m m
lOMoAR cPSD| m
1l1O7M88oA94R2cPSD| 11788942
Investments Test Bank m m
Investments: Background an
m m
d Issues Essentials
m m
University of Illinois m m
, m
lOMoAR cPSD|
m 11788942
Chapter 01: Investments: Background and Issues
m m m m m m
Key Answers
m
1. Financialmassetsmrepresent of mtotalmassetsmof mU.S.mhouseholds.
A. overm60%
B. overm90%
C. underm10%
D. about m30%
Difficulty: mEasy
2. Realmassetsminmthemeconomymincludemallmbut mwhichmonemof mthemfollowing?
A. Land
B. Buildings
C. Consumermdurables
D. Commonmstock
Difficulty: mEasy
3. Net mworthmrepresentsm_ of mthemliabilitiesmand mnet mworthmof mcommercialmbanks.
A. about m50%
B. about m90%
C. about m10%
D. about m30%
Difficulty: mMedium
, m
lOMoAR cPSD|
m 11788942
4. AccordingmtomthemFlow mof mFundsmAccountsmofmthemUnited mStates,mthemlargest msinglemasset mof
U.S.mhouseholdsmis .
A. mutualmfund mshares
B. realmestate
C. pensionmreserves
D. corporatemequity
Difficulty: mMedium
5. AccordingmtomthemFlow mof mFundsmAccountsmof mthemUnitedmStates,mthemlargest mliabilitymof mU
.S.mhouseholdsmis .
A. mortgages
B. consumermcredit
C. bankmloans
D. gamblingmdebts
Difficulty: mMedium
6. ismnot mamderivativemsecurity.
A. Amsharemof mcommonmstock
B. Amcallmoption
C. Amfuturesmcontract
D. Allmof mthemabovemaremderivativemsecurities.
Difficulty: mEasy
7. AccordingmtomthemFlow mof mFundsmAccountsmof mthemUnited mStates,mthemlargest mfinancialmasset
mof
U.S.mhouseholdsmis .
A. mutualmfund mshares
B. corporatemequity
C. pensionmreserves
D. personalmtrusts
Difficulty:mMedium
, m
lOMoAR cPSD|
m 11788942
8. Activemtradingminmmarketsmand mcompetitionmamongmsecuritiesmanalystsmhelpsmensuremthat
.
I. securitympricesmapproachminformationalmefficiency
II. riskiermsecuritiesmarempriced mtomoffermhighermpotentialmreturns
III. investorsmaremunlikelymtombemablemtomconsistentlymfind munder-mormovervalued msecurities
A. I monly
B. I mand mII monly
C. II mand mIII monly
D. I,mII mand mIII
Difficulty: m Hard
9. Themmaterialmwealthmof msocietymismdetermined mbymthemeconomy's
_,mwhichmismamfunctionmof mthemeconomy's .
A. investment mbankers,mfinancialmassets
B. investment mbankers,mrealmassets
C. productivemcapacity,mfinancialmassets
D. productivemcapacity,mrealmassets
Difficulty: mMedium
10. Whichmof mthemfollowingmismnot mammoneymmarket msecurity?
A. U.S.mTreasurymbill
B. Sixmmonthmmaturitymcertificatemof mdeposit
C. Commonmstock
D. Banker'smacceptance
Difficulty: mMedium
1-4
lOMoAR cPSD| m
1l1O7M88oA94R2cPSD| 11788942
Investments Test Bank m m
Investments: Background an
m m
d Issues Essentials
m m
University of Illinois m m
, m
lOMoAR cPSD|
m 11788942
Chapter 01: Investments: Background and Issues
m m m m m m
Key Answers
m
1. Financialmassetsmrepresent of mtotalmassetsmof mU.S.mhouseholds.
A. overm60%
B. overm90%
C. underm10%
D. about m30%
Difficulty: mEasy
2. Realmassetsminmthemeconomymincludemallmbut mwhichmonemof mthemfollowing?
A. Land
B. Buildings
C. Consumermdurables
D. Commonmstock
Difficulty: mEasy
3. Net mworthmrepresentsm_ of mthemliabilitiesmand mnet mworthmof mcommercialmbanks.
A. about m50%
B. about m90%
C. about m10%
D. about m30%
Difficulty: mMedium
, m
lOMoAR cPSD|
m 11788942
4. AccordingmtomthemFlow mof mFundsmAccountsmofmthemUnited mStates,mthemlargest msinglemasset mof
U.S.mhouseholdsmis .
A. mutualmfund mshares
B. realmestate
C. pensionmreserves
D. corporatemequity
Difficulty: mMedium
5. AccordingmtomthemFlow mof mFundsmAccountsmof mthemUnitedmStates,mthemlargest mliabilitymof mU
.S.mhouseholdsmis .
A. mortgages
B. consumermcredit
C. bankmloans
D. gamblingmdebts
Difficulty: mMedium
6. ismnot mamderivativemsecurity.
A. Amsharemof mcommonmstock
B. Amcallmoption
C. Amfuturesmcontract
D. Allmof mthemabovemaremderivativemsecurities.
Difficulty: mEasy
7. AccordingmtomthemFlow mof mFundsmAccountsmof mthemUnited mStates,mthemlargest mfinancialmasset
mof
U.S.mhouseholdsmis .
A. mutualmfund mshares
B. corporatemequity
C. pensionmreserves
D. personalmtrusts
Difficulty:mMedium
, m
lOMoAR cPSD|
m 11788942
8. Activemtradingminmmarketsmand mcompetitionmamongmsecuritiesmanalystsmhelpsmensuremthat
.
I. securitympricesmapproachminformationalmefficiency
II. riskiermsecuritiesmarempriced mtomoffermhighermpotentialmreturns
III. investorsmaremunlikelymtombemablemtomconsistentlymfind munder-mormovervalued msecurities
A. I monly
B. I mand mII monly
C. II mand mIII monly
D. I,mII mand mIII
Difficulty: m Hard
9. Themmaterialmwealthmof msocietymismdetermined mbymthemeconomy's
_,mwhichmismamfunctionmof mthemeconomy's .
A. investment mbankers,mfinancialmassets
B. investment mbankers,mrealmassets
C. productivemcapacity,mfinancialmassets
D. productivemcapacity,mrealmassets
Difficulty: mMedium
10. Whichmof mthemfollowingmismnot mammoneymmarket msecurity?
A. U.S.mTreasurymbill
B. Sixmmonthmmaturitymcertificatemof mdeposit
C. Commonmstock
D. Banker'smacceptance
Difficulty: mMedium
1-4
