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Investing Review
Investing Review
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Pre-test review for Investing and saving
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Which of the following is NOT a characteristic of U.S. savings bonds?
Limited Withdrawals
<div>Exempt from Local and state taxes</div>
Minimum holding period is
will earn interest up 30 years
2
A stock sold on the market for the very first time is called a:
AMEX
IPO
SEC
DOW
3
Which investment is the most risky according to the "pyramid of risk."
collectibles
junk bonds
real estate
penny stocks
4
A corporation gets its equity capital from its ____________________.
Board Members
Professional Managers
Partners
Stockholders
5
You are looking for an investment that combines stocks and bonds, you would likely choose....
Corporate Bonds
Mutual Funds
Government Bonds
Real Estate
6
Which investment is backed by the government?
Treasury Bond
Mutual Fund
Which investment is backed by the government?
Annuity
7
The largest exchange in the world is this stock exchange.
SEC
NYSE
AMEX
NASDAQ
8
A "liquid" investment is one that is
Easy to access
Tied up for 10 years or less
Buried under water
Tied up for 3 years or less
9
Extremely high risk investment that fluctuates wildly. Lack of company information.
Corporate Bonds
Penny Stocks
Mutual Funds
Treasury Bonds
10
An Index of the performance of 500 of the largest companies on the exchange(s) is called...
Indy 500
Dow Jones Industrial Average
Nascar 500
S&P 500
11
Which of the following would be considered the investment alternative with the highest risk?
Treasury Bond
Certificate of Deposit
Corporate Bond
Money Market Account
12
Which item would NOT be considered a collectible?
diamonds
Grandma's salt and pepper shaker's collection
rare coins
gold coins
13
Which risk component is most likely at fault when an investor's stock becomes worthless?
Financial Markets
Interest Rates
Business Failure
Inflation
14
The largest financial advisors are monitored by the ______________________.
The Securities and Exchange Commision (SEC)
Harvard Business Review
Chartered Financial Consultants
200 Wealthy Stock Brokers in New York
15
A company's EPS (earnings per share) is
Cost of doing Business
Total profit/Total debt
Total profit/Total outstanding stock
Total debt/total stock
16
Which is the most conservative investment?
corporate bonds
collectibles
penny stocks
government bonds
17
What very low risk investment requires that your money be held for a specified period of time?
Certificate of Deposit
Mutual Funds
Checking Account
Stocks
18
Which typically earns the lowest rate of return?
Stock
Certificate of Deposit
Savings Account
Mutual Fund
19
Which term describes the stock market when prices have been been steadily rising overtime?
<div>up market</div>
happy market
bear market
bull market
20
Works of Art (paintings, sculptures, etc.) are considering this type of investment
Gallery Art
Decorations
Collectibles
Real Estate
21
Before a stock can be sold, the issue needs to be approved by the:
NYSE
US Investment Association
SEC
IPO
22
What does ownership of stock offer?
They guarantee that shares will never become worthless.
A high rate of return.
Part ownership in a company.
Your initial investment plus any profits when you sell.
23
A discount Brokerage Company offers all of the following EXCEPT:
minimal advice if any
lower trading prices
free trades for everyone
possible online trading
24
What is the major difference between stocks and bonds?
Bond earnings vary greatly, whil stock earnings are fixed.
Stocks pay a fixed rate of interest; bonds do not.
Stocks do not ensure a fixed rate of return; bonds do.
Profit changes effect stock prices, but not bonds.
25
A marketplace where brokers meet to buy and sell stock is called
a brokerage firm
a primary market
E-bay
a stock exchange, such as the NYSE</div>
26
Which of the following best describes the relationship between risk and return?
The higher the return, the lower the risk.
There is no relationship between risk and return.
The lower the potential return, the greater the risk.
The higher the potential return, the greater the risk.
27
This strategy for investing involves balancing the risk in your portfolio.
Diversification
stock saving
Conservation
Hoarding
28
Technology stocks are mainly sold with this organization.
NIKKEI
NASDAQ
IPO
NYSE
29
Companies issue shares of stock to:
Gain more money throughout the year
to gain public trust for the company.
raise money for the expansion of the business.
to advertise their product.
30
Which statement is not true about the Dow Jones Industrial average?
It is a leading indicator of technology and growth stocks.
It is an index of 30 of the largest US corporations
Economic news may effect the average.
It is an indicator of NYSE stock performance.
