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Investments
Investments
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Questions
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Answers
1
A share of ownership in a corporation
savings
mutual fund
bond
stock
2
Which of the following would be considered a high risk investment?
treasury bills
corporate bonds
collectibles
aggressive stocks
3
Market professional, oversees orderly trading of specific stocks; stands outside trading posts
e-Broker
broker
financial advisor
specialists
4
Most stock orders reach the Trading Floor through this electronic order-routing system
e-Broker
specialist
SuperDOT
consolidated tape
5
Organized markets for buying and selling financial securities are
bond exchanges
brokerage house
stock exchanges
auction market
6
This type of stock entitles the stockholder to voting priviledges
common stock
discount stock
blue-chip stock
preferred stock
7
A fund created by an investment firm that raises money from many shareholders and invests it
common fund
investment fund
money market fund
mutual fund
8
This type of federal bond is sold in values of $50 to $10,000 and redeemed after 1 year.
Savings Bond
Treasury Bill
Bond
Note
9
This represents membership in the NYSE and the right to trade on the NYSE Trading Floor
specialist
seat
bucket
broker
10
A certificate issued by a government or company in which it promises to pay back borrowed money
stock
bond
mutual fund
stock option
11
This type of market is when the prices of stocks are generally rising...
bear
bullet
bull
buzz
12
This is a tradable document that shows evidence of debt or ownership...
investment
checking
security
savings
13
Savings accounts, money market fund, and CDs are considered what type of investment risk?
moderate risk
high risk
low risk
no risk
14
Selling stock for more than you paid for it results in
interest payment
stock exchange
capital gain
capital loss
15
The date in which the investor will receive the face value of the bond is called
The maturity date
The interest date
The yield date
The bond date
16
Saving enough money to pay for a vacation is an example of what length of goal?
Long-Term
Short-Term
I'll never go on a vacation
Mid-Term
17
A share of profits given to shareholders
rebate
kickback
dividend
claim
18
This is usually the first banking product people use...
Money Market Funds
Certificates of Deposit
Savings Account
Bonds
19
This type of federal bond is issued in units of $1,000 and reach maturity in 4, 13, or 26 weeks
Note
Savings Bond
Bond
Treasury Bill
20
This type of bond is issued by local and state governments
Note
Municipal Bond
Corporate Bond
Saving Bond
21
Which is an example of a long-term financial goal?
Saving for college
Buying a car
Buying a business
Retirement
22
Using money to participate in an enterprise that offers the possibility of profit is called
buying stock
saving
investing
networking
23
The return on an investment is the amount of money the investment earns, or also known as the
Interest
Commission
Yield
Payout
24
The ease that an investment can be converted into cash is called what?
Interest
Conversion
Safety
Liquidity
25
This type of stock gives the owner the advantage of receiving cash dividends before others
common stock
preferred stock
blue-chip stock
discount stock