Question 1

As investors age,their investments typically become more aggressive.

Accepted Answer

A) True 
 B)False

Question 2

As people approach retirement,which of the following holds true for most?

Accepted Answer

A)  They choose more speculative investments. 
B)  Their choices of investments do not change. 
C)  They choose more conservative investments. 
D)  They choose more risky investments. 
E)  They move all of their money into certificates of deposit. 
A)  They choose more speculative investments. 
B)  Their choices of investments do not change. 
C)  They choose more conservative investments. 
D)  They choose more risky investments. 
E)  They move all of their money into certificates of deposit.

Question 3

Which of the following securities are rated at various agencies?

Accepted Answer

A)  Treasury bills 
B)  Treasury notes 
C)  Corporate bonds 
D)  Treasury bonds 
E)  TIPS 
A)  Treasury bills 
B)  Treasury notes 
C)  Corporate bonds 
D)  Treasury bonds 
E)  TIPS

Question 4

The type of bond that is tracked electronically by the issuing company is a

Accepted Answer

A)  General obligation bond. 
B)  Registered bond. 
C)  Revenue bond. 
D)  Tax-exempt bond. 
E)  Zero-coupon bond. 
A)  General obligation bond. 
B)  Registered bond. 
C)  Revenue bond. 
D)  Tax-exempt bond. 
E)  Zero-coupon bond.

Question 5

Inflation risk deals with

Accepted Answer

A)  A reduction in buying power. 
B)  Changes in interest rates. 
C)  Bad management and/or unsuccessful products. 
D)  Political or social conditions. 
E)  Predictable sources of income. 
A)  A reduction in buying power. 
B)  Changes in interest rates. 
C)  Bad management and/or unsuccessful products. 
D)  Political or social conditions. 
E)  Predictable sources of income.

Question 6

A valid short-term investment goal is

Accepted Answer

A)  Saving $4,000 per year for 40 years for retirement. 
B)  Spending less than $500 per month for housing. 
C)  Accumulating $3,000 in a savings account over the next 12 months. 
D)  Using credit cards less in the next six months. 
E)  Purchasing a $250,000 life insurance policy within the next four years. 
A)  Saving $4,000 per year for 40 years for retirement. 
B)  Spending less than $500 per month for housing. 
C)  Accumulating $3,000 in a savings account over the next 12 months. 
D)  Using credit cards less in the next six months. 
E)  Purchasing a $250,000 life insurance policy within the next four years.

Question 7

If your monthly expenses total $2,000,you should save at least _______ in an emergency fund before focusing on your investment portfolio.

Accepted Answer

A) $1,000 
B) $2,000 
C) $4,000 
D) $6,000 
E) $8,000
F)$10,000 
A) $1,000 
B) $2,000 
C) $4,000 
D) $6,000 
E) $8,000
F)$10,000

Question 8

A corporate bond is a written pledge of a government or municipality to repay a specified sum of money,along with interest.

Accepted Answer

A) True 
 B)False

Question 9

Safe investments include all of the following except

Accepted Answer

A)  Government bonds. 
B)  Savings accounts. 
C)  Certificates of deposit. 
D)  Certain corporate bonds. 
E)  Commodities. 
A)  Government bonds. 
B)  Savings accounts. 
C)  Certificates of deposit. 
D)  Certain corporate bonds. 
E)  Commodities.

Question 10

Which of the following risks deals with the possibility that bad management,unsuccessful products,or other factors will cause the firm to be less profitable than originally anticipated?

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 11

The value of a bond is not tied to the corporation's ability to repay its bond.

Accepted Answer

A) True 
 B)False

Question 12

If your monthly expenses total $2,500,you should save at least _______ in an emergency fund before focusing on your investment portfolio.

Accepted Answer

A) $1,000 
B) $2,500 
C) $5,000 
D) $7,500 
E) $10,000
F)$12,500 
A) $1,000 
B) $2,500 
C) $5,000 
D) $7,500 
E) $10,000
F)$12,500

Question 13

A debt security issued by a state or local government is known as a

Accepted Answer

A)  Treasury bond. 
B)  Municipal bond. 
C)  Corporate bond. 
D)  Subordinated bond. 
E)  Federal agency bond. 
A)  Treasury bond. 
B)  Municipal bond. 
C)  Corporate bond. 
D)  Subordinated bond. 
E)  Federal agency bond.

