Question 1

________ is a measure of economic growth that measures the total value of all products and services produced in the country.

Accepted Answer

Gross dome

Question 2

Use the exhibit below to answer the following question(s):
  
-How many shares of Drizel were traded the previous day?

Accepted Answer

A)  454,900 
B)  487,800 
C)  873,200 
D)  8,732 
A)  454,900 
B)  487,800 
C)  873,200 
D)  8,732

Question 3

Use the following two columns of items to answer the matching questions below:
-on margin

Accepted Answer

A) a brokerage firm that provides advice plus transaction services 
B) a brokerage firm that executes transactions without giving advice 
C) purchasing stock with funds borrowed from a brokerage firm 
D) an order to buy or sell at the prevailing market price 
E) an order to sell stock when the price falls to a specified level 
A) a brokerage firm that provides advice plus transaction services 
B) a brokerage firm that executes transactions without giving advice 
C) purchasing stock with funds borrowed from a brokerage firm 
D) an order to buy or sell at the prevailing market price 
E) an order to sell stock when the price falls to a specified level

Question 4

Which of the following is not a reason some investors never purchase stock?

Accepted Answer

A)  They are afraid of the risk. 
B)  They lack the knowledge. 
C)  They like safe investments such as CDs. 
D)  They don't want to make better returns. 
A)  They are afraid of the risk. 
B)  They lack the knowledge. 
C)  They like safe investments such as CDs. 
D)  They don't want to make better returns.

Question 5

One of the most commonly used measures of inflation is the

Accepted Answer

A)  gross domestic product. 
B)  fiscal policy. 
C)  consumer price index. 
D)  inflation factor. 
A)  gross domestic product. 
B)  fiscal policy. 
C)  consumer price index. 
D)  inflation factor.

Question 6

Company X pays out 100% of its earnings in the form of annual dividends.Last year,the company paid $5.25 in dividends for the year.If the stock price is $105 per share,what is the "trailing" P/E?

Accepted Answer

A)  15 
B)  10 
C)  17.5 
D)  20 
A)  15 
B)  10 
C)  17.5 
D)  20

Question 7

The stock exchange that is the largest in terms of dollar volume is the

Accepted Answer

A)  NYSE. 
B)  NYSE MKT LLC. 
C)  NASDAQ. 
D)  Securities and Exchange Commission (SE
C) . 
A)  NYSE. 
B)  NYSE MKT LLC. 
C)  NASDAQ. 
D)  Securities and Exchange Commission (SE
C) .

Question 8

A measure of inflation that represents prices of various products,such as groceries,household products,housing,and gasoline is the ________ index.

Accepted Answer

A)  consumer price 
B)  cost of living 
C)  inflationary 
D)  household 
A)  consumer price 
B)  cost of living 
C)  inflationary 
D)  household

Question 9

Unlike discount brokers,full-service brokers

Accepted Answer

A)  give stock advice to their clients. 
B)  execute stock trades quickly. 
C)  charge competitive rates. 
D)  seldom meet with clients. 
A)  give stock advice to their clients. 
B)  execute stock trades quickly. 
C)  charge competitive rates. 
D)  seldom meet with clients.

Question 10

Long established,"blue chip" companies list their shares on the

Accepted Answer

A)  NYSE MKT LLC. 
B)  Over the Counter market. 
C)  NYSE. 
D)  NASDAQ. 
A)  NYSE MKT LLC. 
B)  Over the Counter market. 
C)  NYSE. 
D)  NASDAQ.

Question 11

On the over-the-counter market trades are executed by

Accepted Answer

A)  market makers. 
B)  day traders. 
C)  floor traders. 
D)  specialists. 
A)  market makers. 
B)  day traders. 
C)  floor traders. 
D)  specialists.

Question 12

Which of the following is not a good source of current stock quotations?

