Question 1
1. Exchange traded funds are
mutual funds that trade on the Big Board.
baskets of securities that trade like a single stock.
index funds that trade on the NYSE.
groups of securities that trade only on regional exchanges.
4.5 points
Question 2
1. A market where securities are bought from or sold to a market maker is known as a
broker market.
dealer market.
exchange floor.
board of exchange.
4.5 points
Question 3
1. The primary market for futures is the
Kansas City Board of Trade.
New York Mercantile Exchange.
Chicago Board of Trade.
Chicago Board Options Exchange.
4.5 points
Question 4
1. In the U. S., the most prestigious designation for financial planners is
CFP.
CPA.
ING.
SIPC.
4.5 points
Question 5
1. IPO activity tends to peak when stock prices
have fallen sharply.
have risen sharply.
are volatile and unstable.
Stock prices have relatively little influence on IPO activity.
4.5 points
Question 6
1. Investors seeking to increase their wealth as quickly as possible would invest in
corporate bonds and preferred stock.
large company stocks with high dividends.
smaller companies pursuing rapid growth.
government bonds and low-risk income stocks.
4.5 points
Question 7
1. Advantages of investing in real estate potentially include
I and IV only
II and IV only
I, II and IV only
I, II, III and IV
4.5 points
Question 8
1. In selecting investments consistent with your goals, you should consider
rates of return and taxes only.
the pre-tax rate of return only.
annual dividends and taxes only.
risks, returns, and taxes.
4.5 points
Question 9
1. A forum in which suppliers and demanders of funds make financial transactions is called a financial
institution.
bank.
instrument.
market.
4.5 points
Question 10
1. Beginning in 2010, the amount protected by the Federal Deposit Insurance Corporation in non-interest bearing checking accounts is
zero.
$100,000.
unlimited.
$250,000.
