You passed this Milestone
15 questions were answered correctly.
5 questions were answered incorrectly.
1
You loan $30,000 of your life savings to a friend for five years at 2% simple
interest annually.
What is the value of your $30,000 in five years?
$27,000
$33,000
$26,878
$33,122
CONCEPT
Future Value, Single Cash Flows
2
Select the best definition of an annuity-due.
An annuity whose payments are made at the beginning of the period
An annuity whose payments are made at the end of the period
An annuity whose payments can be made at any point during the period
An annuity that has matured
CONCEPT
Annuities
3
What effect would a CCC credit rating likely have on a bond?
,
The bond would have a higher interest rate to compensate for increased risk.
The bond would have a typical interest rate because the bond is considered
investment grade.
The bond would have a lower interest rate because the credit rating is poor.
The bond's interest rate would be unaffected because credit rating agencies
are not considered impartial.
CONCEPT
Understanding Bonds
4
An investment fund that uses more complex investment strategies
to generate returns for their wealthy or institutional investors is
a(n) __________.
hedge fund
mutual fund
exchange-traded fund
index fund
CONCEPT
Stock Markets
5
When an investor purchases stock, he or she becomes a(n) __________
of the issuing company.
employee
director
15 questions were answered correctly.
5 questions were answered incorrectly.
1
You loan $30,000 of your life savings to a friend for five years at 2% simple
interest annually.
What is the value of your $30,000 in five years?
$27,000
$33,000
$26,878
$33,122
CONCEPT
Future Value, Single Cash Flows
2
Select the best definition of an annuity-due.
An annuity whose payments are made at the beginning of the period
An annuity whose payments are made at the end of the period
An annuity whose payments can be made at any point during the period
An annuity that has matured
CONCEPT
Annuities
3
What effect would a CCC credit rating likely have on a bond?
,
The bond would have a higher interest rate to compensate for increased risk.
The bond would have a typical interest rate because the bond is considered
investment grade.
The bond would have a lower interest rate because the credit rating is poor.
The bond's interest rate would be unaffected because credit rating agencies
are not considered impartial.
CONCEPT
Understanding Bonds
4
An investment fund that uses more complex investment strategies
to generate returns for their wealthy or institutional investors is
a(n) __________.
hedge fund
mutual fund
exchange-traded fund
index fund
CONCEPT
Stock Markets
5
When an investor purchases stock, he or she becomes a(n) __________
of the issuing company.
employee
director
