INVESTMENTS 3331 FINA 3331 EXAM 1 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+
1. Which of the following is the best definition of wealth?
a. The sum of all current and future income
b. The total of all assets and all income
c. The total of assets and income less any liabilities
d. The sum of current income and the present value of future income
Ans✓✓✓d. The sum of current income and the present value of future
income
2. Gold coins would be classified as:
a. real assets.
b. indirect assets.
c. personal assets.
d. financial assets. Ans✓✓✓A. Real Assets
3. Technically, investments include:
a. only financial assets.
b. only marketable assets.
c. financial and real assets that are marketable or non-marketable.
,d. only financial and real assets that are marketable. Ans✓✓✓C.
financial and real assets that are marketable or non-marketable.
4. The retirement plans that guarantee retirees a set amount of money
each month are known as:
a. 401(k) plans.
b. self-directed plans.
c. defined-benefit plans.
d. defined-contribution plans. Ans✓✓✓c.defined-benefit plans.
5. The investment professionals that arrange the sale of new securities
are called:
a. arbitragers.
b. traders.
c. investment bankers.
d. specialists. Ans✓✓✓c.investment bankers
6. Another name for stockbrokers is:
a. specialists.
b. financial advisors.
c. security analysts.
, d. portfolio managers. Ans✓✓✓b.financial advisors.
7. Investment professionals who take companies public, arrange mergers
and acquisitions, and participate in municipal bond issues are:
a. registered representatives.
b. security analysts.
c. investment bankers.
d. portfolio managers. Ans✓✓✓c. investment bankers.
9. Most financial advisors are registered with the Securities and
Exchange Commission as:
a. registered representatives.
b. registered investment advisors.
c. registered financial planners.
d. registered securities consultants. Ans✓✓✓b. registered investment
advisors.
8. One reason for the declining importance of pension funds is the:
a. decrease in pension benefits for workers.
b. downsizing of U.S. companies.
c. large number of conversions into self-directed plans.
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+
1. Which of the following is the best definition of wealth?
a. The sum of all current and future income
b. The total of all assets and all income
c. The total of assets and income less any liabilities
d. The sum of current income and the present value of future income
Ans✓✓✓d. The sum of current income and the present value of future
income
2. Gold coins would be classified as:
a. real assets.
b. indirect assets.
c. personal assets.
d. financial assets. Ans✓✓✓A. Real Assets
3. Technically, investments include:
a. only financial assets.
b. only marketable assets.
c. financial and real assets that are marketable or non-marketable.
,d. only financial and real assets that are marketable. Ans✓✓✓C.
financial and real assets that are marketable or non-marketable.
4. The retirement plans that guarantee retirees a set amount of money
each month are known as:
a. 401(k) plans.
b. self-directed plans.
c. defined-benefit plans.
d. defined-contribution plans. Ans✓✓✓c.defined-benefit plans.
5. The investment professionals that arrange the sale of new securities
are called:
a. arbitragers.
b. traders.
c. investment bankers.
d. specialists. Ans✓✓✓c.investment bankers
6. Another name for stockbrokers is:
a. specialists.
b. financial advisors.
c. security analysts.
, d. portfolio managers. Ans✓✓✓b.financial advisors.
7. Investment professionals who take companies public, arrange mergers
and acquisitions, and participate in municipal bond issues are:
a. registered representatives.
b. security analysts.
c. investment bankers.
d. portfolio managers. Ans✓✓✓c. investment bankers.
9. Most financial advisors are registered with the Securities and
Exchange Commission as:
a. registered representatives.
b. registered investment advisors.
c. registered financial planners.
d. registered securities consultants. Ans✓✓✓b. registered investment
advisors.
8. One reason for the declining importance of pension funds is the:
a. decrease in pension benefits for workers.
b. downsizing of U.S. companies.
c. large number of conversions into self-directed plans.
