Home Library Explore SAT

Home Library Explore SAT

PBF Chapter 8 Quiz Flashcards | StudBud

Explore/PBF Chapter 8 Quiz

PBF Chapter 8 Quiz

10 terms·StudBud Administration·51 plays

Imported from external platform

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
What is the main reason a mutual fund is preferable to a single stock?
It provides greater exposure to the market
It can automatically reinvest dividends
It has higher fees
It is riskier
2
Which of the following would Mr. Fairfield most recommend to investors?
Single Stocks
Mutual Funds
Penny Stocks
ETFs
3
Which of the following companies has market capitalization of between $2B and $10B?
Mega Cap
Mid Cap
Small Cap
Large Cap
4
Which of the following generally has the lowest management fees?
Mutual Fund
ETF
Hedge Fund
5
Which of the following is money that a business gets from its owners in order to operate?
Common Stock
Equity Capital
Debt
Dividends
6
Which of the following is not a good reason to seek out a financial planner?
They know more than you
They can manage your investments actively
They know special tricks to beat the market
They can help you preserve capital in market downturns
7
Mutual Fund managers are paid to
Lose your money
Negotiate prices
Help you develop and reach your financial goals
Make your money grow
8
Which type of bonds did Mr. Fairfleid say are best?
Government bonds
Corporate Bonds
Municipal Bonds
None of these
9
What is an index fund?
A group of stocks that tracks a specific market index
A fund where all investors pool their money to buy stocks
A fund where super rich people pool their money to buy stock
None of these
10
Why are municipal bonds better than corporate bonds?
They are less risky
All of these
They are tax free
The government won't go out of business