Investment and D. Liquidity Question

Topics: Investment, Dividend, Bond Pages: 9 (1254 words) Published: January 17, 2013
Question 1 of 20
5.0 Points
Alicia Cooper makes sure to contribute ten percent of her monthly earnings to her 401(k) plan at work. Her 401(k) plan allows her to invest in several different types of mutual funds. Which suggestion for the obtaining money she needs for investing is she following?

A. Paying herself first

B. Taking advantage of employer-sponsored retirement programs

C. Participating in an elective savings program

D. Making a special effort once or twice a year to save

Question 2 of 20
5.0 Points
After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small children and wants to make sure that both she and the children are taken care of in the future. Based on this information, which of the investment factors listed below would be the most important to Gina in her investment program?

A. Liquidity

B. Safety

C. Business failure

D. Market risk

Question 3 of 20
5.0 Points
Gina Davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about?

A. Risk

B. Return

C. Diversification

D. Liquidity

Question 4 of 20
5.0 Points
An individual can reduce the amount of risk associated with an investment program by using:

A. an investment timer.

B. asset allocation.

C. a portfolio picker.

D. a personal investment notebook.

Question 5 of 20
5.0 Points
Which of the following statements is FALSE?

A. Investors often make the mistake of putting all of their "eggs in one basket."

B. Diversification in an investment portfolio is one way to lessen the risk factor.

C. The amount of time a specific investment has to work is of little importance when choosing the investment alternative.

D. Younger investors tend to invest a large percentage of their nest egg in growth-oriented investments.

Question 6 of 20
5.0 Points
Brenda Lee has received a $10,000 gift from her mother and is trying to decide how to invest it. She thinks she would like to invest it in stocks because she knows that stocks have been earning about a 10% rate of interest over the last several years. What aspect of investing is Brenda most concerned about?

A. Risk

B. Return

C. Diversification

D. Liquidity

Question 7 of 20
5.0 Points
Which of the following statements is true about financial planning?

A. Any kind of financial expert (such as a stockbroker, lawyer, or accountant) can help you develop a comprehensive financial plan.

B. Once you have painstakingly developed a financial plan, it is not wise to change it.

C. Once you have made a decision to buy an investment, there is no need for continued evaluation.

D. You must always consider the tax consequences of selling your investments.

Question 8 of 20
5.0 Points
Terri Hamilton has just received $30,000 from an uncle who died and is trying to decide how to invest it. She has done some research has decided that about 30% of the money should go into large cap stocks, 20% into medium cap stocks, 15% into small cap stocks, 10% into bonds, 10% into foreign stocks and 15% into cash. She thinks that even if one area does not do that well, the rest will so that her overall return will be pretty good. What aspect of investing is Terri most concerned about?

A. Risk

B. Investment Growth

C. Diversification

D. Liquidity

Question 9 of 20
5.0 Points
Dividends are paid out of profits, and:

A. dividend payments must be approved by the firm's board of directors.

B. dividends are guaranteed.

C. dividends are paid before a firm's taxes are paid.

D. dividends are usually paid twice a year.

Question 10 of 20
5.0 Points
Rita Smith owns 220 shares of Jefferson Carpet Mills. For the last calendar quarter, Jefferson Carpet Mills...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Investment Test Questions Essay
  • Essay about Investment Test Questions
  • Investment Appraisal Essay Question
  • Investment Essay
  • Questions on Financial and Investment Management Research Paper
  • Questions on Foreign Investments and US Markets Essay
  • Investment Essay
  • Investment Research Paper

Become a StudyMode Member

Sign Up - It's Free