Question 1

The illegal practice of using knowledge about a firm that is not available to the general public for making profits in the stock market is ________.

Accepted Answer

A)  program trading 
B)  prospectus trading 
C)  insider trading 
D)  blue sky trading 
A)  program trading 
B)  prospectus trading 
C)  insider trading 
D)  blue sky trading C

Question 2

When giving an unsecured loan,what might a bank require?

Accepted Answer

The bank requires the borrower to maintain a compensating balance - the borrower must keep a portion of the loan amount on deposit with the bank in a non-interest-bearing account.

Question 3

While it's invested,money grows by earning interest or yielding some other form of return.We call this compound growth.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following includes few firms in its calculation?

Accepted Answer

A)  Standard & Poor's 500 
B)  The NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's 
A)  Standard & Poor's 500 
B)  The NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's

Question 5

If you purchased a share of GE stock for $33.82,then sold it one year later for $36.50,what would the price appreciation be?

Accepted Answer

A)  $1.68 
B)  $2..68 
C)  $33.82 
D)  $36.50 
A)  $1.68 
B)  $2..68 
C)  $33.82 
D)  $36.50

Question 6

"I am a chemist with the nation's largest chemical company.We have secretly developed a cure for three of the world's most serious epidemics.Before this news breaks out,I'm going to buy as many shares of stock in my company as I can get my hands on.Then I'll sit back and watch the stock price head for the sky." The person making this statement is about to engage in ________.

Accepted Answer

A)  selling shares of stock 
B)  insider trading 
C)  blue-sky trading 
D)  open-market operations 
A)  selling shares of stock 
B)  insider trading 
C)  blue-sky trading 
D)  open-market operations

Question 7

What does a borrower use to guarantee repayment of a loan?

Accepted Answer

The borrower guarant

Question 8

The New York Stock Exchange,the world's oldest electronic stock market,has orders gathered and executed on a computer network.

Accepted Answer

A) True 
 B)False

Question 9

What are initial public offerings (IPOs)?

Accepted Answer

IPOs are the first sale of a company's s

Question 10

Price appreciation is an increase in the dollar value of an investment.

Accepted Answer

A) True 
 B)False

Question 11

A(n)________ fund nearly matches the performance of a particular market.

Accepted Answer

A)  aggressive 
B)  market 
C)  index 
D)  balanced 
A)  aggressive 
B)  market 
C)  index 
D)  balanced

Question 12

What is an angel investor?

Accepted Answer

Outside individuals who provid

Question 13

Common shareholders owning a small proportion of the company's shares gains a powerful position in determining who runs the corporation and how.

Accepted Answer

A) True 
 B)False

Question 14

What is diversification? Why would an investor wish to diversify?

Accepted Answer

Diversification means buying several dif

Question 15

________ is a financial institution that specializes in issuing and reselling new securities.

Accepted Answer

A)  The New York Stock Exchange 
B)  A commercial bank 
C)  The secondary securities market 
D)  An investment bank 
A)  The New York Stock Exchange 
B)  A commercial bank 
C)  The secondary securities market 
D)  An investment bank

Question 16

How do you calculate total return?

Accepted Answer

A)  Divide the yearly dollar amount of dividend income by the investment's current market value. 
B)  Compare the dividend against current yields from other investments. 
C)  Subtract the cost of the stock from what you sold it for. 
D)  Divide the current dividend payment plus capital gain by the original investment. 
A)  Divide the yearly dollar amount of dividend income by the investment's current market value. 
B)  Compare the dividend against current yields from other investments. 
C)  Subtract the cost of the stock from what you sold it for. 
D)  Divide the current dividend payment plus capital gain by the original investment.

Question 17

The market in which mutual funds are sold are called securities markets.

Accepted Answer

A) True 
 B)False

Question 18

________ is the proportion of funds invested in each of several investment alternatives.

Accepted Answer

A)  Spreading 
B)  Shorting 
C)  Margin buying 
D)  Asset allocation 
A)  Spreading 
B)  Shorting 
C)  Margin buying 
D)  Asset allocation

Question 19

________ investors will opt for no-risk US Treasury Bills or intermediate-term high-grade corporate bonds that rate low in terms of risk on future investments

Accepted Answer

A)  Professional 
B)  Aggressive 
C)  Amateur 
D)  Conservative 
A)  Professional 
B)  Aggressive 
C)  Amateur 
D)  Conservative

Question 20

Interest paid to bondholders is a business expense and therefore not tax deductible for the firm.

Accepted Answer

A) True 
 B)False

The illegal practice of using knowledge about a firm that is not available to the general public for making profits in the stock market is ________.

When giving an unsecured loan,what might a bank require?

While it's invested,money grows by earning interest or yielding some other form of return.We call this compound growth.

Which of the following includes few firms in its calculation?

If you purchased a share of GE stock for $33.82,then sold it one year later for $36.50,what would the price appreciation be?

What does a borrower use to guarantee repayment of a loan?

The New York Stock Exchange,the world's oldest electronic stock market,has orders gathered and executed on a computer network.

What are initial public offerings (IPOs)?

Price appreciation is an increase in the dollar value of an investment.

A(n)________ fund nearly matches the performance of a particular market.

What is an angel investor?

Common shareholders owning a small proportion of the company's shares gains a powerful position in determining who runs the corporation and how.

What is diversification? Why would an investor wish to diversify?

________ is a financial institution that specializes in issuing and reselling new securities.

How do you calculate total return?

The market in which mutual funds are sold are called securities markets.

________ is the proportion of funds invested in each of several investment alternatives.

________ investors will opt for no-risk US Treasury Bills or intermediate-term high-grade corporate bonds that rate low in terms of risk on future investments

Interest paid to bondholders is a business expense and therefore not tax deductible for the firm.

The U.S.Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

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

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Filters

Exam 16: Managing Finances

The illegal practice of using knowledge about a firm that is not available to the general public for making profits in the stock market is ________.

When giving an unsecured loan,what might a bank require?

While it's invested,money grows by earning interest or yielding some other form of return.We call this compound growth.

Which of the following includes few firms in its calculation?

If you purchased a share of GE stock for $33.82,then sold it one year later for $36.50,what would the price appreciation be?

What does a borrower use to guarantee repayment of a loan?

The New York Stock Exchange,the world's oldest electronic stock market,has orders gathered and executed on a computer network.

What are initial public offerings (IPOs)?

Price appreciation is an increase in the dollar value of an investment.

A(n)________ fund nearly matches the performance of a particular market.

What is an angel investor?

Common shareholders owning a small proportion of the company's shares gains a powerful position in determining who runs the corporation and how.

What is diversification? Why would an investor wish to diversify?

________ is a financial institution that specializes in issuing and reselling new securities.

How do you calculate total return?

The market in which mutual funds are sold are called securities markets.

________ is the proportion of funds invested in each of several investment alternatives.

________ investors will opt for no-risk US Treasury Bills or intermediate-term high-grade corporate bonds that rate low in terms of risk on future investments

Interest paid to bondholders is a business expense and therefore not tax deductible for the firm.

The U.S.Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

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

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Filters