Wall Street Exam Questions with
Complete Solutions11
Selling a futures contract hoping to profit from declining prices is also known as - ANSWERS-
going short
Which of the following best describes the two primary elements of compensation? - ANSWERS-
fixed and variable pay
People's incomes are relatively low when they are young, reach a peak in middle age, and then
decline. This fact helps explain - ANSWERS-why the lifetime distribution of income is more equal
that the distribution in any given year
Which one of the following is the rate at which a stock's price is expected to appreciate? -
ANSWERS-capital gains yield
One cause of income inequality in the US is - ANSWERS-differences in preferences for market
work relative to non market activities as well as differences in preferences for types of work
standard deviation is a measure of which one of the following? - ANSWERS-volatility
The basic economic argument for greater income equality is that - ANSWERS-a more equal
distribution of a given amount of income will increase the total utility of consumers
Last year, T-bills returned 2 percent while your investment enlarge-company stocks earned an
average of 5 percent. Which one of the following terms refers to the difference between these
two rates of return? - ANSWERS-geometric return
, Insider trading occurs when - ANSWERS-someone has information not available to the public
which they use to profit from trading in stocks
Mortimer and Randolph Duke, the two corrupt, septuagenarian brothers who run a - ANSWERS-
commodities brokerage house
Which of the following a major factor influencing the growth and change of employee benefits?
- ANSWERS-the government
Which of the following groups does not bear a disproportionate burden of poverty? - ANSWERS-
the elderly
An investor who accepts the risk of a loss in exchange for the chance to earn a profit is referred
to as which of the following? - ANSWERS-speculator
A company's ____ are potentially the most effective instrument of good corporate governance. -
ANSWERS-board of directors
The value of cost of a good or service that is given up by choosing one alternative over another
is called - ANSWERS-an opportunity cost
If you open a margin account with your broker, you can buy twice as much stock as you actually
have the cash to purchase. - ANSWERS-Fact
Standard Census data on the distribution of income: - ANSWERS-are before taxes in that they do
not account for personal income and payroll taxes
Diversification is investing in a variety of assets with which one of the following as the primary
goal? - ANSWERS-reducing some risks
Complete Solutions11
Selling a futures contract hoping to profit from declining prices is also known as - ANSWERS-
going short
Which of the following best describes the two primary elements of compensation? - ANSWERS-
fixed and variable pay
People's incomes are relatively low when they are young, reach a peak in middle age, and then
decline. This fact helps explain - ANSWERS-why the lifetime distribution of income is more equal
that the distribution in any given year
Which one of the following is the rate at which a stock's price is expected to appreciate? -
ANSWERS-capital gains yield
One cause of income inequality in the US is - ANSWERS-differences in preferences for market
work relative to non market activities as well as differences in preferences for types of work
standard deviation is a measure of which one of the following? - ANSWERS-volatility
The basic economic argument for greater income equality is that - ANSWERS-a more equal
distribution of a given amount of income will increase the total utility of consumers
Last year, T-bills returned 2 percent while your investment enlarge-company stocks earned an
average of 5 percent. Which one of the following terms refers to the difference between these
two rates of return? - ANSWERS-geometric return
, Insider trading occurs when - ANSWERS-someone has information not available to the public
which they use to profit from trading in stocks
Mortimer and Randolph Duke, the two corrupt, septuagenarian brothers who run a - ANSWERS-
commodities brokerage house
Which of the following a major factor influencing the growth and change of employee benefits?
- ANSWERS-the government
Which of the following groups does not bear a disproportionate burden of poverty? - ANSWERS-
the elderly
An investor who accepts the risk of a loss in exchange for the chance to earn a profit is referred
to as which of the following? - ANSWERS-speculator
A company's ____ are potentially the most effective instrument of good corporate governance. -
ANSWERS-board of directors
The value of cost of a good or service that is given up by choosing one alternative over another
is called - ANSWERS-an opportunity cost
If you open a margin account with your broker, you can buy twice as much stock as you actually
have the cash to purchase. - ANSWERS-Fact
Standard Census data on the distribution of income: - ANSWERS-are before taxes in that they do
not account for personal income and payroll taxes
Diversification is investing in a variety of assets with which one of the following as the primary
goal? - ANSWERS-reducing some risks
