Question1

A will that leaves everything to a spouse is called a __________.

Select one:

a.simple will.

b.holographic will.

c.traditional marital share will.

d.statutory will.

e.living will.

Question 2

The purpose of pro forma financial statements is to show __________.

Select one:

a.projected future value.

b.consequences of choices.

c.scenarios for financial planning.

d.a. and b.

e.a., b., and c.

Question3

Buying stocks or corporate or government bonds is a way to invest in __________.

Select one:

a.the capital market.

b.the credit market.

c.the labor market.

d.the buyers' market.

e.the sellers' market.

Question4

Your risk tolerance represents __________.

Select one:

a.your wealth or net worth.

b.the amount of money you stand to lose.

c.your ability or willingness to take chances.

d.the amount of time separating you from your money.

e.your return objective.

Question5

Investment risks include all the following EXCEPT __________.

Select one:

a.default risks.

b.economic risks.

c.industry and company risks.

d.asset class risks

e.market risks.

Question6

The Accounting Equation states that __________.

Select one:

a.Assets - Debt = Net Worth.

b.Assets = Liabilities + Equity.

c.Assets = Debt + Net Worth

d.Assets = Income - Cash Flows.

e.Assets + Debt = Liquidity

Question7

A calculation showing your mortgage payment per $1,000 of the loan is the mortgage __________.

Select one:

a.interest rate.

b.maturity date.

c.factor.

d.principal.

e.amortization.

Question8

In performing an attributeanalysisyou compare products in terms of __________.

Select one:

a.their demand or popularity and resale value.

b.the characteristics most important to you.

c.price and the cost of maintenance or repair.

d.the transaction costs in relation to quality.

e.their appearance and performance.

Question9

An investment policy statementoutlines__________.

Select one:

a.an investor's return objectives, risk preferences, and constraints.

b.an investment advisor's approach to applying portfolio theory.

c.an institution's goals and investment decisions.

d.an investment firm's disclosures to clients.

e.a company's disclosures to investors.

Question10

A comprehensive budget may include any of the following components EXCEPT __________.

Select one:

a.a specialized budget.

b.a tax budget.

c.a cash flow statement.

d.an operating budget.

e.a capital budget.