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PrinciplesofFinance-TestBank-Ch12.docx!!!!!!!!!!!!!!!! PrinciplesofFinance-TestBank-Ch12.docx PrinciplesofFinance-TestBank-Ch12.docx
TEST BANK
Principles of Finance


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PrinciplesofFinance-TestBank-Ch12.docx 4/20/2026, 2:15:29 PM PrinciplesofFinance-TestBank-Ch12.docx

, PrinciplesofFinance-TestBank-Ch12.docx!!!!!!!!!!!!!!!! PrinciplesofFinance-TestBank-Ch12.docx PrinciplesofFinance-TestBank-Ch12.docx



Principles of Finance



Chapter 12
Test Bank
Chapter 12: Historical Performance of U.S. Markets

True or False Questions
1. Capital market instruments are all equity securities.
A. True
B. False
Section 12.1 LO 1 Moderate
2. The New York Stock Exchange (NYSE) is an example of an over-the-counter exchange.
A. True
B. False
Section 12.1 LO 3 Easy
3. Inflation is a general rise in market prices that affects all goods equally.
A. True
B. False
Section 12.2 LO 3 Moderate
4. It is conceivable for a stock investor to gain as much as 50% in one year or lose 50% in one
year.
A. True
B. False
Section 12.4 LO 3 Moderate

Multiple Choice Questions
1. Which of the following is a characteristic of a money market financial instrument?
A. High risk
B. Low risk
C. Low credit quality
D. Equity instrument
Section 12.1 LO 1 Easy




03/30/22 2


PrinciplesofFinance-TestBank-Ch12.docx 4/20/2026, 2:15:29 PM PrinciplesofFinance-TestBank-Ch12.docx