TEST BANK
Fundamentals of Investing, 1st
Canadian Edition by Scott B. Smart
Complete Chapter Test Bank
are included (Ch 1 to 15)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1.The Investment Environment
2.Securities Markets and Transactions
3.Investment Information and Securities Transactions
4.Return and Risk
5.Modern Portfolio Concepts
6.Common Stocks
7.Analyzing Common Stocks
8.Stock Valuation
9.Market Efficiency and Behavioural Finance
10.Fixed-Income Securities
11.Bond Valuation
12.Mutual Funds and Exchange -Traded Funds
13.Managing Your Own Portfolio
14.Options: Puts and Calls
15.Futures Marketsand Securities
,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all
chapters are included in this document. (Complete Chapters included Ch15-1)
Fundamentals of Investing, 1Ce (Smart)
Chapter 15 Futures Markets and Securities
15.1 Learning Objective 1
1) All futures contracts trade continuously between 7:30 a.m. and 2:00 p.m., Monday through
Friday.
Answer: FALSE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
2) Futures contracts for various commodities have different trading hours depending on the
commodity.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
3) The definition of commodity is broad enough to include things like foreign currencies and
the future value of stock market indexes.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
4) Futures trading requires large amounts of capital because the buyer of a contract must
deposit the full settlement price of the contract at the time of purchase.
Answer: FALSE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
5) Futures contracts obligate a participant to buy or sell the commodity at the contracted price
unless the contract is cancelled or liquidated before the expiration date.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
6) Commodity prices react to a unique set of economic, political and international pressures, as
well as to the weather.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
1
, 7) Because a futures contract deals with very large trading units, even a modest price change in
the price of the underlying commodity can have a large impact on the market value of the
contract.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
8) With a futures contract, an investor cannot lose more than the price of the contract itself.
Answer: FALSE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
9) The number of commodities traded in futures markets has been decreasing because of tighter
regulations and a narrower definition of commodity.
Answer: FALSE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
10) The seller of a futures contract
A) has the option of canceling the contract the following day if the price is not acceptable to
him/her.
B) is legally bound to make delivery of the specified item on the specified day.
C) receives the entire contract amount at the time the contract is made.
D) must make delivery before receiving any monies on the contract.
Answer: B
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
2
Fundamentals of Investing, 1st
Canadian Edition by Scott B. Smart
Complete Chapter Test Bank
are included (Ch 1 to 15)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1.The Investment Environment
2.Securities Markets and Transactions
3.Investment Information and Securities Transactions
4.Return and Risk
5.Modern Portfolio Concepts
6.Common Stocks
7.Analyzing Common Stocks
8.Stock Valuation
9.Market Efficiency and Behavioural Finance
10.Fixed-Income Securities
11.Bond Valuation
12.Mutual Funds and Exchange -Traded Funds
13.Managing Your Own Portfolio
14.Options: Puts and Calls
15.Futures Marketsand Securities
,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all
chapters are included in this document. (Complete Chapters included Ch15-1)
Fundamentals of Investing, 1Ce (Smart)
Chapter 15 Futures Markets and Securities
15.1 Learning Objective 1
1) All futures contracts trade continuously between 7:30 a.m. and 2:00 p.m., Monday through
Friday.
Answer: FALSE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
2) Futures contracts for various commodities have different trading hours depending on the
commodity.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
3) The definition of commodity is broad enough to include things like foreign currencies and
the future value of stock market indexes.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
4) Futures trading requires large amounts of capital because the buyer of a contract must
deposit the full settlement price of the contract at the time of purchase.
Answer: FALSE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
5) Futures contracts obligate a participant to buy or sell the commodity at the contracted price
unless the contract is cancelled or liquidated before the expiration date.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
6) Commodity prices react to a unique set of economic, political and international pressures, as
well as to the weather.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
1
, 7) Because a futures contract deals with very large trading units, even a modest price change in
the price of the underlying commodity can have a large impact on the market value of the
contract.
Answer: TRUE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
8) With a futures contract, an investor cannot lose more than the price of the contract itself.
Answer: FALSE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
9) The number of commodities traded in futures markets has been decreasing because of tighter
regulations and a narrower definition of commodity.
Answer: FALSE
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
10) The seller of a futures contract
A) has the option of canceling the contract the following day if the price is not acceptable to
him/her.
B) is legally bound to make delivery of the specified item on the specified day.
C) receives the entire contract amount at the time the contract is made.
D) must make delivery before receiving any monies on the contract.
Answer: B
Learning Objective: 15.1 Describe the essential features of a futures contract, and explain how
the futures market operates.
AACSB: Application of knowledge
2
