Question 1

Moore thinks that the traditional arguments against insider trading are:

Accepted Answer

A)  Silly 
B)  Insufficient alone 
C)  Adequate but poorly argued 
D)  Out of date 
E)  Perfectly adequate and in no need of change 
A)  Silly 
B)  Insufficient alone 
C)  Adequate but poorly argued 
D)  Out of date 
E)  Perfectly adequate and in no need of change B

Question 2

A(n) __________ is a person who is entrusted to act in the interests of another.

Accepted Answer

fiduciary

Question 3

Because money has become abstract, it depends entirely on:

Accepted Answer

A)  Deception 
B)  Precious metals 
C)  Computers 
D)  Trust 
E)  Fraud 
A)  Deception 
B)  Precious metals 
C)  Computers 
D)  Trust 
E)  Fraud D

Question 4

Most people have a tendency to experience a particular economic loss as more __________ than an equivalent economic gain.

Accepted Answer

Salient/pa

Question 5

According to Loomis, high-up employees who commit accounting fraud plan out their schemes in great detail before perpetrating the act.

Accepted Answer

A) True 
 B)False

Question 6

What reason do Frederick and Hoffman offer against restricting investors?

Accepted Answer

A)  Investors who are not expert may not understand the choices they must make. 
B)  It is hard to learn to be an expert investor. 
C)  It is hard to know what is in someone else's best interest. 
D)  It is good for the market if some people lose a lot of money on risky investments. 
E)  Investors have a right not to be harmed. 
A)  Investors who are not expert may not understand the choices they must make. 
B)  It is hard to learn to be an expert investor. 
C)  It is hard to know what is in someone else's best interest. 
D)  It is good for the market if some people lose a lot of money on risky investments. 
E)  Investors have a right not to be harmed.

Question 7

Should "at-risk" investors have their ability to invest regulated in different ways than expert investors? Argue that all investors should have the same rights and protections. Then make the contrary argument using Frederick and Hoffman.

Accepted Answer

All investors, regardless of their level

Question 8

The __________ heuristic is the tendency people have to place inordinate weight on easily recalled events and memorable personal experiences in their deliberations.

Accepted Answer

A)  Representativeness 
B)  salience 
C)  availability 
D)  anchoring 
E)  bias 
A)  Representativeness 
B)  salience 
C)  availability 
D)  anchoring 
E)  bias

Question 9

The buyer of a put option, according to Partnoy, wants the price of it to __________, whereas the seller of the option wants it to __________.

Accepted Answer

A)  stay the same, go up 
B)  stay the same, go down 
C)  go down, stay the same or go down 
D)  go up, go down 
E)  go down, stay the same or go up 
A)  stay the same, go up 
B)  stay the same, go down 
C)  go down, stay the same or go down 
D)  go up, go down 
E)  go down, stay the same or go up

Question 10

Financial markets are vulnerable to all of the following EXCEPT:

Accepted Answer

A)  Unfair trading practices 
B)  Self-regulation 
C)  Contractual difficulties 
D)  Unfair conditions 
E)  The financial markets are not vulnerable to any of the above 
A)  Unfair trading practices 
B)  Self-regulation 
C)  Contractual difficulties 
D)  Unfair conditions 
E)  The financial markets are not vulnerable to any of the above

Question 11

__________ can employ any investing tools they want, including leverage, derivatives, and short sales to increase short-term profits.

Accepted Answer

The answer of __________ can employ any investing tools they...

Question 12

Aristotle argues that ethical failures and unhappiness often result from:

Accepted Answer

A)  Excess 
B)  Moderation 
C)  Virtue 
D)  Wealth 
E)  Liberality 
A)  Excess 
B)  Moderation 
C)  Virtue 
D)  Wealth 
E)  Liberality

Question 13

Which of these is an example of a derivative?

Accepted Answer

A)  In January, you sign a contract that you will buy a farmer's hay in August, and you fix the price at that time. 
B)  In January, you take an option on the hay, agreeing that you have the right to buy it in August, but not the obligation. 
C)  In January, you buy the farmer's land and hire the farmer to grow hay for you. 
D)  Both (a) and (b) are examples of derivatives. 
E)  All of (a), (b), and (c) are examples of derivatives. 
A)  In January, you sign a contract that you will buy a farmer's hay in August, and you fix the price at that time. 
B)  In January, you take an option on the hay, agreeing that you have the right to buy it in August, but not the obligation. 
C)  In January, you buy the farmer's land and hire the farmer to grow hay for you. 
D)  Both (a) and (b) are examples of derivatives. 
E)  All of (a), (b), and (c) are examples of derivatives.

Question 14

Moore argues that there is nothing wrong with insider trading.

Accepted Answer

A) True 
 B)False

Question 15

Moore argues that information is a valuable thing and can usefully be viewed as a type of property.

Accepted Answer

A) True 
 B)False

Question 16

Frederick and Hoffman argue that, just as with prescription drugs, at-risk investors should be required by law to:

Accepted Answer

A)  Prove their need before "taking their medicine" 
B)  Prove their ability to pay 
C)  Carry appropriate insurance 
D)  Engage the services of an expert 
E)  Both (b) and (d) 
A)  Prove their need before "taking their medicine" 
B)  Prove their ability to pay 
C)  Carry appropriate insurance 
D)  Engage the services of an expert 
E)  Both (b) and (d)

Question 17

McDonald says that hedge funds are:

Accepted Answer

A)  Exotic and rarely seen 
B)  Safe and conservative 
C)  Used by most financial institutions 
D)  Not allowed to employ short selling 
E)  Not very profitable 
A)  Exotic and rarely seen 
B)  Safe and conservative 
C)  Used by most financial institutions 
D)  Not allowed to employ short selling 
E)  Not very profitable

Question 18

Optimistic investors are called ________, and pessimistic ones are called ___________.

