Question 1

If interest rates in the overall economy increase, what will happen to the market value of a corporate bond with a fixed interest rate?

Accepted Answer

A)  The value of the bond will increase.
B)  The bond is worthless.
C)  The value of the bond will decrease.
D)  The value of the bond will not change.
E)  It is impossible to determine if the bond's value will increase or decrease.F) A) and B)
G) A) and C)

Question 2

An emergency fund is a certain amount of money that can be obtained quickly in case of immediate need.

Accepted Answer

A) True 
 B)False

Question 3

Which is not one the the levels in the investment pyramid?

Accepted Answer

A)  Financial independence
B)  Financial security
C)  Safety and income
D)  Growth
E)  SpeculationF) C) and E)
G) A) and C)

Question 4

Which of the following would not be considered a safe investment for a conservative investor?

Accepted Answer

A)  corporate bonds
B)  guaranteed investment certificates
C)  government bonds
D)  gemstones
E)  preferred stockF) A) and E)
G) A) and B)

Question 5

Dividends and interest income are taxed as long-term capital gains under the current tax laws.

Accepted Answer

A) True 
 B)False

Question 6

A line of credit is a short-term loan that is approved before the money is actually needed.

Accepted Answer

A) True 
 B)False

Exam 10: Fundamentals of Investing

Dividends and interest income are taxed as long-term capital gains under the current tax laws.

Correct Answer
verified

Which of the following would not be considered a safe investment for a conservative investor?

Correct Answer
verified

Which is not one the the levels in the investment pyramid?

Correct Answer
verified

A line of credit is a short-term loan that is approved before the money is actually needed.

Correct Answer
verified

If interest rates in the overall economy increase, what will happen to the market value of a corporate bond with a fixed interest rate?

Correct Answer
verified

An emergency fund is a certain amount of money that can be obtained quickly in case of immediate need.

Correct Answer
verified

Exam 10: Fundamentals of Investing

Dividends and interest income are taxed as long-term capital gains under the current tax laws.

Correct AnswerverifiedShow Answer

Which of the following would not be considered a safe investment for a conservative investor?

Correct AnswerverifiedShow Answer

Which is not one the the levels in the investment pyramid?

Correct AnswerverifiedShow Answer

A line of credit is a short-term loan that is approved before the money is actually needed.

Correct AnswerverifiedShow Answer

If interest rates in the overall economy increase, what will happen to the market value of a corporate bond with a fixed interest rate?

Correct AnswerverifiedShow Answer

An emergency fund is a certain amount of money that can be obtained quickly in case of immediate need.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified