,Fundamentalss1ofs1Investing,s113es1(Smart)s1C
hapters11s 1 Thes1Investments1Environment
1.1 Learnings1Goals11
1) As1non-
interests1bearings1checkings1accounts1iss1stills1considereds1ans1investment.s1A
nswer:s 1 FALSE
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
2) Lands1ands1buildingss1ares1exampless1ofs1reals1propertys1invest
ments.s1Answer:s 1 TRUE
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
3) Sinces11900,s1thes1averages1returns1ons1stockss1hass1exceededs1thes1averages1returns1o
ns1savingss1accountss1bys1mores1thans16s1percentages1points.
Answer:s 1 TRUE
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
4) As1Uniteds1Statess1Savingss1Bonds1iss1ans1examples1ofs1ans1investments1ass1defineds1
ins1thes1text.s1Answer:s 1 TRUE
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
5) Mosts1sourcess1ofs1investments1informations1ares1ins1prints1format,s1expensive,s1ands1di
fficults1tos1access.
Answer:s 1 FALSE
Learnings1Outcome:s 1 F-
1
Copyrights1©s12017s1Pearsons1Education,s
1Inc.
,12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1sha
pings1investments1choices
AACSB:s 1 3s1Analyticals1thinki
ngs1Questions1Status:s 1 News1Q
uestions1Learnings1Goal:s 1 Lear
nings1Goals11
2
Copyrights1©s12017s1Pearsons1Education,s
1Inc.
, 6) Whichs1ofs1thes1followings1iss1NOTs1ans1investments1ass1defineds1ins1thes1text?
A) as1certificates1ofs1deposits1issueds1bys1as1bank
B) as1news1automobile
C) as1Uniteds1Statess1Savings1Bond
D) as1mutuals1funds1helds1ins1as1retirements1ac
counts1Answer:s 1 B
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
7) Stockss1ares1a(n)s1 investments1representings1 ofs1as1business.
A) direct;s1ownership
B) direct;s1debt
C) indirect;s1ownership
D) indirect;s1deb
ts1Answer:s 1 A
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
8) Ans1exchanges1tradeds1funds1thats1investss1ins1thes1stockss1ofs1larges1corporationss1iss1ans1exam
ples1of
A) directs1investment.
B) indirects1investment.
C) derivatives1investment.
D) tangibles1investment
.
Answer:s 1 B
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
9) Whichs1ofs1thes1followings1hass1declineds1ins1recents1 years?
A) directs1ownerships1ofs1stocks1bys1individuals1investors
B) thes1percentages1ofs1foreigns1stockss1helds1ins1typicals1portfolios
C) institutionals1ownerships1ofs1commons1stocks
D) thes1timelinesss1ofs1informations1availables1tos1inve
storss1Answer:s 1 A
3
Copyrights1©s12017s1Pearsons1Education,s
1Inc.
hapters11s 1 Thes1Investments1Environment
1.1 Learnings1Goals11
1) As1non-
interests1bearings1checkings1accounts1iss1stills1considereds1ans1investment.s1A
nswer:s 1 FALSE
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
2) Lands1ands1buildingss1ares1exampless1ofs1reals1propertys1invest
ments.s1Answer:s 1 TRUE
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
3) Sinces11900,s1thes1averages1returns1ons1stockss1hass1exceededs1thes1averages1returns1o
ns1savingss1accountss1bys1mores1thans16s1percentages1points.
Answer:s 1 TRUE
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
4) As1Uniteds1Statess1Savingss1Bonds1iss1ans1examples1ofs1ans1investments1ass1defineds1
ins1thes1text.s1Answer:s 1 TRUE
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
5) Mosts1sourcess1ofs1investments1informations1ares1ins1prints1format,s1expensive,s1ands1di
fficults1tos1access.
Answer:s 1 FALSE
Learnings1Outcome:s 1 F-
1
Copyrights1©s12017s1Pearsons1Education,s
1Inc.
,12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1sha
pings1investments1choices
AACSB:s 1 3s1Analyticals1thinki
ngs1Questions1Status:s 1 News1Q
uestions1Learnings1Goal:s 1 Lear
nings1Goals11
2
Copyrights1©s12017s1Pearsons1Education,s
1Inc.
, 6) Whichs1ofs1thes1followings1iss1NOTs1ans1investments1ass1defineds1ins1thes1text?
A) as1certificates1ofs1deposits1issueds1bys1as1bank
B) as1news1automobile
C) as1Uniteds1Statess1Savings1Bond
D) as1mutuals1funds1helds1ins1as1retirements1ac
counts1Answer:s 1 B
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
7) Stockss1ares1a(n)s1 investments1representings1 ofs1as1business.
A) direct;s1ownership
B) direct;s1debt
C) indirect;s1ownership
D) indirect;s1deb
ts1Answer:s 1 A
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
8) Ans1exchanges1tradeds1funds1thats1investss1ins1thes1stockss1ofs1larges1corporationss1iss1ans1exam
ples1of
A) directs1investment.
B) indirects1investment.
C) derivatives1investment.
D) tangibles1investment
.
Answer:s 1 B
Learnings1Outcome:s 1 F-
12s1Discusss1thes1implicationss1ofs1systematics1risks1ins1financials1marketss1ands1itss1roles1ins1shap
ings1investments1choices
AACSB:s 1 3s1Analyticals1thinkings1Que
stions1Status:s 1 Previouss1Editions1Learn
ings1Goal:s 1 Learnings1Goals11
9) Whichs1ofs1thes1followings1hass1declineds1ins1recents1 years?
A) directs1ownerships1ofs1stocks1bys1individuals1investors
B) thes1percentages1ofs1foreigns1stockss1helds1ins1typicals1portfolios
C) institutionals1ownerships1ofs1commons1stocks
D) thes1timelinesss1ofs1informations1availables1tos1inve
storss1Answer:s 1 A
3
Copyrights1©s12017s1Pearsons1Education,s
1Inc.
