Business objective test

What is not an example of an external stock information resource

A company's annual report

What is not found in a company's annual report

A listing of all the things that went wrong

Tyson plans to use credit primarily at restaurants. What type of credit would be the best choice for him

A travel and entertainment card

With a lending investment, investors

Allow borrowers to use their money for a price

what is a true statement about bank credit cards

Businesses must pay the bank a fee for each transaction

Of the following ownership investments, which involves owning items that gain or lose value over time

Collectibles

Which type of stock comes with voting rights

Common

What is not true about Form 8-K

Companies are required to file it for the first three quarters of the fiscal year.

What is not a loan to a governing body

Corporate bond

What source of credit offers its members small loans, installment credit, and low interest rates

Credit unions

Teri decided to invest in a few different mutual funds rather than put all her investment dollars into one or two individual stocks. A stock in one of her mutual funds went bust, but since her money was spread out, Teri wasn't significantly affected. What advantage of mutual funds does Teri's situation illustrate?

Diversification

The section of the SEC web site that houses companies' filings is called

EDGAR

What is the best place to buy shares in a mutual fund

Fidelity Investments

What is a cost of credit

Finance charges

what most accurately describes the relationship between risk and return

For the potential of a high return, you usually accept a high risk

What is a factor that determines how much investment risk a person can handle

Goals

What is considered a reliable bond

Government

What is a disadvantage of owning stock

High degree of risk

What best describes the relationship between bonds and the stock market

Inverse

What might a company's higher-than-usual sales volume for a day indicate?

Investors have reacted to news about the company

What might a dividend payout tell you about a company?

It's a well-established company

What is an example of a real estate investment

Land to be developed in the future

When a business uses credit to purchase goods and services, what benefit does it receive

Maintaining inventory levels

What describes a marketable bond

One that is bought and sold in the open market

With an ownership investment, investors

Pay for the right to own something

What does an income statement show about a company over a period of time?

Profitability

Investors take a risk for the potential of receiving

Return

What source of credit buys borrowers' contracts from sellers

Sales finance companies

What type of loan requires collateral

Secured

A person uses electricity before she pays for it. Which type of credit is the person using

Service credit

What is not a standard financial statement

Shareholder sheet

Of the following ownership investments, which allows access to an "expert" manager

Stock mutual funds

What is not an important variable of a bond fund

The amount of time you spend researching the bonds in the fund

Kent wants to learn as much as possible about the mutual fund he's thinking of investing in. What is the best place he could go for detailed information

The fund's prospectus

what is a disadvantage of investing in a savings account

The rate of return doesn't keep up with inflation

What describes commercial banks

They are full-service banking institutions

What is an advantage of investing in bonds

They are very low risk

What is a true statement about ticker symbols

They uniquely identify a company

What is a reason that businesses extend credit to customers

To be competitive

What is not a reason that companies issue stock

To gain respect

The stock table column that tells you how many shares were traded that day is labeled

VOL

Which type of stock is considered a "bargain"

Value

What is a commonly used bank credit card

Visa

What can you not learn about a company by reading a stock table

What breaking news affected the company that day

What is an advantage of a money market account over a savings account

You can often write checks from a money market account

What is a true statement about certificates of deposit

You must pay a penalty for withdrawing your money early

Jamie owned 300 shares of stock in a certain company, worth $10 per share. Then, the company announced that his 300 shares would become 600 shares, worth $5 per share. This is an illustration of

a stock split

Finance charges are expressed as a(n)

annual percentage rate

The two major sections on a balance sheet are

assets and liabilities

Mutual funds that contain both stocks and bonds are known as

balanced funds

When Janine wants to know what others are willing to pay for a bond she owns, she looks at the

bid price

Darron is investigating a few corporate bonds for investment. He wants to know how likely it is that the corporations will pay back what they've borrowed. Darron needs to look at the

bond rating

What is not a benefit of investing in bonds

bringing you high returns

What type of credit account might be advertised as "90 Days Same as Cash"?

budget

Robyn bought $100 worth of stock in a company, and now it's worth $150. This is an illustration of

capital appreciation

Since John wants to know the bond's interest rate, he needs to look at the bond's

coupon

Oliver buys a car now, but he doesn't have to pay for it until later because he purchased it with

credit

Regular credit accounts are sometimes called open accounts because they allow

credit users to make purchases at any time during a set period

Because stocks in pharmaceutical companies hold their value regardless of the state of the economy, they are known as

defensive stocks

The biggest risk to a real estate investment is

depreciation

A company that Marcus invested in has earned a profit, and now Marcus is receiving a cash payment. This is an illustration of

dividends

Non-profit organizations often pool and invest donated money in

endowment funds

The ownership investment with the greatest risk of personal loss is

entrepreneurship

"Spiders" and "cubes" are types of

exchange-traded funds

Publicly-traded companies are required by law to provide

financial statements

what is a true statement about annual fees

he amounts vary from card to card

If you purchase a car, which type of credit are you most likely to use?

installment

Jackie purchased a television on credit. She made a down payment and signed an agreement to pay a specific monthly amount, including interest, over the next 12 months. This is an example of

installment credit

What is a true statement about stock information resources

it has never been easier to find stock information

Melinda wants to invest in a bond, but her main concern is how soon she'll be able to access the money she's invested. Melinda needs to look at the

liquidity

Commission fees associated with mutual funds are known as

loads

The price of a mutual fund's shares is determined by

net asset value

The purpose of the risk pyramid is to show a comparison of

one investment to another

A mutual fund that has no limit on the number of shares it can issue or the amount of money it can hold is called a(n)

open-end fund

It's a good idea for an investor to watch the numbers on a stock table

over a period of time

A stock with a price of $1 or less is known as a

penny stock

The stock table term PE stands for

price-earnings

What type of credit account gives the customer a credit limit at the time the account is opened and allows the customer to make payments over a period of time or to pay off the total amount due each month?

revolving

Ownership investments are ideal for investors who are

risk-tolerant

A place where investors can trade securities that have been issued by a corporation is known as a(n)

secondary market

In investing, legal lending or owning agreements between individuals, businesses, or governments are known as

securities

To get a general idea of the direction of the stock market today, check a

stock market index

Form 10-K is most like

the annual report

On a stock table, net change shows you the difference between

the day's closing price and the previous day's price

The numbers listed in a stock table's 52-week high and low column tell you

the range of prices for the year

Businesses usually invest in

themselves

What is true of unsecured loans

they are usually made to people who have excellent credit ratings

A fund that invests in stocks that tend to be undervalued or overlooked is called a

value fund

If a stock price rises and falls sharply within a 52-week period, it is said to be

volatile

What a bond brings you over a period of time at a particular price is called the bond's

yield