, TESTBANK FOR Foundations of Investments An Introduction 2nd Edition
Adair
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
✅ Why Buy From Us?
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📅 Always up to date – we track new editions so you always get the latest version.
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,Chapter 1 Introduction to Investments
Multiple Choice
1. Assets that either contribute to production or create income or wealth are
a. financial assets.
b. real assets.
c. diversified assets.
d. income assets.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Remember
2. A physical asset that has a value due to its substance and properties, such as precious metals,
commodities, real estate, land, equipment, and natural resources, is a
a. financial asset.
b. diversified asset.
c. capital gain.
d. real asset.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Remember
3. The copyright for a music composition is an example of a
a. financial asset.
b. diversified asset.
c. real asset.
d. capital gain.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 1 Introduction to Investments
KEYWORDS: Bloom's: Understand
4. A corporate stock is an example of a
a. financial asset.
b. diversified asset.
c. real asset.
d. capital gain.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
5. A corporate bond is an example of a
a. diversified asset.
b. financial asset.
c. real asset.
d. capital gain.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
6. Real assets are used to produce economic output, while what type of asset serves to allocate how that
output is divided up?
a. Diversified asset
b. Physical asset
c. Financial asset
d. Undiversified asset
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero. Page 2
,Chapter 1 Introduction to Investments
KEYWORDS: Bloom's: Understand
7. GameStop has approximately 76,000,000 shares common stock outstanding as of May 2022. Each
share has the same value and rights as every other one. In this way, the asset is said to
a. lack volatility.
b. be stable in value.
c. be unique.
d. lack uniqueness.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
8. Compared to financial assets, physical assets tend to be
a. less unique.
b. more unique.
c. more liquid.
d. higher in volume.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
9. In the following diagram of a system of financial cash flows, from where does the initial investment
come?
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 1 Introduction to Investments
a. Government
b. Projects
c. Investors
d. Companies
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between companies, inves
government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
10. In the following diagram of a system of financial cash flows, profits reinvested in the company are
called
a. government.
Copyright Cengage Learning. Powered by Cognero. Page 4
,Chapter 1 Introduction to Investments
b. retained earnings.
c. taxes.
d. projects.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between companies, inves
government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
11. In the following diagram of a system of financial cash flows, investment in projects comes from
a. taxes.
b. investors.
c. companies.
d. government.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between
companies, investors, and the government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
12. In the following diagram of a system of financial cash flows, taxes are paid by
Copyright Cengage Learning. Powered by Cognero. Page 5
,Chapter 1 Introduction to Investments
a. taxes and investment.
b. profits and investors.
c. investors and companies.
d. companies and retained earnings.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between companies, inves
government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
13. In the following diagram of a system of financial cash flows, what is the government's primary role?
a. Provide support
b. Pass regulation
Copyright Cengage Learning. Powered by Cognero. Page 6
,Chapter 1 Introduction to Investments
c. Make investments
d. Collect taxes
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between companies, inves
government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
14. In the following diagram of corporate finance decisions, which of these would be most concerned
with selecting the right firm in which to invest funds?
a. Investors
b. Companies
c. Government
d. Employees
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between
companies, investors, and the government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero. Page 7
, Chapter 1 Introduction to Investments
KEYWORDS: Bloom's: Apply
15. In the following diagram of corporate finance decisions, all cash flows are subject to
a. uncertainty.
b. discretion.
c. oversight.
d. investment.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between
companies, investors, and the government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
16. In the following diagram of corporate finance decisions, investors should consider all of these
questions EXCEPT which one?
Copyright Cengage Learning. Powered by Cognero. Page 8
Adair
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
,Chapter 1 Introduction to Investments
Multiple Choice
1. Assets that either contribute to production or create income or wealth are
a. financial assets.
b. real assets.
c. diversified assets.
d. income assets.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Remember
2. A physical asset that has a value due to its substance and properties, such as precious metals,
commodities, real estate, land, equipment, and natural resources, is a
a. financial asset.
b. diversified asset.
c. capital gain.
d. real asset.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Remember
3. The copyright for a music composition is an example of a
a. financial asset.
b. diversified asset.
c. real asset.
d. capital gain.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 1 Introduction to Investments
KEYWORDS: Bloom's: Understand
4. A corporate stock is an example of a
a. financial asset.
b. diversified asset.
c. real asset.
d. capital gain.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
5. A corporate bond is an example of a
a. diversified asset.
b. financial asset.
c. real asset.
d. capital gain.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
6. Real assets are used to produce economic output, while what type of asset serves to allocate how that
output is divided up?
a. Diversified asset
b. Physical asset
c. Financial asset
d. Undiversified asset
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero. Page 2
,Chapter 1 Introduction to Investments
KEYWORDS: Bloom's: Understand
7. GameStop has approximately 76,000,000 shares common stock outstanding as of May 2022. Each
share has the same value and rights as every other one. In this way, the asset is said to
a. lack volatility.
b. be stable in value.
c. be unique.
d. lack uniqueness.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
8. Compared to financial assets, physical assets tend to be
a. less unique.
b. more unique.
c. more liquid.
d. higher in volume.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Real vs. Financial Assets
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-01 - Describe the difference between real assets and
financial assets.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
9. In the following diagram of a system of financial cash flows, from where does the initial investment
come?
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 1 Introduction to Investments
a. Government
b. Projects
c. Investors
d. Companies
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between companies, inves
government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
10. In the following diagram of a system of financial cash flows, profits reinvested in the company are
called
a. government.
Copyright Cengage Learning. Powered by Cognero. Page 4
,Chapter 1 Introduction to Investments
b. retained earnings.
c. taxes.
d. projects.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between companies, inves
government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
11. In the following diagram of a system of financial cash flows, investment in projects comes from
a. taxes.
b. investors.
c. companies.
d. government.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between
companies, investors, and the government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
12. In the following diagram of a system of financial cash flows, taxes are paid by
Copyright Cengage Learning. Powered by Cognero. Page 5
,Chapter 1 Introduction to Investments
a. taxes and investment.
b. profits and investors.
c. investors and companies.
d. companies and retained earnings.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between companies, inves
government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
13. In the following diagram of a system of financial cash flows, what is the government's primary role?
a. Provide support
b. Pass regulation
Copyright Cengage Learning. Powered by Cognero. Page 6
,Chapter 1 Introduction to Investments
c. Make investments
d. Collect taxes
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between companies, inves
government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
14. In the following diagram of corporate finance decisions, which of these would be most concerned
with selecting the right firm in which to invest funds?
a. Investors
b. Companies
c. Government
d. Employees
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between
companies, investors, and the government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero. Page 7
, Chapter 1 Introduction to Investments
KEYWORDS: Bloom's: Apply
15. In the following diagram of corporate finance decisions, all cash flows are subject to
a. uncertainty.
b. discretion.
c. oversight.
d. investment.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Cash Flows and the Sources of Uncertainty
QUESTION TYPE: Multiple Choice
LEARNING OBJECTIVES:INVEST.ADAI.27.01-02 - Explain the system of cash flows between
companies, investors, and the government.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
16. In the following diagram of corporate finance decisions, investors should consider all of these
questions EXCEPT which one?
Copyright Cengage Learning. Powered by Cognero. Page 8
