Question

Question 1.1. Effectively planning your spending and saving decisions provides for: (Points : 2)

A foundation for wise money management today
Will guarantee you a million dollars
Financial prosperity in the future
Both A and B
Both A and C

Question 2.2. The majority of people invest their money to: (Points : 2)

Enhance their current income
Accumulate funds for major expenditures
Save for retirement
Shelter their income from taxes
All of the above

Question 3.3. The federal government regulates securities markets through the: (Points : 2)

Department of Commerce
Federal Reserve System
National Association of Securities Dealers
Securities and Exchange Commission
Federal Securities Agency

Question 4.4. A certified financial planner can provide you with a company’s ______ describing the firm and the security issue it wishes to sell. (Points : 2)

advertisement
prospectus
underwriting journal
dealer newsletter
None of these

Question 5.5. What investment portfolio is most diversified? (Points : 2)

Equal amounts of stock in IBM®, Intel®, and Microsoft®
Municipal bonds issued by New York, Houston, and Chicago
One-year, five-year, and ten-year certificates of deposit
100 shares of Wal-Mart stock, an IBM bond, and a two-year certificate of deposit

Question 6.6. What are the returns from shares of stock? (Points : 2)

Stock splits
Capital depreciation
Dividends
The ability to buy bonds

Question 7.7. The total interest that has accumulated after more than one interest period is called: (Points : 2)

Simple interest
Compound interest
Variable interest
Fixed interest

Question 8.8. An investment plan is: (Points : 2)

A statement that states how money is to be invested to obtain a specified goal
A statement that shows how much you owe
A plan to go into debt
A plan to cover your losses

Question 9.9. Ask price is: (Points : 2)

The price you sell a security
The price the security is worth
The price at which one can purchase a security
None of these

Question 10.10. The process of choosing securities from different industries and different risk levels is called: (Points : 2)

Discount broking
Asset Management
Diversification
Compounding
None of these