1)
An advantage of purchasing diamonds for investment purposes is that:
A.diamonds are not easily turned into cash.
B.diamonds are relatively limited in supply.
C.diamonds are largely controlled by DeBeers Consolidated Mines of South Africa.
D.the grading of diamonds is not an exact science.
2)
An investment theory based on the assumption that stock price movements are purely
random is called the ____________ theory.
A.fundamental
B.technical
C.efficient market
D.primary
E.market
3)
De Beers Consolidated Mines of South Africa controls what percent of the world’s
supply of rough diamonds?
A.50
B.65
C.75
D.85
E.95
4)
What is the most popular type of home ownership?
A.Condominium
B.Duplex
C.Cooperative
D.Prefabricated home
E.Single family dwelling
5) Which of the following is an important document needed for estate planning?
A.Your driver’s license
B.Your transcript from college
C.Your birth certificate
D.Your birthday cards
E.All of these documents are needed in estate planning.
6)
Which one of the following statements is true?
A.When buying stock on margin, an investor borrows stock from the brokerage firm.
B.Usually, a bank arranges for the loan in a margin transaction.
C.Investors buy on margin because doing so offers them the potential for greater
profits.
D.The margin requirement is established by the New York Stock Exchange.
7)
Kevin Brown rides his bicycle to work so that he doesn’t have to worry about getting in
a car accident. How is Kevin managing his risk?
A.Avoidance
B.Reduction
C.Assumption
D.Shifting
E.Creation
8)
By evaluating your credit options, you may:
A.reduce your finance charges.
B.reconsider your decision to borrow money.
C.discover a less expensive type of loan.
D.find a lender that charges a lower rate.
E.All of these
9)
What is the most common reason given by mutual fund owners for investing in funds?
A.To reduce taxable income
B.Saving for someone’s education
C.Saving for emergencies
D.Saving for retirement
E.Saving for a new car
10)
Creative resumes or those with a gimmick are most appropriate for careers in:
A.accounting.
B.finance.
C.advertising.
D.information technology.
E.human resources.
11)
Approximately what percent of tax filers are audited each year?
A.1%
B.3%
C.5%
D.10%
E.15%
12)
Term insurance is protection for a specified period of time, usually:
A.1 year
B.5 years
C.10 years
D.20 years
E.Term insurance is offered in all of the intervals listed.
13)
Which one of the following statements is true?
A.Convertible corporate bonds are more secure than government bonds.
B.Convertible bonds often pay 3 to 4 percent more interest than nonconvertible bonds.
C.Because of the conversion feature, it is not necessary to evaluate convertible,
corporate bonds.
D.There is no guarantee that bondholders will convert to common stock even if the
market value of the common stock does increase in value.
14)
Increasing interest rates in the economy cause gold prices to:
A.skyrocket.
B.increase moderately.
C.remain stable.
D.decline.