Accepted Answer

The answer of Optimistic investors are called ________, and pessimistic...

Question 19

Describe a time you or someone you know was defrauded or exploited by a company. What kind of scheme did the company use? What bias or heuristic did the company exploit? Was it wrong for the company and its representatives to engage in such practices? How can you make sure you do not fall victim to similar schemes in the future?

Accepted Answer

I personally have not been defrauded or

Question 20

Financial markets are vulnerable to unfair trading practices, unfair conditions, and contractual difficulties.

Accepted Answer

A) True 
 B)False

Moore thinks that the traditional arguments against insider trading are:

A(n) __________ is a person who is entrusted to act in the interests of another.

Because money has become abstract, it depends entirely on:

Most people have a tendency to experience a particular economic loss as more __________ than an equivalent economic gain.

According to Loomis, high-up employees who commit accounting fraud plan out their schemes in great detail before perpetrating the act.

What reason do Frederick and Hoffman offer against restricting investors?

Should "at-risk" investors have their ability to invest regulated in different ways than expert investors? Argue that all investors should have the same rights and protections. Then make the contrary argument using Frederick and Hoffman.

The __________ heuristic is the tendency people have to place inordinate weight on easily recalled events and memorable personal experiences in their deliberations.

The buyer of a put option, according to Partnoy, wants the price of it to , whereas the seller of the option wants it to .

Financial markets are vulnerable to all of the following EXCEPT:

__________ can employ any investing tools they want, including leverage, derivatives, and short sales to increase short-term profits.

Aristotle argues that ethical failures and unhappiness often result from:

Which of these is an example of a derivative?

Moore argues that there is nothing wrong with insider trading.

Moore argues that information is a valuable thing and can usefully be viewed as a type of property.

Frederick and Hoffman argue that, just as with prescription drugs, at-risk investors should be required by law to:

McDonald says that hedge funds are:

Optimistic investors are called , and pessimistic ones are called ___.

Financial markets are vulnerable to unfair trading practices, unfair conditions, and contractual difficulties.

On the Job: Everyday Ethics at Work

The Check Is in the Mail": Honesty and Trust in Business

Who Gets What and Why? Fairness and Justice

Is the Social Responsibility of Business...to Increase Its Profits"?: Social Responsibility and Stakeholder Theory

When Innovation Bytes Back: Ethics and Technology

The Art of Seduction: the Ethics of Advertising, Marketing, and Sales

Things Fall Apart: Product Liability and Consumers

You Know How to Whistle, Dont You?": Whistle-Blowing, Company Loyalty, and Employee Responsibility

Think Local, Act Global: International Business

Working With Mother Nature: Environmental Ethics and Business Ecology

When the Buck Stops Here: Leadership

Whos Minding the Store?: The Ethics of Corporate Governance

Is Everything for Sale?: The Future of the Free Market

The Good Life

Filters

Exam 3: Money, How We Get It, and Where It Goes: Accounting, Finance, and Investment Ethics

Moore thinks that the traditional arguments against insider trading are:

A(n) __________ is a person who is entrusted to act in the interests of another.

Because money has become abstract, it depends entirely on:

Most people have a tendency to experience a particular economic loss as more __________ than an equivalent economic gain.

According to Loomis, high-up employees who commit accounting fraud plan out their schemes in great detail before perpetrating the act.

What reason do Frederick and Hoffman offer against restricting investors?

Should "at-risk" investors have their ability to invest regulated in different ways than expert investors? Argue that all investors should have the same rights and protections. Then make the contrary argument using Frederick and Hoffman.

The __________ heuristic is the tendency people have to place inordinate weight on easily recalled events and memorable personal experiences in their deliberations.

The buyer of a put option, according to Partnoy, wants the price of it to __________, whereas the seller of the option wants it to __________.

Financial markets are vulnerable to all of the following EXCEPT:

__________ can employ any investing tools they want, including leverage, derivatives, and short sales to increase short-term profits.

Aristotle argues that ethical failures and unhappiness often result from:

Which of these is an example of a derivative?

Moore argues that there is nothing wrong with insider trading.

Moore argues that information is a valuable thing and can usefully be viewed as a type of property.

Frederick and Hoffman argue that, just as with prescription drugs, at-risk investors should be required by law to:

McDonald says that hedge funds are:

Optimistic investors are called ________, and pessimistic ones are called ___________.

Financial markets are vulnerable to unfair trading practices, unfair conditions, and contractual difficulties.

On the Job: Everyday Ethics at Work

The Check Is in the Mail": Honesty and Trust in Business

Who Gets What and Why? Fairness and Justice

Is the Social Responsibility of Business...to Increase Its Profits"?: Social Responsibility and Stakeholder Theory

When Innovation Bytes Back: Ethics and Technology

The Art of Seduction: the Ethics of Advertising, Marketing, and Sales

Things Fall Apart: Product Liability and Consumers

You Know How to Whistle, Dont You?": Whistle-Blowing, Company Loyalty, and Employee Responsibility

Think Local, Act Global: International Business

Working With Mother Nature: Environmental Ethics and Business Ecology

When the Buck Stops Here: Leadership

Whos Minding the Store?: The Ethics of Corporate Governance

Is Everything for Sale?: The Future of the Free Market

The Good Life

Filters

The buyer of a put option, according to Partnoy, wants the price of it to , whereas the seller of the option wants it to .

Optimistic investors are called , and pessimistic ones are called ___.