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Duplicate of Saving & Investment Questions Flashcards | StudBud
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Duplicate of Saving & Investment Questions
Duplicate of Saving & Investment Questions
25 terms
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Saving and investment questions to review for WISE Financial Literacy test.
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
Its Board of Directors
The World Bank
The Securities and Exchange Commission (SEC)
The Federal Reserve
2
A daily newspaper that provides detailed coverage of the business and financial world is
The Wall Street Journal
Barrons'
The Economist
Kiplinger’s Personal Finance
3
Chris bought stock for $4,000 and 1 year later he sold it for $5,000. His sale resulted in a:
capital gain
profit
market value
yield
4
Buying a treasury bill (T-bill) is best for investors who are looking for
a higher yield on their investment than corp. bonds offer.
neither of these.
a place to invest between $100-$500.
a secure, low risk investment
5
Dante Co.'s oil tanker collided w/a ship causing a major oil spill. Price of Dante stock will
remain unchanged
increase
flucuate
decrease
6
Investor buys a house that has 3 rental apartments. The profits may be lower because
taxes on the house are lowered
tenant in an apartment decides to paint the hallways.
mortgage on the house is paid off.
one of the apartments is not rented.
7
The phrase "don't put all your eggs in 1 basket" describes the following investment strategy?
Liquidity
Diversification
Return on investment
Pooling
8
A blue-chip stock can be described as:
A stock w/co. with a reputation for products and services
A stock that pays interest
A preferred stock
A speculative stock
9
What is the largest equities market in the world?
Over-the-counter (OTC) market
New York Stock Exchange (NYSE)
American Stock Exchange (AMEX)
NASDAQ market
10
A pharmacy is to drugs as the American Stock Exchange is to:
Securities
Stock advisers
Investors
Mutual funds
11
Advantages of investing in mutual funds include all of the following
except
liquidity.
diversification.
professional management.
a guaranteed rate of return
12
The interest earned on United States Series EE Savings Bonds is
deducted at the time of the bond's purchase
exempt from state and local taxes.
equal to the money paid to purchase it.
pd in a lump sum when the face value on the bond is reached.
13
What is the goal of an income fund?
to earn returns from capital gains alone
to make current income in the form of interest or dividends
to earn returns from both dividends and capital gains
to produce current income from interest alone
14
The greater risk you are willing to take, the greater the potential return.
False
True
15
Farm products (such as wheat, corn, and cattle) and metals (such as gold and silver) are called
Collectibles
Futures
Commodities
Options
16
Lu rec'd inheritance of $100,000. He plans to invest the $$. Which carries the greatest risk?
Bonds
Common stocks
Savings account
Regular checking accounts
17
A factor that is likely to affect the market price of a stock is:
The number of corporate employees
Wages
The age of the corporation
Corporate profits
18
With inflation, it takes more money to buy the same goods and services.
True
False
19
Mutual funds:
Contains a wide range of different investment instruments
Usually less risky than investing in a money market
Guaranteed to increase in value
An investment portfolio managed by the investor
20
Publicly held corporations:
Are listed first on the New York Stock Exchange
Guarantee a positive return to investors
Are not-for-profit organizations
Have stock that are held by public/outside investors
21
Investor owns a stock that pays a $2/share. Reinvesting that dividend, means the $2.00 will go
towards buying bonds in the corporation.
towards buying stocks similar to those already owned
towards buying more of the same stock.
towards buying preferred stock in the corporation.
22
When you invest in stocks, you are helping businesses make and sell new products & services.
False
True
23
A professionally managed grp of investments bought using a pool of money from investors is a
Ponzi scheme
passbook account.
savings bond
mutual fund
24
Which of the following is the
most
risky investment?
money market fund
income fund
growth fund
income and growth fund
25
Which of the following is
most
likely to be an impulse purchase?
a house
a new home stereo system
a candy bar
a new car
