©FYNDLAY EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Wall Street Exam Questions And Answers
(Guaranteed A+)
Insider trading occurs when - answer✔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 -
answer✔commodities brokerage house
Which of the following a major factor influencing the growth and change of employee benefits?
- answer✔the government
Which of the following groups does not bear a disproportionate burden of poverty? -
answer✔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? - answer✔speculator
A company's ____ are potentially the most effective instrument of good corporate governance.
- answer✔board of directors
The value of cost of a good or service that is given up by choosing one alternative over another
is called - answer✔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. - answer✔Fact
Standard Census data on the distribution of income: - answer✔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? - answer✔reducing some risks
Which one of the following is an underlying assumption of the dividend growth model? -
answer✔a stock's value is equal to the discount present value of the future cash flows which it
generates
1|Page
, ©FYNDLAY EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Some economists have criticized government figures on income inequality, arguing that these
data - answer✔overestimate the degree of income inequality by failing to include non cash
transfers as income
Which of the following groups has the highest poverty rate? - answer✔female-headed families
Agent costs are incurred by a corporation because - answer✔all of the above
The following are examples of financial assets except - answer✔patents
Scarcity arises because of - answer✔a finite amount of resources
A financial instrument on which a futures contract is based is called which one of the following?
- answer✔underlying assets
The long-run objective of financial management is to - answer✔maximize the value of the firm's
common stock
Income - answer✔is a flow concept
What are the earnings per share or a company that earned $100,000 last year in after-ta
profits, has 200,000 common shares outstanding and $1.2 million in retained earnings at the
year end? - answer✔$0.50
In economics, efficiency refers to the property of society getting the most it can from its scarce
resources - answer✔true
Income mobility - answer✔makes lifetime income inequality among income receiver in the US
less than income inequality in any single year
Costs associated with the conflicts of interest between the bondholders and a shareholders of a
corporation is called - answer✔agency costs
To reduce risk as much as possible, you should combine assets which have one of the following
correlation relationships? - answer✔strongly negative
A ___ would be an example of a principal, while a ____ would be an example of an agent -
answer✔shareholder; manager
The purpose of financial markets is to: - answer✔allocate savings efficiently
True diversification means - answer✔putting a significant portion of your investment dollars
into several mutual funds
What element of risk is entailed in simple interest> - answer✔none whatsoever
2|Page
ALL RIGHTS RESERVED.
Wall Street Exam Questions And Answers
(Guaranteed A+)
Insider trading occurs when - answer✔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 -
answer✔commodities brokerage house
Which of the following a major factor influencing the growth and change of employee benefits?
- answer✔the government
Which of the following groups does not bear a disproportionate burden of poverty? -
answer✔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? - answer✔speculator
A company's ____ are potentially the most effective instrument of good corporate governance.
- answer✔board of directors
The value of cost of a good or service that is given up by choosing one alternative over another
is called - answer✔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. - answer✔Fact
Standard Census data on the distribution of income: - answer✔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? - answer✔reducing some risks
Which one of the following is an underlying assumption of the dividend growth model? -
answer✔a stock's value is equal to the discount present value of the future cash flows which it
generates
1|Page
, ©FYNDLAY EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Some economists have criticized government figures on income inequality, arguing that these
data - answer✔overestimate the degree of income inequality by failing to include non cash
transfers as income
Which of the following groups has the highest poverty rate? - answer✔female-headed families
Agent costs are incurred by a corporation because - answer✔all of the above
The following are examples of financial assets except - answer✔patents
Scarcity arises because of - answer✔a finite amount of resources
A financial instrument on which a futures contract is based is called which one of the following?
- answer✔underlying assets
The long-run objective of financial management is to - answer✔maximize the value of the firm's
common stock
Income - answer✔is a flow concept
What are the earnings per share or a company that earned $100,000 last year in after-ta
profits, has 200,000 common shares outstanding and $1.2 million in retained earnings at the
year end? - answer✔$0.50
In economics, efficiency refers to the property of society getting the most it can from its scarce
resources - answer✔true
Income mobility - answer✔makes lifetime income inequality among income receiver in the US
less than income inequality in any single year
Costs associated with the conflicts of interest between the bondholders and a shareholders of a
corporation is called - answer✔agency costs
To reduce risk as much as possible, you should combine assets which have one of the following
correlation relationships? - answer✔strongly negative
A ___ would be an example of a principal, while a ____ would be an example of an agent -
answer✔shareholder; manager
The purpose of financial markets is to: - answer✔allocate savings efficiently
True diversification means - answer✔putting a significant portion of your investment dollars
into several mutual funds
What element of risk is entailed in simple interest> - answer✔none whatsoever
2|Page
