Question 1

Buying on margin would allow you to purchase securities using borrowed funds.

Accepted Answer

A) True 
 B)False

Question 2

During a bull market

Accepted Answer

A)  prices go up 
B)  prices go down 
C)  prices remain stable 
D)  investments are pessimistic 
E)  cattle futures perform well 
A)  prices go up 
B)  prices go down 
C)  prices remain stable 
D)  investments are pessimistic 
E)  cattle futures perform well

Question 3

A limit order may be used either to buy or to sell.

Accepted Answer

A) True 
 B)False

Question 4

A statement specifying how investment capital will be invested in order to reach targeted goals is called a marketing plan.

Accepted Answer

A) True 
 B)False

Question 5

An immediate order to buy or sell common stock at the best price is a

Accepted Answer

A)  stop order. 
B)  market order. 
C)  limit order. 
D)  stop-loss order. 
E)  discount order. 
A)  stop order. 
B)  market order. 
C)  limit order. 
D)  stop-loss order. 
E)  discount order.

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included provisions to improve [accountability | sustainability].

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 7

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

Accepted Answer

A)  $ 23.25. 
B)  $ 232.50. 
C)  $ 2,325.00. 
D)  $23,250.00. 
E)  none of these 
A)  $ 23.25. 
B)  $ 232.50. 
C)  $ 2,325.00. 
D)  $23,250.00. 
E)  none of these

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A deep discount broker will execute orders as well as [pick the stocks for you to buy | provide extensive information about various securities | offer little to no other services].

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 axiom that explains diversification is [Don't cry over spilt milk | Don't put all of your eggs in one basket].

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

The most common reason given for investing is

Accepted Answer

A)  enhancing current income. 
B)  saving for retirement. 
C)  sheltering earnings from taxes. 
D)  paying for an expensive vacation. 
E)  saving for college education. 
A)  enhancing current income. 
B)  saving for retirement. 
C)  sheltering earnings from taxes. 
D)  paying for an expensive vacation. 
E)  saving for college education.

Question 11

An essential ingredient of an effective investment strategy is

Accepted Answer

A)  enough money to diversify. 
B)  a good broker. 
C)  blue-chip stock selections. 
D)  high-income securities. 
E)  a bull market. 
A)  enough money to diversify. 
B)  a good broker. 
C)  blue-chip stock selections. 
D)  high-income securities. 
E)  a bull market.

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The closing price of this stock on the previous day was [higher | lower] than today's close.

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

NYSE Euronext is a part of the broker market accounting for 40% percent of global transactions.

Accepted Answer

A) True 
 B)False

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The [DJIA | S&P Index] is based on 500 different stocks.

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 15

A round lot consists of multiples of 100 shares of stock.

Accepted Answer

A) True 
 B)False

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Investing | Speculating] is viewed as a short-term activity that involves the buying and selling of securities in which future value and expected return are highly uncertain.

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

The ____ is not an organized security exchange.

Accepted Answer

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

Question 18

The single most important reason for investing is for retirement.

Accepted Answer

A) True 
 B)False

Question 19

The most important investment prerequisites are

Accepted Answer

A)  adequate income and savings. 
B)  adequate income and insurance. 
C)  adequate insurance and liquidity. 
D)  an investment plan and professional advice. 
E)  consistency and risk awareness. 
A)  adequate income and savings. 
B)  adequate income and insurance. 
C)  adequate insurance and liquidity. 
D)  an investment plan and professional advice. 
E)  consistency and risk awareness.

Question 20

The first step in asset allocation is selecting the securities that should go into your portfolio.

Accepted Answer

A) True 
 B)False

Buying on margin would allow you to purchase securities using borrowed funds.

During a bull market

A limit order may be used either to buy or to sell.

A statement specifying how investment capital will be invested in order to reach targeted goals is called a marketing plan.

An immediate order to buy or sell common stock at the best price is a

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included provisions to improve [accountability | sustainability].

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A deep discount broker will execute orders as well as [pick the stocks for you to buy | provide extensive information about various securities | offer little to no other services].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The axiom that explains diversification is [Don't cry over spilt milk | Don't put all of your eggs in one basket].

The most common reason given for investing is

An essential ingredient of an effective investment strategy is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The closing price of this stock on the previous day was [higher | lower] than today's close.

NYSE Euronext is a part of the broker market accounting for 40% percent of global transactions.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [DJIA | S&P Index] is based on 500 different stocks.

A round lot consists of multiples of 100 shares of stock.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Investing | Speculating] is viewed as a short-term activity that involves the buying and selling of securities in which future value and expected return are highly uncertain.

The ____ is not an organized security exchange.

The single most important reason for investing is for retirement.

The most important investment prerequisites are

The first step in asset allocation is selecting the securities that should go into your portfolio.

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

Buying on margin would allow you to purchase securities using borrowed funds.

During a bull market

A limit order may be used either to buy or to sell.

A statement specifying how investment capital will be invested in order to reach targeted goals is called a marketing plan.

An immediate order to buy or sell common stock at the best price is a

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included provisions to improve [accountability | sustainability].

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A deep discount broker will execute orders as well as [pick the stocks for you to buy | provide extensive information about various securities | offer little to no other services].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The axiom that explains diversification is [Don't cry over spilt milk | Don't put all of your eggs in one basket].

The most common reason given for investing is

An essential ingredient of an effective investment strategy is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The closing price of this stock on the previous day was [higher | lower] than today's close.

NYSE Euronext is a part of the broker market accounting for 40% percent of global transactions.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [DJIA | S&P Index] is based on 500 different stocks.

A round lot consists of multiples of 100 shares of stock.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Investing | Speculating] is viewed as a short-term activity that involves the buying and selling of securities in which future value and expected return are highly uncertain.

The ____ is not an organized security exchange.

The single most important reason for investing is for retirement.

The most important investment prerequisites are

The first step in asset allocation is selecting the securities that should go into your portfolio.

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