Question 1

Once all the shares are originally sold, an investor must purchase shares in a(n) ____ fund from some other investor who is willing to sell them.

Accepted Answer

A)  open-end 
B)  no-load 
C)  Load 
D)  closed-end 
E)  municipal 
A)  open-end 
B)  no-load 
C)  Load 
D)  closed-end 
E)  municipal D

Question 2

Kenneth is concerned because his money does not buy what it used to buy.He decides to invest his money in real estate because he knows it is a good way to protect his money from

Accepted Answer

A)  taxes. 
B)  decreasing in value. 
C)  unscrupulous bankers. 
D)  risk. 
E)  inflation. 
A)  taxes. 
B)  decreasing in value. 
C)  unscrupulous bankers. 
D)  risk. 
E)  inflation. E

Question 3

Tavia Jones purchased mutual funds because she knows this investment provides professional management and guaranteed returns.

Accepted Answer

A) True 
 B)False  False

Question 4

Since 1926, government bonds have returned an average of about ___ percent a year.

Accepted Answer

A)  14 
B)  12 
C)  9 
D)  6 
E)  3 
A)  14 
B)  12 
C)  9 
D)  6 
E)  3

Question 5

The requirement that investors should have access to all important facts about stocks, bonds, and other securities so that they can make informed decisions is called

Accepted Answer

A)  SEC Reporting Requirements. 
B)  full disclosure. 
C)  the Insider Equity Act. 
D)  the NASDAQ Rule. 
E)  the Securities Investor Protection Act. 
A)  SEC Reporting Requirements. 
B)  full disclosure. 
C)  the Insider Equity Act. 
D)  the NASDAQ Rule. 
E)  the Securities Investor Protection Act.

Question 6

Which of the following would most likely be considered the safest investment?

Accepted Answer

A)  Corporate bond 
B)  Certificate of deposit 
C)  Ordinary share 
D)  Cumulative preferred stock 
E)  Preferred stock 
A)  Corporate bond 
B)  Certificate of deposit 
C)  Ordinary share 
D)  Cumulative preferred stock 
E)  Preferred stock

Question 7

Investors often choose investments like precious metals and antique collectibles because they offer substantial income possibilities.

Accepted Answer

A) True 
 B)False

Question 8

Tasha invests her savings in a mutual fund called the Salter 500.This fund is based on the S&P 500, which is representative of the stock market as a whole.Tasha's fund is a(n) ____ fund.

Accepted Answer

A)  aggressive growth 
B)  Load 
C)  Balanced 
D)  Index 
E)  income 
A)  aggressive growth 
B)  Load 
C)  Balanced 
D)  Index 
E)  income

Question 9

To be useful, investment goals must be specific and measurable.

Accepted Answer

A) True 
 B)False

Question 10

Dividends paid to investors who purchase preferred stock are paid before dividends are paid to ordinary shareholders.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not one of the types of bonds issued by the federal government?

Accepted Answer

A)  Treasury notes 
B)  Savings bonds 
C)  Treasury municipals 
D)  Treasury bonds 
E)  Treasury bills 
A)  Treasury notes 
B)  Savings bonds 
C)  Treasury municipals 
D)  Treasury bonds 
E)  Treasury bills

Question 12

Which of the following is not considered a high-risk investment?

Accepted Answer

A)  Antiques 
B)  Derivatives 
C)  Commodities 
D)  Index funds 
E)  Coins 
A)  Antiques 
B)  Derivatives 
C)  Commodities 
D)  Index funds 
E)  Coins

Question 13

A(n) ____ fund is a fund that invests in the stocks contained in a specific stock index.

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  exchange-traded 
E)  net asset 
A)  A 
B)  B 
C)  C 
D)  exchange-traded 
E)  net asset

Question 14

Debby Martin has assets valued at €120,000 and liabilities that total €50,000.Based on this information, what is Debby's net worth?

Accepted Answer

A)  €120,000 
B)  €50,000 
C)  €170,000 
D)  €70,000 
E)  €0 
A)  €120,000 
B)  €50,000 
C)  €170,000 
D)  €70,000 
E)  €0

Question 15

Delores Hudgins wants to choose an investment that will provide tax-free income.Which of the following investments would you recommend?

Accepted Answer

A)  Municipal options 
B)  Municipal bonds 
C)  Corporate bonds 
D)  Preferred stock 
E)  Ordinary share 
A)  Municipal options 
B)  Municipal bonds 
C)  Corporate bonds 
D)  Preferred stock 
E)  Ordinary share

Question 16

Shares in an exchange-traded fund (ETF) are available only from the investment company that sponsors the ETF.

Accepted Answer

A) True 
 B)False

Question 17

NYSE stands for New York Stock Exchange.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is true?

