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Essentials of Investments (12th Edition, Bodie, Kane, Marcus) – Complete Test Bank with Answers

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This document contains the full test bank for Essentials of Investments (12th Edition) by Zvi Bodie, Alex Kane, and Alan J. Marcus. It includes comprehensive multiple-choice and true/false questions for each chapter, covering topics such as financial markets, risk-return tradeoff, portfolio theory, securities analysis, and derivative instruments. Correct answers are included, making it a valuable study resource for students in finance, business, and investment management courses.

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,Answers are located in the second half of this document.
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Financial assets represent of total assets of U.S. households in 2019.


A) about 70%
B) over 90%
C) under 10%
D) about 30%



Question Details
Difficulty : 1 Easy
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Accessibility : Screen Reader Compatible
Gradable : automatic



2) Real assets in the economy include all but which one of the following?


A) Land
B) Buildings
C) Consumer durables
D) Common stock



Question Details
Difficulty : 1 Easy
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Accessibility : Screen Reader Compatible
Gradable : automatic


Version 1 1

,3) In 2019, net worth represented of the liabilities and net worth of commercial
banks.


A) about 51%
B) about 91%
C) about 11%
D) about 31%



Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Topic : Financial Intermediaries
Accessibility : Screen Reader Compatible
Gradable : automatic



4) According to the Flow of Funds Accounts of the United States, the largest single asset of
U.S. households is .


A) mutual fund shares
B) real estate
C) pension reserves
D) corporate equity



Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Accessibility : Screen Reader Compatible
Gradable : automatic


Version 1 2

, 5) According yto ythe yFlow yof yFunds yAccounts yof ythe yUnited yStates, ythe ylargest yliability yof
yU.S. yhouseholds yis y .


A) mortgages
B) consumer ycredit
C) bank yloans
D) gambling ydebts



Question yDetails
Learning yObjective y: y01-02 yDistinguish ybetween yreal yassets yand yfinancial yassets.
yAccessibility y: yKeyboard yNavigation

Type y: yStatic
Topic y: yReal yAssets yversus yFinancial yAssets
yBloom's y: yRemember

AACSB y: yAnalytical yThinking
yDifficulty y: y 2 yMedium

Accessibility y: yScreen yReader yCompatible
yGradable y: yautomatic




6) is ynot ya yderivative ysecurity.


A) A yshare yof ycommon ystock
B) A ycall yoption
C) A yfutures ycontract
D) A yput yoption



Question yDetails
Difficulty y: y 1 yEasy
Learning yObjective y: y01-02 yDistinguish ybetween yreal yassets yand yfinancial yassets.
yAccessibility y: yKeyboard yNavigation

Type y: yStatic
y Bloom's y:

yRemember

AACSB y: yAnalytical yThinking
yTopic y: yFinancial yAssets

Accessibility y: yScreen yReader yCompatible
yGradable y: yautomatic




Version 1 3

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Zvi Bodie, Alex Kane, Alan Marcus Essentials of Investments with S&P card
Publisher: 2009 ISBN: 9780077339180 Edition: Unknown

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