Question 1

All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:

Accepted Answer

A)   Learn to live within your means.
B)   Increase credit purchases and make installment payments in order to increase cash available for investing.
C)   Provide adequate insurance protection.
D)   Start an emergency fund.
E)   Establish a line of credit.F) B) and C)
G) C) and D)

Question 2

Mutual funds range from very conservative to extremely speculative investments.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following investments offers the greatest liquidity?

Accepted Answer

A)   collectibles
B)   common stock
C)   corporate bonds
D)   real estate
E)   bank accountsF) B) and C)
G) B) and E)

Question 4

Normally,corporate bondholders receive interest

Accepted Answer

A)   monthly.
B)   every three months.
C)   every six months.
D)   yearly.
E)   when the bond matures.F) A) and E)
G) A) and C)

Question 5

A corporation selling stock is obligated to

Accepted Answer

A)   guarantee your investment.
B)   repay money obtained from the sale of stock.
C)   repurchase shares of stock at a later date.
D)   pay dividends to preferred stockholders before dividends are paid to common stockholders.
E)   pay dividends.F) A) and C)
G) A) and E)

Question 6

Although useful for many things,the Internet cannot be used to monitor the value of stock,bond,and mutual fund investments.

Accepted Answer

A) True 
 B)False

Question 7

When investing in global investments,changes in the currency exchange rate may affect the return on your investment.

Accepted Answer

A) True 
 B)False

Question 8

One dollar placed in a safety deposit box in 1980 is worth

Accepted Answer

A)   less than 50 cents.
B)   about 10 cents.
C)   zero.
D)   between 50 cents and one dollar.
E)   more than one dollar.F) C) and E)
G) A) and E)

Question 9

Potential investors should wait until they put their financial affairs in order before starting to invest.

Accepted Answer

A) True 
 B)False

Question 10

An investor can make money on a common stock investment by

Accepted Answer

A)   waiting for the corporation to repurchase the stock.
B)   waiting for the stock's value to increase and then selling it.
C)   waiting for the stock's value to decrease and then selling it.
D)   waiting for the stock to reach the maturity date.
E)   converting the common stock to preferred stock.F) A) and E)
G) A) and D)

Question 11

Which of the following investments would rank the highest with regard to safety?

Accepted Answer

A)   real estate
B)   common stock
C)   preferred stock
D)   corporate bonds
E)   bank accountsF) B) and C)
G) A) and E)

Question 12

Which of the following is not a true statement?

Accepted Answer

A)   It is estimated that there are over 100 million Internet users worldwide.
B)   There is a wealth of investment information available,but most small investors cannot afford to use it.
C)   You can obtain current price information for stocks,bonds,and mutual funds by using the Internet.
D)   A search engine is a research tool that helps you move through a menu system until you find the information you want.
E)   Both government and businesses provide individuals with investment information.F) A) and D)
G) A) and E)

Question 13

Which of the following investments offers the least liquidity?

Accepted Answer

A)   bank accounts
B)   government bonds
C)   real estate
D)   common stock
E)   preferred stockF) A) and E)
G) C) and E)

Exam 10: Financial Planning With Life Insurance

Which of the following investments would rank the highest with regard to safety?

Correct Answer
verified

When investing in global investments,changes in the currency exchange rate may affect the return on your investment.

Correct Answer
verified

Although useful for many things,the Internet cannot be used to monitor the value of stock,bond,and mutual fund investments.

Correct Answer
verified

Which of the following investments offers the greatest liquidity?

Correct Answer
verified

Which of the following is not a true statement?

Correct Answer
verified

An investor can make money on a common stock investment by

Correct Answer
verified

Mutual funds range from very conservative to extremely speculative investments.

Correct Answer
verified

All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:

Correct Answer
verified

Potential investors should wait until they put their financial affairs in order before starting to invest.

Correct Answer
verified

A corporation selling stock is obligated to

Correct Answer
verified

One dollar placed in a safety deposit box in 1980 is worth

Correct Answer
verified

Normally,corporate bondholders receive interest

Correct Answer
verified

Which of the following investments offers the least liquidity?

Correct Answer
verified

Exam 10: Financial Planning With Life Insurance

Which of the following investments would rank the highest with regard to safety?

Correct AnswerverifiedShow Answer

When investing in global investments,changes in the currency exchange rate may affect the return on your investment.

Correct AnswerverifiedShow Answer

Although useful for many things,the Internet cannot be used to monitor the value of stock,bond,and mutual fund investments.

Correct AnswerverifiedShow Answer

Which of the following investments offers the greatest liquidity?

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

Correct AnswerverifiedShow Answer

An investor can make money on a common stock investment by

Correct AnswerverifiedShow Answer

Mutual funds range from very conservative to extremely speculative investments.

Correct AnswerverifiedShow Answer

All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:

Correct AnswerverifiedShow Answer

Potential investors should wait until they put their financial affairs in order before starting to invest.

Correct AnswerverifiedShow Answer

A corporation selling stock is obligated to

Correct AnswerverifiedShow Answer

One dollar placed in a safety deposit box in 1980 is worth

Correct AnswerverifiedShow Answer

Normally,corporate bondholders receive interest

Correct AnswerverifiedShow Answer

Which of the following investments offers the least liquidity?

Correct AnswerverifiedShow Answer

Correct Answer
verified

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Correct Answer
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