Accepted Answer

A)  Ordinary shares is a more conservative investment than preferred stock. 
B)  Dividends on preferred stock are less secure than dividends paid to ordinary shareholders. 
C)  Preferred stockholders have a priority claim on dividends before ordinary shareholders. 
D)  As the basic form of ownership, ordinary shareholders receive their dividends before any other class of stock. 
E)  As the basic form of ownership, ordinary shareholders have a priority claim on a firm's assets if the firm enters bankruptcy. 
A)  Ordinary shares is a more conservative investment than preferred stock. 
B)  Dividends on preferred stock are less secure than dividends paid to ordinary shareholders. 
C)  Preferred stockholders have a priority claim on dividends before ordinary shareholders. 
D)  As the basic form of ownership, ordinary shareholders receive their dividends before any other class of stock. 
E)  As the basic form of ownership, ordinary shareholders have a priority claim on a firm's assets if the firm enters bankruptcy.

Question 19

The Wall Street Journal and Barron's devote their reporting almost exclusively to financial and economic news.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is incorrect?

Accepted Answer

A)  Today, most corporations provide investors with valuable information on their Web site. 
B)  There is usually a charge to access investment information available through most search engines. 
C)  While some information from a professional advisory service is free, there is usually a charge for the more detailed information you may need to evaluate a potential investment. 
D)  Most investment companies that sponsor mutual funds provide investors with valuable information that can be used to evaluate their funds. 
E)  Investment information available on the Internet may be more up to date than information contained in printed materials. 
A)  Today, most corporations provide investors with valuable information on their Web site. 
B)  There is usually a charge to access investment information available through most search engines. 
C)  While some information from a professional advisory service is free, there is usually a charge for the more detailed information you may need to evaluate a potential investment. 
D)  Most investment companies that sponsor mutual funds provide investors with valuable information that can be used to evaluate their funds. 
E)  Investment information available on the Internet may be more up to date than information contained in printed materials.

Once all the shares are originally sold, an investor must purchase shares in a(n) ____ fund from some other investor who is willing to sell them.

Kenneth is concerned because his money does not buy what it used to buy.He decides to invest his money in real estate because he knows it is a good way to protect his money from

Tavia Jones purchased mutual funds because she knows this investment provides professional management and guaranteed returns.

Since 1926, government bonds have returned an average of about ___ percent a year.

The requirement that investors should have access to all important facts about stocks, bonds, and other securities so that they can make informed decisions is called

Which of the following would most likely be considered the safest investment?

Investors often choose investments like precious metals and antique collectibles because they offer substantial income possibilities.

Tasha invests her savings in a mutual fund called the Salter 500.This fund is based on the S&P 500, which is representative of the stock market as a whole.Tasha's fund is a(n) ____ fund.

To be useful, investment goals must be specific and measurable.

Dividends paid to investors who purchase preferred stock are paid before dividends are paid to ordinary shareholders.

Which of the following is not one of the types of bonds issued by the federal government?

Which of the following is not considered a high-risk investment?

A(n) ____ fund is a fund that invests in the stocks contained in a specific stock index.

Debby Martin has assets valued at €120,000 and liabilities that total €50,000.Based on this information, what is Debby's net worth?

Delores Hudgins wants to choose an investment that will provide tax-free income.Which of the following investments would you recommend?

Shares in an exchange-traded fund (ETF) are available only from the investment company that sponsors the ETF.

NYSE stands for New York Stock Exchange.

Which of the following statements is true?

The Wall Street Journal and Barron's devote their reporting almost exclusively to financial and economic news.

Which of the following statements is incorrect?

Introduction to Business

Responsible Business

Global Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

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Exam 19: Personal Finances and Investments

Once all the shares are originally sold, an investor must purchase shares in a(n) ____ fund from some other investor who is willing to sell them.

Kenneth is concerned because his money does not buy what it used to buy.He decides to invest his money in real estate because he knows it is a good way to protect his money from

Tavia Jones purchased mutual funds because she knows this investment provides professional management and guaranteed returns.

Since 1926, government bonds have returned an average of about ___ percent a year.

The requirement that investors should have access to all important facts about stocks, bonds, and other securities so that they can make informed decisions is called

Which of the following would most likely be considered the safest investment?

Investors often choose investments like precious metals and antique collectibles because they offer substantial income possibilities.

Tasha invests her savings in a mutual fund called the Salter 500.This fund is based on the S&P 500, which is representative of the stock market as a whole.Tasha's fund is a(n) ____ fund.

To be useful, investment goals must be specific and measurable.

Dividends paid to investors who purchase preferred stock are paid before dividends are paid to ordinary shareholders.

Which of the following is not one of the types of bonds issued by the federal government?

Which of the following is not considered a high-risk investment?

A(n) ____ fund is a fund that invests in the stocks contained in a specific stock index.

Debby Martin has assets valued at €120,000 and liabilities that total €50,000.Based on this information, what is Debby's net worth?

Delores Hudgins wants to choose an investment that will provide tax-free income.Which of the following investments would you recommend?

Shares in an exchange-traded fund (ETF) are available only from the investment company that sponsors the ETF.

NYSE stands for New York Stock Exchange.

Which of the following statements is true?

The Wall Street Journal and Barron's devote their reporting almost exclusively to financial and economic news.

Which of the following statements is incorrect?

Introduction to Business

Responsible Business

Global Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Filters