Accepted Answer

A)  Newspapers, such as The Wall Street Journal 
B)  Magazines that focus on success stories of new businesses 
C)  Financial news television networks, such as CNBC 
D)  Web sites such as Yahoo Finance or Bloomberg 
A)  Newspapers, such as The Wall Street Journal 
B)  Magazines that focus on success stories of new businesses 
C)  Financial news television networks, such as CNBC 
D)  Web sites such as Yahoo Finance or Bloomberg

Question 13

If a firm performs strongly over a period of time the impact on its stock price is

Accepted Answer

A)  positive. 
B)  inversely related. 
C)  uncertain. 
D)  unrelated. 
A)  positive. 
B)  inversely related. 
C)  uncertain. 
D)  unrelated.

Question 14

From an investing standpoint,stage in life has a lot to do with willingness to bear the risk of various investments.Generally,as an investor moves from wealth accumulation years to wealth preservation years,their portfolio should rotate from a higher risk ________ to a more moderate risk ________ to a lower risk ________.

Accepted Answer

A)  fixed income fund; bank cd; blue chip stock portfolio 
B)  equity portfolio; balanced portfolio; conservative portfolio 
C)  commodities portfolio; equity portfolio; mostly equity; some debt portfolio 
D)  None of the above are satisfactory. 
A)  fixed income fund; bank cd; blue chip stock portfolio 
B)  equity portfolio; balanced portfolio; conservative portfolio 
C)  commodities portfolio; equity portfolio; mostly equity; some debt portfolio 
D)  None of the above are satisfactory.

Question 15

The purchase of 48 shares of stock is considered a(n)________ transaction.

Accepted Answer

The answer of The purchase of 48 shares of stock...

Question 16

T is the ________ for American Telephone and Telegraph Company.

Accepted Answer

The answer of T is the ________ for American Telephone...

Question 17

The demand for which of the following will decrease the most with a weak economy?

Accepted Answer

A)  Cereal 
B)  Bread 
C)  Boats 
D)  Paper towels 
A)  Cereal 
B)  Bread 
C)  Boats 
D)  Paper towels

Question 18

A ________ is an order for a brokerage firm to sell a stock when the price falls to a specified level.

Accepted Answer

A)  stop order 
B)  buy stop order 
C)  sell stop order 
D)  go order 
A)  stop order 
B)  buy stop order 
C)  sell stop order 
D)  go order

Question 19

If you purchase stock ________ you are doing so with a portion of the funds borrowed from your broker.

Accepted Answer

The answer of If you purchase stock ________ you are...

Question 20

A PE of 10 means that the firm's stock price is ten times the firm's

Accepted Answer

A)  earnings per share. 
B)  book value. 
C)  net income. 
D)  dividends. 
A)  earnings per share. 
B)  book value. 
C)  net income. 
D)  dividends.

Exam 15: Investing in Stocks

________ is a measure of economic growth that measures the total value of all products and services produced in the country.

Use the exhibit below to answer the following question(s): -How many shares of Drizel were traded the previous day?

Use the following two columns of items to answer the matching questions below: -on margin

Which of the following is not a reason some investors never purchase stock?

One of the most commonly used measures of inflation is the

Company X pays out 100% of its earnings in the form of annual dividends.Last year,the company paid $5.25 in dividends for the year.If the stock price is $105 per share,what is the "trailing" P/E?

The stock exchange that is the largest in terms of dollar volume is the

A measure of inflation that represents prices of various products,such as groceries,household products,housing,and gasoline is the ________ index.

Unlike discount brokers,full-service brokers

Long established,"blue chip" companies list their shares on the

On the over-the-counter market trades are executed by

Which of the following is not a good source of current stock quotations?

If a firm performs strongly over a period of time the impact on its stock price is

The purchase of 48 shares of stock is considered a(n)________ transaction.

T is the ________ for American Telephone and Telegraph Company.

The demand for which of the following will decrease the most with a weak economy?

A ________ is an order for a brokerage firm to sell a stock when the price falls to a specified level.

If you purchase stock ________ you are doing so with a portion of the funds borrowed from your broker.

A PE of 10 means that the firm's stock price is ten times the firm's

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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