Question 1

The money obtained from selling corporate bonds

Accepted Answer

A) is obtained from lenders. 
B) is obtained from the owners of the business. 
C) is obtained from employee stock option programs. 
D) does not have to be repaid. 
E) has been allocated to retirement programs. 
A) is obtained from lenders. 
B) is obtained from the owners of the business. 
C) is obtained from employee stock option programs. 
D) does not have to be repaid. 
E) has been allocated to retirement programs.

Question 2

One dollar placed in a safety deposit box in 1980 is worth

Accepted Answer

A) less than 50 cents. 
B) about 10 cents. 
C) zero. 
D) between 50 cents and one dollar. 
E) more than one dollar. 
A) less than 50 cents. 
B) about 10 cents. 
C) zero. 
D) between 50 cents and one dollar. 
E) more than one dollar.

Question 3

Diversification of assets among several types of investments can decrease risk.

Accepted Answer

A) True 
 B)False

Question 4

A short-term investment objective is defined as one that will be accomplished within a period of less than two years.

Accepted Answer

A) True 
 B)False

Question 5

Desktop information services provide instantaneous access to real-time historical financial data, news and many other services.

Accepted Answer

A) True 
 B)False

Question 6

What is step 3 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

A good rule of thumb is to limit installment payments to ____________ percent of your net monthly income.

Accepted Answer

A) 8 
B) 20 
C) 25 
D) 10 
E) 30 
A) 8 
B) 20 
C) 25 
D) 10 
E) 30

Question 8

A designated financial planner has had at least two years of training in securities, insurance, taxes, real estate, and estate planning and has passed a rigorous examination.

Accepted Answer

A) True 
 B)False

Question 9

Nationwide real estate values have historically increased by ____________ percent a year.

Accepted Answer

A) 1 
B) 3 
C) 7 
D) 10 
E) 15 
A) 1 
B) 3 
C) 7 
D) 10 
E) 15

Question 10

What rate of interest was earned for $2,000 to accumulate to be $26,362 after 10 years?

Accepted Answer

A) 4% 
B) 5% 
C) 6% 
D) 7% 
E) 8% 
A) 4% 
B) 5% 
C) 6% 
D) 7% 
E) 8%

Question 11

An elective savings program is when an individual cuts back on spending for one to two months to obtain additional money for investment purposes.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a true statement?

Accepted Answer

A) When choosing an investment, it is not necessary to consider the risk factor. 
B) During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation. 
C) The interest rate risk associated with investments in bonds is the result of changes in the interest rates in the economy. 
D) The risk of business failure is associated with investments in common stock, preferred stock, and corporate bonds. 
E) The price of stocks, bonds, and other investments may fluctuate because of the behavior of investors in the marketplace. 
A) When choosing an investment, it is not necessary to consider the risk factor. 
B) During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation. 
C) The interest rate risk associated with investments in bonds is the result of changes in the interest rates in the economy. 
D) The risk of business failure is associated with investments in common stock, preferred stock, and corporate bonds. 
E) The price of stocks, bonds, and other investments may fluctuate because of the behavior of investors in the marketplace.

Question 13

The basic idea behind a hedge fund is to take two simultaneous positions in two different investments in order to reduce risk.

Accepted Answer

A) True 
 B)False

Question 14

How many years will it take $2,000 invested at the end of each year to become $10,833 at a rate of return of 4%?

Accepted Answer

A) 1 
B) 5 
C) 10 
D) 20 
E) 30 
A) 1 
B) 5 
C) 10 
D) 20 
E) 30

Question 15

Which of the following investments offers the least liquidity?

Accepted Answer

A) bank accounts 
B) government bonds 
C) real estate 
D) common stock 
E) preferred stock 
A) bank accounts 
B) government bonds 
C) real estate 
D) common stock 
E) preferred stock

Question 16

How many years will it take $2,000 invested at the end of each year to become $91,524 at a rate of return of 8%?

Accepted Answer

A) 1 
B) 5 
C) 10 
D) 20 
E) 30 
A) 1 
B) 5 
C) 10 
D) 20 
E) 30

Question 17

A long-term objective may take more than five years to accomplish.

Accepted Answer

A) True 
 B)False

Question 18

The risk factors associated with a specific investment

Accepted Answer

A) can change over time 
B) can include interest rate rick 
C) can include inflation risk. 
D) can include market risk. 
E) can include all of the choices. 
A) can change over time 
B) can include interest rate rick 
C) can include inflation risk. 
D) can include market risk. 
E) can include all of the choices.

Question 19

The dollar value of a fixed-return investment decreases when overall interest rates in the economy decreases.

Accepted Answer

A) True 
 B)False

Question 20

Bondholders generally receive interest payments every five months.

Accepted Answer

A) True 
 B)False

The money obtained from selling corporate bonds

One dollar placed in a safety deposit box in 1980 is worth

Diversification of assets among several types of investments can decrease risk.

A short-term investment objective is defined as one that will be accomplished within a period of less than two years.

Desktop information services provide instantaneous access to real-time historical financial data, news and many other services.

What is step 3 of the steps for effective investment planning?

A good rule of thumb is to limit installment payments to ____________ percent of your net monthly income.

A designated financial planner has had at least two years of training in securities, insurance, taxes, real estate, and estate planning and has passed a rigorous examination.

Nationwide real estate values have historically increased by ____________ percent a year.

What rate of interest was earned for $2,000 to accumulate to be $26,362 after 10 years?

An elective savings program is when an individual cuts back on spending for one to two months to obtain additional money for investment purposes.

Which of the following is not a true statement?

The basic idea behind a hedge fund is to take two simultaneous positions in two different investments in order to reduce risk.

How many years will it take $2,000 invested at the end of each year to become $10,833 at a rate of return of 4%?

Which of the following investments offers the least liquidity?

How many years will it take $2,000 invested at the end of each year to become $91,524 at a rate of return of 8%?

A long-term objective may take more than five years to accomplish.

The risk factors associated with a specific investment

The dollar value of a fixed-return investment decreases when overall interest rates in the economy decreases.

Bondholders generally receive interest payments every five months.

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

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Exam 10: Fundamentals of Investing

The money obtained from selling corporate bonds

One dollar placed in a safety deposit box in 1980 is worth

Diversification of assets among several types of investments can decrease risk.

A short-term investment objective is defined as one that will be accomplished within a period of less than two years.

Desktop information services provide instantaneous access to real-time historical financial data, news and many other services.

What is step 3 of the steps for effective investment planning?

A good rule of thumb is to limit installment payments to ____________ percent of your net monthly income.

A designated financial planner has had at least two years of training in securities, insurance, taxes, real estate, and estate planning and has passed a rigorous examination.

Nationwide real estate values have historically increased by ____________ percent a year.

What rate of interest was earned for $2,000 to accumulate to be $26,362 after 10 years?

An elective savings program is when an individual cuts back on spending for one to two months to obtain additional money for investment purposes.

Which of the following is not a true statement?

The basic idea behind a hedge fund is to take two simultaneous positions in two different investments in order to reduce risk.

How many years will it take $2,000 invested at the end of each year to become $10,833 at a rate of return of 4%?

Which of the following investments offers the least liquidity?

How many years will it take $2,000 invested at the end of each year to become $91,524 at a rate of return of 8%?

A long-term objective may take more than five years to accomplish.

The risk factors associated with a specific investment

The dollar value of a fixed-return investment decreases when overall interest rates in the economy decreases.

Bondholders generally receive interest payments every five months.

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