Question 1

Fidelity Investments is selling a real estate income mutual fund for $10.94 per share. The fund charges a load of 2.5%. What is the offer price?

Accepted Answer

A) $10.94 
B) $10.67 
C) $11.21 
D) $11.48 
E) None of these 
A) $10.94 
B) $10.67 
C) $11.21 
D) $11.48 
E) None of these C

Question 2

Bond quotes are stated in:

Accepted Answer

A) Dollars 
B) Fractions of a dollar 
C) Percents of face value 
D) Percents of purchase price 
E) None of these 
A) Dollars 
B) Fractions of a dollar 
C) Percents of face value 
D) Percents of purchase price 
E) None of these C

Question 3

The NAV is the dollar value of 10 shares of a mutual fund.

Accepted Answer

A) True 
 B)False  False

Question 4

Bonds are usually in denominations of:

Accepted Answer

A) $100 
B) $1,000 
C) $10,000 
D) $100,000 
E) None of these 
A) $100 
B) $1,000 
C) $10,000 
D) $100,000 
E) None of these

Question 5

Amy purchased 100 shares of Monsanto Company for $66.10 per share. Today the stock is selling for $80.45. Assuming a charge of $7.00 to buy and sell, how much did Amy earn if she sold her shares today?

Accepted Answer

A) $6,617 
B) $8,038 
C) $1,421 
D) $14,655 
E) None of these 
A) $6,617 
B) $8,038 
C) $1,421 
D) $14,655 
E) None of these

Question 6

The yearly interest on a bond is the current selling price of the bond times the stated yearly interest rate.

Accepted Answer

A) True 
 B)False

Question 7

Royal Co. receives a dividend of $4.88 per share. Today the closing price of the stock is $59.95. The current stock yield to the nearest tenth of a percent is:

Accepted Answer

A) 8.1% 
B) 8.0% 
C) 8.2% 
D) 8.3% 
E) None of these 
A) 8.1% 
B) 8.0% 
C) 8.2% 
D) 8.3% 
E) None of these

Question 8

A bond selling for more than the face value is selling at a premium.

Accepted Answer

A) True 
 B)False

Question 9

Bond quotes are stated in percents of face value.

Accepted Answer

A) True 
 B)False

Question 10

Stocks are quoted in decimals.

Accepted Answer

A) True 
 B)False

Question 11

Jeff Ryan bought 200 shares of BUI for $19.50. Eight weeks later he sold the stock for $20.75. Assuming a 3% commission, his bottom line was a gain of:

Accepted Answer

A) $250.00 
B) $374.50 
C) $8.50 
D) $257.50 
E) None of these 
A) $250.00 
B) $374.50 
C) $8.50 
D) $257.50 
E) None of these

Question 12

A low-load fund is bought directly from the investment company.

Accepted Answer

A) True 
 B)False

Question 13

TOX bond 7.55 yields 11%. The bond traded at a low of 71.25 and closed today at 71.625 + .75. The closing price yesterday was:

Accepted Answer

A) 65.125 
B) 72.375 
C) 69.875 
D) 70.875 
E) None of these 
A) 65.125 
B) 72.375 
C) 69.875 
D) 70.875 
E) None of these

Question 14

Commissions charged on the trading of stock are:

Accepted Answer

A) Only on buying of stock 
B) On buying and selling of stock 
C) Only on sale of stock 
D) Fixed 
E) None of these 
A) Only on buying of stock 
B) On buying and selling of stock 
C) Only on sale of stock 
D) Fixed 
E) None of these

Question 15

The current yield on a bond is the yearly interest of the bond divided by the cost of the bond at closing.

Accepted Answer

A) True 
 B)False

Question 16

A mutual fund is made up of

Accepted Answer

A) Many stocks 
B) 10 stocks 
C) 100 stocks 
D) 500 stocks 
E) None of these 
A) Many stocks 
B) 10 stocks 
C) 100 stocks 
D) 500 stocks 
E) None of these

Question 17

A bond closed at 102.25. The current yield is 10.4%. The annual interest is:

Accepted Answer

A) $102.90 
B) $106.34 
C) $105.80 
D) $104.60 
E) None of these 
A) $102.90 
B) $106.34 
C) $105.80 
D) $104.60 
E) None of these

Question 18

Cumulative preferred stock is not entitled to dividends in arrears.

Accepted Answer

A) True 
 B)False

Question 19

Stockbrokers:

Accepted Answer

A) Do not act as middlemen 
B) Cannot trade stock 
C) Charge a commission for buying and selling 
D) Are always right in all their stock recommendations 
E) None of these 
A) Do not act as middlemen 
B) Cannot trade stock 
C) Charge a commission for buying and selling 
D) Are always right in all their stock recommendations 
E) None of these

Question 20

Each time the stock of a company trades on the exchange, the company receives additional money.

Accepted Answer

A) True 
 B)False

Exam 21: Stocks, Bonds and Mutual Funds

Fidelity Investments is selling a real estate income mutual fund for $10.94 per share. The fund charges a load of 2.5%. What is the offer price?

Bond quotes are stated in:

The NAV is the dollar value of 10 shares of a mutual fund.

Bonds are usually in denominations of:

Amy purchased 100 shares of Monsanto Company for $66.10 per share. Today the stock is selling for $80.45. Assuming a charge of $7.00 to buy and sell, how much did Amy earn if she sold her shares today?

The yearly interest on a bond is the current selling price of the bond times the stated yearly interest rate.

Royal Co. receives a dividend of $4.88 per share. Today the closing price of the stock is $59.95. The current stock yield to the nearest tenth of a percent is:

A bond selling for more than the face value is selling at a premium.

Bond quotes are stated in percents of face value.

Stocks are quoted in decimals.

Jeff Ryan bought 200 shares of BUI for $19.50. Eight weeks later he sold the stock for $20.75. Assuming a 3% commission, his bottom line was a gain of:

A low-load fund is bought directly from the investment company.

TOX bond 7.55 yields 11%. The bond traded at a low of 71.25 and closed today at 71.625 + .75. The closing price yesterday was:

Commissions charged on the trading of stock are:

The current yield on a bond is the yearly interest of the bond divided by the cost of the bond at closing.

A mutual fund is made up of

A bond closed at 102.25. The current yield is 10.4%. The annual interest is:

Cumulative preferred stock is not entitled to dividends in arrears.

Stockbrokers:

Each time the stock of a company trades on the exchange, the company receives additional money.

Whole Number: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How to Approach to Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Appreciation

Inventory and Overhead

Sales Excise and Property Taxes

Life, Fire and Auto Insurance

Business Statistics

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