Personal Finance Ch.8-12

In the year 2005, an ounce of gold was worth about _____

$425

helps pay for marketing and advertising a mutual fund

12b-1 fee

To reach maturity, Treasury bills take between

4 to 52 weeks

Which Standard and Poor rating designates the riskiest investment?

BBB

Which is not a speculative investment?

Bonds

What is the formula for calculating the total return on stock?

Current return + capital gain

Science and technology is an example of an index fund

False

Stocks issued by Home Depot are considered cyclical stocks

False

backed by the full faith and credit of the government that issued it

General obligation bond

Which kind of investment offers the least diversification?

Land purchases

a mutual fund in which you pay commission every time you buy or sell shares

Load fund

Most over-the-counter stock is traded through

NASDAQ

The purpose of the Dow Industrial Average is to _____

Provide statistical averages

A stop order requests that a stockholder ______?

Sell a stock for a specific amount

Index funds may have lower management fees.

True

Of the following investments, the one with the most predictable income is

U.S savings bond

An apartment building is considered

a commercial property

Corporate bond

a company's written pledge to repay a specified amount of money along with interest

Diversification is a key reason for buying what?

a mutual fund

A participation feature provides preferred stockholders with ______

a share in the earnings that remain after required and stated dividends are paid

An advantage of using the internet for adding to a collection is

access to sellers from around the world

The investment that offers the highest rate of interest is _____

an EE savings bond

Dividend

distributions of money, stock, or other property that a corporation sometimes pays to a stockholder

A diamond will get the same rating each time its graded

false

REITS sell real estate for quick profits

false

allows investors to adjust their investments conveinently to suit their changing needs or to maximize profits over time

family of funds

preferred stock

gives the owner the advantage of receiving cash dividends before common stockholders receive any

What is the largest financial asset for most Americans

home ownership

the earnings a mutual fund pays to shareholders

income dividends

a zero coupon bond differs from other bonds because

it provides no interest payments

Only a fixed number of shares are issued for

load fund

Preferred stock offers investors all the following advantages except

more potential growth than common stock

Precious gems are rated for all the following characteristics except

origin

Factors that affect financial markets are _____

political and social conditions

The largest financial advisers are motivated by the ____

securities and exchange Commission

A marketplace where brokers meet to buy and sell stock is called

securities exchange

a corporation gets its equity from its

stockholders

Participation certificates are issued by

the U.S treasury department

A typical corporate bond states all the following facts about the bond EXCEPT

the amount of interest paid

The value of real estate investment may decrease if

the economy declines

A speculative investment is one that might earn a large profit in a short period of time

true

If you invest in an equity REIT, your money will be invested properly

true

the rate of return earned by an investor who holds a bond for a certain amount of time

yield