Question 1

What is a mortgage-backed security?

Accepted Answer

A)  A bundled group of home mortgages 
B)  A bundled group of investments with AAA credit-ratings 
C)  A bundled group of bonds 
D)  A bundled group of stocks 
E)  A bundled group of loans made to risk assessment firms 
A)  A bundled group of home mortgages 
B)  A bundled group of investments with AAA credit-ratings 
C)  A bundled group of bonds 
D)  A bundled group of stocks 
E)  A bundled group of loans made to risk assessment firms A

Question 2

Where can an investor learn information about a firm's proposed security offering and the issuing company?

Accepted Answer

A)  The Russell 2000 Index 
B)  The annual report 
C)  The prospectus 
D)  The SEC 
E)  The retained earnings statement 
A)  The Russell 2000 Index 
B)  The annual report 
C)  The prospectus 
D)  The SEC 
E)  The retained earnings statement C

Question 3

Established in 2003, this group protects U.S. investors by overseeing brokerage firms and securities representatives.

Accepted Answer

A)  The attorney general's office 
B)  The SEC 
C)  The Galleon group 
D)  FINRA 
E)  The prospectus evaluation committee 
A)  The attorney general's office 
B)  The SEC 
C)  The Galleon group 
D)  FINRA 
E)  The prospectus evaluation committee D

Question 4

What is the increase in the dollar value of an investment known as?

Accepted Answer

A)  Dividend payout 
B)  Total return 
C)  Interest yield 
D)  Capital gain 
E)  Price appreciation 
A)  Dividend payout 
B)  Total return 
C)  Interest yield 
D)  Capital gain 
E)  Price appreciation

Question 5

Although advising and underwriting may be tasks of an investment bank, distribution of new securities is NOT one of their services.

Accepted Answer

A) True 
 B)False

Question 6

While it's invested, money grows by earning interest or yielding some other form of return. What is this known as?

Accepted Answer

A)  Compound growth 
B)  Dividend 
C)  Capital gains 
D)  Security 
E)  Diversity 
A)  Compound growth 
B)  Dividend 
C)  Capital gains 
D)  Security 
E)  Diversity

Question 7

What is an angel investor?

Accepted Answer

Outside individuals who provide addition

Question 8

What is the proportion of investments in each investment alternative referred to as?

Accepted Answer

A)  Portfolio 
B)  Dividend yield 
C)  Asset allocation 
D)  Risk-reward relationship 
E)  Diversification 
A)  Portfolio 
B)  Dividend yield 
C)  Asset allocation 
D)  Risk-reward relationship 
E)  Diversification

Question 9

Which of the following receives and executes buy-and-sell orders for other people in return for commissions?

Accepted Answer

A)  Stock exchanges 
B)  Stock brokers 
C)  Investment banks 
D)  Stock agents 
E)  Savings banks 
A)  Stock exchanges 
B)  Stock brokers 
C)  Investment banks 
D)  Stock agents 
E)  Savings banks

Question 10

What type of investment would preserve capital investment but seek capital appreciation?

Accepted Answer

A)  Blue-chip stock 
B)  Balanced funds 
C)  Aggressive growth funds 
D)  No-load funds 
E)  Mutual funds 
A)  Blue-chip stock 
B)  Balanced funds 
C)  Aggressive growth funds 
D)  No-load funds 
E)  Mutual funds

Question 11

An investment's current dividend yield plus its capital gain rate is known as its total return.

Accepted Answer

A) True 
 B)False

Question 12

Bankruptcy is the court-granted permission not to pay some or all debts.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is figured by dividing the yearly dollar amount of dividend income by the investment's current market value?

Accepted Answer

A)  Bond yield 
B)  Current dividend yield 
C)  Debenture 
D)  Trading volume 
E)  Earnings per share 
A)  Bond yield 
B)  Current dividend yield 
C)  Debenture 
D)  Trading volume 
E)  Earnings per share

Question 14

Which is the MOST widely cited U.S. stock market index?

Accepted Answer

A)  Standard & Poor's Composite Index of 500 Stocks 
B)  The NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's Stock List 
E)  The NASDAQ 
A)  Standard & Poor's Composite Index of 500 Stocks 
B)  The NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's Stock List 
E)  The NASDAQ

Question 15

In which type of market would investors be motivated to sell because they feel prices will fall further?

