PF Quiz

Which of the following is not an example of an external stock information resource:

A company's annual report

Which of the following 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 do which of the following:

Allow borrowers to use their money for a price

Which of the following 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

Which of the following 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

Which of the following is not true about Form 8-K

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

Which of the following is not a loan to a governing body:

Corporate bond

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

Credit

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 website that houses companies' filings is called

EDGAR

What credit legislation prohibits the denial of credit based on the applicant's race, color, religion, national origin, sex, marital status, age, or public assistance status?

Equal Credit Opportunity Act

What credit legislation gives businesses that extend credit to customers specific deadlines to follow in responding to customers' complaints about errors in their credit statements?

Fair Credit Billing Act

You inspect your credit history and find a mistake. Which credit legislation gives you the right to have the mistake corrected?

Fair Credit Reporting Ac

Which of the following is the best place to buy shares in a mutual fund:

Fidelity Investments

Which of the following is a cost of credit:

Finance charges

Which of the following most accurately describes the relationship between risk and return:

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

Which of the following is a factor that determines how much investment risk a person can handle:

Goals

Which of the following is considered a reliable bond:

Government

Which of the following is a disadvantage of owning stock:

High degree of risk

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 __________ credit.

Installment

Which of the following 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.

Which of the following is a true statement about stock information resources:

It has never been easier to find stock information.

What might a dividend payout tell you about a company?

It's a well-established company.

Which of the following 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

Which of the following best describes a marketable bond:

One that is bought and sold in the open market

With an ownership investment, investors do which of the following:

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 which of the following:

Return

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

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

Which of the following is not a standard financial statement:

Shareholder sheet

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

Stock mutual funds

Which of the following is not an important variable of a bond fund:

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

Which of the following is a true statement about annual fees:

The amounts vary from card to card.

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

The fund's prospectus

Which of the following is a disadvantage of investing in a savings account:

The rate of return doesn't keep up with inflation.

Which of the following statements describes commercial banks:

They are full-service banking institutions.

Which of the following is true of unsecured loans:

They are usually made to people who have excellent credit ratings.

Which of the following is an advantage of investing in bonds:

They are very low risk.

Which of the following is a true statement about ticker symbols:

They uniquely identify a company.

Which of the following is a reason that businesses extend credit to customers:

To be competitive

Which of the following is not a reason that companies issue stock:

To gain respect

What credit legislation specifies what information businesses are required to give customers in each of the different kinds of credit systems?

Truth-in-Lending Act

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

Which of the following is a commonly used bank credit card:

Visa

Which of the following can you not learn about a company by reading a stock table:

What breaking news affected the company that day

Which of the following is an advantage of a money market account over a savings account:

You can often write checks from a money market account.

Which of the following 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 Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD) ensures that credit contract terms

are written in plain language.

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.

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.

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 __________ stocks.

defensive

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.

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 __________ stock.

penny

The stock table term PE stands for

price-earnings.

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 52-week high and low column tell you

the range of prices for the year

Businesses usually invest in

themselves.

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

value fund.

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

volatile.

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

yield.