Question 1

When corporate taxes rates are ________,the after-tax earnings of corporations are ________,which means ________ money for shareholders.

Accepted Answer

A)  increased; decreased; more
B)  decreased; increased; more
C)  increased; increased; more
D)  decreased; decreased; less B

Question 2

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

Accepted Answer

Gross domestic product

Question 3

Which of the following actions of the U.S.government could not be considered part of fiscal policy?

Accepted Answer

A)  Federal Reserve open market operations
B)  The Tax Relief Act of 2001
C)  Operation Enduring Freedom
D)  Creating the Department of Homeland Security A

Question 4

In getting recommendations from brokers and analysts,you need to be careful that frequent suggestions to buy or sell are not being made in order to generate revenues for these traders.

Accepted Answer

A) True 
 B)False

Question 5

How many shares of Brady A were traded the previous day?

Accepted Answer

A)  1,723
B)  17,230
C)  172,300
D)  1,723,000

Question 6

You bought IBM stock at $70 per share.It is now $120 a share.You think it could go higher but you are nervous that it could go down and you would lose your gains.To protect your gains but still give yourself the chance to make future profits you could place a

Accepted Answer

A)  market order.
B)  sell stop order at $100 a share.
C)  buy stop order at $100 a share.
D)  sell stop order at $150 a share.

Question 7

Computer systems that match up purchases and sales of stocks even at night when the other exchanges are closed are

Accepted Answer

A)  NASDAQ.
B)  the over-the-counter (OT
C)  markets.
C)  electronic communication networks.
D)  the regional stock exchanges.

Question 8

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,such as Fortune
C)  News television networks,such as CNBC
D)  Web sites

Question 9

Compared to discount brokers,full service brokers

Accepted Answer

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

Question 10

When aggregate demand by consumers ________,firms produce ________ products to accommodate the demand.

Accepted Answer

A)  rises; less
B)  rises; more
C)  declines; more
D)  All of the above.

Question 11

If you don't need advice or other services offered,you are better off using a discount broker or Internet broker rather than a full-service broker.

Accepted Answer

A) True 
 B)False

Question 12

Where or how can you obtain a corporate annual report and additional investment analysis?

Accepted Answer

The answer of Where or how can you obtain a...

Question 13

A round lot of stock is ________ shares.

Accepted Answer

A)  10
B)  100
C)  $100 worth of
D)  $1,000 worth of

Question 14

Three hundred shares of stock are purchased on margin at a price of $42 per share plus $150 in brokerage commissions at a time when the margin requirement is 50 percent.How much additional cash would you need to deposit with your broker if the price of the stock dropped to $37 per share?
(a)$825
(b)$1,500
(c)$1,650
(d)$5,550

Accepted Answer

The answer of Three hundred shares of stock are purchased...

Question 15

Some stock brokers or analysts encourage frequent buying and selling of your securities which may cause you to

Accepted Answer

A)  increase your profit margin.
B)  pay less commissions.
C)  incur additional tax liabilities.
D)  reduce your risk of loss.

Question 16

Fiscal policy,the means by which the U.S.government imposes taxes on individuals and corporations and spends its money,has an impact on spending and thus an impact on the stock of some companies.

Accepted Answer

A) True 
 B)False

Question 17

The daily stock quotations found in most large newspapers will not tell you the annual dividends paid per share of stock.

Accepted Answer

A) True 
 B)False

Question 18

The Stimulus Act of 2009 is an example of the government's use of ________ to impact economic growth.

Accepted Answer

The answer of The Stimulus Act of 2009 is an...

Question 19

Generally,stocks perform better when interest rates are

Accepted Answer

A)  low.
B)  high.
C)  average.
D)  Stocks are unaffected by interest rates.

Question 20

The two parts of a company's balance sheet: (1)assets and (2)liabilities and shareholder's equity,must be equal or in balance.

Accepted Answer

A) True 
 B)False

Exam 15: Investing in Stocks

When corporate taxes rates are ,the after-tax earnings of corporations are ,which means money for shareholders.

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

Which of the following actions of the U.S.government could not be considered part of fiscal policy?

In getting recommendations from brokers and analysts,you need to be careful that frequent suggestions to buy or sell are not being made in order to generate revenues for these traders.

How many shares of Brady A were traded the previous day?

You bought IBM stock at $70 per share.It is now $120 a share.You think it could go higher but you are nervous that it could go down and you would lose your gains.To protect your gains but still give yourself the chance to make future profits you could place a

Computer systems that match up purchases and sales of stocks even at night when the other exchanges are closed are

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

Compared to discount brokers,full service brokers

When aggregate demand by consumers ,firms produce products to accommodate the demand.

If you don't need advice or other services offered,you are better off using a discount broker or Internet broker rather than a full-service broker.

Where or how can you obtain a corporate annual report and additional investment analysis?

A round lot of stock is ________ shares.

Some stock brokers or analysts encourage frequent buying and selling of your securities which may cause you to

Fiscal policy,the means by which the U.S.government imposes taxes on individuals and corporations and spends its money,has an impact on spending and thus an impact on the stock of some companies.

The daily stock quotations found in most large newspapers will not tell you the annual dividends paid per share of stock.

The Stimulus Act of 2009 is an example of the government's use of ________ to impact economic growth.

Generally,stocks perform better when interest rates are

The two parts of a company's balance sheet: (1)assets and (2)liabilities and shareholder's equity,must be equal or in balance.