Question 1

Which of the following types of investment information can be found on the Internet?

Accepted Answer

A)  Interest rates for certificates of deposit
B)  Current price information for stocks, bonds, and mutual funds
C)  Broker's buy and sell recommendations
D)  Financial calculators
E)  All of theseF) A) and B)
G) C) and E)

Question 2

Which one of the following is not a business periodical?

Accepted Answer

A)  Barrons
B)  Bloomberg Business Week
C)  New York Stock Exchange Report
D)  Forbes
E)  FortuneF) A) and B)
G) A) and E)

Question 3

Asset allocation is the process of spreading your assets among several different types of investments to lessen risk.

Accepted Answer

A) True 
 B)False

Question 4

In the beginning of 2016,the average balance on bank cards for U.S.families was about how much?

Accepted Answer

A)  $4,404
B)  $7,500
C)  $10,200
D)  $15,400
E)  $18,100F) A) and B)
G) B) and E)

Question 5

Stocks provide average safety while government bonds provide _____ safety.

Accepted Answer

A)  low
B)  medium
C)  high
D)  average
E)  below averageF) A) and B)
G) C) and D)

Question 6

If interest rates in the overall economy decrease,what will happen to the market value of a corporate bond with a fixed interest rate?

Accepted Answer

A)  The bond will lose all its value.
B)  The value of the bond will increase.
C)  The value of the bond will decrease.
D)  The value of the bond will not change.
E)  It is impossible to determine if the bond's value will increase, decrease, or remain constant.F) D) and E)
G) B) and E)

Question 7

Jack Masters earns $40,000 a year.His monthly expenses total $2,100.What is the minimum amount of money that Mr.Masters should set aside in an emergency fund?

Accepted Answer

A)  $2,100
B)  $4,200
C)  $6,300
D)  $8,400
E)  $10,000F) None of the above
G) A) and B)

Question 8

After the death of her husband,Gina Baker,35,received a check for $350,000 from a life insurance company.Gina has two small children and wants to make sure that both she and the children are taken care of in the future.Based on this information,which of the investment factors listed below would be the most important to Gina in her investment program?

Accepted Answer

A)  Beta
B)  Safety
C)  Business failure
D)  Market risk
E)  LiquidityF) B) and C)
G) A) and E)

Question 9

The money obtained by a company from selling corporate bonds:

Accepted Answer

A)  is obtained from investors.
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)  must be allocated to retirement programs.F) A) and E)
G) A) and B)

Question 10

Eric Peltz earns $80,000 a year.His monthly expenses total $4,300.What is the minimum amount of money that Mr.Peltz should set aside in an emergency fund?

Accepted Answer

A)  $2,150
B)  $4,300
C)  $8,600
D)  $12,900
E)  $43,000F) B) and E)
G) A) and E)

Question 11

Once you have developed an asset allocation plan for your investments,you never need to adjust it.

Accepted Answer

A) True 
 B)False

Question 12

Establishing a ___________ ensures that you will have an amount of money that can be obtained quickly in case of immediate need.

Accepted Answer

A)  traditional IRA
B)  emergency fund
C)  Roth IRA
D)  403b
E)  401kF) A) and D)
G) A) and C)

Question 13

The investment pyramid describes four levels of investment.State the name of each level and provide examples of investments at each level.

Accepted Answer

Level 1: Financial Security: Examples in...

Question 14

For an investor who wants to be conservative,which of the following investments would not be appropriate?

Accepted Answer

A)  Government bonds
B)  Coins and stamps
C)  Utility stocks
D)  Corporate bonds
E)  Preferred stocksF) B) and E)
G) A) and E)

Question 15

Many financial planners typically charge hourly consulting fees in the following range:

Accepted Answer

A)  $10 - $30.
B)  $50 - $70.
C)  $75 - $200.
D)  $125 - $250.
E)  $150 - $300.F) C) and E)
G) A) and C)

Question 16

Which one of the following is a true statement?

Accepted Answer

A)  It is not possible for real estate values to decrease.
B)  Location is the least important factor when making a real estate investment.
C)  There are many factors to consider before investing in real estate.
D)  There is no reason to evaluate a real estate investment because real estate always increases in value sooner or later.
E)  The growth rate of real estate makes it a "get-rich-quick" investment.F) A) and D)
G) B) and D)

Question 17

Hugh Jackman is thinking about buying an investment.The investment option that he is thinking about buying is an investment where investors pool their money.One of the key features is that it is managed by professional managers.What investment is Hugh thinking about purchasing?

Accepted Answer

A)  Common stock
B)  Preferred stock
C)  Corporate bond
D)  Real estate
E)  Mutual fundF) A) and E)
G) All of the above

Question 18

Which one of these investments pools the funds of many investors,hires a professional money manager to manage those funds,and offers diversification to investors?

