Question 1

The fees for investor services and newsletters generally range from ____________ a year.

Accepted Answer

A)  $10 to $20, or free
B)  $20 to $30, or free
C)  $30 to $750, or free
D)  $300 to $1,000, or free
E)  over $1,,000, or freeF) B) and E)
G) B) and D)

Question 2

What is the dividend tax gross up rate, as per the publication?

Accepted Answer

A)  25%
B)  30%
C)  35%
D)  38%
E)  45%F) C) and D)
G) All of the above

Question 3

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

Accepted Answer

A) True 
 B)False

Question 4

What is an example of newspaper as a source of investment information?

Accepted Answer

A)  National Post
B)  Business News Network
C)  Business Week
D)  Globe and Mail's Report on business
E)  MoneySaverF) A) and C)
G) A) and B)

Question 5

An emergency fund should

Accepted Answer

A)  be able to cover 1 month of living expense.
B)  begin after you invest in the stock market.
C)  consist of mutual funds primarily
D)  be able to cover a minimum of 3 months of living expense
E)  not be required if you have unused credit card debt.F) A) and B)
G) A) and E)

Question 6

Derivatives are securities such as options, and forward and futures contracts, whose value depends on the performance of an underlying security.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a true statement?

Accepted Answer

A)  It is estimated that there are over 100 million Internet users worldwide.
B)  There is a wealth of investment information available, but most small investors cannot afford to use it.
C)  You can obtain current price information for stocks, bonds, and mutual funds by using the Internet.
D)  A search engine is a research tool that helps you move through a menu system until you find the information you want.
E)  Both government and businesses provide individuals with investment information.F) A) and D)
G) C) and D)

Question 8

You're down $500 in a poker game.How much more would a conservative investor be willing to put up to win the $500 back?

Accepted Answer

A)  More than $500.
B)  $500.
C)  $250.
D)  $100.
E)  Nothing-cut your losses nowF) B) and D)
G) B) and E)

Question 9

The maturity dates for most bonds range between ____________ years.

Accepted Answer

A)  0 to 5
B)  5 to 15
C)  10 to 15
D)  1 to 30
E)  1 to 40F) A) and D)
G) C) and D)

Question 10

Which of the following is not a determinant of investor risk tolerance?

Accepted Answer

A)  goals and time frames
B)  economy
C)  income and asset base
D)  personality
E)  incomeF) C) and D)
G) A) and D)

Question 11

The amount put aside as an emergency fund should be equal to 3 to 9 months of living expenses.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following investments has the highest risk?

Accepted Answer

A)  preferred stock
B)  common stock
C)  corporate bonds
D)  options
E)  real estateF) B) and E)
G) C) and E)

Question 13

Which of the following was not found to be a critical factor in investing psychology?

Accepted Answer

A)  greed
B)  stubbornness
C)  loss aversion
D)  endowment effect
E)  cognitive biasF) A) and B)
G) A) and C)

Question 14

What is step 7 of the steps for effective investment planning?

Accepted Answer

A)  Determine the amount of money you need to obtain your goals.
B)  Specify the amount of money you currently have available to fund your investments.
C)  List different investments that you want to evaluate.
D)  Reduce possible investments to a reasonable number.
E)  Choose at least two different investments.F) None of the above
G) A) and C)

Question 15

A corporation selling stock is obligated to

Accepted Answer

A)  guarantee your investment.
B)  repay money obtained from the sale of stock.
C)  repurchase shares of stock at a later date.
D)  pay dividends to preferred stockholders before dividends are paid to common stockholders.
E)  pay dividends.F) B) and C)
G) B) and D)

Question 16

Leveraged investing in common shares is expected to increase your net worth.

Accepted Answer

A) True 
 B)False

Question 17

During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 18

An investor concerned with a predictable source of income provided by an investment would choose

Accepted Answer

A)  options.
B)  commodities.
C)  government bonds.
D)  common stocks.
E)  speculative investments.F) B) and D)
G) A) and E)

Question 19

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

Accepted Answer

A) True 
 B)False

Question 20

What is an example of television as a source of investment information?

Accepted Answer

A)  National Post
B)  Business News Network
C)  Business Week
D)  Globe and Mail's Report on business
E)  MoneySaverF) A) and B)
G) B) and E)

Exam 10: Fundamentals of Investing

What is step 7 of the steps for effective investment planning?

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A corporation selling stock is obligated to

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You're down $500 in a poker game.How much more would a conservative investor be willing to put up to win the $500 back?

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Derivatives are securities such as options, and forward and futures contracts, whose value depends on the performance of an underlying security.

Correct AnswerverifiedShow Answer

An emergency fund should

Correct AnswerverifiedShow Answer

Which of the following investments has the highest risk?

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What is an example of newspaper as a source of investment information?

Correct AnswerverifiedShow Answer

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

Correct AnswerverifiedShow Answer

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

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What is the dividend tax gross up rate, as per the publication?

Correct AnswerverifiedShow Answer

The fees for investor services and newsletters generally range from ____________ a year.

Correct AnswerverifiedShow Answer

The amount put aside as an emergency fund should be equal to 3 to 9 months of living expenses.

Correct AnswerverifiedShow Answer

Leveraged investing in common shares is expected to increase your net worth.

Correct AnswerverifiedShow Answer

What is an example of television as a source of investment information?

Correct AnswerverifiedShow Answer

The maturity dates for most bonds range between ____________ years.

Correct AnswerverifiedShow Answer

During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

Correct AnswerverifiedShow Answer

Which of the following was not found to be a critical factor in investing psychology?

Correct AnswerverifiedShow Answer

Which of the following is not a determinant of investor risk tolerance?

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

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An investor concerned with a predictable source of income provided by an investment would choose

Correct AnswerverifiedShow Answer

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