UGBA 135 midterm UPDATED ACTUAL Questions And Correct Answers
Actively trading common stocks is the best long-term False
investment strategy for most investors. True or False?
The potential advantages of index funds are Many, though not all, have low fees
Many, though not all, are well diversified.
It is surprisingly difficult to look up the fees for mutual False
funds? True or false.
When buying a mutual fund in a particular asset class, The fees the fund charges.
which of the following is most important?
A mutual fund load is a commission you pay when you True
buy (or sometimes when you sell) a mutual fund. True or
false?
The fees charged by index funds vary with the types of True
assets the funds invest in. True or false?
Exchange Traded Funds (ETFs) sometimes charge high False
fees, but they are always well diversified. True or false?
If the market drops 30%, it is certain to recover during the False
next year. True or False
Which of these is not a major Credit Bureau? Moody's
, What factors directly affect your credit score? (Choose Payment History
all that apply.) Debt Burden
Length of Credit History
Which factor has the largest direct impact on your credit Payment History
score?
In the video "Prioritizing Savings" which of the following Save first for your children's education, then for your own retirement
do I NOT recommend?
Lenders use credit reports to help them decide whether True
to loan you money and what interest rate to charge. True
or false?
Zvi Bodie invests in... inflation protected US bonds.
Asset allocation refers to deciding which individual False
stocks to buy. True or false?
In most cases, as people approach retirement age, it is False
recommended that they increase the percentage of their
financial investments held in stocks and decrease the
percentage held in bonds. True or false?
Most target date funds decrease their allocation to True
stocks over time. True or false?
Benjamin Graham recommended holding no more than False
75% of one's portfolio in stocks and no less than 25% in
gold. True or false?
If you buy a company's stock, you own a part of the company.
If you buy a company's bond, you have lent money to the company.
If a company files for bankruptcy, which of the following The company's stock
securities is most at risk of becoming virtually worthless?
Holding a diversified portfolio of stocks rather than an increases the likelihood that you will own at least one stock that performs poorly.
undiversified portfolio
Investments with higher risk always have higher expected False
returns. True or false?
Advertisements for online trading tend to emphasize That trading is fun.
which of the following? That making your own trading decisions puts you in control.
That it is easy to trade online
Why is Social Security called a PAYGO system? Because the payroll taxes paid by current workers are used to pay current
retirement benefits.
Actively trading common stocks is the best long-term False
investment strategy for most investors. True or False?
The potential advantages of index funds are Many, though not all, have low fees
Many, though not all, are well diversified.
It is surprisingly difficult to look up the fees for mutual False
funds? True or false.
When buying a mutual fund in a particular asset class, The fees the fund charges.
which of the following is most important?
A mutual fund load is a commission you pay when you True
buy (or sometimes when you sell) a mutual fund. True or
false?
The fees charged by index funds vary with the types of True
assets the funds invest in. True or false?
Exchange Traded Funds (ETFs) sometimes charge high False
fees, but they are always well diversified. True or false?
If the market drops 30%, it is certain to recover during the False
next year. True or False
Which of these is not a major Credit Bureau? Moody's
, What factors directly affect your credit score? (Choose Payment History
all that apply.) Debt Burden
Length of Credit History
Which factor has the largest direct impact on your credit Payment History
score?
In the video "Prioritizing Savings" which of the following Save first for your children's education, then for your own retirement
do I NOT recommend?
Lenders use credit reports to help them decide whether True
to loan you money and what interest rate to charge. True
or false?
Zvi Bodie invests in... inflation protected US bonds.
Asset allocation refers to deciding which individual False
stocks to buy. True or false?
In most cases, as people approach retirement age, it is False
recommended that they increase the percentage of their
financial investments held in stocks and decrease the
percentage held in bonds. True or false?
Most target date funds decrease their allocation to True
stocks over time. True or false?
Benjamin Graham recommended holding no more than False
75% of one's portfolio in stocks and no less than 25% in
gold. True or false?
If you buy a company's stock, you own a part of the company.
If you buy a company's bond, you have lent money to the company.
If a company files for bankruptcy, which of the following The company's stock
securities is most at risk of becoming virtually worthless?
Holding a diversified portfolio of stocks rather than an increases the likelihood that you will own at least one stock that performs poorly.
undiversified portfolio
Investments with higher risk always have higher expected False
returns. True or false?
Advertisements for online trading tend to emphasize That trading is fun.
which of the following? That making your own trading decisions puts you in control.
That it is easy to trade online
Why is Social Security called a PAYGO system? Because the payroll taxes paid by current workers are used to pay current
retirement benefits.
