Question 1.1. Effectively planning your spending and saving decisions provides for: (Points : 2)

A foundation for wise money management today Will guarantee you a million dollars Financial prosperity in the future Both A and B Both A and C

Question 2.2. The majority of people invest their money to: (Points : 2)

Enhance their current income Accumulate funds for major expenditures Save for retirement Shelter their income from taxes All of the above

Question 3.3. The federal government regulates securities markets through the: (Points : 2)

Department of Commerce Federal Reserve System National Association of Securities Dealers Securities and Exchange Commission Federal Securities Agency

Question 4.4. A certified financial planner can provide you with a companys ______ describing the firm and the security issue it wishes to sell. (Points : 2)

advertisement prospectus underwriting journal dealer newsletter None of these

Question 5.5. What investment portfolio is most diversified? (Points : 2)

Equal amounts of stock in IBM, Intel, and Microsoft Municipal bonds issued by New York, Houston, and Chicago One-year, five-year, and ten-year certificates of deposit 100 shares of Wal-Mart stock, an IBM bond, and a two-year certificate of deposit

Question 6.6. What are the returns from shares of stock? (Points : 2)

Stock splits Capital depreciation Dividends The ability to buy bonds

Question 7.7. The total interest that has accumulated after more than one interest period is called: (Points : 2)

Simple interest Compound interest Variable interest Fixed interest

Question 8.8. An investment plan is: (Points : 2)

A statement that states how money is to be invested to obtain a specified goal A statement that shows how much you owe A plan to go into debt A plan to cover your losses

Question 9.9. Ask price is: (Points : 2)

The price you sell a security The price the security is worth The price at which one can purchase a security None of these

Question 10.10. The process of choosing securities from different industries and different risk levels is called: (Points : 2)

Discount broking Asset Management Diversification Compounding None of these