Accepted Answer

A)  Bear market 
B)  Blue-chip market 
C)  Bull market 
D)  Large cap market 
E)  Composite market 
A)  Bear market 
B)  Blue-chip market 
C)  Bull market 
D)  Large cap market 
E)  Composite market

Question 16

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

Accepted Answer

A) True 
 B)False

Question 17

What is the term for buying several different kinds of investments rather than just one?

Accepted Answer

A)  Spreading 
B)  Shorting 
C)  Margin buying 
D)  Diversification 
E)  Management 
A)  Spreading 
B)  Shorting 
C)  Margin buying 
D)  Diversification 
E)  Management

Question 18

Which of the following is considered by many to be the BEST single indicator of the U.S. equities market?

Accepted Answer

A)  NASDAQ Composite 
B)  Russell 2000 
C)  Dow Jones Industrial Average 
D)  Standard & Poor's 500 
E)  New York Stock Exchange 
A)  NASDAQ Composite 
B)  Russell 2000 
C)  Dow Jones Industrial Average 
D)  Standard & Poor's 500 
E)  New York Stock Exchange

Question 19

The investment industry categorizes firms according to size of capitalization.

Accepted Answer

A) True 
 B)False

Question 20

What type of investment offers low returns, but is insured by the U.S. government?

Accepted Answer

A)  Common stock 
B)  Mutual funds 
C)  Exchange-traded funds 
D)  Treasury bills 
E)  Securities 
A)  Common stock 
B)  Mutual funds 
C)  Exchange-traded funds 
D)  Treasury bills 
E)  Securities

What is a mortgage-backed security?

Where can an investor learn information about a firm's proposed security offering and the issuing company?

Established in 2003, this group protects U.S. investors by overseeing brokerage firms and securities representatives.

What is the increase in the dollar value of an investment known as?

Although advising and underwriting may be tasks of an investment bank, distribution of new securities is NOT one of their services.

While it's invested, money grows by earning interest or yielding some other form of return. What is this known as?

What is an angel investor?

What is the proportion of investments in each investment alternative referred to as?

Which of the following receives and executes buy-and-sell orders for other people in return for commissions?

What type of investment would preserve capital investment but seek capital appreciation?

An investment's current dividend yield plus its capital gain rate is known as its total return.

Bankruptcy is the court-granted permission not to pay some or all debts.

Which of the following is figured by dividing the yearly dollar amount of dividend income by the investment's current market value?

Which is the MOST widely cited U.S. stock market index?

In which type of market would investors be motivated to sell because they feel prices will fall further?

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

What is the term for buying several different kinds of investments rather than just one?

Which of the following is considered by many to be the BEST single indicator of the U.S. equities market?

The investment industry categorizes firms according to size of capitalization.

What type of investment offers low returns, but is insured by the U.S. government?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters

Exam 17: Managing Business Finances

What is a mortgage-backed security?

Where can an investor learn information about a firm's proposed security offering and the issuing company?

Established in 2003, this group protects U.S. investors by overseeing brokerage firms and securities representatives.

What is the increase in the dollar value of an investment known as?

Although advising and underwriting may be tasks of an investment bank, distribution of new securities is NOT one of their services.

While it's invested, money grows by earning interest or yielding some other form of return. What is this known as?

What is an angel investor?

What is the proportion of investments in each investment alternative referred to as?

Which of the following receives and executes buy-and-sell orders for other people in return for commissions?

What type of investment would preserve capital investment but seek capital appreciation?

An investment's current dividend yield plus its capital gain rate is known as its total return.

Bankruptcy is the court-granted permission not to pay some or all debts.

Which of the following is figured by dividing the yearly dollar amount of dividend income by the investment's current market value?

Which is the MOST widely cited U.S. stock market index?

In which type of market would investors be motivated to sell because they feel prices will fall further?

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

What is the term for buying several different kinds of investments rather than just one?

Which of the following is considered by many to be the BEST single indicator of the U.S. equities market?

The investment industry categorizes firms according to size of capitalization.

What type of investment offers low returns, but is insured by the U.S. government?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters