Question 1

The average investor cannot afford to purchase much of the investment information available from the government.

Accepted Answer

A) True 
 B)False  False

Question 2

Equity capital is money

Accepted Answer

A) obtained from the owners of the business. 
B) borrowed through banks. 
C) obtained by employee benefit programs. 
D) that has to be repaid. 
E) that has been allocated to a retirement program. 
A) obtained from the owners of the business. 
B) borrowed through banks. 
C) obtained by employee benefit programs. 
D) that has to be repaid. 
E) that has been allocated to a retirement program. A

Question 3

Investments in commodities and options are all of the following except

Accepted Answer

A) are more speculative investments 
B) usually stress immediate returns 
C) usually stress long-term growth 
D) are higher risk than GICs 
E) are higher risk than common stocks 
A) are more speculative investments 
B) usually stress immediate returns 
C) usually stress long-term growth 
D) are higher risk than GICs 
E) are higher risk than common stocks A

Question 4

Which of the following investments would rank the highest with regard to being speculative?

Accepted Answer

A) savings bonds 
B) GICs 
C) preferred stock 
D) corporate bonds 
E) options 
A) savings bonds 
B) GICs 
C) preferred stock 
D) corporate bonds 
E) options

Question 5

Investing in global may result in investors experiencing ____________ risk.

Accepted Answer

A) currency exchange rate 
B) interest rate 
C) inflation. 
D) market 
E) income 
A) currency exchange rate 
B) interest rate 
C) inflation. 
D) market 
E) income

Question 6

What is step 4 of the steps for effective investment planning?

Accepted Answer

A) Determine the amount of money you need to obtain your goals. 
B) Specify the amount of money you currently have available to fund your investments. 
C) List different investments that you want to evaluate. 
D) Reduce possible investments to a reasonable number. 
E) Choose at least two different investments. 
A) Determine the amount of money you need to obtain your goals. 
B) Specify the amount of money you currently have available to fund your investments. 
C) List different investments that you want to evaluate. 
D) Reduce possible investments to a reasonable number. 
E) Choose at least two different investments.

Question 7

The potential return of any investment should be directly related to the risk that the investor assumes.

Accepted Answer

A) True 
 B)False

Question 8

Once you have painstakingly developed a financial plan, it is not wise to change it.

Accepted Answer

A) True 
 B)False

Question 9

After the death of her husband, Gina Balmer, 35, received a check for $350,000 from a life insurance company.Ms.Balmer has two small children and wants to make sure that both she and the children are taken care of in the future.Based on this information, which of the investment factors listed below would be the most important to Ms.Balmer in her investment program?

Accepted Answer

A) beta 
B) safety 
C) business failure 
D) market risk 
E) liquidity 
A) beta 
B) safety 
C) business failure 
D) market risk 
E) liquidity

Question 10

Jamie Lynn earns $40,000 a year.Her monthly expenses total $1,700.What is the minimum amount of money that Ms.Lynn should set aside in an emergency fund?

Accepted Answer

A) $1,700 
B) $3,400 
C) $5,100 
D) $8,400 
E) $10,000 
A) $1,700 
B) $3,400 
C) $5,100 
D) $8,400 
E) $10,000

Question 11

Preferred stock represents the most basic form of corporate ownership.

Accepted Answer

A) True 
 B)False

Question 12

When starting an investment program, you should participate in an elective savings program.

Accepted Answer

A) True 
 B)False

Question 13

The fees for investor services and newsletters may range between $30 and $750 a year.

Accepted Answer

A) True 
 B)False

Question 14

Statistical averages show trends and direction, but they do not pinpoint the actual value of a specific investment.

Accepted Answer

A) True 
 B)False

Question 15

An intermediate-term objective is defined as one that will be accomplished within eighteen months.

Accepted Answer

A) True 
 B)False

Question 16

Matt Jacobs is single and 24.He has just graduated from college and obtained a job making $26,400 a year.He would like to establish a long-term investment program.Which of the following investments would you recommend for his investment program?

