Question 1

According to some financial experts like Suze Orman,how much of an investment portfolio should a 50-year-old have in growth investments?

Accepted Answer

A)  30% 
B)  40% 
C)  50% 
D)  60% 
E)  70% 
A)  30% 
B)  40% 
C)  50% 
D)  60% 
E)  70%

Question 2

Which of the following investments typically has the most risk?

Accepted Answer

A)  Government bonds 
B)  Cash 
C)  Cash equivalents 
D)  Certificates of deposit 
E)  Stocks 
A)  Government bonds 
B)  Cash 
C)  Cash equivalents 
D)  Certificates of deposit 
E)  Stocks

Question 3

An easy way to determine what percentage of your assets should be invested in growth investments is to take your age and subtract it from 80.

Accepted Answer

A) True 
 B)False

Question 4

If a bond is quoted in the newspaper at 105,what is its price?

Accepted Answer

A)  $1.05 
B)  $10.50 
C)  $105.00 
D)  $1,000 
E)  $1,050 
A)  $1.05 
B)  $10.50 
C)  $105.00 
D)  $1,000 
E)  $1,050

Question 5

Marissa Christianson is interested in purchasing an XYZ bond that pays $60 interest per year.However,similar bonds pay interest of 4%.Approximately how much should Marissa be willing to pay for her XYZ bond?

Accepted Answer

Approximate market value = Dol

Question 6

Which of the following risks reduces your buying power?

Accepted Answer

A)  Inflation 
B)  Interest rate 
C)  Business failure 
D)  Market 
E)  Stock 
A)  Inflation 
B)  Interest rate 
C)  Business failure 
D)  Market 
E)  Stock

Question 7

Intermediate goals should be accomplished in two to five years.

Accepted Answer

A) True 
 B)False

Question 8

The taxable equivalent yield for a municipal bond is calculated using the

Accepted Answer

A)  Investor's tax rate and Treasury bill yield. 
B)  Tax-exempt yield and current inflation rate. 
C)  Tax-exempt yield and the investor's tax rate. 
D)  Current inflation rate and number of years until maturity. 
E)  Tax-exempt yield and number of years until maturity. 
A)  Investor's tax rate and Treasury bill yield. 
B)  Tax-exempt yield and current inflation rate. 
C)  Tax-exempt yield and the investor's tax rate. 
D)  Current inflation rate and number of years until maturity. 
E)  Tax-exempt yield and number of years until maturity.

Question 9

Paul Paulson recently heard about layoffs at his company.What are at least three steps he can take to make sure his financial affairs are in order?

Accepted Answer

Student answers should include three of

Question 10

According to some financial experts like Suze Orman,how much of an investment portfolio should a 50-year-old invest in safe (nongrowth)investments?

Accepted Answer

A)  30% 
B)  40% 
C)  50% 
D)  60% 
E)  70% 
A)  30% 
B)  40% 
C)  50% 
D)  60% 
E)  70%

Question 11

Which of the following risks deals with fluctuations due to economic conditions?

Accepted Answer

A)  Inflation 
B)  Interest rate 
C)  Business failure 
D)  Market 
E)  Stock 
A)  Inflation 
B)  Interest rate 
C)  Business failure 
D)  Market 
E)  Stock

Question 12

If you need access to your funds in two years or less,which of the following investments would be least appropriate?

Accepted Answer

A)  Cash 
B)  Certificates of deposit 
C)  Short-term government bonds 
D)  Highly rated corporate bonds 
E)  Stocks and mutual funds 
A)  Cash 
B)  Certificates of deposit 
C)  Short-term government bonds 
D)  Highly rated corporate bonds 
E)  Stocks and mutual funds

Question 13

A security issued by the U.S.government that protects the investor from inflation is called a

Accepted Answer

A)  Treasury note. 
B)  TIPS. 
C)  SAFE. 
D)  Treasury bond. 
E)  Treasury bill. 
A)  Treasury note. 
B)  TIPS. 
C)  SAFE. 
D)  Treasury bond. 
E)  Treasury bill.

Question 14

A bond that can be exchanged,at the owner's option,for a specified number of shares of the corporation's stock is called a(n)____________ bond.

Accepted Answer

A)  debenture 
B)  mortgage 
C)  indenture 
D)  convertible 
E)  subordinated 
A)  debenture 
B)  mortgage 
C)  indenture 
D)  convertible 
E)  subordinated

Question 15

Interest paid to corporate bondholders is

Accepted Answer

A)  Tax-deductible for the investor. 
B)  Tax-deductible for the corporation. 
C)  Tax-exempt for the investor. 
D)  Tax-exempt for the corporation. 
E)  Tax-deductible for both the investor and the corporation. 
A)  Tax-deductible for the investor. 
B)  Tax-deductible for the corporation. 
C)  Tax-exempt for the investor. 
D)  Tax-exempt for the corporation. 
E)  Tax-deductible for both the investor and the corporation.

