Question 1

Which of the following is the most readily available source of information for an investor?

Accepted Answer

A) the daily newspaper 
B) government publications 
C) corporate reports 
D) investor newsletters 
E) business periodicals 
A) the daily newspaper 
B) government publications 
C) corporate reports 
D) investor newsletters 
E) business periodicals

Question 2

What rate of interest was earned for $2,000 to accumulate to be $81,990 after 20 years?

Accepted Answer

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

Question 3

Which of the following is not a true statement?

Accepted Answer

A) No one is going to make you save the money you need to start an investment program. 
B) To be useful, investment objectives must be specific and measurable. 
C) Investment goals must be tailored to the particular financial needs of the individual. 
D) Because investment objectives deal with the future, it is useless to plan more than five years in the future. 
E) A long-term investment objective involves a time period of five years or more. 
A) No one is going to make you save the money you need to start an investment program. 
B) To be useful, investment objectives must be specific and measurable. 
C) Investment goals must be tailored to the particular financial needs of the individual. 
D) Because investment objectives deal with the future, it is useless to plan more than five years in the future. 
E) A long-term investment objective involves a time period of five years or more.

Question 4

Which of the following is not a typical speculative risk?

Accepted Answer

A) Calls 
B) Puts 
C) Gemstones 
D) Blue chip stocks 
E) Coins 
A) Calls 
B) Puts 
C) Gemstones 
D) Blue chip stocks 
E) Coins

Question 5

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

Accepted Answer

A) real estate 
B) common stock 
C) preferred stock 
D) GICs 
E) antiques and collectables 
A) real estate 
B) common stock 
C) preferred stock 
D) GICs 
E) antiques and collectables

Question 6

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

Accepted Answer

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

Question 7

Which of the following is/are a desktop information service?

Accepted Answer

A) Bloomberg Professional 
B) 3000Xtra 
C) Reuters 
D) CanadianMoney Saver 
E) A, B, C 
A) Bloomberg Professional 
B) 3000Xtra 
C) Reuters 
D) CanadianMoney Saver 
E) A, B, C

Question 8

Studies show that investors are willing to run a greater risk to avoid a loss than to make a gain.In behavioural finance this is called loss aversion.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following investments would provide the largest amount of income and most predictable source of income?

Accepted Answer

A) commodities 
B) savings accounts 
C) derivatives 
D) common stock 
E) guaranteed investment certificates 
A) commodities 
B) savings accounts 
C) derivatives 
D) common stock 
E) guaranteed investment certificates

Question 10

Mutual funds range from very conservative to extremely speculative investments.

Accepted Answer

A) True 
 B)False

Question 11

The ease with which an investment can be converted to cash without a substantial loss in dollar value is called the

Accepted Answer

A) asset value. 
B) liquidity factor. 
C) immediate quotient. 
D) fixed cost factor. 
E) variable cost factor. 
A) asset value. 
B) liquidity factor. 
C) immediate quotient. 
D) fixed cost factor. 
E) variable cost factor.

Question 12

Which of the following is not a true statement?

Accepted Answer

A) Professional management is an especially important factor for investors purchasing a mutual fund. 
B) One of the many reasons why investors purchase mutual funds is diversification. 
C) With mutual funds, an occasional loss in one security is often offset by gains in other securities. 
D) Mutual funds are designed to appeal to conservative investors with long-term investment goals. 
E) The individual investor is responsible for choosing the right mutual fund. 
A) Professional management is an especially important factor for investors purchasing a mutual fund. 
B) One of the many reasons why investors purchase mutual funds is diversification. 
C) With mutual funds, an occasional loss in one security is often offset by gains in other securities. 
D) Mutual funds are designed to appeal to conservative investors with long-term investment goals. 
E) The individual investor is responsible for choosing the right mutual fund.

Question 13

Under current tax laws, capital losses can be

Accepted Answer

A) simply lost. 
B) used to offset capital gains. 
C) used to reduce your last year's tax amount. 
D) used to offset dividend income. 
E) used to offset interest and rental income. 
A) simply lost. 
B) used to offset capital gains. 
C) used to reduce your last year's tax amount. 
D) used to offset dividend income. 
E) used to offset interest and rental income.

Question 14

Although useful for many things, the Internet cannot be used to monitor the value of stock, bond, and mutual fund investments.

