Finance Saving & Investing
- 1.A stock split occurs when the shares of stock owned by existing stockholders are divided into a larger number of shares.
- A.
True
- B.
False
- 2.Conservative investors are attracted to small-cap stocks.
- A.
True
- B.
False
- 3.A bear market occurs when investors are pessimistic about the economy.
- A.
True
- B.
False
- 4.Large-cap funds include stocks of companies with assets of at least $500 million.
- A.
True
- B.
False
- 5.To pay for a new school, a local government may issue a ______________.
- A.
Stock
- B.
Mutual fund
- C.
Municipal bond
- D.
Penny stock
- 6.Government bonds have a high risk default.
- A.
True
- B.
False
- 7.Preferred stock offers investors all the following advantages EXCEPT ___________.
- A.
Dividends before common stockholders receive any
- B.
A higher yield than common stock
- C.
More potential growth than common stock
- 8.Diversification is a key reason for buying a ______________.
- A.
Corporate bond
- B.
Municipal bond
- C.
Treasury note
- D.
Mutual fund
- 9.A company that issues stock to a small group of people is a _______________.
- A.
Public corporation
- B.
Private corporation
- C.
Sole proprietorship
- D.
Partnership
- 10.A company that sells its shares openly in stock markets, where anyone can buy them, is a ________.
- A.
Public corporation
- B.
Securities exchange
- C.
Sole proprietorship
- D.
Private corporation
- 11.One advantage of preferred stock is ______________.
- A.
Less risk than common stock
- B.
Higher yield than corporate bonds
- C.
Greater growth potential than common stock
- 12.The _____________ is the dollar amount that the bondholder will receive at the bond's maturity.
- A.
Face value
- B.
Yield
- C.
Premium
- D.
Debt
- 13.Payments that result from the sale of securities in a fund's portfolio are called ______________.
- A.
Income dividends
- B.
Net asset values
- C.
Capital gains
- D.
Shares
- 14.Which of the following should be performed as part of a financial check up ___________.
- A.
Balance your budget
- B.
Have insurance
- C.
Start an emergency fund
- D.
All answers are correct
- 15.Which of the following are the 5 components of risk?
- A.
Inflation risk, interest rate risk, business failure, financial market, global investment
- B.
Inflation risk, interest rate risk, liquidity, real estate
- C.
Global investment, liquidity, real estate, bonds
- D.
Inflation risk, interest rate risk, business failure, bear market
- 16.Income stocks ____________.
- A.
Pay high dividends
- B.
Are more stable companies
- C.
Are associated some company growth
- D.
All answers are correct
- 17.Small-cap stocks ________________.
- A.
Lower investment risk
- B.
Are from large corporations
- C.
Are from smaller, less established companies
- D.
Are from companies with capitalization of $500 million or more
- 18.The market condition that occurs when investors are pessimistic about the economy and sell stock is called a __________.
- A.
Bull market
- B.
Bear market
- C.
Total return
- D.
Security
- 19.The market condition that occurs when investors are optimistic about the economy and buy stock is called a __________.
- A.
Bear market
- B.
Bull market
- C.
Economic decline
- D.
Efficient market
Questions: 20 | Attempts: 10505 | Last updated: Sep 2, 2020
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Sample QuestionWhat percentage of mutual funds, financial experts, and investment advisory services underperform the overall market and comparable indexes?
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-
Sample QuestionThe return may be thought of as _________________.
Questions: 40 | Attempts: 8516 | Last updated: Sep 2, 2020
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Sample QuestionThe structure that is available in an economy to mobilize the capital from various surplus sectors of the economy and allocate and distribute the same to the various needy sectors is known as----------
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