Question 1.1. (TCO 5) If an investment objective is considered to be intermediate term, then this means the goal should be achieved in what time frame? (Points : 1)        Less than 2 years        Over 10 years        More than 5 years        In 1–5 years        None of the above Question 2.2. (TCO 5) If an investment objective is considered to be long term, then this means the goal should be achieved in what time frame? (Points : 1)        Less than 2 years        In 2–5 years        More than 5 years        Less than 1 year        None of the above Question 3.3. (TCO 5) You currently hold a $1,000 corporate bond; however, if interest rates in the overall economy increase, which of the following is most likely to be the market value of this bond? (Points : 1)        $900        $1,100        $1,000        The value of the bond will not change.        It is impossible to determine whether the bond's value will increase or decrease. Question 4.4. (TCO 5) The market value of a corporate bond with a fixed interest rate will _____ if interest rates in the overall economy decrease. (Points : 1)        increase        not change        decrease        become worthless        It is impossible to determine whether the bond's value will increase or decrease. Question 5.5. (TCO 5) Mary Ann recently received a $20,000 gift from her uncle and is considering investing in stocks, because she knows that historically they have earned an approximately 10–12% rate of return over the last few years. Referring to aspects of investing, Mary Ann is most concerned about which of the following? (Points : 1)        Risk        Return        Diversification        Liquidity        Income Question 6.6. (TCO 5) A $1,000 corporate bond pays 6.5% a year. What is the annual interest you will receive?  (Points : 1)         $0.65         $6.50         $65.00         $1,060.50         $1,065.00 Question 7.7. (TCO 5) Investments can be affected by all of the following risks except (Points : 1)        inflation.        global risks.        individual selection.        business failure.        market risks. Question 8.8. (TCO 5) Tracey Hernandez is 26 and has saved enough money for an emergency fund, along with an additional $4,500 for an investment program. She is single with no dependents and has a desire to retire at 65. What would best characterize Ms. Hernandez's investment goal? (Points : 1)        Beta        Income        Growth        Risk        Liquidity Question 9.9. (TCO 5) Matt Dannon just bought the stock of a company that provides him with the responsibility to approve major company actions. Which one of the following best characterizes this responsibility? (Points : 1)        Voting rights        Proxy        Equity        Dividends        None of the above Question 10.10. (TCO 5) Beverly Frickel purchased 100 shares of Gleason Systems stock for $32.50 per share. Her commission for this purchase was $25. She sold the stock 2 years later for $ ...

1. Question 1.1. (TCO 5) If an investment objective is considered
to be intermediate term, then this means the goal should be
achieved in what time frame? (Points : 1)
Less than 2 years
Over 10 years
More than 5 years
In 1–5 years
None of the above
Question 2.2. (TCO 5) If an investment objective is considered
to be long term, then this means the goal should be achieved in
what time frame? (Points : 1)
Less than 2 years
In 2–5 years
More than 5 years
Less than 1 year
None of the above
Question 3.3. (TCO 5) You currently hold a $1,000 corporate
bond; however, if interest rates in the overall economy increase,
which of the following is most likely to be the market value of
this bond? (Points : 1)
$900
$1,100
$1,000
The value of the bond will not change.
It is impossible to determine whether the bond's value will
increase or decrease.

2. Question 4.4. (TCO 5) The market value of a corporate bond
with a fixed interest rate will _____ if interest rates in the
overall economy decrease. (Points : 1)
increase
not change
decrease
become worthless
It is impossible to determine whether the bond's value will
increase or decrease.
Question 5.5. (TCO 5) Mary Ann recently received a $20,000
gift from her uncle and is considering investing in stocks,
because she knows that historically they have earned an
approximately 10–12% rate of return over the last few years.
Referring to aspects of investing, Mary Ann is most concerned
about which of the following? (Points : 1)
Risk
Return
Diversification
Liquidity
Income
Question 6.6. (TCO 5) A $1,000 corporate bond pays 6.5% a
year. What is the annual interest you will receive? (Points : 1)
$0.65
$6.50
$65.00
$1,060.50
$1,065.00
Question 7.7. (TCO 5) Investments can be affected by all of the
following risks except (Points : 1)
inflation.

3. global risks.
individual selection.
business failure.
market risks.
Question 8.8. (TCO 5) Tracey Hernandez is 26 and has saved
enough money for an emergency fund, along with an additional
$4,500 for an investment program. She is single with no
dependents and has a desire to retire at 65. What would best
characterize Ms. Hernandez's investment goal? (Points : 1)
Beta
Income
Growth
Risk
Liquidity
Question 9.9. (TCO 5) Matt Dannon just bought the stock of a
company that provides him with the responsibility to approve
major company actions. Which one of the following best
characterizes this responsibility? (Points : 1)
Voting rights
Proxy
Equity
Dividends
None of the above
Question 10.10. (TCO 5) Beverly Frickel purchased 100 shares
of Gleason Systems stock for $32.50 per share. Her commission
for this purchase was $25. She sold the stock 2 years later for
$45 per share and a commission of $40. While she held the
stock it paid a dividend of $1.50 per share. What was Beverly's
total dollar return on this stock? (Points : 1)
$1,355

4. $1,335
$65
$1,375
$1,400
Question 11.11. (TCO 5) Lindsey Holt owns stock in the
Galloway Gems Company. She knows she will receive a $1.50
dividend each quarter. Given this, you know for sure that she
purchased which type of stock? (Points : 1)
Preferred
Common
Blue chip
Growth
Penny
Question 12.12. (TCO 5) Common stock represents
_____. (Points : 1)
a loan to a company
corporate ownership
a loan to an investor
a guarantee of dividends
a cash distribution
Question 13.13. (TCO 5) You have purchased preferred stock
that can be exchanged for common stock at your option. What
kind of stock is this? (Points : 1)
Convertible
Participating
Cumulative
Callable
None of the above

5. Question 14.14. (TCO 5) Assume that you purchased a $1,000
Exxon bond that pays 8.5% interest. What is the amount of
interest you would receive every 6 months? (Points : 1)
$42.50
$8.50
$85
$4.25
$1,000
Question 15.15. (TCO 5) What is the approximate market value
for a $1,000 corporate bond that pays 7% interest when
comparable bonds are paying 8% interest? (Points : 1)
$800
$875
$70
$1,142
$1,000
Question 16.16. (TCO 5) Which of the statements below is
false? (Points : 1)
Stock is a form of equity capital.
Stock does not have a maturity date.
Bonds are a form of debt capital.
Bonds do not have to be repaid at maturity.
Interest payments are made to bondholders.
Question 17.17. (TCO 5) A _____ bond is unsecured and gives
bondholders a claim secondary to that of other designated
bondholders with respect to both income and assets. (Points : 1)
subordinated debenture
mortgage
debenture
preemptive

6. Treasury
Question 18.18. (TCO 5) A(n) _____ bond is one that can be
exchanged, at the owner's option, for a specified number of
shares of the corporation's stock. (Points : 1)
debenture
convertible
indenture
flexible
subordinated
Question 19.19. (TCO 5) A(n) _____ fund is a fund to which
annual or semiannual deposits are made for the purpose of
redeeming a bond issue. (Points : 1)
serial
indenture
debenture
sinking
money
Question 20.20. (TCO 5) A _____ bond is registered in the
owner's name by the issuing company. (Points : 1)
certified
coupon
general obligation
zero-coupon
registered