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plans, such as a 401(k), allow employees to defer taxes on the plan contributions until such time as the funds are withdrawn from the retirement plan.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