Fundamentals of Investing, 14th Edition by Scott B. Smart: Complete Test Bank; Comprehensive Chapter-by-Chapter Exam Practice | Verified Questions & Accurate Answer Key

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,TEST BANK for Fundamentals of
Investing, 14th Edition by Scott B.
Smart
All Chapters Fully Covered| Expert
Verified Questions & 100% Accurate
Answers for Exam Preparations| A+
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Chapter 1 The Investment Environment

1.1 Learning Goal 1

1) A non-interest bearing checking account is still considered an investment.
Correct Answer: FALSE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its role in
shaping investment choices
AACSB: 3 Analytical thinking Question
Status: Previous Edition Learning Goal:
Learning Goal 1

2) Land and buildings are examples of real property investments.
Correct Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its role in
shaping investment choices
Fr




AACSB: 3 Analytical thinking Question
Status: Previous Edition Learning Goal:
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Learning Goal 1

3) Since 1900, the average return on stocks has exceeded the average return on savings
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accounts by more than 6 percentage points.
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Correct Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its role in
shaping investment choices
e




AACSB: 3 Analytical thinking Question
A




Status: Previous Edition Learning Goal:
Learning Goal 1
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4) A United States Savings Bond is an example of an investment as defined in the text. Correct
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Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its role in
shaping investment choices
Pa
ss

, AACSB: 3 Analytical thinking Question
Status: Previous Edition Learning Goal:
Learning Goal 1

5) Most sources of investment information are in print format, expensive, and difficult to access.
Correct Answer: FALSE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its role in
shaping investment choices
AACSB: 3 Analytical thinking
Question Status: New Question
Learning Goal: Learning Goal 1
6) Which of the following is NOT an investment as defined in the text?
A) a certificate of deposit issued by a bank
B) a new automobile
C) a United States Saving Bond
D) a mutual fund held in a retirement account
Correct Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its role in
shaping investment choices
AACSB: 3 Analytical thinking Question
Status: Previous Edition Learning Goal:
Learning Goal 1

7) Stocks are a(n) investment representing of a business.
A) direct; ownership
B) direct; debt
C) indirect; ownership
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D) indirect; debt
Correct Answer:
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A
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its role in
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shaping investment choices
AACSB: 3 Analytical thinking Question
yn




Status: Previous Edition Learning Goal:
Learning Goal 1
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8) An exchange traded fund that invests in the stocks of large corporations is an example of
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A) direct investment.
B) indirect investment.
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C) derivative investment.
D) tangible investment.
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Correct Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its role in
shaping investment choices
Pa
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