b b
lOMoAR cPSD| b
1l1O7M88oA94R2cPSD| 11788942
Investments Test Bank b b
Investments:Background an
b b
d Issues Essentials
b b
University of Illinois b b
, lOMoARb b
1788942
cPSD| 1
Chapter 01: Investments: Background and Issues
b b b b b b
Key Answersb
1. Financialbassetsbrepresent ofbtotalbassetsbofbU.S.bhouseholds.
A. overb60%
B. overb90%
C. underb10%
D. aboutb30%
Difficulty:b Easy
2. Realbassetsbinbthebeconomybincludeballbbutbwhichbonebofbthebfollowing?
A. Land
B. Buildings
C. Consumerbdurables
D. Commonbstock
Difficulty:b Easy
3. Netbworthbrepresentsb_ ofbthebliabilitiesbandbnetbworthbofbcommercialbbanks.
A. aboutb50%
B. aboutb90%
C. aboutb10%
D. aboutb30%
Difficulty:b Medium
, lOMoARb b
1788942
cPSD| 1
4. AccordingbtobthebFlowbofbFundsbAccountsbofbthebUnitedbStates,btheblargestbsinglebassetbof
U.S.bhouseholdsbis .
A. mutualbfundbshares
B. realbestate
C. pensionbreserves
D. corporatebequity
Difficulty:b Medium
5. AccordingbtobthebFlowbofbFundsbAccountsbofbthebUnitedbStates,btheblargestbliabilitybofbU.S.bh
ouseholdsbis .
A. mortgages
B. consumerbcredit
C. bankbloans
D. gamblingbdebts
Difficulty:b Medium
6. isbnotbabderivativebsecurity.
A. Absharebofbcommonbstock
B. Abcallboption
C. Abfuturesbcontract
D. Allbofbthebabovebarebderivativebsecurities.
Difficulty:b Easy
7. AccordingbtobthebFlowbofbFundsbAccountsbofbthebUnitedbStates,btheblargestbfinancialbassetbof
U.S.bhouseholdsbis .
A. mutualbfundbshares
B. corporatebequity
C. pensionbreserves
D. personalbtrusts
Difficulty:b Medium
, lOMoARb b
1788942
cPSD| 1
8. Activebtradingbinbmarketsbandbcompetitionbamongbsecuritiesbanalystsbhelpsbensurebthat
.
I. securitybpricesbapproachbinformationalbefficiency
II. riskierbsecuritiesbarebpricedbtobofferbhigherbpotentialbreturns
III. investorsbarebunlikelybtobbebablebtobconsistentlybfindbunder-borbovervaluedbsecurities
A. Ibonly
B. IbandbIIbonly
C. IIbandbIIIbonly
D. I,bIIbandbIII
Difficulty:b Hard
9. Thebmaterialbwealthbofbsocietybisbdeterminedbbybthebeconomy's
_,bwhichbisbabfunctionbofbthebeconomy's .
A. investmentbbankers,bfinancialbassets
B. investmentbbankers,brealbassets
C. productivebcapacity,bfinancialbassets
D. productivebcapacity,brealbassets
Difficulty:b Medium
10. Whichbofbthebfollowingbisbnotbabmoneybmarketbsecurity?
A. U.S.bTreasurybbill
B. Sixbmonthbmaturitybcertificatebofbdeposit
C. Commonbstock
D. Banker'sbacceptance
Difficulty:b Medium
1-4
lOMoAR cPSD| b
1l1O7M88oA94R2cPSD| 11788942
Investments Test Bank b b
Investments:Background an
b b
d Issues Essentials
b b
University of Illinois b b
, lOMoARb b
1788942
cPSD| 1
Chapter 01: Investments: Background and Issues
b b b b b b
Key Answersb
1. Financialbassetsbrepresent ofbtotalbassetsbofbU.S.bhouseholds.
A. overb60%
B. overb90%
C. underb10%
D. aboutb30%
Difficulty:b Easy
2. Realbassetsbinbthebeconomybincludeballbbutbwhichbonebofbthebfollowing?
A. Land
B. Buildings
C. Consumerbdurables
D. Commonbstock
Difficulty:b Easy
3. Netbworthbrepresentsb_ ofbthebliabilitiesbandbnetbworthbofbcommercialbbanks.
A. aboutb50%
B. aboutb90%
C. aboutb10%
D. aboutb30%
Difficulty:b Medium
, lOMoARb b
1788942
cPSD| 1
4. AccordingbtobthebFlowbofbFundsbAccountsbofbthebUnitedbStates,btheblargestbsinglebassetbof
U.S.bhouseholdsbis .
A. mutualbfundbshares
B. realbestate
C. pensionbreserves
D. corporatebequity
Difficulty:b Medium
5. AccordingbtobthebFlowbofbFundsbAccountsbofbthebUnitedbStates,btheblargestbliabilitybofbU.S.bh
ouseholdsbis .
A. mortgages
B. consumerbcredit
C. bankbloans
D. gamblingbdebts
Difficulty:b Medium
6. isbnotbabderivativebsecurity.
A. Absharebofbcommonbstock
B. Abcallboption
C. Abfuturesbcontract
D. Allbofbthebabovebarebderivativebsecurities.
Difficulty:b Easy
7. AccordingbtobthebFlowbofbFundsbAccountsbofbthebUnitedbStates,btheblargestbfinancialbassetbof
U.S.bhouseholdsbis .
A. mutualbfundbshares
B. corporatebequity
C. pensionbreserves
D. personalbtrusts
Difficulty:b Medium
, lOMoARb b
1788942
cPSD| 1
8. Activebtradingbinbmarketsbandbcompetitionbamongbsecuritiesbanalystsbhelpsbensurebthat
.
I. securitybpricesbapproachbinformationalbefficiency
II. riskierbsecuritiesbarebpricedbtobofferbhigherbpotentialbreturns
III. investorsbarebunlikelybtobbebablebtobconsistentlybfindbunder-borbovervaluedbsecurities
A. Ibonly
B. IbandbIIbonly
C. IIbandbIIIbonly
D. I,bIIbandbIII
Difficulty:b Hard
9. Thebmaterialbwealthbofbsocietybisbdeterminedbbybthebeconomy's
_,bwhichbisbabfunctionbofbthebeconomy's .
A. investmentbbankers,bfinancialbassets
B. investmentbbankers,brealbassets
C. productivebcapacity,bfinancialbassets
D. productivebcapacity,brealbassets
Difficulty:b Medium
10. Whichbofbthebfollowingbisbnotbabmoneybmarketbsecurity?
A. U.S.bTreasurybbill
B. Sixbmonthbmaturitybcertificatebofbdeposit
C. Commonbstock
D. Banker'sbacceptance
Difficulty:b Medium
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