Accepted Answer

A) growth stocks 
B) government bonds 
C) corporate bonds 
D) commodities 
E) a money-market fund 
A) growth stocks 
B) government bonds 
C) corporate bonds 
D) commodities 
E) a money-market fund

Question 17

When a bondholder loses money because interest rates in the economy increase, it is an example of ____________ risk.

Accepted Answer

A) market 
B) interest rate 
C) inflation 
D) business failure 
E) current 
A) market 
B) interest rate 
C) inflation 
D) business failure 
E) current

Question 18

Today, federal, provincial, and local governments and most corporations have a home page where you can obtain valuable information.

Accepted Answer

A) True 
 B)False

Question 19

An emergency fund should be deposited in a

Accepted Answer

A) savings account at the highest available interest rate. 
B) six-month certificate of deposit. 
C) checking account. 
D) safe place at home. 
E) safe deposit box in a bank vault. 
A) savings account at the highest available interest rate. 
B) six-month certificate of deposit. 
C) checking account. 
D) safe place at home. 
E) safe deposit box in a bank vault.

Question 20

Normally, corporate bondholders receive interest

Accepted Answer

A) monthly. 
B) every three months. 
C) every six months. 
D) yearly. 
E) when the bond matures. 
A) monthly. 
B) every three months. 
C) every six months. 
D) yearly. 
E) when the bond matures.

The average investor cannot afford to purchase much of the investment information available from the government.

Equity capital is money

Investments in commodities and options are all of the following except

Which of the following investments would rank the highest with regard to being speculative?

Investing in global may result in investors experiencing ____________ risk.

What is step 4 of the steps for effective investment planning?

The potential return of any investment should be directly related to the risk that the investor assumes.

Once you have painstakingly developed a financial plan, it is not wise to change it.

Jamie Lynn earns $40,000 a year.Her monthly expenses total $1,700.What is the minimum amount of money that Ms.Lynn should set aside in an emergency fund?

Preferred stock represents the most basic form of corporate ownership.

When starting an investment program, you should participate in an elective savings program.

The fees for investor services and newsletters may range between $30 and $750 a year.

Statistical averages show trends and direction, but they do not pinpoint the actual value of a specific investment.

An intermediate-term objective is defined as one that will be accomplished within eighteen months.

Matt Jacobs is single and 24.He has just graduated from college and obtained a job making $26,400 a year.He would like to establish a long-term investment program.Which of the following investments would you recommend for his investment program?

When a bondholder loses money because interest rates in the economy increase, it is an example of ____________ risk.

Today, federal, provincial, and local governments and most corporations have a home page where you can obtain valuable information.

An emergency fund should be deposited in a

Normally, corporate bondholders receive interest

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 10: Fundamentals of Investing

The average investor cannot afford to purchase much of the investment information available from the government.

Equity capital is money

Investments in commodities and options are all of the following except

Which of the following investments would rank the highest with regard to being speculative?

Investing in global may result in investors experiencing ____________ risk.

What is step 4 of the steps for effective investment planning?

The potential return of any investment should be directly related to the risk that the investor assumes.

Once you have painstakingly developed a financial plan, it is not wise to change it.

Jamie Lynn earns $40,000 a year.Her monthly expenses total $1,700.What is the minimum amount of money that Ms.Lynn should set aside in an emergency fund?

Preferred stock represents the most basic form of corporate ownership.

When starting an investment program, you should participate in an elective savings program.

The fees for investor services and newsletters may range between $30 and $750 a year.

Statistical averages show trends and direction, but they do not pinpoint the actual value of a specific investment.

An intermediate-term objective is defined as one that will be accomplished within eighteen months.

Matt Jacobs is single and 24.He has just graduated from college and obtained a job making $26,400 a year.He would like to establish a long-term investment program.Which of the following investments would you recommend for his investment program?

When a bondholder loses money because interest rates in the economy increase, it is an example of ____________ risk.

Today, federal, provincial, and local governments and most corporations have a home page where you can obtain valuable information.

An emergency fund should be deposited in a

Normally, corporate bondholders receive interest

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters