Test Bank For Investments 9th Canadian Edition By Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian

,Test Bank For
Investments 9th Canadian Edition By Zvi Bodie, Alex Kane, Alan Marcus,
Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian
Chapter 1-28

Chapter 01
The Investment Environment



Multiple Choice Questions


1. The material wealth of a society is a function of
A. all financial assets.
B. all real assets.
C. all financial and real assets.
D. all physical assets.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Real Assets versus Financial Assets.
Topic: 01-01 Real Assets versus Financial Assets



2. _______ are real assets.
A. Land
B. Machines
C. Stocks and bonds
D. Knowledge
E. Land, machines, and knowledge

Land, machines and knowledge are real assets; stocks and bonds are financial assets.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Real Assets versus Financial Assets.
Topic: 01-01 Real Assets versus Financial Assets




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,3. The means by which individuals hold their claims on real assets in a well-developed
economy are
A. investment assets.
B. depository assets.
C. derivative assets.
D. financial assets.
E. exchange-driven assets.

Financial assets allocate the wealth of the economy. Example: it is easier for an individual to
own shares of an auto company than to own an auto company directly.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Real Assets versus Financial Assets.
Topic: 01-01 Real Assets versus Financial Assets



4. _______ are financial assets.
A. Bonds
B. Machines
C. Stocks
D. Bonds and stocks
E. Bonds, machines, and stocks

Machines are real assets; stocks and bonds are financial assets.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Real Assets versus Financial Assets.
Topic: 01-01 Real Assets versus Financial Assets

5. _________ financial asset(s).
A. Buildings are
B. Land is a
C. Derivatives are
D. Canadian T-Bills are
E. Derivatives and Canadian bonds are




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, Buildings and land are real assets.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Real Assets versus Financial Assets.
Topic: 01-01 Real Assets versus Financial Assets



6. Financial assets
A. directly contribute to the country's productive capacity.
B. indirectly contribute to the country's productive capacity.
C. contribute to the country's productive capacity, both directly and indirectly.
D. do not contribute to the country's productive capacity, either directly or indirectly.
E. are of no value to anyone.


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-01 Real Assets versus Financial Assets.
Topic: 01-01 Real Assets versus Financial Assets



7. A security that pays a specified cash flow over a specific period is called
A. fixed income.
B. stock option.
C. mutual fund.
D. real estate.
E. index.


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-02 Financial Assets.
Topic: 01-02 Financial Assets


8. _________ is a commodity.
A. Swap
B. Money
C. Gold
D. Future contract
E. Treasury-bill




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