Personal Finance Final Questions

The amount of interest you can earn on a typical savings account is about A) 1% B) 10% C) 11% D) 15%

A) 1%

Which type of stock comes with voting rights? A) Common B) Preferred C) Small-cap D) Income

A) Common

Because stocks in pharmaceutical companies hold their value regardless of the state of the economy, they are known as ______________ stocks. A) Defensive B) Cyclical C) Speculative D) Penny

A) Defensive

Which of the following is the best place to buy shares in a mutual fund: A) Fidelity Investments B) Main Street Local Bank C) Good Hands Insurance D) Mike Jones, Financial Planner

A) Fidelity Investments

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 A) Liquidity B) Bid price C) Yield D) Bond rating

A) Liquidity

The price of a mutual fund's shares is determined by A) Net asset value B) Investment portfolio value C) Liabilities D) Outstanding shares

A) Net asset value

The purpose of the risk pyramid is to show a comparison of A) One investment to another B) stocks to stock mutual funds C) One stock to another D)Corporate bonds to municipal bonds

A) One investment to another

Which of the following best describes a marketable bond: A) One that is bought and sold in the open market B) One that becomes a stock at a later time C) One that is issued by a governing body D) One that is paid back before maturity

A) One that is bought and sold in the open market

Which of the following is NOT an important variable of a bond fund: A) The amount of time you spend researching the bonds in the fund B) The rate at which your money grows C) The average maturity of the bonds in the fund D) The credibility ratings of the bonds in the fund

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

Which of the following is NOT a reason that companies issue stock: A) To gain respect B) To fuel growth and expansion C) To develop new products D) To acquire other companies

A) To gain respect

A fund that invests in stock that tend to be undervalued or overlooked is called a A) Value fund B) Growth fund C) Blend fund D) Sector fund

A) Value fund

Which of the following is not an example of an external stock information resource A) a companies annual report B) the ValueLine Investment survey C) brokerage firm research D) a financial web site portal

A) a companies annual report

Which of the following can you not learn about a company by reading a stock table A) what breaking news affected the company that day B)If the stock price is up or down C) What the stocks yearly price is D) what the days volume was

A) what breaking news affected the company that day

Which of the following most accurately describes the relationship between risk and return A)For the potential of high return that you usually except a high risk B)For the potential of a low return you usually except a high risk C) For the potential of a high return that you usually except a low risk D) for the potential of a low return you usually except no risk

A)For the potential of high return that you usually except a high risk

Which of the following is considered a reliable bond: A) Government B) Corporate C) Callable D) Puttable

A)Government

The stock table term PE stands for A)Price earnings B)Profit earnings C) Percentage earnings D)Price expenses

A)Price earnings

Which of the following phrases best describes the S in a SMART goals A)Specific details B)Saving money C) Sense of teamwork D) spending wisely

A)Specific details

Understanding your spending habits is A)The first step in creating a financial plan B)Unrelated to setting a specific goals C)Not part of financial planning D)The last step in creating a financial plan

A)The first step in creating a financial plan

Publicly-traded companies are required by law to provide A)financial statements B)stock research C) company report cards D)yearly newsletters

A)financial statements

Using money to make money is called: A)investing B)saving C)inflation D)the rule of 72

A)investing

Jamie owned 300 shares of stock in a certain company, with $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) A stock exchange B) A stock split C) Capital appreciation D) Dividends

B) A stock split

Mutual funds that contain both stocks and bonds are known as A) Exchange-traded funds B) Balanced funds C) Money market funds D) Index funds

B) Balanced funds

When Janine wants to know what others are willing to pay for a bond she owns, she looks at the A) Bond rating B) Bid price C) Coupon rate D) Issuer

B) Bid price

Which of the following best describes the relationship between bonds and the stock market: A) Straight B) Inverse C) Liquid D) Beneficial

B) Inverse

A place where investors can trade securities that have been issued by a corporation is known as a(n) A) Primary market B) Secondary market C) Initial public offering D) Stock market index

B) Secondary market

To get a general idea of the direction of the stock market today, check a A) Secondary market B) Stock market index C) Stock Exchange D) Blue-chip company

B) Stock market index

Of the following ownership investments, which involves owning items that gain or lose value over time A) stock mutual funds B) collectibles C) real estate D)stocks