Accepted Answer

A)  NOW account
B)  Securities exchange
C)  Certificate of deposit
D)  Mutual fund
E)  Stock optionF) D) and E)
G) None of the above

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which one of the following is 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 no risk that the financial return on an investment will differ from 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 deals with changes in the value of stocks and bonds due to changes in interest rates in the market.
E)  The prices of stocks, bonds, and other investments never fluctuate in the market.F) D) and E)
G) A) and E)

Exam 13: Investing Fundamentals

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

Correct Answer
verified

Once you have developed an asset allocation plan for your investments,you never need to adjust it.

Correct Answer
verified

Eric Peltz earns $80,000 a year.His monthly expenses total $4,300.What is the minimum amount of money that Mr.Peltz should set aside in an emergency fund?

Correct Answer
verified

Stocks provide average safety while government bonds provide _____ safety.

Correct Answer
verified

In the beginning of 2016,the average balance on bank cards for U.S.families was about how much?

Correct Answer
verified

Hugh Jackman is thinking about buying an investment.The investment option that he is thinking about buying is an investment where investors pool their money.One of the key features is that it is managed by professional managers.What investment is Hugh thinking about purchasing?

Correct Answer
verified

Correct Answer
verified

Which one of these investments pools the funds of many investors,hires a professional money manager to manage those funds,and offers diversification to investors?

Correct Answer
verified

Asset allocation is the process of spreading your assets among several different types of investments to lessen risk.

Correct Answer
verified

Many financial planners typically charge hourly consulting fees in the following range:

Correct Answer
verified

Which of the following types of investment information can be found on the Internet?

Correct Answer
verified

If interest rates in the overall economy decrease,what will happen to the market value of a corporate bond with a fixed interest rate?

Correct Answer
verified

Which one of the following is not a business periodical?

Correct Answer
verified

Jack Masters earns $40,000 a year.His monthly expenses total $2,100.What is the minimum amount of money that Mr.Masters should set aside in an emergency fund?

Correct Answer
verified

The money obtained by a company from selling corporate bonds:

Correct Answer
verified

For an investor who wants to be conservative,which of the following investments would not be appropriate?

Correct Answer
verified

Which one of the following is a true statement?

Correct Answer
verified

Establishing a ___________ ensures that you will have an amount of money that can be obtained quickly in case of immediate need.

Correct Answer
verified

Which one of the following is a true statement?

Correct Answer
verified

The investment pyramid describes four levels of investment.State the name of each level and provide examples of investments at each level.

Correct Answer
verified
Level 1: Financial Security: Examples in...
View Answer

Exam 13: Investing Fundamentals

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

Correct AnswerverifiedShow Answer

Once you have developed an asset allocation plan for your investments,you never need to adjust it.

Correct AnswerverifiedShow Answer

Eric Peltz earns $80,000 a year.His monthly expenses total $4,300.What is the minimum amount of money that Mr.Peltz should set aside in an emergency fund?

Correct AnswerverifiedShow Answer

Stocks provide average safety while government bonds provide _____ safety.

Correct AnswerverifiedShow Answer

In the beginning of 2016,the average balance on bank cards for U.S.families was about how much?

Correct AnswerverifiedShow Answer

Hugh Jackman is thinking about buying an investment.The investment option that he is thinking about buying is an investment where investors pool their money.One of the key features is that it is managed by professional managers.What investment is Hugh thinking about purchasing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which one of these investments pools the funds of many investors,hires a professional money manager to manage those funds,and offers diversification to investors?

Correct AnswerverifiedShow Answer

Asset allocation is the process of spreading your assets among several different types of investments to lessen risk.

Correct AnswerverifiedShow Answer

Many financial planners typically charge hourly consulting fees in the following range:

Correct AnswerverifiedShow Answer

Which of the following types of investment information can be found on the Internet?

Correct AnswerverifiedShow Answer

If interest rates in the overall economy decrease,what will happen to the market value of a corporate bond with a fixed interest rate?

Correct AnswerverifiedShow Answer

Which one of the following is not a business periodical?

Correct AnswerverifiedShow Answer

Jack Masters earns $40,000 a year.His monthly expenses total $2,100.What is the minimum amount of money that Mr.Masters should set aside in an emergency fund?

Correct AnswerverifiedShow Answer

The money obtained by a company from selling corporate bonds:

Correct AnswerverifiedShow Answer

For an investor who wants to be conservative,which of the following investments would not be appropriate?

Correct AnswerverifiedShow Answer

Which one of the following is a true statement?

Correct AnswerverifiedShow Answer

Establishing a ___________ ensures that you will have an amount of money that can be obtained quickly in case of immediate need.

Correct AnswerverifiedShow Answer

Which one of the following is a true statement?

Correct AnswerverifiedShow Answer

The investment pyramid describes four levels of investment.State the name of each level and provide examples of investments at each level.

Correct AnswerverifiedLevel 1: Financial Security: Examples in...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified
Level 1: Financial Security: Examples in...
View Answer