Test Bank for Essentials of Investments 12th Edition Bodie
Essentials of Investments 12th Edition by Bodie Ch01
Answers are located in the second half of this document.
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Financial assets represent of total assets of U.S. households in 2019.
A) about 70%
B) over 90%
C) under 10%
D) about 30%
Question Details
Difficulty : 1 Easy
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Accessibility : Screen Reader Compatible
Gradable : automatic
2) Real assets in the economy include all but which one of the following?
A) Land
B) Buildings
C) Consumer durables
D) Common stock
Question Details
Difficulty : 1 Easy
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Accessibility : Screen Reader Compatible
Gradable : automatic
Version 1 1
,Test Bank for Essentials of Investments 12th Edition Bodie
Essentials of Investments 12th Edition by Bodie Ch01
3) In 2019, net worth represented of the liabilities and net worth of commercial
banks.
A) about 51%
B) about 91%
C) about 11%
D) about 31%
Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Topic : Financial Intermediaries
Accessibility : Screen Reader Compatible
Gradable : automatic
4) According to the Flow of Funds Accounts of the United States, the largest single asset of
U.S. households is .
A) mutual fund shares
B) real estate
C) pension reserves
D) corporate equity
Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Accessibility : Screen Reader Compatible
Gradable : automatic
Version 1 2
,Test Bank for Essentials of Investments 12th Edition Bodie
Essentials of Investments 12th Edition by Bodie Ch01
5) According to the Flow of Funds Accounts of the United States, the largest liability of U.S.
households is .
A) mortgages
B) consumer credit
C) bank loans
D) gambling debts
Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Accessibility : Screen Reader Compatible
Gradable : automatic
6) is not a derivative security.
A) A share of common stock
B) A call option
C) A futures contract
D) A put option
Question Details
Difficulty : 1 Easy
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Bloom's : Remember
AACSB : Analytical Thinking
Topic : Financial Assets
Accessibility : Screen Reader Compatible
Gradable : automatic
Version 1 3
, Test Bank for Essentials of Investments 12th Edition Bodie
Essentials of Investments 12th Edition by Bodie Ch01
7) According to the Flow of Funds Accounts of the United States, the largest financial asset
of U.S. households is .
A) mutual fund shares
B) corporate equity
C) pension reserves
D) deposits
Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Accessibility : Screen Reader Compatible
Gradable : automatic
8) Active trading in markets and competition among securities analysts helps ensure that:
1. Security prices approach informational efficiency.
2. Riskier securities are priced to offer higher potential returns.
3. Investors are unlikely to be able to consistently find under- or overvalued securities.
A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 1, 2, and 3
Version 1 4
Essentials of Investments 12th Edition by Bodie Ch01
Answers are located in the second half of this document.
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Financial assets represent of total assets of U.S. households in 2019.
A) about 70%
B) over 90%
C) under 10%
D) about 30%
Question Details
Difficulty : 1 Easy
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Accessibility : Screen Reader Compatible
Gradable : automatic
2) Real assets in the economy include all but which one of the following?
A) Land
B) Buildings
C) Consumer durables
D) Common stock
Question Details
Difficulty : 1 Easy
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Accessibility : Screen Reader Compatible
Gradable : automatic
Version 1 1
,Test Bank for Essentials of Investments 12th Edition Bodie
Essentials of Investments 12th Edition by Bodie Ch01
3) In 2019, net worth represented of the liabilities and net worth of commercial
banks.
A) about 51%
B) about 91%
C) about 11%
D) about 31%
Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Topic : Financial Intermediaries
Accessibility : Screen Reader Compatible
Gradable : automatic
4) According to the Flow of Funds Accounts of the United States, the largest single asset of
U.S. households is .
A) mutual fund shares
B) real estate
C) pension reserves
D) corporate equity
Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Accessibility : Screen Reader Compatible
Gradable : automatic
Version 1 2
,Test Bank for Essentials of Investments 12th Edition Bodie
Essentials of Investments 12th Edition by Bodie Ch01
5) According to the Flow of Funds Accounts of the United States, the largest liability of U.S.
households is .
A) mortgages
B) consumer credit
C) bank loans
D) gambling debts
Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Accessibility : Screen Reader Compatible
Gradable : automatic
6) is not a derivative security.
A) A share of common stock
B) A call option
C) A futures contract
D) A put option
Question Details
Difficulty : 1 Easy
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Bloom's : Remember
AACSB : Analytical Thinking
Topic : Financial Assets
Accessibility : Screen Reader Compatible
Gradable : automatic
Version 1 3
, Test Bank for Essentials of Investments 12th Edition Bodie
Essentials of Investments 12th Edition by Bodie Ch01
7) According to the Flow of Funds Accounts of the United States, the largest financial asset
of U.S. households is .
A) mutual fund shares
B) corporate equity
C) pension reserves
D) deposits
Question Details
Learning Objective : 01-02 Distinguish between real assets and financial assets.
Accessibility : Keyboard Navigation
Type : Static
Topic : Real Assets versus Financial Assets
Bloom's : Remember
AACSB : Analytical Thinking
Difficulty : 2 Medium
Accessibility : Screen Reader Compatible
Gradable : automatic
8) Active trading in markets and competition among securities analysts helps ensure that:
1. Security prices approach informational efficiency.
2. Riskier securities are priced to offer higher potential returns.
3. Investors are unlikely to be able to consistently find under- or overvalued securities.
A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 1, 2, and 3
Version 1 4
