ABEKA BUSINESS MATH TEST 9 EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
false - ANSWER-If Peter Richards invests in a mutual fund, he owns stock in one
particular company
false - ANSWER-one advantage of a certificate of deposit is that the interest is tax free
true - ANSWER-a bondholder receives the face value of a bond when it matures if
assets are available
false - ANSWER-$1,000 invested at 6% simple interest for one year earns $6.00 in
interest
false - ANSWER-an investment always has more buying power at the end of the
investment period compared to the point of investment
false - ANSWER-an annual interest rate of 6% that is compounded quarterly is
expressed as a quarterly rate of .25
false - ANSWER-investments in the stock market are guaranteed as to principal
true - ANSWER-a debit entry is made to the left in the general journal
stockbroker - ANSWER-licensed person who does the buying and selling of stock
dividend - ANSWER-portion of the profits of a corporation
quoted price - ANSWER-current selling price of a bond listed as a percent
par value - ANSWER-bond selling at face value
premium - ANSWER-bond selling for more than face value
discount - ANSWER-bond selling for less then face value
stock exchange - ANSWER-place where stocks are bought and sold
annual yield - ANSWER-annual interest/selling price of the bond
prospectus - ANSWER-pamphlet describing a mutual fund
investment portfolio - ANSWER-list of corporation in which a mutual fund is invested
QUESTIONS WITH COMPLETE
SOLUTIONS
false - ANSWER-If Peter Richards invests in a mutual fund, he owns stock in one
particular company
false - ANSWER-one advantage of a certificate of deposit is that the interest is tax free
true - ANSWER-a bondholder receives the face value of a bond when it matures if
assets are available
false - ANSWER-$1,000 invested at 6% simple interest for one year earns $6.00 in
interest
false - ANSWER-an investment always has more buying power at the end of the
investment period compared to the point of investment
false - ANSWER-an annual interest rate of 6% that is compounded quarterly is
expressed as a quarterly rate of .25
false - ANSWER-investments in the stock market are guaranteed as to principal
true - ANSWER-a debit entry is made to the left in the general journal
stockbroker - ANSWER-licensed person who does the buying and selling of stock
dividend - ANSWER-portion of the profits of a corporation
quoted price - ANSWER-current selling price of a bond listed as a percent
par value - ANSWER-bond selling at face value
premium - ANSWER-bond selling for more than face value
discount - ANSWER-bond selling for less then face value
stock exchange - ANSWER-place where stocks are bought and sold
annual yield - ANSWER-annual interest/selling price of the bond
prospectus - ANSWER-pamphlet describing a mutual fund
investment portfolio - ANSWER-list of corporation in which a mutual fund is invested
