Test Bank for Essentials of Investments, 12th Edition (Bodie, Kane, Marcus) Graded A+ Complete Chapter

Test Bank for Essentials of Investments,
12th Edition (Bodie, Kane, Marcus)
Graded A+ Complete Chapter Coverage



ISBN: 9781265450090

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

Edition: 12th Edition (2024 Release)




SECTION 1: INVESTMENTS – BACKGROUND
AND ISSUES (Chapter 1)

Questions 1-35

1

,Question 1

Financial assets represent _______ of total assets of
U.S. households in 2019.

A) about 70%

B) over 90%

C) under 10%

D) about 30%



Correct Answer: A) about 70%

Rationale: Financial assets constituted
approximately 70% of total U.S. household assets in
2019, reflecting the significant role of financial


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,markets in household wealth portfolios. Real assets
such as real estate made up the remainder .




Question 2

Real assets in the economy include all but which one
of the following?

A) Land

B) Buildings

C) Consumer durables

D) Common stock




3

, Correct Answer: D) Common stock

Rationale: Real assets are tangible assets that
generate net income to the economy, including land,
buildings, equipment, and consumer durables.
Common stock is a financial asset, not a real asset,
because it represents a claim on the income
generated by real assets rather than the assets
themselves .




Question 3

In 2019, net worth represented _______ of the
liabilities and net worth of commercial banks.



4