B) collectibles or C) real estate

form 10-k is most like A) form 10-Q B) the annual report C) the bottom line D) the cash flow statement

B) the annual report

You are more likely to achieve your goals if they are A) based on needs only B) written down C) long term D) short term

B) written down

Which of the following factors influences the time value of money A) Financial needs B). Interest rates C) Banks D) World events

B). Interest rates

A good way to prioritize your financial goals is to A)Wrinkles according to what needs to be done B)Assign each goal to a general category C) Rank every goal in numerical order D)Recognize that all goals are equally important

B)Assign each goal to a general category

What might a company is higher than usual sales volume for a day indicate A) investors have reacted to news about the company B)Investors have received their C) Investors believe the yield a percentage has changed D)Investors have recalculated the PE

B)Investors have received their

What might a dividend payout tell you about a company A)It's trying to rid it self of cash B)It's reinvesting its profits back into its business C) It's paying back a loan D)It's a well established company

B)It's reinvesting its profits back into its business

Of the following lending investments which is not offered by a bank A) money market account B)Municipal bond C) Savings account D)Certificate of deposit

B)Municipal bond

Financial planning can be described as a way to A) wring all the fun out of life B)Realize what it takes to get the things you really want C) Make it all right to treat yourself D) retire with $1 million by the time you're age 40

B)Realize what it takes to get the things you really want

On a stock table, net change shows you the difference Between A) Last year's advantage price and this years advantage price B)The days closing price and the previous days price C) The highest and lowest prices for the day D)The highest and lowest prices for the year

B)The days closing price and the previous days price

The numbers listed in the stack tables 52 week high and low column tell you A)If the stock price was over valued B)The range of prices for the year C) The best prices for the stock D)The range of where the stock price should be

B)The range of prices for the year

If a stock price rises and falls sharply within a 52 week period, it is said to be A)Stable B)Volatile C) Healthy D)solid

B)Volatile

Compounding can be described as: A)avoiding inflation B)earning interest upon interest C)meeting financial needs D)risking the stock market

B)earning interest upon interest

An increase in the cost of goods and services is known as: A)interest B)inflation C)deflation D)investment

B)inflation

In investing legal lending or owning agreements between individuals, businesses or government are known as A)bonds B)securities C) contracts D)guarantees

B)securities

which of the following is not a standard financial statement A) balance sheet B)shareholder sheet C) income statement D)cash flow statement

B)shareholder sheet

Robyn bought $100 worth of stock in a company, and now its worth $150. This is an illustration of A) A stock exchange B) A stock split C) Capital appreciation D) Dividends

C) Capital appreciation

Since John wants to know the bond's interest rate, he needs to look at the bond's A) Issuer B) Maturity C) Coupon D) Par value

C) Coupon

the section of the SEC website that houses companies' fillings is called A)EDWIN B)EDMUND C) EDGAR D) EDWARD

C) EDGAR

"Spiders" and "cubes" are types of A) Bond funds B) Hybrid funds C) Exchange-traded funds D) International funds

C) Exchange-traded funds

The single most important aspect of plan and setting goals is A)Learning to make hard choices B)Making enough money C) Getting started now D)Choosing a career path

C) Getting started now

Choosing to buy an item at the checkout counter is usually an example of A) Poor use of credit B)Financial self control C) Impulse spending D)Smart shopping

C) Impulse spending

With an ownership investment, investors do which of the following A) Buy a home to live in B)Collect popular C) Invest in multiple D)Pay for the right to own something

C) Invest in multiple

It's a good idea for an investor to watch the numbers on a stock table A)Just for a given day B)Once a year C) Over a period of time D)When dividends are paid

C) Over a period of time

Kent want 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: A) The newspaper B) A trade magazine C) The fund's prospectus D) The fund's website

C) The fund's prospectus

Which of the following is a true statement about ticker symbols A)They tell you what kind of stack it is B)They are made up of the first three letters of a company's name C) The uniquely identify a company D) they are only given to companies on the New York stock exchange

C) The uniquely identify a company

Financial planning is important because it can help you do all of the following EXCEPT: A) Meet needs and wants B) Influence the future C) Understand economics and D)Recognize the importance of

C) Understand economics and

What a bond brings you over a period of time at a particular price is called the bond's A) Bid price B) Liquidity C) Yield D) Maturity

C) Yield

Which the following is not a factor that determines how much investment risk you can handle A)What do you want to accomplish B)How much time you have to accomplish it C) Your income D) Your personality

C) Your income

which of the following is not true about Form 8-k A) companies are required to file it within 15 days of a significant event B) the form describes changes in management, products, acquisitions, or legal actions C) companies are required to file it for the first 3 quarters of the fiscal year D)the form is important because it alerts investors to events that might affect a company's fundamental value.

