{"id":13510,"date":"2020-11-24T09:06:05","date_gmt":"2020-11-24T09:06:05","guid":{"rendered":"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/finance-multiple-choice-questionsfinance-multiple-choice-questions\/"},"modified":"2020-11-24T09:06:05","modified_gmt":"2020-11-24T09:06:05","slug":"finance-multiple-choice-questionsfinance-multiple-choice-questions","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/finance-multiple-choice-questionsfinance-multiple-choice-questions\/","title":{"rendered":"finance multiple choice questionsfinance multiple choice questions"},"content":{"rendered":"<style type=\"text\/css\"><\/style><p>Question 1<\/p>\n<p>If a bond is purchased at a price below the face value, the yield to maturity is:<br \/>\ngreater than the stated interest rate.<br \/>\nthe same as the stated interest rate.<br \/>\nless than the stated interest rate.<br \/>\nzero.<br \/>\nof no significance.<br \/>\nQuestion 2<\/p>\n<p>A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called:<br \/>\ndollar cost averaging.<br \/>\ndividend reinvestment plan.<br \/>\nbuy and hold technique.<br \/>\nregulated transaction.<br \/>\nsecured transaction.<br \/>\nQuestion 3<\/p>\n<p>A stock that sells for less than $1 per share is called a:<br \/>\nfractional stock.<br \/>\npenny stock.<br \/>\ndollar stock.<br \/>\nten-dollar stock.<br \/>\nbad investment.<br \/>\nQuestion 4<\/p>\n<p>Which one of the following expenditures for retirees is likely to decrease?<br \/>\nclothing expenses<br \/>\ninsurance expenses<br \/>\nmedical expenses<br \/>\nexpenses for leisure activities<br \/>\ngifts and contributions<br \/>\nQuestion 5<\/p>\n<p>During your retirement, your employer\u2019s health insurance plan and Medicare will cover your medical expenses.<br \/>\nfalse<br \/>\ntrue<br \/>\nQuestion 6<\/p>\n<p>What is likely to be an individual\u2019s single biggest asset?<br \/>\nTheir automobile<br \/>\nTheir jewelry<br \/>\nTheir bank account<br \/>\nTheir home<br \/>\nNone of the choices<br \/>\nQuestion 7<\/p>\n<p>With an open-end credit, you pay back one-time loans in a specified period of time in equal amounts.<br \/>\nfalse<br \/>\ntrue<br \/>\nQuestion 8<\/p>\n<p>Which of the following is most likely not a valid reason for using credit?<br \/>\nBorrowing for a stay in a hospital because of appendicitis<br \/>\nBorrowing to purchase a car so that you can go to work full time<br \/>\nBorrowing to buy a printer for your home office now because you now it will be twice as expensive in two years<br \/>\nBorrowing to pay for your expensive dinner and movie every week<br \/>\nAll of the choices are valid reasons for using credit<br \/>\nQuestion 9<\/p>\n<p>Gordon Carey uses his Visa card to purchase a new digital camera and lens. What type of credit did Gordon use?<br \/>\nInstallment sales credit<br \/>\nInstallment cash credit<br \/>\nSingle lump sum credit<br \/>\nRevolving credit<br \/>\nIncidental credit<br \/>\nQuestion 10<\/p>\n<p>For most mutual funds, the net asset value is calculated:<br \/>\nyearly.<br \/>\nquarterly.<br \/>\nweekly.<br \/>\ndaily.<br \/>\nwhenever an investor calls and requests a price quote.<br \/>\nQuestion 11<\/p>\n<p>Which of the following is an advantage of an exchange traded fund (EFT)?<br \/>\nNo minimum investment amount<br \/>\nShares can be bought and sold through a broker at any time at the current price<br \/>\nManagement fees are often lower<br \/>\nCan use limit orders to purchase EFTs<br \/>\nAll of the choices are advantages of EFTs<br \/>\nQuestion 12<\/p>\n<p>For a mutual fund, the turnover ratio measures:<br \/>\nthe length of time a manager has been in charge of the fund.<br \/>\nthe amount of profit the fund earns from one investment period to the next.<br \/>\nthe number of months the average investor holds the fund before selling.<br \/>\nthe percentage of a fund\u2019s holdings that have changed during a 12-month period.<br \/>\nthe percentage of institutional investors who own the fund.<br \/>\nQuestion 13<\/p>\n<p>Grady Perdue has assets worth $1,500,000 and has written a legal document that specifies that all of his money go to his children. After he dies, there is a legal process to determine whether his document specifying how his assets be divided is valid. This is also the legal process by which his executor manages and distributes his property. What is this legal process called?<br \/>\nAn estate<br \/>\nA will<br \/>\nA trust<br \/>\nProbate<br \/>\nNone of the choices<br \/>\nQuestion 14<\/p>\n<p>A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.<br \/>\ntestamentary<br \/>\nliving<br \/>\nrevocable<br \/>\nirrevocable<br \/>\ninsurance<br \/>\nQuestion 15<\/p>\n<p>A legal document authorizing someone to act on your behalf is called a:<br \/>\ncodicil.