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Friday, February 4, 2011

Investments Multiple Choice

Solution is available here for U$7.00

The essence of _______ is to determine whose judgment about the market is wrong.
a. key indicators
b. smart money rules
c. contrary opinion rules
d. none of the above

The strong form of the efficient market hypothesis states that
a. a market is more than highly efficient; it is actually perfect
b. it is easy to beat the market
c. mutual fund managers are superior performers.
d. none of the above.

A normal short sale ratio is between
a. that all securities are efficiently priced at any point in time. 0.-5
b. that only common stocks are efficiently priced at any point in time. 1.0-2.0
c. that only bonds are efficiently priced at any point in time. 2.0-3.0
d. over 3.0.

Which of the following is a good example of changes in accounting principles.
a. a change in earnings per share due to an increase in the number of shares of common stock
b. a change in income due to a change for post retirement benefits
c. a change in earnings before taxes because of a change in internal rates on debt
d. none of the above

The statement of cash flows tells us
a. accounting profit or loss
b. how cash was created
c. actual profit or loss
d. two of the above

Which of the following characteristics is not usually found in industries that are oligopolies? a. Barriers to entry
b. Intense competition between competitors
c. Increasing foreign competition
d. No differentiation between products

While the money supply has historically been popular as an indicator of the stock market,
a. studies have shown there is not a strong relationship between the two variables.
b. money supply growth and stock prices have turning points too similar to really be of value. c. money supply does not really explain the majority of economic behavior.
d. more than one of the above.

Since late 2002 the Bush administration has followed a weak dollar policy and
a. the euro has fallen against the dollar
b. the euro has risen against the dollar
c. the Chinese renmimbi has declined against the dollar
d. none of the above have happen.

Which of the following statements is true?
a. Its open-market activity is believed by many to be an excellent indicator of the Federal Reserve's attitude toward the economy.
b. Money market funds and consumer behavior restrict the ability of the Federal Reserve to control the money supply.
c. In the early 1980s the Federal Reserve reversed its historical policy by emphasizing the growth of the money supply rather than only influencing interest rates.
d. all of the above are true.

Which of the following is a characteristic of Standard & Poor's Corporation Reports?
a. more detailed information than the stock guide
b. grouped into volumes based on the exchange on which the company's stock is listed.
c. Each company is updated quarterly on earnings, dividends and other relevant information. d. all of the above

Information on U.S., Canadian, and international companies covering fujll balance sheets and income statements, corporate profiles, subsidiary and division information, SEC reports, and new and press releases may be found in Standard & Poor's
a. Corporation Records
b. Analysts Handbook
c. Investment Advisory Survey
d. none of the above

The Federal Reserve Bulletin would least likely contain information on
a. international transactions and exchange
b. legislation regulating financial institutions
c. state budget figures
d. interest rates

The Survey of Current Business differs from National Economic Trends because
a. it contains data broken down by industry.
b. it includes compound annual growth rates.
c. each publication covers different topics.
d. all of the above

The biggest dilemma in creating a national market system is
a. the development of a composite tape reflecting trades on all exchanges for listed NYSE companies.
b. competition between specialists and market makers.
c. a computerized system to handle limit orders from all markets.
d. none of the above.

The __________ is a futures market for common stock while the ____________ is a futures market for commodities and financial instruments.
a. Chicago Board Options Exchange; Chicago Board of Trade.
b. Chicago Mercantile Exchange; Chicago Board Options Exchange
c. Chicago Board of Trade; Chicago Board Options Exchange
d. New York Stock Exchange; American Stock Exchange

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