Question 1

Pro-future, Inc.
Sandy is a personal financial planner at Pro-future, Inc. Pro-future is a financial company that focuses on personal and business financing. When potential customers come to Sandy for financial advice, she first determines their investment goals in order to create a financial plan that fits their needs. Once she has created a suitable financial plan for a customer, Sandy gives her clients a pamphlet with suggestions for helping to accumulate the amount of money that they need.
Advice about risk is given to all of Sandy's clients. Sandy also makes strategic financial plans for each of her customers, which helps them to track and achieve their financial goals.
-Refer to Pro-future, Inc. Which of the following would Sandy explain in order to match her clients' possible investment plans with their investment goals?

Accepted Answer

A)   Secondary market
B)   Primary country debts
C)   Personality and temper
D)   Risk and safety
E)   Investment ratingsF) B) and E)
G) C) and D)

Question 2

A government security that is sold in $100 units with a maturity of more than one year but not more than ten years is a

Accepted Answer

A)   Series EE savings bond.
B)   U.S. savings bond.
C)   Treasury bond.
D)   Treasury note.
E)   Treasury bill.F) A) and B)
G) B) and E)

Question 3

Explain the steps involved in purchasing common stock that is listed on a national securities exchange. What role does an account executive play in completing the transaction?

Accepted Answer

The steps involved in purchasing common ...

Question 4

The total return you receive on an investment over a specific period of time divided by the amount invested is referred to as the

Accepted Answer

A)   rate of investment.
B)   rate of return.
C)   current yield.
D)   yield to maturity.
E)   income return.F) All of the above
G) B) and E)

Question 5

Corporate bonds are a form of

Accepted Answer

A)   short-term debt financing.
B)   bank account.
C)   long-term equity financing.
D)   long-term debt financing.
E)   short-term equity financing.F) None of the above
G) A) and B)

Question 6

If Sara purchases 100 shares of Abercrombie and Fitch stock for $20 a share and then sells the stock for $23 per share, Sara will have a

Accepted Answer

A)   $3 dividend per share.
B)   capital gain of $300.
C)   capital gain of $100.
D)   $300 decrease in the value of her stock.
E)   total return of $3.F) All of the above
G) C) and D)

Question 7

Hannah purchases shares of Disney stock. She pays for half with her own money and then borrows the other half of the money to pay for the stock. Hannah is buying stock

Accepted Answer

A)   in a low-risk manner.
B)   on margin.
C)   in a reckless manner.
D)   on credit.
E)   through mortgaging.F) C) and D)
G) B) and D)

Question 8

Each year, Miguel Guerra constructs a personal balance sheet to determine his

Accepted Answer

A)   cash surplus.
B)   cash deficit.
C)   net worth.
D)   cash balance.
E)   expenses.F) D) and E)
G) A) and B)

Question 9

The ease with which an investment can be converted into cash is called

Accepted Answer

A)   profitability.
B)   convertibility.
C)   cashibility.
D)   redemption value.
E)   liquidity.F) All of the above
G) B) and D)

Question 10

Describe how portfolio management, asset allocation, the time your investments have to work for you, and your age affect your choice of investments.

Accepted Answer

Portfolio management, asset allocation, ...

Question 11

Another name for an account executive is a

Accepted Answer

A)   brokerage member.
B)   Securities and Exchange participant.
C)   registered representative.
D)   commodities representative.
E)   Wall Street executive.F) None of the above
G) A) and E)

Question 12

A mutual fund that sells new shares to any investor who requests them is referred to as a(n)  ____ fund.

Accepted Answer

A)   net account
B)   closed-end
C)   open-end
D)   load
E)   no-loadF) D) and E)
G) C) and D)

Question 13

Which of the following investments is most liquid?

Accepted Answer

A)   Stocks
B)   Real estate
C)   Antique collectibles
D)   Corporate bonds
E)   Savings accountsF) A) and C)
G) B) and E)

Question 14

Kimberly has often invested in new biotechnology firms. She receives a booklet in the mail that contains a detailed description of a new security, the issuing biotech firm, and descriptive biographies of the firm's top managers and their experience. Kimberly received a(n)

Accepted Answer

A)   annual report.
B)   investor service report.
C)   stock quotation report.
D)   prospectus.
E)   quarterly report.F) B) and E)
G) C) and E)

Question 15

The Wall Street Journal is published

Accepted Answer

A)   twice a month.
B)   weekly.
C)   monthly.
D)   on weekdays.
E)   twice a week.F) A) and B)
G) A) and C)

Question 16

Which of the following statements is true?

Accepted Answer

A)   Common stock is a more conservative investment than preferred stock.
B)   Dividends on preferred stock are less secure than dividends paid to common stockholders.
C)   Preferred stockholders have a priority claim on dividends before common stockholders.
D)   As the basic form of ownership, common stockholders receive their dividends before any other class of stock.
E)   As the basic form of ownership, common stockholders have a priority claim on a firm's assets if the firm enters bankruptcy.F) B) and C)
G) A) and D)

Question 17

When an investor sets a maximum price a broker can spend per share, the investor is issuing a(n)

Accepted Answer

A)   market order.
B)   price option.
C)   limit order.
D)   matched order.
E)   open order.F) A) and E)
G) A) and B)

Question 18

Describe investing in corporate bonds--what is the process of purchasing/selling, how safe or risky are they, and is this type of investing favorable to you (why or why not)?

Accepted Answer

Investing in corporate bonds involves pu...

Question 19

How do you calculate rate of return? Why is this calculation important?

Accepted Answer

The rate of return is calculated by taki...