<br \/>\nrider.<br \/>\npower of attorney.<br \/>\ntrustor.<br \/>\nproxy.<br \/>\nQuestion 16<\/p>\n<p>A prime reason for buying an annuity is to:<br \/>\nsave money for college education<br \/>\nstart a new business<br \/>\naccumulate funds to invest in stocks<br \/>\ngive you retirement income for the rest of your life<br \/>\nget rich quick<br \/>\nQuestion 17<\/p>\n<p>Who has the greatest need for life insurance?<br \/>\nhouseholds with small children<br \/>\nsingles living alone<br \/>\nsingles living with parents<br \/>\ndual income couple<br \/>\nchildren<br \/>\nQuestion 18<\/p>\n<p>Jerry Lewis is thinking about purchasing some life insurance. He goes to a company that is owned by shareholders. What type of life insurance company has he gone to?<br \/>\nA stock life insurance company<br \/>\nA debt life insurance company<br \/>\nA mutual life insurance company<br \/>\nAn exclusionary life insurance company<br \/>\nNone of the choices<br \/>\nQuestion 19<\/p>\n<p>Automobile liability insurance covers the insured when he or she is held responsible for losses suffered by others.<br \/>\nTrue<br \/>\nFalse<br \/>\nQuestion 20<\/p>\n<p>In times of high inflation, personal incomes generally keep up with the rate of inflation.<\/p>\n<p>True<br \/>\nFalse<br \/>\nQuestion 21<\/p>\n<p>Similar to corporate shareholders, holders of mutual funds have a say in running the company, since they have equity interest in the pool of assets and a residual claim on the profits.<\/p>\n<p>True<br \/>\nFalse<br \/>\nQuestion 22<\/p>\n<p>Savings is the accumulation of excess funds by intentionally spending less than you earn.<br \/>\nTrue<br \/>\nFalse<br \/>\nQuestion 23<\/p>\n<p>A business cycle is a pattern of economic activity that includes an expansion, peak, contraction, and trough.<br \/>\nTrue<br \/>\nFalse<br \/>\nQuestion 24<\/p>\n<p>High-demand occupations tend to pay low salaries.<br \/>\nTrue<br \/>\nFalse<br \/>\nQuestion 25<\/p>\n<p>The most expensive loans are available from:<br \/>\nparents.<br \/>\nfriends.<br \/>\nbanks.<br \/>\nfinance companies.<br \/>\ncredit unions.<\/p>\n<p>Question 26<\/p>\n<p>Frank Wert wants to get a lower interest rate on his loan for the purchase of a new boat. He uses the boat as collateral for the loan. In which way is Frank reducing his lender\u2019s risk?<br \/>\nHe is sharing the interest rate risk with his lender<br \/>\nHe is pledging valuable assets that can be seized if the loan is not repaid<br \/>\nHe is taking a larger stake in the asset he is purchasing<br \/>\nHe is repaying the loan over a faster period of time<br \/>\nNone of the choices<br \/>\nQuestion 27<\/p>\n<p>There are no costs involved in filing for a bankruptcy.<br \/>\nfalse<br \/>\ntrue<br \/>\nQuestion 28<\/p>\n<p>Kevin Brown rides his bicycle to work so that he doesn\u2019t have to worry about getting in a car accident. How is Kevin managing his risk?<br \/>\nRisk Avoidance<br \/>\nRisk Reduction<br \/>\nRisk Assumption<br \/>\nRisk Shifting<br \/>\nRisk Creation<br \/>\nQuestion 29<\/p>\n<p>Negligence refers to:<br \/>\nfailure to take ordinary and reasonable care.<br \/>\ncancellation of insurance.<br \/>\nproperty damage.<br \/>\nhigh risk insurance coverage.<br \/>\ncommon hazards in our society.<br \/>\nQuestion 30<\/p>\n<p>Using a home security system is an example of ____________ risk.<br \/>\nshifting<br \/>\naccepting<br \/>\nreducing<br \/>\nsharing<br \/>\ntransferring<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>Question 1 If a bond is purchased at a price below the face value, the yield to maturity is: greater than the stated interest rate. the same as the stated interest rate. less than the stated interest rate. zero. of no significance. Question 2 A long-term technique used by investors who purchase an equal dollar&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13510","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>finance multiple choice questionsfinance multiple choice questions - onlineclassesguru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/finance-multiple-choice-questionsfinance-multiple-choice-questions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"finance multiple choice questionsfinance multiple choice questions - onlineclassesguru\" \/>\n<meta property=\"og:description\" content=\"Question 1 If a bond is purchased at a price below the face value, the yield to maturity is: greater than the stated interest rate. the same as the stated interest rate. less than the stated interest rate. zero. of no significance. 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