d d
lOMoAR cPSD| d
1l1O7M88oA94R2cPSD| 11788942
Investments Test Bank d d
Investments: Background an
d d
d Issues Essentials
d d
University of Illinois d d
, lOMoARd d
1788942
cPSD| 1
Chapter 01: Investments: Background and Issues
d d d d d d
Key Answersd
1. Financialdassetsdrepresent ofdtotaldassetsdofdU.S.dhouseholds.
A. overd60%
B. overd90%
C. underd10%
D. aboutd30%
Difficulty:d Easy
2. Realdassetsdindthedeconomydincludedalldbutdwhichdonedofdthedfollowing?
A. Land
B. Buildings
C. Consumerddurables
D. Commondstock
Difficulty:d Easy
3. Netdworthdrepresentsd_ ofdthedliabilitiesdanddnetdworthdofdcommercialdbanks.
A. aboutd50%
B. aboutd90%
C. aboutd10%
D. aboutd30%
Difficulty:d Medium
, lOMoARd d
1788942
cPSD| 1
4. AccordingdtodthedFlowdofdFundsdAccountsdofdthedUniteddStates,dthedlargestdsingledassetdof
U.S.dhouseholdsdis .
A. mutualdfunddshares
B. realdestate
C. pensiondreserves
D. corporatedequity
Difficulty:d Medium
5. AccordingdtodthedFlowdofdFundsdAccountsdofdthedUniteddStates,dthedlargestdliabilitydofdU.S.dh
ouseholdsdis .
A. mortgages
B. consumerdcredit
C. bankdloans
D. gamblingddebts
Difficulty:d Medium
6. isdnotdadderivativedsecurity.
A. Adsharedofdcommondstock
B. Adcalldoption
C. Adfuturesdcontract
D. Alldofdthedabovedaredderivativedsecurities.
Difficulty:d Easy
7. AccordingdtodthedFlowdofdFundsdAccountsdofdthedUniteddStates,dthedlargestdfinancialdassetdof
U.S.dhouseholdsdis .
A. mutualdfunddshares
B. corporatedequity
C. pensiondreserves
D. personaldtrusts
Difficulty:d Medium
, lOMoARd d
1788942
cPSD| 1
8. Activedtradingdindmarketsdanddcompetitiondamongdsecuritiesdanalystsdhelpsdensuredthat
.
I. securitydpricesdapproachdinformationaldefficiency
II. riskierdsecuritiesdaredpriceddtodofferdhigherdpotentialdreturns
III. investorsdaredunlikelydtodbedabledtodconsistentlydfinddunder-dordovervalueddsecurities
A. Idonly
B. Idandd IIdonly
C. IIdanddIIIdonly
D. I,dIIdanddIII
Difficulty:d Hard
9. Thedmaterialdwealthdofdsocietydisddetermineddbydthedeconomy's
_,dwhichdisdadfunctiondofdthedeconomy's .
A. investmentdbankers,dfinancialdassets
B. investmentdbankers,drealdassets
C. productivedcapacity,dfinancialdassets
D. productivedcapacity,drealdassets
Difficulty:d Medium
10. Whichdofdthedfollowingdisdnotdadmoneydmarketdsecurity?
A. U.S.dTreasurydbill
B. Sixdmonthdmaturitydcertificatedofddeposit
C. Commondstock
D. Banker'sdacceptance
Difficulty:d Medium
1-4
lOMoAR cPSD| d
1l1O7M88oA94R2cPSD| 11788942
Investments Test Bank d d
Investments: Background an
d d
d Issues Essentials
d d
University of Illinois d d
, lOMoARd d
1788942
cPSD| 1
Chapter 01: Investments: Background and Issues
d d d d d d
Key Answersd
1. Financialdassetsdrepresent ofdtotaldassetsdofdU.S.dhouseholds.
A. overd60%
B. overd90%
C. underd10%
D. aboutd30%
Difficulty:d Easy
2. Realdassetsdindthedeconomydincludedalldbutdwhichdonedofdthedfollowing?
A. Land
B. Buildings
C. Consumerddurables
D. Commondstock
Difficulty:d Easy
3. Netdworthdrepresentsd_ ofdthedliabilitiesdanddnetdworthdofdcommercialdbanks.
A. aboutd50%
B. aboutd90%
C. aboutd10%
D. aboutd30%
Difficulty:d Medium
, lOMoARd d
1788942
cPSD| 1
4. AccordingdtodthedFlowdofdFundsdAccountsdofdthedUniteddStates,dthedlargestdsingledassetdof
U.S.dhouseholdsdis .
A. mutualdfunddshares
B. realdestate
C. pensiondreserves
D. corporatedequity
Difficulty:d Medium
5. AccordingdtodthedFlowdofdFundsdAccountsdofdthedUniteddStates,dthedlargestdliabilitydofdU.S.dh
ouseholdsdis .
A. mortgages
B. consumerdcredit
C. bankdloans
D. gamblingddebts
Difficulty:d Medium
6. isdnotdadderivativedsecurity.
A. Adsharedofdcommondstock
B. Adcalldoption
C. Adfuturesdcontract
D. Alldofdthedabovedaredderivativedsecurities.
Difficulty:d Easy
7. AccordingdtodthedFlowdofdFundsdAccountsdofdthedUniteddStates,dthedlargestdfinancialdassetdof
U.S.dhouseholdsdis .
A. mutualdfunddshares
B. corporatedequity
C. pensiondreserves
D. personaldtrusts
Difficulty:d Medium
, lOMoARd d
1788942
cPSD| 1
8. Activedtradingdindmarketsdanddcompetitiondamongdsecuritiesdanalystsdhelpsdensuredthat
.
I. securitydpricesdapproachdinformationaldefficiency
II. riskierdsecuritiesdaredpriceddtodofferdhigherdpotentialdreturns
III. investorsdaredunlikelydtodbedabledtodconsistentlydfinddunder-dordovervalueddsecurities
A. Idonly
B. Idandd IIdonly
C. IIdanddIIIdonly
D. I,dIIdanddIII
Difficulty:d Hard
9. Thedmaterialdwealthdofdsocietydisddetermineddbydthedeconomy's
_,dwhichdisdadfunctiondofdthedeconomy's .
A. investmentdbankers,dfinancialdassets
B. investmentdbankers,drealdassets
C. productivedcapacity,dfinancialdassets
D. productivedcapacity,drealdassets
Difficulty:d Medium
10. Whichdofdthedfollowingdisdnotdadmoneydmarketdsecurity?
A. U.S.dTreasurydbill
B. Sixdmonthdmaturitydcertificatedofddeposit
C. Commondstock
D. Banker'sdacceptance
Difficulty:d Medium
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