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plans, such as a 401(k), allow employees to defer taxes on the plan contributions until such time as the funds are withdrawn from the retirement plan.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