Question 20

What are two ways to make money on stock investments? Is one more favorable that the other?

Accepted Answer

There are primarily two ways to make mon...

Exam 20: A: Understanding Personal Finances and Investments

How do you calculate rate of return? Why is this calculation important?

Correct Answer
Answered by ExamLex AI
The rate of return is calculated by taki...
View Answer

Explain the steps involved in purchasing common stock that is listed on a national securities exchange. What role does an account executive play in completing the transaction?

Correct Answer
Answered by ExamLex AI
The steps involved in purchasing common ...
View Answer

Kimberly has often invested in new biotechnology firms. She receives a booklet in the mail that contains a detailed description of a new security, the issuing biotech firm, and descriptive biographies of the firm's top managers and their experience. Kimberly received a(n)

Correct Answer
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When an investor sets a maximum price a broker can spend per share, the investor is issuing a(n)

Correct Answer
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Which of the following statements is true?

Correct Answer
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Describe how portfolio management, asset allocation, the time your investments have to work for you, and your age affect your choice of investments.

Correct Answer
Answered by ExamLex AI
Portfolio management, asset allocation, ...
View Answer

What are two ways to make money on stock investments? Is one more favorable that the other?

Correct Answer
Answered by ExamLex AI
There are primarily two ways to make mon...
View Answer

Hannah purchases shares of Disney stock. She pays for half with her own money and then borrows the other half of the money to pay for the stock. Hannah is buying stock

Correct Answer
verified

Which of the following investments is most liquid?

Correct Answer
verified

Describe investing in corporate bonds--what is the process of purchasing/selling, how safe or risky are they, and is this type of investing favorable to you (why or why not)?

Correct Answer
Answered by ExamLex AI
Investing in corporate bonds involves pu...
View Answer

Each year, Miguel Guerra constructs a personal balance sheet to determine his

Correct Answer
verified

The Wall Street Journal is published

Correct Answer
verified

Correct Answer
verified

A mutual fund that sells new shares to any investor who requests them is referred to as a(n) ____ fund.

Correct Answer
verified

The ease with which an investment can be converted into cash is called

Correct Answer
verified

Corporate bonds are a form of

Correct Answer
verified

A government security that is sold in $100 units with a maturity of more than one year but not more than ten years is a

Correct Answer
verified

The total return you receive on an investment over a specific period of time divided by the amount invested is referred to as the

Correct Answer
verified

Another name for an account executive is a

Correct Answer
verified

If Sara purchases 100 shares of Abercrombie and Fitch stock for $20 a share and then sells the stock for $23 per share, Sara will have a

Correct Answer
verified

Exam 20: A: Understanding Personal Finances and Investments

How do you calculate rate of return? Why is this calculation important?

Correct AnswerAnswered by ExamLex AIThe rate of return is calculated by taki...View AnswerShow Answer

Explain the steps involved in purchasing common stock that is listed on a national securities exchange. What role does an account executive play in completing the transaction?

Correct AnswerAnswered by ExamLex AIThe steps involved in purchasing common ...View AnswerShow Answer

Kimberly has often invested in new biotechnology firms. She receives a booklet in the mail that contains a detailed description of a new security, the issuing biotech firm, and descriptive biographies of the firm's top managers and their experience. Kimberly received a(n)

Correct AnswerverifiedShow Answer

When an investor sets a maximum price a broker can spend per share, the investor is issuing a(n)

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Describe how portfolio management, asset allocation, the time your investments have to work for you, and your age affect your choice of investments.

Correct AnswerAnswered by ExamLex AIPortfolio management, asset allocation, ...View AnswerShow Answer

What are two ways to make money on stock investments? Is one more favorable that the other?

Correct AnswerAnswered by ExamLex AIThere are primarily two ways to make mon...View AnswerShow Answer

Hannah purchases shares of Disney stock. She pays for half with her own money and then borrows the other half of the money to pay for the stock. Hannah is buying stock

Correct AnswerverifiedShow Answer

Which of the following investments is most liquid?

Correct AnswerverifiedShow Answer

Describe investing in corporate bonds--what is the process of purchasing/selling, how safe or risky are they, and is this type of investing favorable to you (why or why not)?

Correct AnswerAnswered by ExamLex AIInvesting in corporate bonds involves pu...View AnswerShow Answer

Each year, Miguel Guerra constructs a personal balance sheet to determine his

Correct AnswerverifiedShow Answer

The Wall Street Journal is published

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A mutual fund that sells new shares to any investor who requests them is referred to as a(n) ____ fund.

Correct AnswerverifiedShow Answer

The ease with which an investment can be converted into cash is called

Correct AnswerverifiedShow Answer

Corporate bonds are a form of

Correct AnswerverifiedShow Answer

A government security that is sold in $100 units with a maturity of more than one year but not more than ten years is a

Correct AnswerverifiedShow Answer

The total return you receive on an investment over a specific period of time divided by the amount invested is referred to as the

Correct AnswerverifiedShow Answer

Another name for an account executive is a

Correct AnswerverifiedShow Answer

If Sara purchases 100 shares of Abercrombie and Fitch stock for $20 a share and then sells the stock for $23 per share, Sara will have a

Correct AnswerverifiedShow Answer

Correct Answer
Answered by ExamLex AI
The rate of return is calculated by taki...
View Answer

Correct Answer
Answered by ExamLex AI
The steps involved in purchasing common ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Portfolio management, asset allocation, ...
View Answer

Correct Answer
Answered by ExamLex AI
There are primarily two ways to make mon...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Investing in corporate bonds involves pu...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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