Exam 10: Fundamentals of Investing

Choose four of the investment alternatives presented in Chapter 10 and describe how the factors of safety, risk, income, growth, and liquidity affect that investment alternative.

Free

(Essay)

4.9/5

(39)

Question 1

Correct Answer:

Verified

Obviously, the answer to this question depends on which four investment alternatives students choose. Figure 10.3 (in the text) provides a summary of each factor for all investment alternatives presented in this chapter.

Which of the following is not a true statement?

Free

(Multiple Choice)

4.7/5

(46)

Question 2

Correct Answer:

Verified

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

Free

(True/False)

4.9/5

(39)

Question 3

Correct Answer:

Verified

True

Nationwide real estate values increase by ____________ percent a year.

(Multiple Choice)

4.8/5

(39)

Question 4

Equity capital is money

(Multiple Choice)

5.0/5

(36)

Question 5

Which of the following is not a true statement?

(Multiple Choice)

4.8/5

(36)

Question 6

During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

(True/False)

4.8/5

(32)

Question 7

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

(True/False)

4.9/5

(37)

Question 8

All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:

(Multiple Choice)

4.8/5

(36)

Question 9

Which of the following investments offers the greatest liquidity?

(Multiple Choice)

5.0/5

(37)

Question 10

The amount put aside as an emergency fund should be equal to 1 to 3 months of living expenses.

(True/False)

4.8/5

(34)

Question 11

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

(Multiple Choice)

4.9/5

(39)

Question 12

Which of the following is not a true statement?

(Multiple Choice)

4.8/5

(35)

Question 13

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

(Multiple Choice)

4.8/5

(26)

Question 14

Which of the following statements does not accurately describe a line of credit?

(Multiple Choice)

4.9/5

(28)

Question 15

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

(True/False)

4.7/5

(47)

Question 16

An investor concerned with a predictable source of income provided by an investment would choose

(Multiple Choice)

4.8/5

(33)

Question 17

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

(Multiple Choice)

4.9/5

(35)

Question 18

Earnings that are reinvested in a corporation are called

(Multiple Choice)

4.9/5

(37)

Question 19

An intermediate-term objective is defined as one that will be accomplished within two to five years.

(True/False)

4.8/5

(35)

Question 20

Showing 1 - 20 of 114

Choose four of the investment alternatives presented in Chapter 10 and describe how the factors of safety, risk, income, growth, and liquidity affect that investment alternative.

Which of the following is not a true statement?

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

Nationwide real estate values increase by ____________ percent a year.

Equity capital is money

Which of the following is not a true statement?

During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

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

All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:

Which of the following investments offers the greatest liquidity?

The amount put aside as an emergency fund should be equal to 1 to 3 months of living expenses.

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

Which of the following is not a true statement?

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

Which of the following statements does not accurately describe a line of credit?

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

An investor concerned with a predictable source of income provided by an investment would choose

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

Earnings that are reinvested in a corporation are called

An intermediate-term objective is defined as one that will be accomplished within two to five years.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source 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