ECON 351 Final Exam Questions and Answers Solved Correctly Latest Update 2025-2026
Part ownership of a corporation, such as General Electric, is represented by ownership of
A.) a General Electric IOU.
B.) General Electric commercial paper.
C.) a General Electric bond.
D.) a share of General Electric stock. - Answers D
The amount that stockholders are paid at the liquidation of a corporation after taxes, debts, and
other claims have been satisfied is called
A.) the liquidation value
B.) a dividend payment.
C.) a residual claim.
D.) a share buyback. - Answers C
The secondary market is where __________ is/are sold.
A.) stock known as "penny" stocks
B.) shares of foreign-owned companies
C.) shares of smaller, less well-known companies
D.) previously owned stocks - Answers D
The Dow Jones Industrial Average is a(n) __________ stock market index.
A.) earnings-weighted
B.) market value-weighted
C.) inflation-adjusted
D.) price-weighted - Answers D
Considering the efficient market hypothesis as it relates to the stock market, if the strong form
of efficiency holds, then investors cannot make an abnormal profit by
A.) using historical price movements and volume.
B.) trading on new information.
, C.) making use of any relevant information.
D.) using insider information. - Answers C
Sonya is an economist who seeks to combine findings from behavioral and cognitive
psychology to explain market behavior and outcomes. Sonya is in the field of
A.) development economics.
B.) psychological finance.
C.) behavorial finance.
D.) market economics. - Answers C
Part ownership of a corporation - Answers Stocks
Ownership - Answers Equity
Market for the buyer's and selling of stocks or shares also the equity market - Answers Stock
Market
Stocks are sold by a corporation to members of the public - Answers Primary Market
Transaction
Shares are purchased thru... - Answers Investment Bank
Alternating rises and declines in the level of economic activity, sometime over several years -
Answers Business Cycles
Increases when the economy expands and decreases when the economy slows - Answers
Procyclical
_________ when the economy expands, ________ when the economy slows or slides into
recession - Answers Increasing, Decreasing
Different Stock Market Indexes - Answers Dow Jones Industrial Average
S&P 500
Wilshire 500
To protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation
- Answers SEC's Mission
Why is SEC there? - Answers try to ensure that investors have complete and accurate
information.
The efficient market hypothesis can be broken down into three levels of efficiency.... What are
Part ownership of a corporation, such as General Electric, is represented by ownership of
A.) a General Electric IOU.
B.) General Electric commercial paper.
C.) a General Electric bond.
D.) a share of General Electric stock. - Answers D
The amount that stockholders are paid at the liquidation of a corporation after taxes, debts, and
other claims have been satisfied is called
A.) the liquidation value
B.) a dividend payment.
C.) a residual claim.
D.) a share buyback. - Answers C
The secondary market is where __________ is/are sold.
A.) stock known as "penny" stocks
B.) shares of foreign-owned companies
C.) shares of smaller, less well-known companies
D.) previously owned stocks - Answers D
The Dow Jones Industrial Average is a(n) __________ stock market index.
A.) earnings-weighted
B.) market value-weighted
C.) inflation-adjusted
D.) price-weighted - Answers D
Considering the efficient market hypothesis as it relates to the stock market, if the strong form
of efficiency holds, then investors cannot make an abnormal profit by
A.) using historical price movements and volume.
B.) trading on new information.
, C.) making use of any relevant information.
D.) using insider information. - Answers C
Sonya is an economist who seeks to combine findings from behavioral and cognitive
psychology to explain market behavior and outcomes. Sonya is in the field of
A.) development economics.
B.) psychological finance.
C.) behavorial finance.
D.) market economics. - Answers C
Part ownership of a corporation - Answers Stocks
Ownership - Answers Equity
Market for the buyer's and selling of stocks or shares also the equity market - Answers Stock
Market
Stocks are sold by a corporation to members of the public - Answers Primary Market
Transaction
Shares are purchased thru... - Answers Investment Bank
Alternating rises and declines in the level of economic activity, sometime over several years -
Answers Business Cycles
Increases when the economy expands and decreases when the economy slows - Answers
Procyclical
_________ when the economy expands, ________ when the economy slows or slides into
recession - Answers Increasing, Decreasing
Different Stock Market Indexes - Answers Dow Jones Industrial Average
S&P 500
Wilshire 500
To protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation
- Answers SEC's Mission
Why is SEC there? - Answers try to ensure that investors have complete and accurate
information.
The efficient market hypothesis can be broken down into three levels of efficiency.... What are
