FIN380 FINAL COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
• What is usually excluded from a monthly credit card statement?.
Answer: The type of goods purchased
• A technical analyst is most likely to be affiliated with which investment
philosophy? A. Active management B. Buy and hold C. Passive investment
D. Index funds.
Answer: A. Active management
• The issuer of __________ bond may choose to pay interest either in cash or
in additional bonds. A. an asset-backed B. a TIPS C. a catastrophea D.
pay-in-kind.
Answer: D. pay-in-kind
• Long-term care is a term used to describe:.
Answer: the delivery of medical and personal care to persons with chronic
medical conditions who are not in a hospital.
• The most important investment prerequisites are:.
Answer: ample insurance and liquidity
• When interest rates increase, the duration of a 20-year bond selling at a
premium __________. A. increases B. decreases C. remains the same D.
increases at first and then declines.
Answer: B. decreases
• The best way for a family to handle financial decisions is to:.
Answer: Communicate consistently about money matters with family
members
• Which of the following bonds would most likely sell at the lowest yield? A.
A callable debenture B. A puttable mortgage bond C. A callable mortgage
, bond D. A puttable debenture.
Answer: B. A puttable mortgage bond
• The breadth on day 3 is __________. A. 70 B. 10 C. 90 D. 170.
Answer: D. 170 Breadth on day 3 = 960 − 790 = 170
• Stock prices tend to __________ when corporate earnings __________. A.
rise; rise B. rise; fall C. fall; rise D. None of these options are correct..
Answer: A. rise; rise
• A possible limit on arbitrage activity that may allow behavioral biases to
persist is __________. A. technical trends in prices B. momentum effects C.
fundamental risk D. trend reversals.
Answer: C. fundamental risk
• A portfolio manager believes interest rates will drop and decides to sell
short-duration bonds and buy long-duration bonds. This is an example of
__________ swap. A. a pure yield pickup B. a rate anticipation C. a
substitution D. an intermarket spread.
Answer: B. a rate anticipation A rate anticipation swap is a switch made in
response to forecasts of interest rate changes.
• If your statement of income and expense prepared on a cash basis shows a
deficit, you have:.
Answer: increased your debts
• Stock prices that are stable over time __________. A. indicate that prices
are useful indicators of true economic value B. indicate that the market has
not incorporated new information into current stock prices C. ensure that an
economy allocates its resources efficiently D. indicates that returns follow a
random-walk process.
Answer: B. indicate that the market has not incorporated new information
into current stock prices
• credit unions are:.
Answer: member owned financial cooperatives
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
• What is usually excluded from a monthly credit card statement?.
Answer: The type of goods purchased
• A technical analyst is most likely to be affiliated with which investment
philosophy? A. Active management B. Buy and hold C. Passive investment
D. Index funds.
Answer: A. Active management
• The issuer of __________ bond may choose to pay interest either in cash or
in additional bonds. A. an asset-backed B. a TIPS C. a catastrophea D.
pay-in-kind.
Answer: D. pay-in-kind
• Long-term care is a term used to describe:.
Answer: the delivery of medical and personal care to persons with chronic
medical conditions who are not in a hospital.
• The most important investment prerequisites are:.
Answer: ample insurance and liquidity
• When interest rates increase, the duration of a 20-year bond selling at a
premium __________. A. increases B. decreases C. remains the same D.
increases at first and then declines.
Answer: B. decreases
• The best way for a family to handle financial decisions is to:.
Answer: Communicate consistently about money matters with family
members
• Which of the following bonds would most likely sell at the lowest yield? A.
A callable debenture B. A puttable mortgage bond C. A callable mortgage
, bond D. A puttable debenture.
Answer: B. A puttable mortgage bond
• The breadth on day 3 is __________. A. 70 B. 10 C. 90 D. 170.
Answer: D. 170 Breadth on day 3 = 960 − 790 = 170
• Stock prices tend to __________ when corporate earnings __________. A.
rise; rise B. rise; fall C. fall; rise D. None of these options are correct..
Answer: A. rise; rise
• A possible limit on arbitrage activity that may allow behavioral biases to
persist is __________. A. technical trends in prices B. momentum effects C.
fundamental risk D. trend reversals.
Answer: C. fundamental risk
• A portfolio manager believes interest rates will drop and decides to sell
short-duration bonds and buy long-duration bonds. This is an example of
__________ swap. A. a pure yield pickup B. a rate anticipation C. a
substitution D. an intermarket spread.
Answer: B. a rate anticipation A rate anticipation swap is a switch made in
response to forecasts of interest rate changes.
• If your statement of income and expense prepared on a cash basis shows a
deficit, you have:.
Answer: increased your debts
• Stock prices that are stable over time __________. A. indicate that prices
are useful indicators of true economic value B. indicate that the market has
not incorporated new information into current stock prices C. ensure that an
economy allocates its resources efficiently D. indicates that returns follow a
random-walk process.
Answer: B. indicate that the market has not incorporated new information
into current stock prices
• credit unions are:.
Answer: member owned financial cooperatives
