. 
E)  none of these. 
A)  commercial banker. 
B)  broker. 
C)  investment banker. 
D)  dealer. 
E)  none of these.

Question 18

Mutual funds often sell directly to investors.

Accepted Answer

A) True 
 B)False

Question 19

An annual stockholder report will contain audited financial statements of the company.

Accepted Answer

A) True 
 B)False

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The single most important reason for investing is for [a down payment on a home | a down payment on an automobile | retirement].

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.

Investing is considered a short-term activity that involves the buying and selling of securities.

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

Which of the following terms best describes a day trader

An individual is more likely to use the secondary markets than the primary market.

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

Which of the following is not a securities market

You have just bought 100 shares of ABC Corporation common stock at 70.50.The commission is calculated as 1.5% of the total value of the transaction plus $30.What commission will you be charged and how much must you pay the broker for the entire transaction?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Retired people often choose investments offering [high current income | low current income].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [bid | ask] price for a stock sold on the OTC market represents the price you would receive when you sold the stock.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Depositing a lump sum and letting it grow | Making monthly deposits to your investment] would be the least costly way to reach a financial goal.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Using margin will magnify [only gains | only losses | gains and losses].

If a company's shares are traded on the New York Stock Exchange,the company is a member of the exchange.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -In terms of market capitalization,[Apple | IBM] is the biggest company in the world.

Exchange traded notes face both market risk and the risk of the issuing bank defaulting.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Speculating | Investing] is considered to be a long term activity.

A market order would be transacted at the

Securities sold in the primary markets are usually handled by a(n)

Mutual funds often sell directly to investors.

An annual stockholder report will contain audited financial statements of the company.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The single most important reason for investing is for [a down payment on a home | a down payment on an automobile | retirement].

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

Investing is considered a short-term activity that involves the buying and selling of securities.

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

Which of the following terms best describes a day trader

An individual is more likely to use the secondary markets than the primary market.

A corporation's annual stockholders' report provides financial data and other information related to both past and planned activities.

Which of the following is not a securities market

You have just bought 100 shares of ABC Corporation common stock at 70.50.The commission is calculated as 1.5% of the total value of the transaction plus $30.What commission will you be charged and how much must you pay the broker for the entire transaction?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Retired people often choose investments offering [high current income | low current income].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [bid | ask] price for a stock sold on the OTC market represents the price you would receive when you sold the stock.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Depositing a lump sum and letting it grow | Making monthly deposits to your investment] would be the least costly way to reach a financial goal.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Using margin will magnify [only gains | only losses | gains and losses].

If a company's shares are traded on the New York Stock Exchange,the company is a member of the exchange.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -In terms of market capitalization,[Apple | IBM] is the biggest company in the world.

Exchange traded notes face both market risk and the risk of the issuing bank defaulting.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Speculating | Investing] is considered to be a long term activity.

A market order would be transacted at the

Securities sold in the primary markets are usually handled by a(n)

Mutual funds often sell directly to investors.

An annual stockholder report will contain audited financial statements of the company.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The single most important reason for investing is for [a down payment on a home | a down payment on an automobile | retirement].

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