C) companies are required to file it for the first 3 quarters of the fiscal year

which of the following is a true statement about stock information resources: A)there are very few stock information resources B)only wealthy investors have access to stock information C) it has never been easier to find stock information D) it is very difficult to find easy stock information

C) it has never been easier to find stock information

what does and income statement show about a company over time? A) reliability B) equity C) profitability D) liabilities

C) profitability

Of the following ownership investments which allows access to an expert manager A) Stock Mutual funds B) collectibles C) real estate D) stocks

C) real estate

For which of the following terms would you save (rather than invest) A) retirement B) future children's college C) spring break D) house

C) spring break

Which of the followinf is NOT a key factor involved with compounding growth? A) the amount of money you invest B) how long your money is invested C) the risk of the stock market D) how much your investment grows each year

C) the risk of the stock market

Darron is investing a few corporate bonds for investment. He wants to know how likely is it the corporations will pay back what they've borrowed. Darron needs to look at the A) Liquidity B) Issuer C) Coupon rate D) Bond rating

D) Bond rating

Which of the following is NOT a benefit of investing bonds: A) Performing well when the economy is poor B) Offering unmatched reliability C) Helping you meet long-term goals D) Bringing you high returns

D) Bringing you high returns

Which of the following is not a loan to a governing body: A) Savings Bond B) Treasury Bond C) Municipal Bond D) Corporate Bond

D) Corporate Bond

Teri decided to invest in a few different mutual finds rather that put all her investment dollars in to 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? A) Liquidity B) Professional money management C) Convenience D) Diversification

D) Diversification

A company that Marcus invested in has earned a profit, and now Marcus is receiving a cash payment. This is an illustration of A) A stock exchange B) A stock split C) Capital appreciation D) Dividends

D) Dividends

Commission fees associated with mutual funds are know as A) NAVs B) ETFs C) Expense ratios D) Loads

D) Loads

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) A) Growth fund B) Stock fund C) Closed-end fund D) Open-ended fund

D) Open-ended fund

A stock with a price of $1 or less is known as a ______________ stock. A) Defensive B) Cyclical C) Value D) Penny

D) Penny

The stock table column that tells you how many shares were traded that day is labeled A) NET CHG B) YLD % C) DIV D) VOL

D) VOL

which of the following is not found in a company's annual report A) what the company did that year B) what the important achievements were C) some ideas about where the company will go next D) a listing of all the things that went wrong

D) a listing of all the things that went wrong

The 2 major sections on a balance sheet are A) assets and income B) cashflow and liabilities C) expenses and assets D) assets and liabilities

D) assets and liabilities

What is the key to investing? A) inflation B) avoiding opportunity costs C) the rule of 72 D) getting started early

D) getting started early

Investors take a risk for the potential of receiving which of the following: A)prize B)recognition C) bonus D) return

D) return

If you are 17 right now, what is the best age to start investing? A)32 B)27 C)25 D)17

D)17

One advantage to setting attainable goals is that you A)Work harder to achieve a very high goal B)can picture it in your mind C) Can measure your progress D)Are less likely to become discouraged

D)Are less likely to become discouraged

With a lending investment investors do which of the following A)Hire a financial advisor B)Maintain a minimum amount of money in the investment C) Allow borrowers to use their money for a price D)Avoid taking any risk

D)Avoid taking any risk

Emily has decided to use all of her savings to buy a new car instead of a used one. What are the opportunity costs of that decision?A) The reliability and luxury of a new car compared to a used one B)The benefits she could have received by using public transportation instead C) The money she saves by not having to constantly repair a used car D)The benefits she could have received it by using the additional cost of a new car another wayy

D)The benefits she could have received it by using the additional cost of a new car another wayy

Which if the following is a financial want rather than a financial need?: A)food B)clothing C) shelter D)education

D)education