FMGT Unit 3 Test Review

Question 1

Ginnie Mae and Freddie Mac

Accepted Answer

Indirect real estate investments

Question 2

Average management fee for all mutual funds is _____% of fund&#x27;s assets.

Accepted Answer

.50 to 2

Question 3

Number of quarters of coverage to qualify for SS if born after 1928.

Accepted Answer

40

Question 4

Most likely to decrease upon retirement.

Accepted Answer

federal income tax

Question 5

Which type of REIT owns and operates income producing real estate.

Accepted Answer

Equity

Question 6

Mutual fund where investors pay commission with every purchase.

Accepted Answer

load

Question 7

Stocks trading at a price above their worth.

Accepted Answer

stock bubble

Question 8

Calculate yield for a T-bill

Accepted Answer

divide interest amount by purchase price

Question 9

What are common stock owners entitled to?

Accepted Answer

right to vote at annual meetings

Question 10

When a stock splits two for one, expect the price per share to_______.

Accepted Answer

decrease to half its pre-split value

Question 11

Minimum price seller is willing to receive for a govt security.

Accepted Answer

ask

Question 12

Defined contribution plan characteristic.

Accepted Answer

no federal guarantee of benefits

Question 13

Dividend yield on preferred stock is often __________ than yield on bonds.

Accepted Answer

higher than

Question 14

In general, the price of gold ..........

Accepted Answer

fluctuates daily

Question 15

Morningstar and Value Line are companies of

Accepted Answer

investor services

Question 16

You want to buy Apple stocks at a specified price or better.

Accepted Answer

limit order

Question 17

A bond backed only by the corporation&#x27;s reputation.

Accepted Answer

debenture

Question 18

Investment theory that stock price movements are purely random.

Accepted Answer

efficient market hypothesis

Question 19

How does the fed require companies selling new securities to disclose?

Accepted Answer

prospectus

Question 20

What is the primary goal of asset allocation?

Accepted Answer

risk reduction

Questions 20