Accepted Answer

A) True 
 B)False

Question 15

Anne Marie earns $25,000 a year.Her monthly expenses total $1,200.What is the minimum amount of money that Ms.Lynn should set aside in an emergency fund?

Accepted Answer

A) $1,200 
B) $1,800 
C) $2,400 
D) $3,600 
E) $12,500 
A) $1,200 
B) $1,800 
C) $2,400 
D) $3,600 
E) $12,500

Question 16

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

Accepted Answer

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

Question 17

Common stock represents the most basic form of corporate ownership.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is not true?

Accepted Answer

A) An investor seeking global diversification with less than $200,000 to invest should invest in global mutual funds. 
B) Changes in currency exchange rate may affect the return on your investment. 
C) Today, more and more investors are investing in stocks and bonds issued by foreign firms and global mutual funds. 
D) An investor in Canada cannot purchase shares in a foreign company. 
E) Because of international accounting rules, evaluating foreign investments is more difficult than evaluating investments in Canada. 
A) An investor seeking global diversification with less than $200,000 to invest should invest in global mutual funds. 
B) Changes in currency exchange rate may affect the return on your investment. 
C) Today, more and more investors are investing in stocks and bonds issued by foreign firms and global mutual funds. 
D) An investor in Canada cannot purchase shares in a foreign company. 
E) Because of international accounting rules, evaluating foreign investments is more difficult than evaluating investments in Canada.

Question 19

For an investor who wants to speculate, which of the following investments would be appropriate?

Accepted Answer

A) red-chip stocks 
B) derivatives 
C) utility stocks 
D) corporate bonds 
E) preferred stock issues 
A) red-chip stocks 
B) derivatives 
C) utility stocks 
D) corporate bonds 
E) preferred stock issues

Question 20

Which of the following investments offers the greatest growth potential?

Accepted Answer

A) bank accounts 
B) common stock 
C) corporate bonds 
D) government bonds 
E) option bonds 
A) bank accounts 
B) common stock 
C) corporate bonds 
D) government bonds 
E) option bonds

Which of the following is the most readily available source of information for an investor?

What rate of interest was earned for $2,000 to accumulate to be $81,990 after 20 years?

Which of the following is not a true statement?

Which of the following is not a typical speculative risk?

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

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

Which of the following is/are a desktop information service?

Studies show that investors are willing to run a greater risk to avoid a loss than to make a gain.In behavioural finance this is called loss aversion.

Which of the following investments would provide the largest amount of income and most predictable source of income?

Mutual funds range from very conservative to extremely speculative investments.

The ease with which an investment can be converted to cash without a substantial loss in dollar value is called the

Which of the following is not a true statement?

Under current tax laws, capital losses can be

Although useful for many things, the Internet cannot be used to monitor the value of stock, bond, and mutual fund investments.

Anne Marie earns $25,000 a year.Her monthly expenses total $1,200.What is the minimum amount of money that Ms.Lynn should set aside in an emergency fund?

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

Common stock represents the most basic form of corporate ownership.

Which of the following statements is not true?

For an investor who wants to speculate, which of the following investments would be appropriate?

Which of the following investments offers the greatest growth potential?

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

Which of the following is the most readily available source of information for an investor?

What rate of interest was earned for $2,000 to accumulate to be $81,990 after 20 years?

Which of the following is not a true statement?

Which of the following is not a typical speculative risk?

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

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

Which of the following is/are a desktop information service?

Studies show that investors are willing to run a greater risk to avoid a loss than to make a gain.In behavioural finance this is called loss aversion.

Which of the following investments would provide the largest amount of income and most predictable source of income?

Mutual funds range from very conservative to extremely speculative investments.

The ease with which an investment can be converted to cash without a substantial loss in dollar value is called the

Which of the following is not a true statement?

Under current tax laws, capital losses can be

Although useful for many things, the Internet cannot be used to monitor the value of stock, bond, and mutual fund investments.

Anne Marie earns $25,000 a year.Her monthly expenses total $1,200.What is the minimum amount of money that Ms.Lynn should set aside in an emergency fund?

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

Common stock represents the most basic form of corporate ownership.

Which of the following statements is not true?

For an investor who wants to speculate, which of the following investments would be appropriate?

Which of the following investments offers the greatest growth potential?

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