gg
lOM oA R cP S D| 1l1O7M88oA94R 2c P
S D| g 1178 8 94 2
Investments Test Bank g g
Investments: Background g g
and Issues Essentials
g g
University of Illinois g g
, g
lOM oA R cP S D|
g 11 78 894 2
Chapter 01: Investments: Background and Issues
g g g g g g
Key Answers
g
1. Financialgassetsgrepresent ofgtotalgassetsgofgU.S.ghouseholds.
A. overg60%
B. overg90%
C. underg10%
D. aboutg30%
Difficulty:gEasy
2. Realgassetsgingthegeconomygincludegallgbutgwhichgonegofgthegfollowing?
A. Land
B. Buildings
C. Consumergdurables
D. Commongstock
Difficulty:gEasy
3. Netgworthgrepresentsg_ ofgthegliabilitiesgandgnetgworthgofgcommercialgbanks.
A. aboutg50%
B. aboutg90%
C. aboutg10%
D. aboutg30%
Difficulty:gMedium
, g
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g 11 78 894 2
4. AccordinggtogthegFlowgofgFundsgAccountsgofgthegUnitedgStates,gtheglargestgsinglegassetgof
U.S.ghouseholdsgis .
A. mutualgfundgshares
B. realgestate
C. pensiongreserves
D. corporategequity
Difficulty:gMedium
5. AccordinggtogthegFlowgofgFundsgAccountsgofgthegUnitedgStates,gtheglargestgliabilitygofgU.
S.ghouseholdsgis .
A. mortgages
B. consumergcredit
C. bankgloans
D. gamblinggdebts
Difficulty:gMedium
6. g isgnotgagderivativegsecurity.
A. Agsharegofgcommongstock
B. Agcallgoption
C. Agfuturesgcontract
D. Allgofgthegabovegaregderivativegsecurities.
Difficulty:gEasy
7. AccordinggtogthegFlowgofgFundsgAccountsgofgthegUnitedgStates,gtheglargestgfinancialgassetgof
U.S.ghouseholdsgis .
A. mutualgfundgshares
B. corporategequity
C. pensiongreserves
D. personalgtrusts
Difficulty:gMediu
m
, g
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g 11 78 894 2
8. Activegtradinggingmarketsgandgcompetitiongamonggsecuritiesganalystsghelpsgensuregthat
g .
I. securitygpricesgapproachginformationalgefficiency
II. riskiergsecuritiesgaregpricedgtogofferghighergpotentialgreturns
III. investorsgaregunlikelygtogbegablegtogconsistentlygfindgunder-gorgovervaluedgsecurities
A. Igonly
B. IgandgIIgonly
C. IIgandgIIIgonly
D. I,gIIgandgIII
Difficulty:gHard
9. Thegmaterialgwealthgofgsocietygisgdeterminedgbygthegeconomy's
_,gwhichgisgagfunctiongofgthegeconomy's .
A. investmentgbankers,gfinancialgassets
B. investmentgbankers,grealgassets
C. productivegcapacity,gfinancialgassets
D. productivegcapacity,grealgassets
Difficulty:gMedium
10. Whichgofgthegfollowinggisgnotgagmoneygmarketgsecurity?
A. U.S.gTreasurygbill
B. Sixgmonthgmaturitygcertificategofgdeposit
C. Commongstock
D. Banker'sgacceptance
Difficulty:gMedium
1-64
lOM oA R cP S D| 1l1O7M88oA94R 2c P
S D| g 1178 8 94 2
Investments Test Bank g g
Investments: Background g g
and Issues Essentials
g g
University of Illinois g g
, g
lOM oA R cP S D|
g 11 78 894 2
Chapter 01: Investments: Background and Issues
g g g g g g
Key Answers
g
1. Financialgassetsgrepresent ofgtotalgassetsgofgU.S.ghouseholds.
A. overg60%
B. overg90%
C. underg10%
D. aboutg30%
Difficulty:gEasy
2. Realgassetsgingthegeconomygincludegallgbutgwhichgonegofgthegfollowing?
A. Land
B. Buildings
C. Consumergdurables
D. Commongstock
Difficulty:gEasy
3. Netgworthgrepresentsg_ ofgthegliabilitiesgandgnetgworthgofgcommercialgbanks.
A. aboutg50%
B. aboutg90%
C. aboutg10%
D. aboutg30%
Difficulty:gMedium
, g
lOM oA R cP S D|
g 11 78 894 2
4. AccordinggtogthegFlowgofgFundsgAccountsgofgthegUnitedgStates,gtheglargestgsinglegassetgof
U.S.ghouseholdsgis .
A. mutualgfundgshares
B. realgestate
C. pensiongreserves
D. corporategequity
Difficulty:gMedium
5. AccordinggtogthegFlowgofgFundsgAccountsgofgthegUnitedgStates,gtheglargestgliabilitygofgU.
S.ghouseholdsgis .
A. mortgages
B. consumergcredit
C. bankgloans
D. gamblinggdebts
Difficulty:gMedium
6. g isgnotgagderivativegsecurity.
A. Agsharegofgcommongstock
B. Agcallgoption
C. Agfuturesgcontract
D. Allgofgthegabovegaregderivativegsecurities.
Difficulty:gEasy
7. AccordinggtogthegFlowgofgFundsgAccountsgofgthegUnitedgStates,gtheglargestgfinancialgassetgof
U.S.ghouseholdsgis .
A. mutualgfundgshares
B. corporategequity
C. pensiongreserves
D. personalgtrusts
Difficulty:gMediu
m
, g
lOM oA R cP S D|
g 11 78 894 2
8. Activegtradinggingmarketsgandgcompetitiongamonggsecuritiesganalystsghelpsgensuregthat
g .
I. securitygpricesgapproachginformationalgefficiency
II. riskiergsecuritiesgaregpricedgtogofferghighergpotentialgreturns
III. investorsgaregunlikelygtogbegablegtogconsistentlygfindgunder-gorgovervaluedgsecurities
A. Igonly
B. IgandgIIgonly
C. IIgandgIIIgonly
D. I,gIIgandgIII
Difficulty:gHard
9. Thegmaterialgwealthgofgsocietygisgdeterminedgbygthegeconomy's
_,gwhichgisgagfunctiongofgthegeconomy's .
A. investmentgbankers,gfinancialgassets
B. investmentgbankers,grealgassets
C. productivegcapacity,gfinancialgassets
D. productivegcapacity,grealgassets
Difficulty:gMedium
10. Whichgofgthegfollowinggisgnotgagmoneygmarketgsecurity?
A. U.S.gTreasurygbill
B. Sixgmonthgmaturitygcertificategofgdeposit
C. Commongstock
D. Banker'sgacceptance
Difficulty:gMedium
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