lOMoARcPSD|123 744 65
Solutions Manual Test Bank For Investments 12th Edition By
Bodie
Social Impact Investment (New York University)
, lOMoARcPSD|123 744 65
5/30/2020 Assignment Print View
1. Award: 1.00 point
The material wealth of a society is a function of
all financial assets.
➜ all real assets.
all financial and real assets.
all physical assets.
The material wealth of a society is a function of all real assets.
References
Multiple Choice Difficulty: 1 Basic
2. Award: 10.00 points
are real assets.
Land
Machines
Stocks and bonds
Knowledge
➜ Land, machines, and knowledge
Land, machines and knowledge are real assets; stocks and bonds are financial assets.
References
Multiple Choice Difficulty: 1 Basic
1/31
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5/30/2020 Assignment Print View
3. Award: 10.00 points
The means by which individuals hold their claims on real assets in a well-developed economy are
investment assets.
depository assets.
derivative assets.
➜ financial assets.
exchange-driven assets.
Financial assets allocate the wealth of the economy. Example: it is easier for an individual to own shares of an auto company than to own an auto company directly.
References
Multiple Choice Difficulty: 1 Basic
4. Award: 10.00 points
are financial assets.
Bonds
Machines
Stocks
➜ Bonds and stocks
Bonds, machines, and stocks
Machines are real assets; stocks and bonds are financial assets.
References
Multiple Choice Difficulty: 1 Basic
5. Award: 10.00 points
financial asset(s).
Buildings are
Land is a
Derivatives are
U.S. agency bonds are
➜ Derivatives and U.S. agency bonds are
Buildings and land are real assets.
References
Multiple Choice Difficulty: 1 Basic
https://ezto.mheducation.com/hm_finance.tpx 2/31
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, lOMoARcPSD|123 744 65
5/30/2020 Assignment Print View
6. Award: 10.00 points
Financial assets
directly contribute to the country's productive capacity.
➜ indirectly contribute to the country's productive capacity.
contribute to the country's productive capacity, both directly and indirectly.
do not contribute to the country's productive capacity, either directly or indirectly.
are of no value to anyone.
Financial assets indirectly contribute to the country's productive capacity because these assets permit individuals to invest in firms and governments. This in turn
allows firms and governments to increase productive capacity.
References
Multiple Choice Difficulty: 1 Basic
7. Award: 10.00 points
In 2018, was the most significant real asset of U.S. households in terms of total value.
consumer durables
automobiles
➜ real estate
mutual fund shares
bank loans
Assets $ Billion % Total Liabilities and Net Worth $ Billion $ Total
Real assets Liabilities
Real estate $ 28,816 23.5% Mortgages $ 10,437 8.5%
Consumer durables 5,411 4.4 Consumer credit 3,865 3.2
Other 628 0.5 Bank and other loans 1,207 1.0
Total real assets $ 34,855 28.4% Other 219 0.2
Total liabilities $ 15,727 12.8%
Financial assets
Deposits and money market shares $ 12,442 10.1%
Life insurance reserves 1,647 1.3
Pension reserves 26,069 21.3
Corporate equity 18,106 14.8
Equity in noncorporate business 13,044 10.6
Mutual fund shares 8,764 7.1
Debt securities 6,210 5.1
Other 1,521 1.2
Total financial assets $ 87,802 71.6 Net worth 106,929 87.2
Total $ 122,657 100.0% $ 122,657 100.0%
Balance sheet of U.S. households
Note: Column sums may differ from total because of rounding error.
Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.
References
Multiple Choice Difficulty: 1 Basic
https://ezto.mheducation.com/hm_finance.tpx 3/31
Downloaded by John Stevenson ()
Solutions Manual Test Bank For Investments 12th Edition By
Bodie
Social Impact Investment (New York University)
, lOMoARcPSD|123 744 65
5/30/2020 Assignment Print View
1. Award: 1.00 point
The material wealth of a society is a function of
all financial assets.
➜ all real assets.
all financial and real assets.
all physical assets.
The material wealth of a society is a function of all real assets.
References
Multiple Choice Difficulty: 1 Basic
2. Award: 10.00 points
are real assets.
Land
Machines
Stocks and bonds
Knowledge
➜ Land, machines, and knowledge
Land, machines and knowledge are real assets; stocks and bonds are financial assets.
References
Multiple Choice Difficulty: 1 Basic
1/31
Downloaded by John Stevenson ()
, lOMoARcPSD|123 744 65
5/30/2020 Assignment Print View
3. Award: 10.00 points
The means by which individuals hold their claims on real assets in a well-developed economy are
investment assets.
depository assets.
derivative assets.
➜ financial assets.
exchange-driven assets.
Financial assets allocate the wealth of the economy. Example: it is easier for an individual to own shares of an auto company than to own an auto company directly.
References
Multiple Choice Difficulty: 1 Basic
4. Award: 10.00 points
are financial assets.
Bonds
Machines
Stocks
➜ Bonds and stocks
Bonds, machines, and stocks
Machines are real assets; stocks and bonds are financial assets.
References
Multiple Choice Difficulty: 1 Basic
5. Award: 10.00 points
financial asset(s).
Buildings are
Land is a
Derivatives are
U.S. agency bonds are
➜ Derivatives and U.S. agency bonds are
Buildings and land are real assets.
References
Multiple Choice Difficulty: 1 Basic
https://ezto.mheducation.com/hm_finance.tpx 2/31
Downloaded by John Stevenson ()
, lOMoARcPSD|123 744 65
5/30/2020 Assignment Print View
6. Award: 10.00 points
Financial assets
directly contribute to the country's productive capacity.
➜ indirectly contribute to the country's productive capacity.
contribute to the country's productive capacity, both directly and indirectly.
do not contribute to the country's productive capacity, either directly or indirectly.
are of no value to anyone.
Financial assets indirectly contribute to the country's productive capacity because these assets permit individuals to invest in firms and governments. This in turn
allows firms and governments to increase productive capacity.
References
Multiple Choice Difficulty: 1 Basic
7. Award: 10.00 points
In 2018, was the most significant real asset of U.S. households in terms of total value.
consumer durables
automobiles
➜ real estate
mutual fund shares
bank loans
Assets $ Billion % Total Liabilities and Net Worth $ Billion $ Total
Real assets Liabilities
Real estate $ 28,816 23.5% Mortgages $ 10,437 8.5%
Consumer durables 5,411 4.4 Consumer credit 3,865 3.2
Other 628 0.5 Bank and other loans 1,207 1.0
Total real assets $ 34,855 28.4% Other 219 0.2
Total liabilities $ 15,727 12.8%
Financial assets
Deposits and money market shares $ 12,442 10.1%
Life insurance reserves 1,647 1.3
Pension reserves 26,069 21.3
Corporate equity 18,106 14.8
Equity in noncorporate business 13,044 10.6
Mutual fund shares 8,764 7.1
Debt securities 6,210 5.1
Other 1,521 1.2
Total financial assets $ 87,802 71.6 Net worth 106,929 87.2
Total $ 122,657 100.0% $ 122,657 100.0%
Balance sheet of U.S. households
Note: Column sums may differ from total because of rounding error.
Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.
References
Multiple Choice Difficulty: 1 Basic
https://ezto.mheducation.com/hm_finance.tpx 3/31
Downloaded by John Stevenson ()
