,Fundamentalss5ofs5Investing,s513es5(Smart)s5C
hapters51s 5 Thes5Investments5Environment
1.1 Learnings5Goals51
1) As5non-
interests5bearings5checkings5accounts5iss5stills5considereds5ans5investment.s5A
nswer:s 5 FALSE
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
2) Lands5ands5buildingss5ares5exampless5ofs5reals5propertys5invest
ments.s5Answer:s 5 TRUE
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
3) Sinces51900,s5thes5averages5returns5ons5stockss5hass5exceededs5thes5averages5returns5o
ns5savingss5accountss5bys5mores5thans56s5percentages5points.
Answer:s 5 TRUE
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
4) As5Uniteds5Statess5Savingss5Bonds5iss5ans5examples5ofs5ans5investments5ass5defineds5
ins5thes5text.s5Answer:s 5 TRUE
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
5) Mosts5sourcess5ofs5investments5informations5ares5ins5prints5format,s5expensive,s5ands5di
fficults5tos5access.
Answer:s 5 FALSE
Learnings5Outcome:s 5 F-
1
Copyrights5©s52017s5Pearsons5Education,s
5Inc.
,12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5sha
pings5investments5choices
AACSB:s 5 3s5Analyticals5thinki
ngs5Questions5Status:s 5 News5Q
uestions5Learnings5Goal:s 5 Lear
nings5Goals51
2
Copyrights5©s52017s5Pearsons5Education,s
5Inc.
, 6) Whichs5ofs5thes5followings5iss5NOTs5ans5investments5ass5defineds5ins5thes5text?
A) as5certificates5ofs5deposits5issueds5bys5as5bank
B) as5news5automobile
C) as5Uniteds5Statess5Savings5Bond
D) as5mutuals5funds5helds5ins5as5retirements5ac
counts5Answer:s 5 B
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
7) Stockss5ares5a(n)s5 investments5representings5 ofs5as5business.
A) direct;s5ownership
B) direct;s5debt
C) indirect;s5ownership
D) indirect;s5deb
ts5Answer:s 5 A
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
8) Ans5exchanges5tradeds5funds5thats5investss5ins5thes5stockss5ofs5larges5corporationss5iss5ans5exam
ples5of
A) directs5investment.
B) indirects5investment.
C) derivatives5investment.
D) tangibles5investment
.
Answer:s 5 B
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
9) Whichs5ofs5thes5followings5hass5declineds5ins5recents5 years?
A) directs5ownerships5ofs5stocks5bys5individuals5investors
B) thes5percentages5ofs5foreigns5stockss5helds5ins5typicals5portfolios
C) institutionals5ownerships5ofs5commons5stocks
D) thes5timelinesss5ofs5informations5availables5tos5inve
storss5Answer:s 5 A
3
Copyrights5©s52017s5Pearsons5Education,s
5Inc.
hapters51s 5 Thes5Investments5Environment
1.1 Learnings5Goals51
1) As5non-
interests5bearings5checkings5accounts5iss5stills5considereds5ans5investment.s5A
nswer:s 5 FALSE
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
2) Lands5ands5buildingss5ares5exampless5ofs5reals5propertys5invest
ments.s5Answer:s 5 TRUE
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
3) Sinces51900,s5thes5averages5returns5ons5stockss5hass5exceededs5thes5averages5returns5o
ns5savingss5accountss5bys5mores5thans56s5percentages5points.
Answer:s 5 TRUE
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
4) As5Uniteds5Statess5Savingss5Bonds5iss5ans5examples5ofs5ans5investments5ass5defineds5
ins5thes5text.s5Answer:s 5 TRUE
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
5) Mosts5sourcess5ofs5investments5informations5ares5ins5prints5format,s5expensive,s5ands5di
fficults5tos5access.
Answer:s 5 FALSE
Learnings5Outcome:s 5 F-
1
Copyrights5©s52017s5Pearsons5Education,s
5Inc.
,12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5sha
pings5investments5choices
AACSB:s 5 3s5Analyticals5thinki
ngs5Questions5Status:s 5 News5Q
uestions5Learnings5Goal:s 5 Lear
nings5Goals51
2
Copyrights5©s52017s5Pearsons5Education,s
5Inc.
, 6) Whichs5ofs5thes5followings5iss5NOTs5ans5investments5ass5defineds5ins5thes5text?
A) as5certificates5ofs5deposits5issueds5bys5as5bank
B) as5news5automobile
C) as5Uniteds5Statess5Savings5Bond
D) as5mutuals5funds5helds5ins5as5retirements5ac
counts5Answer:s 5 B
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
7) Stockss5ares5a(n)s5 investments5representings5 ofs5as5business.
A) direct;s5ownership
B) direct;s5debt
C) indirect;s5ownership
D) indirect;s5deb
ts5Answer:s 5 A
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
8) Ans5exchanges5tradeds5funds5thats5investss5ins5thes5stockss5ofs5larges5corporationss5iss5ans5exam
ples5of
A) directs5investment.
B) indirects5investment.
C) derivatives5investment.
D) tangibles5investment
.
Answer:s 5 B
Learnings5Outcome:s 5 F-
12s5Discusss5thes5implicationss5ofs5systematics5risks5ins5financials5marketss5ands5itss5roles5ins5shap
ings5investments5choices
AACSB:s 5 3s5Analyticals5thinkings5Que
stions5Status:s 5 Previouss5Editions5Learn
ings5Goal:s 5 Learnings5Goals51
9) Whichs5ofs5thes5followings5hass5declineds5ins5recents5 years?
A) directs5ownerships5ofs5stocks5bys5individuals5investors
B) thes5percentages5ofs5foreigns5stockss5helds5ins5typicals5portfolios
C) institutionals5ownerships5ofs5commons5stocks
D) thes5timelinesss5ofs5informations5availables5tos5inve
storss5Answer:s 5 A
3
Copyrights5©s52017s5Pearsons5Education,s
5Inc.