Name: Score:
270 Multiple choice questions
Term 1 of 270
What type of common stock has no dividend or voting rights?
Outstanding shares
Treasury stock
Revenue bonds
Preferred stock
Term 2 of 270
When broker/dealers effect trades for the accounts of others, they are acting in what capacity?
Agency
When a firm trades for the account of others, they are acting in an agency capacity. In this
capacity they are also known as the broker.
Interest coverage ratio
The interest coverage ratio measures how easily the entity can pay interest on its
outstanding bonds. A higher number is better.
Auto production is a big-ticket consumer item, and is cyclical, not defensive. In other words,
it follows the economic cycle.
Within 30 days of initial discovery of suspicious transaction
,Term 3 of 270
Which type of municipal bond is backed by the full faith, credit and taxing power of the issuer?
Municipal bonds
General Obligation bonds
Syndicate
Revenue bonds
Term 4 of 270
All orders are day orders unless marked as what?
SEC and FINRA
Passive income generators (pig's)
Callable preferred
the callable option allows a corporation to buy back its securities. the call price is usually at
a premium to the stock's par value to make callable issues attractive to purchasers.
GTC ("Good-til cancelled")
Term 5 of 270
Who represents orders from the public on the trading floor of the NYSE?
Floor trader
Put option
Floor broker
Stockbroker
,Term 6 of 270
Which type of investment company issues discounted or premium shares that can be redeemed
for a fixed amount on a specified date?
Stocks and bonds
Unit investment trust
Face amount certificate
Closed-end fund
Term 7 of 270
What are the two types of voting processes used by corporations?
Statutory and cumulative
Proxy and statutory
Transfer
Preemptive and proxy
Term 8 of 270
A margin account has a debit balance of $10,000; the customer receives cash dividends of $500.
What is the new debit balance?
$10,500
$9,500
$10,000
$9,000
, Term 9 of 270
Which of the following would be included in the definition of an investment adviser?
A. An attorney who makes works with his client on a Chapter 11 re-organization
B. A business professor who teaches a class in portfolio management
C. A broker/dealer who charges a fee for analyzing client portfolios
D. An individual who publishes a quarterly newsletter with a model portfolio that includes buy/sell
recommendations
Income
C.
Long calls
The U.S. dollar strengthens when compares to foreign currencies.
A strong U.S. dollar when compares to foreign currencies causes a situation in which more
foreign dollars are required to buy the same merchandise, making U.S. exports less
competitive.
Term 10 of 270
What happens to the money supply when the FRB reduces the reserve requirement for banks?
Closed-end fund
Interest rates increase
Money supply increases
Government spending increases
270 Multiple choice questions
Term 1 of 270
What type of common stock has no dividend or voting rights?
Outstanding shares
Treasury stock
Revenue bonds
Preferred stock
Term 2 of 270
When broker/dealers effect trades for the accounts of others, they are acting in what capacity?
Agency
When a firm trades for the account of others, they are acting in an agency capacity. In this
capacity they are also known as the broker.
Interest coverage ratio
The interest coverage ratio measures how easily the entity can pay interest on its
outstanding bonds. A higher number is better.
Auto production is a big-ticket consumer item, and is cyclical, not defensive. In other words,
it follows the economic cycle.
Within 30 days of initial discovery of suspicious transaction
,Term 3 of 270
Which type of municipal bond is backed by the full faith, credit and taxing power of the issuer?
Municipal bonds
General Obligation bonds
Syndicate
Revenue bonds
Term 4 of 270
All orders are day orders unless marked as what?
SEC and FINRA
Passive income generators (pig's)
Callable preferred
the callable option allows a corporation to buy back its securities. the call price is usually at
a premium to the stock's par value to make callable issues attractive to purchasers.
GTC ("Good-til cancelled")
Term 5 of 270
Who represents orders from the public on the trading floor of the NYSE?
Floor trader
Put option
Floor broker
Stockbroker
,Term 6 of 270
Which type of investment company issues discounted or premium shares that can be redeemed
for a fixed amount on a specified date?
Stocks and bonds
Unit investment trust
Face amount certificate
Closed-end fund
Term 7 of 270
What are the two types of voting processes used by corporations?
Statutory and cumulative
Proxy and statutory
Transfer
Preemptive and proxy
Term 8 of 270
A margin account has a debit balance of $10,000; the customer receives cash dividends of $500.
What is the new debit balance?
$10,500
$9,500
$10,000
$9,000
, Term 9 of 270
Which of the following would be included in the definition of an investment adviser?
A. An attorney who makes works with his client on a Chapter 11 re-organization
B. A business professor who teaches a class in portfolio management
C. A broker/dealer who charges a fee for analyzing client portfolios
D. An individual who publishes a quarterly newsletter with a model portfolio that includes buy/sell
recommendations
Income
C.
Long calls
The U.S. dollar strengthens when compares to foreign currencies.
A strong U.S. dollar when compares to foreign currencies causes a situation in which more
foreign dollars are required to buy the same merchandise, making U.S. exports less
competitive.
Term 10 of 270
What happens to the money supply when the FRB reduces the reserve requirement for banks?
Closed-end fund
Interest rates increase
Money supply increases
Government spending increases