Question 16

For many people,the easiest way to begin an investment program is to participate in an employer-sponsored 401(k)or 403(b)retirement account.

Accepted Answer

A) True 
 B)False

Question 17

A _____________ is an employer-sponsored retirement account.

Accepted Answer

A)  TRA account 
B)  301(a) account 
C)  509(re) account 
D)  401(k) account 
E)  321(a) account 
A)  TRA account 
B)  301(a) account 
C)  509(re) account 
D)  401(k) account 
E)  321(a) account

Question 18

A U.S.government security issued in minimum units of $100 with 4,13,26,or 52-week maturities is called a

Accepted Answer

A)  Subordinated bond. 
B)  Treasury bill. 
C)  Treasury note. 
D)  Treasury bond. 
E)  Savings bond. 
A)  Subordinated bond. 
B)  Treasury bill. 
C)  Treasury note. 
D)  Treasury bond. 
E)  Savings bond.

Question 19

Investments that earn a lower rate of interest will have a higher total dollar return than those that earn a high rate of interest.

Accepted Answer

A) True 
 B)False

Question 20

If you can leave your funds alone for 5-10 years or more,which of the following investments would be most appropriate?

Accepted Answer

A)  Cash 
B)  Certificates of deposit 
C)  Short-term government bonds 
D)  Highly rated corporate bonds 
E)  Stocks and mutual funds 
A)  Cash 
B)  Certificates of deposit 
C)  Short-term government bonds 
D)  Highly rated corporate bonds 
E)  Stocks and mutual funds

According to some financial experts like Suze Orman,how much of an investment portfolio should a 50-year-old have in growth investments?

Which of the following investments typically has the most risk?

An easy way to determine what percentage of your assets should be invested in growth investments is to take your age and subtract it from 80.

If a bond is quoted in the newspaper at 105,what is its price?

Marissa Christianson is interested in purchasing an XYZ bond that pays $60 interest per year.However,similar bonds pay interest of 4%.Approximately how much should Marissa be willing to pay for her XYZ bond?

Which of the following risks reduces your buying power?

Intermediate goals should be accomplished in two to five years.

The taxable equivalent yield for a municipal bond is calculated using the

Paul Paulson recently heard about layoffs at his company.What are at least three steps he can take to make sure his financial affairs are in order?

According to some financial experts like Suze Orman,how much of an investment portfolio should a 50-year-old invest in safe (nongrowth)investments?

Which of the following risks deals with fluctuations due to economic conditions?

If you need access to your funds in two years or less,which of the following investments would be least appropriate?

A security issued by the U.S.government that protects the investor from inflation is called a

A bond that can be exchanged,at the owner's option,for a specified number of shares of the corporation's stock is called a(n)____________ bond.

Interest paid to corporate bondholders is

For many people,the easiest way to begin an investment program is to participate in an employer-sponsored 401(k)or 403(b)retirement account.

A _____________ is an employer-sponsored retirement account.

A U.S.government security issued in minimum units of $100 with 4,13,26,or 52-week maturities is called a

Investments that earn a lower rate of interest will have a higher total dollar return than those that earn a high rate of interest.

If you can leave your funds alone for 5-10 years or more,which of the following investments would be most appropriate?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters

Exam 11: Investing Basics and Evaluating Bonds

According to some financial experts like Suze Orman,how much of an investment portfolio should a 50-year-old have in growth investments?

Which of the following investments typically has the most risk?

An easy way to determine what percentage of your assets should be invested in growth investments is to take your age and subtract it from 80.

If a bond is quoted in the newspaper at 105,what is its price?

Marissa Christianson is interested in purchasing an XYZ bond that pays $60 interest per year.However,similar bonds pay interest of 4%.Approximately how much should Marissa be willing to pay for her XYZ bond?

Which of the following risks reduces your buying power?

Intermediate goals should be accomplished in two to five years.

The taxable equivalent yield for a municipal bond is calculated using the

Paul Paulson recently heard about layoffs at his company.What are at least three steps he can take to make sure his financial affairs are in order?

According to some financial experts like Suze Orman,how much of an investment portfolio should a 50-year-old invest in safe (nongrowth)investments?

Which of the following risks deals with fluctuations due to economic conditions?

If you need access to your funds in two years or less,which of the following investments would be least appropriate?

A security issued by the U.S.government that protects the investor from inflation is called a

A bond that can be exchanged,at the owner's option,for a specified number of shares of the corporation's stock is called a(n)____________ bond.

Interest paid to corporate bondholders is

For many people,the easiest way to begin an investment program is to participate in an employer-sponsored 401(k)or 403(b)retirement account.

A _____________ is an employer-sponsored retirement account.

A U.S.government security issued in minimum units of $100 with 4,13,26,or 52-week maturities is called a

Investments that earn a lower rate of interest will have a higher total dollar return than those that earn a high rate of interest.

If you can leave your funds alone for 5-10 years or more,which of the following investments would be most appropriate?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters