The 2002 law designed to improve corporate governance is titled the _______.
Pension Reform Act
ERISA
Financial Services Modernization Act
Sarbanes-Oxley Act
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-03 Explain the
economic functions of financial markets
and how various securities are related to
the governance of the corporation.
43.
Award: 10.00 points
44.
Award: 10.00 points
Which of the following is not a financial intermediary?
A mutual fund
An insurance company
A real estate brokerage firm
A credit union
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Distinguish
between real assets and financial assets.
The combined liabilities of American households in 2019 represent approximately _______ of
combined assets.
11%
13%
25%
33%
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Distinguish
between real assets and financial assets.
45.
Award: 10.00 points
46.
Award: 10.00 points
In 2019 real assets represented approximately ______ of the total asset holdings of American
households.
29%
42%
48%
55%
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Distinguish
between real assets and financial assets.
In 2019, mortgages represented approximately _______ of total liabilities and net worth of
American households.
9%
14%
28%
42%
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Distinguish
between real assets and financial assets.
47.
Award: 10.00 points
48.
Award: 10.00 points
Liabilities equal approximately _______ of total assets for nonfinancial U.S. businesses in 2019.
14%
24%
44%
56%
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Distinguish
between real assets and financial assets.
Which of the following is not an example of a financial intermediary?
Goldman Sachs
Allstate Insurance
First Interstate Bank
IBM
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-02 Distinguish
between real assets and financial assets.
49.
Award: 10.00 points
50.
Award: 10.00 points
Real assets represent about _______ of total assets for commercial banks and savings institutions
in 2019.
1%
15%
25%
40%
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Distinguish
between real assets and financial assets.
Money market securities are characterized by:
1. Maturity less than 1 year
2. Safety of the principal investment
3. Low rates of return
1 only
1 and 2 only
1 and 3 only
1, 2, and 3
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-02 Distinguish
between real assets and financial assets.
51.
Award: 10.00 points
52.
Award: 10.00 points
After much investigation, an investor finds that Intel stock is currently underpriced. This is an
example of _______.
asset allocation
security analysis
top-down portfolio management
passive management
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-04 Describe the
major steps in the construction of an
investment portfolio.
After considering current market conditions, an investor decides to place 60% of her funds in
equities and the rest in bonds. This is an example of _______.
asset allocation
security analysis
top-down portfolio management
passive management
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-04 Describe the
major steps in the construction of an
investment portfolio.
53.
Award: 10.00 points
54.
Award: 10.00 points
Suppose an investor is considering one of two investments that are identical in all respects except
for risk. If the investor anticipates a fair return for the risk of the security he invests in, he can expect
to _______.
earn no more than the Treasury-bill rate on either security
pay less for the security that has higher risk
pay less for the security that has lower risk