WISE- Practice Test #2 – Investing Exam
Questions With 100% Correct Answers
2024/2025
A pharmacy is to drugs as the American Stock Exchange is to:
A. Interest
B. Stock advisors
C. Securities
D. Mutual funds
C
Reason
A pharmacy, run by a licensed pharmacist, is authorized by a state government to fill prescription
orders. A stock or bond exchange is where registered stockbrokers buy and sell securities such as
stocks or bonds (fill orders) for investors. Exchanges are similar to other marketplaces in that the
prices of the goods (equities) change based upon the basic laws of supply and demand.
As an investment, a person decides to buy a small house that has three rental apartments. The profits
from this investment may be lower then expected if the
A. tenant in an apartment decides to paint the hallways.
B. mortgage on the house is paid off.
C. taxes on the house are lowered.
D. one of the apartments is not rented.
D
Reason
The investor regards the house as a small business. Any time that any apartment is not rented, the
investor is losing income and therefore profits on the investment.
What is the largest equities market in the world?
A. American Stock Exchange (AMEX)
B. NASDAQ market
C. New York Stock Exchange (NYSE)
D. Over-the-counter (OTC) market
C
Reason
The largest of these markets is the New York Stock Exchange. It was founded in 1792 under a tree on
Wall Street. Also known as the "Big Board" and "the Exchange." the NYSE has the most stringent
listing requirements and is governed by a board of directors. Recent events have led the NYSE to
develop and enforce stricter rules of corporate governance.
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
A. Its Board of Directors
B. The Federal Reserve
C. The World Bank
D. The Securities and Exchange Commission (SEC)
D
Reason
Before a company can raise capital by issuing stocks or bonds, it must register the stock or bond issue
with the Securities and Exchange Commission (SEC). An investment banking firm assists the
corporation in completing the registration forms and serves as an intermediary between the issuing
corporation and the initial investors.
Questions With 100% Correct Answers
2024/2025
A pharmacy is to drugs as the American Stock Exchange is to:
A. Interest
B. Stock advisors
C. Securities
D. Mutual funds
C
Reason
A pharmacy, run by a licensed pharmacist, is authorized by a state government to fill prescription
orders. A stock or bond exchange is where registered stockbrokers buy and sell securities such as
stocks or bonds (fill orders) for investors. Exchanges are similar to other marketplaces in that the
prices of the goods (equities) change based upon the basic laws of supply and demand.
As an investment, a person decides to buy a small house that has three rental apartments. The profits
from this investment may be lower then expected if the
A. tenant in an apartment decides to paint the hallways.
B. mortgage on the house is paid off.
C. taxes on the house are lowered.
D. one of the apartments is not rented.
D
Reason
The investor regards the house as a small business. Any time that any apartment is not rented, the
investor is losing income and therefore profits on the investment.
What is the largest equities market in the world?
A. American Stock Exchange (AMEX)
B. NASDAQ market
C. New York Stock Exchange (NYSE)
D. Over-the-counter (OTC) market
C
Reason
The largest of these markets is the New York Stock Exchange. It was founded in 1792 under a tree on
Wall Street. Also known as the "Big Board" and "the Exchange." the NYSE has the most stringent
listing requirements and is governed by a board of directors. Recent events have led the NYSE to
develop and enforce stricter rules of corporate governance.
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
A. Its Board of Directors
B. The Federal Reserve
C. The World Bank
D. The Securities and Exchange Commission (SEC)
D
Reason
Before a company can raise capital by issuing stocks or bonds, it must register the stock or bond issue
with the Securities and Exchange Commission (SEC). An investment banking firm assists the
corporation in completing the registration forms and serves as an intermediary between the issuing
corporation and the initial investors.
