BUS 6600 Final Exam Questions and Answers
(100% Correct Answers) Already Graded A+
The people who assist families in developing a
comprehensive program that covers investments, taxes,
insurance, and retirement plans are called [ Ans: ]
financial planners
A homeowner's insurance policy that includes a provision
for __________ would provide the homeowner with enough
cash to replace the items lost with new items [ Ans: ]
guaranteed replacement cost
Throughout history an investment in __________ has
yielded an excellent return, regardless of the state of the
economy or political changes [ Ans: ] a good education
The only way to accumulate enough money to do all of the
things you want to do late in life is to [ Ans: ] make more
than you spend
What is a form of whole life insurance that provides a
death benefit that varies with the performance of the
investments of the insurance company? [ Ans: ] variable
life insurance
Once you have set up a budget and handled your ordinary
expenses, the first thing to do with any extra money you
have is to [ Ans: ] pay off your debts
,What is an indication that the government recognizes
Social Security money will not provide you with ample
funds for retirement? [ Ans: ] The government has
established incentives for workers to save their own
money for retirement
About __________ of all U.S. households own stock and
mutual funds [ Ans: ] half
Real estate taxes and mortgage interest payments are both
[ Ans: ] tax deductible for homeowners
The tax-deferred investment plan that allows employees
to save part of their income for retirement is called an [
Ans: ] individual retirement account (IRA)
A Keogh retirement plan would be used by a [ Ans: ] self-
employed engineering consultant
The goal of accumulating capital is to allow an individual
to [ Ans: ] have funds available to invest
If a stock's closing price for the day is 32.47, the stock's
price in U.S. dollars would be [ Ans: ] $32.47
Firms establish a __________ so that sufficient funds are
available to repay bondholders on the maturity date [ Ans:
] sinking fund
The higher the risk associated with a bond issue, the
__________ the interest rate the organization must offer
investors [ Ans: ] higher
, Corporations benefit from securities markets primarily by
[ Ans: ] obtaining the capital they need to finance their
operations
The Dow Jones Industrial Average represents the average
price of __________ industrial stocks [ Ans: ] 30
Bonds that pay very high interest rates and typically have
a higher risk of default are known as __________ bonds [
Ans: ] junk
By buying a __________ bond, investors will have an option
to exchange their bond for shares of common stock in the
company at a future date [ Ans: ] convertible
Similar to bond investments, preferred shares can be
__________, meaning the firm may buy them back [ Ans: ]
callable
The process in which an investor borrows a percentage of
the purchase price of stocks from the brokerage firm is
called [ Ans: ] buying on margin
The risk associated with Firm A's bond is greater than the
risk of Firm B's bond. All other things being equal,
investors would be willing to pay __________ for Firm B's
bond [ Ans: ] more
The cost of a firm borrowing money is called the [ Ans: ]
interest rate
(100% Correct Answers) Already Graded A+
The people who assist families in developing a
comprehensive program that covers investments, taxes,
insurance, and retirement plans are called [ Ans: ]
financial planners
A homeowner's insurance policy that includes a provision
for __________ would provide the homeowner with enough
cash to replace the items lost with new items [ Ans: ]
guaranteed replacement cost
Throughout history an investment in __________ has
yielded an excellent return, regardless of the state of the
economy or political changes [ Ans: ] a good education
The only way to accumulate enough money to do all of the
things you want to do late in life is to [ Ans: ] make more
than you spend
What is a form of whole life insurance that provides a
death benefit that varies with the performance of the
investments of the insurance company? [ Ans: ] variable
life insurance
Once you have set up a budget and handled your ordinary
expenses, the first thing to do with any extra money you
have is to [ Ans: ] pay off your debts
,What is an indication that the government recognizes
Social Security money will not provide you with ample
funds for retirement? [ Ans: ] The government has
established incentives for workers to save their own
money for retirement
About __________ of all U.S. households own stock and
mutual funds [ Ans: ] half
Real estate taxes and mortgage interest payments are both
[ Ans: ] tax deductible for homeowners
The tax-deferred investment plan that allows employees
to save part of their income for retirement is called an [
Ans: ] individual retirement account (IRA)
A Keogh retirement plan would be used by a [ Ans: ] self-
employed engineering consultant
The goal of accumulating capital is to allow an individual
to [ Ans: ] have funds available to invest
If a stock's closing price for the day is 32.47, the stock's
price in U.S. dollars would be [ Ans: ] $32.47
Firms establish a __________ so that sufficient funds are
available to repay bondholders on the maturity date [ Ans:
] sinking fund
The higher the risk associated with a bond issue, the
__________ the interest rate the organization must offer
investors [ Ans: ] higher
, Corporations benefit from securities markets primarily by
[ Ans: ] obtaining the capital they need to finance their
operations
The Dow Jones Industrial Average represents the average
price of __________ industrial stocks [ Ans: ] 30
Bonds that pay very high interest rates and typically have
a higher risk of default are known as __________ bonds [
Ans: ] junk
By buying a __________ bond, investors will have an option
to exchange their bond for shares of common stock in the
company at a future date [ Ans: ] convertible
Similar to bond investments, preferred shares can be
__________, meaning the firm may buy them back [ Ans: ]
callable
The process in which an investor borrows a percentage of
the purchase price of stocks from the brokerage firm is
called [ Ans: ] buying on margin
The risk associated with Firm A's bond is greater than the
risk of Firm B's bond. All other things being equal,
investors would be willing to pay __________ for Firm B's
bond [ Ans: ] more
The cost of a firm borrowing money is called the [ Ans: ]
interest rate
