Review Game Zone
Flash Cards
(current)
Games
Teachers
Search
Personal Finance Exam Review 6
Test Description: Final exam review
Instructions: Answer all questions to get your test result.
1) The use of long-term savings to earn a financial reward is called
A
diversifying.
B
investing.
C
gambling.
D
speculating.
2) According to the Rule of 72, if an investment of $5,000 is yielding an average of 6 percent, it will take ___ years for that investment to be worth $10,000.
A
6
B
72
C
36
D
12
3) Which of the following is typically the first stage of investing?
A
strategic investing
B
a put-and-take account
C
systematic investing
D
speculation
4) Maximization of return in the next five to ten years is the goal of which investment strategy?
A
systematic investing
B
initial investing
C
speculation
D
strategic investing
5) This type of risk is caused by the business cycle.
A
political risk
B
industry risk
C
market risk
D
interest-rate risk
6) All of the following are wise investment practices except
A
keep good financial records.
B
seek good investment advice.
C
make your decisions quickly to take advantage of the market.
D
define your financial goals.
7) A daily newspaper that provides detailed coverage of the business and financial world is
A
Barron's.
B
The Economist.
C
Kiplinger's Personal Finance.
D
The Wall Street Journal.
8) Professional investment planners who are trained to give investment advice based on your goals, age, lifestyles, and other factors are called
A
day traders.
B
discount traders.
C
certified financial planners.
D
certified public accounts.
9) Which of the following would be considered the lowest risk investment?
A
an annuity
B
real estate
C
a corporate bond
D
a stock
10) The right, but not the obligations, to buy or sell a commodity or stock for a specified price within a specified time period is called a(n)
A
option.
B
future.
C
annuity.
D
discount bond.
11) Which of the following would be considered an odd lot of stocks?
A
200 shares
B
100 shares
C
50 shares
D
1,000 shares
12) An increase in the value of a stock over time is called a(n)
A
capital gain.
B
dividend.
C
yield.
D
investment.
13) A common stock
A
is less risky than preferred stock.
B
pays a fixed dividend.
C
has no voting rights.
D
allows stockholders to influence corporate policy.
14) Stocks in young, often small corporations that have higher overall risk than stocks of successful, long-established companies are called
A
emerging stocks.
B
blue chip stocks.
C
growth stocks.
D
defensive stocks.
15) The price for which a stock is bought and sold in the marketplace is called the
A
market value.
B
par value.
C
yield.
D
dividend.
16) Current Profit on Stock/Purchase Price + Commission=
A
Return on Investment
B
Interest Rate.
C
Earnings per Share
D
Net Yield
17) Which of the following is not a securities exchange?
A
NASDAQ
B
AMEX
C
all of these are securities exchanges
D
NYSE
18) Which of the following investment techniques would more likely be used by a day trader?
A
dollar-cost averaging
B
reinvesting dividends
C
buying on margin
D
buying and hilding
19) Using dividends previously earned on a stock to buy more shares is called
A
direct investment.
B
dividend reinvestment.
C
preferred reinvestment.
D
short selling.
20) The price of a share of stock divided by the corporation's earnings over the past 12 months is the
A
P/E ration.
B
percent yield.
C
earnings per share.
D
ROI.
*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?