Review Game Zone
Flash Cards
(current)
Games
Teachers
Search
Econ Unit 4 Set 1
Test Description: Preparation for the Unit 4 Test - Money and Banking, and Financial Markets
Instructions: Answer all questions to get your test result.
1) A bond has a coupon rate of 5 percent per year, and a par value of $2,000. How much interest will you receive each year?
A
$500
B
$200
C
$100
D
$2,500
2) A city wants to build a new police station. What kind of bonds does it issue?
A
money market bond
B
municipal bond
C
treasury bond
D
junk bond
3) A day trader tries to make a profit by
A
speculating with borrowed money.
B
reducing risky investments.
C
investing only in blue chip stocks.
D
taking advantage of minute-by-minute changes in stock prices.
4) A stock split is most likely to occur when
A
a company is losing money.
B
the price of a stock becomes too high.
C
the stock market as a whole is doing poorly.
D
stockholders demand higher dividends.
5) A stock that reinvests its earnings in the business instead of paying regular dividends is called
A
common stock.
B
a growth stock.
C
preferred stock.
D
an income stock.
6) Against your better judgment, you lend $100 to your cousin Manny, who has a reputation for failing to pay back loans. You are taking a
A
inflation rate risk.
B
time risk.
C
liquidity risk.
D
credit risk.
7) All of the following are basic components of bonds EXCEPT
A
maturity
B
par value
C
liquidity
D
coupon rate
8) All of the following are examples of financial intermediaries EXCEPT
A
credit union
B
finance company
C
life insurance company
D
stock certificate
9) An example of a blue chip stock might be
A
stock in a foreign-owned company that operates in another country.
B
stock in an established company that is traded over the Internet.
C
stock in a well-known, financially sound company traded on the NYSE.
D
stock in a new company that many of the trade papers are discussing.
10) Because you want to reduce the risk of losing all your savings if an investment fails, you decide to invest in
A
the stock market.
B
credit unions.
C
a finance company.
D
a mutual fund.
11) Bonds in general are very safe investments. Which of the following is true of AAA bonds?
A
They are high-risk investments.
B
They have low interest rates.
C
They have high interest rates.
D
They mature quickly.
*select an answer for all questions
Check Results & Get Answers
Play Games with the Questions Above
Teachers: Create FREE classroom games with your questions
Click for more info!
©2007-2024
ReviewGameZone.com
|
About
|
Privacy
|
Contact
|
Terms
|
Site Map
WAIT! Find what you needed?
×
Still Looking for the Answers?
Have Another Question?
Play a Review Game with These Questions?
Want to Make Your Own Test Like This One?