Question 1

The securities market which you could not locate on the map is the

Accepted Answer

A)  New York Stock Exchange. 
B)  American Stock Exchange. 
C)  Midwest Stock Exchange. 
D)  Pacific Stock Exchange. 
E)  Over the Counter Market. 
A)  New York Stock Exchange. 
B)  American Stock Exchange. 
C)  Midwest Stock Exchange. 
D)  Pacific Stock Exchange. 
E)  Over the Counter Market.

Question 2

The Securities and Exchange Commission sets margin requirements on security purchases.

Accepted Answer

A) True 
 B)False

Question 3

NASDAQ is now the second largest securities market in the U.S.

Accepted Answer

A) True 
 B)False

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You are selling short; you anticipate the price of the stock will [rise | fall].

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 5

A short sale transaction will be profitable when prices are falling.

Accepted Answer

A) True 
 B)False

Question 6

The NYSE index includes all stocks listed on the "Big Board."

Accepted Answer

A) True 
 B)False

Question 7

The over-the-counter market is not an organized security exchange.

Accepted Answer

A) True 
 B)False

Question 8

Stockbrokers are also known as

Accepted Answer

A)  market makers. 
B)  account executives. 
C)  broker-dealers. 
D)  commission sellers. 
E)  traders. 
A)  market makers. 
B)  account executives. 
C)  broker-dealers. 
D)  commission sellers. 
E)  traders.

Question 9

There are a variety of investment vehicles including which of the following:

Accepted Answer

A)  common stock 
B)  bonds 
C)  preferred and convertible securities 
D)  real estate 
E)  all of the above are investment vehicles 
A)  common stock 
B)  bonds 
C)  preferred and convertible securities 
D)  real estate 
E)  all of the above are investment vehicles

Question 10

Which of the following was not an intention of The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

Accepted Answer

A)  improve accountability 
B)  discontinue the "too big to fail" approach 
C)  improve transparency 
D)  protect consumers from exploitation 
E)  Recapitalize banks 
A)  improve accountability 
B)  discontinue the "too big to fail" approach 
C)  improve transparency 
D)  protect consumers from exploitation 
E)  Recapitalize banks

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The Securities and Exchange Commission was established as a result of the [Securities Act of 1933 | Securities Exchange Act of 1934].

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Short term securities are traded in the [money | capital] 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 13

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

Accepted Answer

A)  Market order 
B)  limit order 
C)  stop loss order 
D)  fill or kill order 
E)  day order 
A)  Market order 
B)  limit order 
C)  stop loss order 
D)  fill or kill order 
E)  day order

Question 14

Owning common stock represents a debt investment.

Accepted Answer

A) True 
 B)False

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Before you start investing,you should plan to have a minimum of [$1,000 | $15,000] available.

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Brokerage commissions on [stock | bond] transactions are likely to be a flat fee per unit.

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 17

Assume that the price of ABC common stock fell from in a short period of time from $105 to $84.Which of the following investors probably made the most money,if all of these transactions occurred prior to the drop in price?

Accepted Answer

A)  Abe took a long position in 1000 shares of ABC 
B)  Bert took a short position in 1000 shares of ABC 
C)  Carrie kept her money in CDs at the bank 
D)  Darren shorted 2000 shares of ABC using a margin loan 
E)  Earl used a margin loan to finance a 2000 share long position in ABC 
A)  Abe took a long position in 1000 shares of ABC 
B)  Bert took a short position in 1000 shares of ABC 
C)  Carrie kept her money in CDs at the bank 
D)  Darren shorted 2000 shares of ABC using a margin loan 
E)  Earl used a margin loan to finance a 2000 share long position in ABC

Question 18

A long term investment strategy includes all of the following except

Accepted Answer

A)  stock and bond selection. 
B)  diversification. 
C)  immediate financial needs to pay current bills. 
D)  risk-return behavior. 
E)  investor education. 
A)  stock and bond selection. 
B)  diversification. 
C)  immediate financial needs to pay current bills. 
D)  risk-return behavior. 
E)  investor education.

Question 19

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

Accepted Answer

A)  Full service broker 
B)  Bank broker 
C)  Futures broker 
D)  Online broker 
E)  Market maker 
A)  Full service broker 
B)  Bank broker 
C)  Futures broker 
D)  Online broker 
E)  Market maker

Question 20

A sale of 450 shares of stock would involve the trade of an odd lot.

Accepted Answer

A) True 
 B)False

The securities market which you could not locate on the map is the

The Securities and Exchange Commission sets margin requirements on security purchases.

NASDAQ is now the second largest securities market in the U.S.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You are selling short; you anticipate the price of the stock will [rise | fall].

A short sale transaction will be profitable when prices are falling.

The NYSE index includes all stocks listed on the "Big Board."

The over-the-counter market is not an organized security exchange.

Stockbrokers are also known as

There are a variety of investment vehicles including which of the following:

Which of the following was not an intention of The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Securities and Exchange Commission was established as a result of the [Securities Act of 1933 | Securities Exchange Act of 1934].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Short term securities are traded in the [money | capital] market.

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

Owning common stock represents a debt investment.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Before you start investing,you should plan to have a minimum of [$1,000 | $15,000] available.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Brokerage commissions on [stock | bond] transactions are likely to be a flat fee per unit.

Assume that the price of ABC common stock fell from in a short period of time from $105 to $84.Which of the following investors probably made the most money,if all of these transactions occurred prior to the drop in price?

A long term investment strategy includes all of the following except

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

A sale of 450 shares of stock would involve the trade of an odd 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

The securities market which you could not locate on the map is the

The Securities and Exchange Commission sets margin requirements on security purchases.

NASDAQ is now the second largest securities market in the U.S.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You are selling short; you anticipate the price of the stock will [rise | fall].

A short sale transaction will be profitable when prices are falling.

The NYSE index includes all stocks listed on the "Big Board."

The over-the-counter market is not an organized security exchange.

Stockbrokers are also known as

There are a variety of investment vehicles including which of the following:

Which of the following was not an intention of The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Securities and Exchange Commission was established as a result of the [Securities Act of 1933 | Securities Exchange Act of 1934].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Short term securities are traded in the [money | capital] market.

Which of the following is an order to sell a stock when the market price drops to or below a specified level?

Owning common stock represents a debt investment.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Before you start investing,you should plan to have a minimum of [$1,000 | $15,000] available.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Brokerage commissions on [stock | bond] transactions are likely to be a flat fee per unit.

Assume that the price of ABC common stock fell from in a short period of time from $105 to $84.Which of the following investors probably made the most money,if all of these transactions occurred prior to the drop in price?

A long term investment strategy includes all of the following except

Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

A sale of 450 shares of stock would involve the trade of an odd 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