Franklyn A Plus Pass
TEST BANK for Investments: Analysis and Management
15th Edition by Gerald R. Jensen, Tyler K. Jensen
All Chapters Fully Covered| Verified Questions & 100% Correct
Answers for Exam Preparations| A+ PASS GUARANTEED
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, Franklyn A Plus Pass
File: Chapter 01: Understanding Investments
Multiple Choice
1. Which of the following is the best definition of wealth?
a. The sum of all current and future income
b. The total of all assets and all income
c. The total of assets and income less any liabilities
d. The sum of current income and the present value of future income
Correct Answer: d
Difficulty: Moderate
Ref: Establishing a Framework for Investors
2. Gold coins would be classified as:
a. real assets.
b. indirect assets.
c. personal assets.
d. financial assets.
Correct Answer: a Difficulty: Easy
Ref: Establishing a Framework for Investors
Fr
3. Technically, investments include:
an
a. only financial assets.
b. only marketable assets.
kl
c. financial and real assets that are marketable or non-marketable.
yn
d. only financial and real assets that are marketable.
Correct Answer: c Difficulty: Easy
e
Ref: Establishing a Framework for Investors
A
pl
4. The retirement plans that guarantee retirees a set amount of money each month are known as:
us
a. 401(k) plans.
b. self-directed plans.
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, Franklyn A Plus Pass
c. defined-benefit plans.
d. defined-contribution plans.
Correct Answer: c
Difficulty: Moderate
Ref: Establishing a Framework for Investors
5. The investment professionals that arrange the sale of new securities are called:
a. arbitragers.
b. traders.
c. investment bankers.
d. specialists.
Correct Answer: c
Difficulty: Moderate
Ref: The Importance of Studying Investments
6. Another name for stockbrokers is:
a. specialists.
b. financial advisors.
c. security analysts.
Fr
d. portfolio managers.
an
Correct Answer: b
Difficulty: Moderate
kl
Ref: The Importance of Studying Investments
yn
7. Investment professionals who take companies public, arrange mergers and acquisitions, and participate in
e
municipal bond issues are:
A
a. registered representatives.
b. security analysts.
pl
c. investment bankers.
us
d. portfolio managers.
Correct Answer: c
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Page | 3
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, Franklyn A Plus Pass
Difficulty: Moderate
Ref: The Importance of Studying Investments
8. One reason for the declining importance of pension funds is the:
a. decrease in pension benefits for workers.
b. downsizing of U.S. companies.
c. large number of conversions into self-directed plans.
d. increasing number of federal regulations that restrict pension fund portfolios.
Correct Answer: c
Difficulty: Difficult
Ref: The Importance of Studying Investments
9. Most financial advisors are registered with the Securities and Exchange Commission as:
a. registered representatives.
b. registered investment advisors.
c. registered financial planners.
d. registered securities consultants.
Correct Answer: b
Difficulty: Moderate
Fr
Ref: The Importance of Studying Investments
an
10. A Chartered Financial Analyst designation is a(n)
kl
a. SEC-approved and awarded designation.
yn
b. certification of a successful investing record.
c. professional designation awarded for meeting recognized standards of conduct and competency.
e
d. professional designation awarded by the brokerage industry.
A
Correct Answer: c Difficulty: Easy
pl
Ref: The Importance of Studying Investments
us
Pa
Page | 4
ss
TEST BANK for Investments: Analysis and Management
15th Edition by Gerald R. Jensen, Tyler K. Jensen
All Chapters Fully Covered| Verified Questions & 100% Correct
Answers for Exam Preparations| A+ PASS GUARANTEED
Fr
an
kl
yn
e
A
pl
us
Pa
Page | 1
ss
, Franklyn A Plus Pass
File: Chapter 01: Understanding Investments
Multiple Choice
1. Which of the following is the best definition of wealth?
a. The sum of all current and future income
b. The total of all assets and all income
c. The total of assets and income less any liabilities
d. The sum of current income and the present value of future income
Correct Answer: d
Difficulty: Moderate
Ref: Establishing a Framework for Investors
2. Gold coins would be classified as:
a. real assets.
b. indirect assets.
c. personal assets.
d. financial assets.
Correct Answer: a Difficulty: Easy
Ref: Establishing a Framework for Investors
Fr
3. Technically, investments include:
an
a. only financial assets.
b. only marketable assets.
kl
c. financial and real assets that are marketable or non-marketable.
yn
d. only financial and real assets that are marketable.
Correct Answer: c Difficulty: Easy
e
Ref: Establishing a Framework for Investors
A
pl
4. The retirement plans that guarantee retirees a set amount of money each month are known as:
us
a. 401(k) plans.
b. self-directed plans.
Pa
Page | 2
ss
, Franklyn A Plus Pass
c. defined-benefit plans.
d. defined-contribution plans.
Correct Answer: c
Difficulty: Moderate
Ref: Establishing a Framework for Investors
5. The investment professionals that arrange the sale of new securities are called:
a. arbitragers.
b. traders.
c. investment bankers.
d. specialists.
Correct Answer: c
Difficulty: Moderate
Ref: The Importance of Studying Investments
6. Another name for stockbrokers is:
a. specialists.
b. financial advisors.
c. security analysts.
Fr
d. portfolio managers.
an
Correct Answer: b
Difficulty: Moderate
kl
Ref: The Importance of Studying Investments
yn
7. Investment professionals who take companies public, arrange mergers and acquisitions, and participate in
e
municipal bond issues are:
A
a. registered representatives.
b. security analysts.
pl
c. investment bankers.
us
d. portfolio managers.
Correct Answer: c
Pa
Page | 3
ss
, Franklyn A Plus Pass
Difficulty: Moderate
Ref: The Importance of Studying Investments
8. One reason for the declining importance of pension funds is the:
a. decrease in pension benefits for workers.
b. downsizing of U.S. companies.
c. large number of conversions into self-directed plans.
d. increasing number of federal regulations that restrict pension fund portfolios.
Correct Answer: c
Difficulty: Difficult
Ref: The Importance of Studying Investments
9. Most financial advisors are registered with the Securities and Exchange Commission as:
a. registered representatives.
b. registered investment advisors.
c. registered financial planners.
d. registered securities consultants.
Correct Answer: b
Difficulty: Moderate
Fr
Ref: The Importance of Studying Investments
an
10. A Chartered Financial Analyst designation is a(n)
kl
a. SEC-approved and awarded designation.
yn
b. certification of a successful investing record.
c. professional designation awarded for meeting recognized standards of conduct and competency.
e
d. professional designation awarded by the brokerage industry.
A
Correct Answer: c Difficulty: Easy
pl
Ref: The Importance of Studying Investments
us
Pa
Page | 4
ss
