https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
Test bank & Solution manual for
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FundamentalsofInvesting,14thEditionby Scott B.
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Smart
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,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
Fundamentals of Investing, 14e (Smart/Zutter) ll ll ll ll
Chapter 1 The Investment Environment
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1.1 Learning Goal 1 ll ll
1) A non-interest bearing checking account is still considered an investment.
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Answer: FALSE
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
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role in shaping investment choices
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AACSB: Analytical thinking l l ll
Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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2) Land and buildings are examples of real property investments.
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Answer: TRUE
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
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role in shaping investment choices
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AACSB: Analytical thinking l l ll
Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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3) Since 1900, the average return on stocks has exceeded the average return on savings
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accounts by more than 6 percentage points.
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Answer: TRUE l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
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AACSB: Analytical thinking l l ll
Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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4) A United States Savings Bond is an example of an investment as defined in the text.
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Answer: TRUE
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
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role in shaping investment choices
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AACSB: Analytical thinking l l ll
Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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5) Most sources of investment information are in print format, expensive, and difficult to
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access.
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Answer: FALSE l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
1
Copyright © 2020 Pearson Education, Inc. ll ll ll ll ll
,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
6) Which of the following is NOT an investment as defined in the text?
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A) a certificate of deposit issued by a bank
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B) a new automobile
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C) a United States Saving Bond
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D) a mutual fund held in a retirement account
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Answer: B
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
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7) Stocks are a(n) investment representing
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A) direct; ownership ll
B) direct; debt ll
C) indirect; ownership ll
D) indirect;debt l
Answer: A
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
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8) An exchange traded fund that invests in the stocks of large corporations is an example of
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A) direct investment. ll
B) indirect investment. ll
C) derivative investment. ll
D) tangible investment. ll
Answer: B l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
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9) Which of the following has declined in recent years?
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A) direct ownership of stock by individual investors
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B) the percentage of foreign stocks held in typical portfolios
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C) institutional ownership of common stocks ll ll ll ll
D) the timeliness of information available to investors
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Answer: A
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
2
Copyright © 2020 Pearson Education, Inc. ll ll ll ll ll
, https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
10) Which of the following has increased in recent years?
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A) direct ownership of stock by individual investors
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B) the percentage of domestic stocks held in typical portfolios
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C) institutional ownership of common stocks ll ll ll ll
D) indirect ownership of stocks through mutual funds and ETFs.
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Answer: D
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: New Question
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Learning Goal: Learning Goal 1
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11) Debt represents funds loaned in exchange for
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A) dividend income and the repayment of the loan principal.
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B) dividend income and an ownership interest in the firm.
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C) interest income and a partial ownership interest in the firm.
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D) interest income and the repayment of the loan principal.
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Answer: D
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
1.2 Learning Goal 2 ll ll
1) Institutional investors manage money for businesses and nonprofit organizations, but not for
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individuals.
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Answer: FALSE l l
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
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managers
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AACSB: Application of knowledge
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Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 2
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2) Institutional investors are individuals who invest indirectly through financial institutions.
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Answer: FALSE
ll l l
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
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managers
ll
AACSB: Application of knowledge
l l ll ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 2
ll ll l l ll ll
3
Copyright © 2020 Pearson Education, Inc. ll ll ll ll ll
Test bank & Solution manual for
ll ll ll ll ll
FundamentalsofInvesting,14thEditionby Scott B.
ll l l l l l ll ll
Smart
ll
,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
Fundamentals of Investing, 14e (Smart/Zutter) ll ll ll ll
Chapter 1 The Investment Environment
ll ll l l ll ll
1.1 Learning Goal 1 ll ll
1) A non-interest bearing checking account is still considered an investment.
ll ll ll ll ll ll ll ll ll
Answer: FALSE
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
2) Land and buildings are examples of real property investments.
ll ll ll ll ll ll ll ll
Answer: TRUE
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
3) Since 1900, the average return on stocks has exceeded the average return on savings
ll ll ll ll ll ll ll ll ll ll ll ll ll
accounts by more than 6 percentage points.
ll ll ll ll ll ll ll
Answer: TRUE l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
4) A United States Savings Bond is an example of an investment as defined in the text.
ll ll ll ll ll ll ll ll ll ll ll ll ll ll ll
Answer: TRUE
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
5) Most sources of investment information are in print format, expensive, and difficult to
ll ll ll ll ll ll ll ll ll ll ll ll
access.
ll
Answer: FALSE l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
1
Copyright © 2020 Pearson Education, Inc. ll ll ll ll ll
,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
6) Which of the following is NOT an investment as defined in the text?
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A) a certificate of deposit issued by a bank
ll ll ll ll ll ll ll
B) a new automobile
ll ll
C) a United States Saving Bond
ll ll ll ll
D) a mutual fund held in a retirement account
ll ll ll ll ll ll ll
Answer: B
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
7) Stocks are a(n) investment representing
ll ll of a business. ll ll ll ll ll
A) direct; ownership ll
B) direct; debt ll
C) indirect; ownership ll
D) indirect;debt l
Answer: A
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
8) An exchange traded fund that invests in the stocks of large corporations is an example of
ll ll ll ll ll ll ll ll ll ll ll ll ll ll ll
A) direct investment. ll
B) indirect investment. ll
C) derivative investment. ll
D) tangible investment. ll
Answer: B l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
9) Which of the following has declined in recent years?
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A) direct ownership of stock by individual investors
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B) the percentage of foreign stocks held in typical portfolios
ll ll ll ll ll ll ll ll
C) institutional ownership of common stocks ll ll ll ll
D) the timeliness of information available to investors
ll ll ll ll ll ll
Answer: A
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
2
Copyright © 2020 Pearson Education, Inc. ll ll ll ll ll
, https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
10) Which of the following has increased in recent years?
ll ll ll ll ll ll ll ll
A) direct ownership of stock by individual investors
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B) the percentage of domestic stocks held in typical portfolios
ll ll ll ll ll ll ll ll
C) institutional ownership of common stocks ll ll ll ll
D) indirect ownership of stocks through mutual funds and ETFs.
ll ll ll ll ll ll ll ll
Answer: D
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: New Question
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
11) Debt represents funds loaned in exchange for
ll ll ll ll ll ll
A) dividend income and the repayment of the loan principal.
ll ll ll ll ll ll ll ll
B) dividend income and an ownership interest in the firm.
ll ll ll ll ll ll ll ll
C) interest income and a partial ownership interest in the firm.
ll ll ll ll ll ll ll ll ll
D) interest income and the repayment of the loan principal.
ll ll ll ll ll ll ll ll
Answer: D
ll l l
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
ll l l ll ll ll ll ll ll ll ll ll ll ll
role in shaping investment choices
ll ll ll ll ll
AACSB: Analytical thinking l l ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 1
ll ll l l ll ll
1.2 Learning Goal 2 ll ll
1) Institutional investors manage money for businesses and nonprofit organizations, but not for
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individuals.
ll
Answer: FALSE l l
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
ll l l ll ll ll ll ll ll ll ll ll ll ll
managers
ll
AACSB: Application of knowledge
l l ll ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 2
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2) Institutional investors are individuals who invest indirectly through financial institutions.
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Answer: FALSE
ll l l
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
ll l l ll ll ll ll ll ll ll ll ll ll ll
managers
ll
AACSB: Application of knowledge
l l ll ll
Question Status: Previous Edition
ll ll l l ll
Learning Goal: Learning Goal 2
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3
Copyright © 2020 Pearson Education, Inc. ll ll ll ll ll