Question 14

What factors should be considered before making your first investment?

Accepted Answer

Before beginning an investment program,y

Question 15

Whether you are making your own decisions or have professional help,you must consider the tax consequences of selling your investments.

Accepted Answer

A) True 
 B)False

Question 16

Since 1926,stocks have earned an average annual return of near 10%.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following does not describe a growth company?

Accepted Answer

A)  The company pays a large dividend. 
B)  Earnings are reinvested in the company for future growth. 
C)  Earnings potential is high. 
D)  Managers can solve problems associated with rapid expansion. 
E)  Sales revenue is increasing. 
A)  The company pays a large dividend. 
B)  Earnings are reinvested in the company for future growth. 
C)  Earnings potential is high. 
D)  Managers can solve problems associated with rapid expansion. 
E)  Sales revenue is increasing.

Question 18

According to some financial experts like Suze Orman,how much of an investment portfolio should a 30-year-old have in growth investments?

Accepted Answer

A)  30% 
B)  65% 
C)  70% 
D)  80% 
E)  100% 
A)  30% 
B)  65% 
C)  70% 
D)  80% 
E)  100%

Question 19

The process of spreading your assets among several different types of investments to lessen risk is called

Accepted Answer

A)  Asset allocation. 
B)  Asset combination. 
C)  Asset investments. 
D)  Asset riskiness. 
E)  Asset returns. 
A)  Asset allocation. 
B)  Asset combination. 
C)  Asset investments. 
D)  Asset riskiness. 
E)  Asset returns.

Question 20

The potential return on any investment should be indirectly related to the risk the investor assumes.

Accepted Answer

A) True 
 B)False

As investors age,their investments typically become more aggressive.

As people approach retirement,which of the following holds true for most?

Which of the following securities are rated at various agencies?

The type of bond that is tracked electronically by the issuing company is a

Inflation risk deals with

A valid short-term investment goal is

If your monthly expenses total $2,000,you should save at least _______ in an emergency fund before focusing on your investment portfolio.

A corporate bond is a written pledge of a government or municipality to repay a specified sum of money,along with interest.

Safe investments include all of the following except

Which of the following risks deals with the possibility that bad management,unsuccessful products,or other factors will cause the firm to be less profitable than originally anticipated?

The value of a bond is not tied to the corporation's ability to repay its bond.

If your monthly expenses total $2,500,you should save at least _______ in an emergency fund before focusing on your investment portfolio.

A debt security issued by a state or local government is known as a

What factors should be considered before making your first investment?

Whether you are making your own decisions or have professional help,you must consider the tax consequences of selling your investments.

Since 1926,stocks have earned an average annual return of near 10%.

Which of the following does not describe a growth company?

According to some financial experts like Suze Orman,how much of an investment portfolio should a 30-year-old have in growth investments?

The process of spreading your assets among several different types of investments to lessen risk is called

The potential return on any investment should be indirectly related to the risk the investor assumes.

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

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Exam 11: Investing Basics and Evaluating Bonds

As investors age,their investments typically become more aggressive.

As people approach retirement,which of the following holds true for most?

Which of the following securities are rated at various agencies?

The type of bond that is tracked electronically by the issuing company is a

Inflation risk deals with

A valid short-term investment goal is

If your monthly expenses total $2,000,you should save at least _______ in an emergency fund before focusing on your investment portfolio.

A corporate bond is a written pledge of a government or municipality to repay a specified sum of money,along with interest.

Safe investments include all of the following except

Which of the following risks deals with the possibility that bad management,unsuccessful products,or other factors will cause the firm to be less profitable than originally anticipated?

The value of a bond is not tied to the corporation's ability to repay its bond.

If your monthly expenses total $2,500,you should save at least _______ in an emergency fund before focusing on your investment portfolio.

A debt security issued by a state or local government is known as a

What factors should be considered before making your first investment?

Whether you are making your own decisions or have professional help,you must consider the tax consequences of selling your investments.

Since 1926,stocks have earned an average annual return of near 10%.

Which of the following does not describe a growth company?

According to some financial experts like Suze Orman,how much of an investment portfolio should a 30-year-old have in growth investments?

The process of spreading your assets among several different types of investments to lessen risk is called

The potential return on any investment should be indirectly related to the risk the investor assumes.

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