Institutional investors manage money for businesses and nonprofit organizations, but not for individuals. True False Points Received: 1 of 1 Comments: Question 2. Question : A collection of securities designed to meet an investment goal is called a portfolio. True False Points Received: 1 of 1 Comments: Question 3. Question : Almost half of Americans own stock or stock mutual funds. True False Points Received: 1 of 1 Comments: Question 4. Question : Which of the following economic conditions is most difficult to identify: recovery expansion recession change in direction Points Received: 1 of 1 Comments: Question 5. Question : You should spend money on housing, clothing and basic insurance before investing. True False Points Received: 1 of 1 Comments: Question 6. Question : Some foreign investments may provide higher returns or lower risk than purely domestic investments. True False Points Received: 1 of 1 Comments: Question 7. Question : The value of a derivative security is based on the value of an underlying security. True False Points Received: 1 of 1 Comments: Question 8. Question : The periodic payment that a corporation pays to its shareholders from net earnings is called a capital gain. True False Points Received: 1 of 1 Comments: Question 9. Question : Which one of the following has the lowest level of risk? commercial paper money market mutual fund account banker's acceptance U.S. Treasury bill Points Received: 1 of 1 Comments: Question 10. Question : Retirement plans, such as a 401(k), allow employees to defer taxes on the plan contributions until such time as the funds are withdrawn from the retirement plan. True False Points Received: 1 of 1 Comments: Question 11. Question : Common stock is a type of debt instrument. True False Points Received: 1 of 1 Comments: Question 12. Question : In the financial markets, individuals are net suppliers of funds. True False Points Received: 1 of 1 Comments: Question 13. Question : Which one of the following would be the LEAST liquid investment? stock series EE bond money market mutual fund real estate Points Received: 1 of 1 Comments: Question 14. Question : As the number of investments in a portfolio increases, the risk of the portfolio ________ increases. decreases. stays the same. is eliminated. Points Received: 1 of 1 Comments: Question 15. Question : Under current tax law, dividend income is taxed at the same rate as ordinary income. short-term capital gains. long-term capital gains. interest income. Points Received: 1 of 1 Comments: Question 16. Question : In selecting investments consistent with your goals, you should consider rates of return and taxes only. the pre-tax rate of return only. annual dividends and taxes only. risks, returns, and taxes. Points Received: 1 of 1 Comments: Question 17. Question : On a net basis, funds in the financial markets are generally supplied by individuals. both individuals and business firms. business firms. the government. Points Received: 1 of 1 Comments: Question 18. Question : Bonds represent a higher level of risk than do stocks in the same company. True False Points Received: 1 of 1 Comments: Question 19. Question : Retirees seeking income prefer growth-oriented common stock and certificates of deposit. growth-oriented common stock and preferred stock. preferred stock and options. government bonds and low-risk income stocks. Points Received: 0 of 1 Comments: Question 20. Question : Growth oriented investments and speculative vehicles are preferred by young investors. middle-aged investors. retired investors. any age investor who prefers low risk. Points Received: 0 of 1 Comments: * Times are displayed in (GMT-10:00) Hawaii
