Following are some of the multiple choice questions on the Investment with answers that will help the students in developing their knowledge.
1. The chart used to show the value of a $1 through various investments and timeframes is called:
2. If a company files for bankruptcy, which of the following securities is most at risk of becoming virtually worthless
3. Buying and Selling StocksRandy just bought 800 shares of stock in Facebook at $19.50 per share. A stock company that you have been working with charges $10 per transaction and you want to sell because the current rate for your shares skyrocketed and is at $34.50 per share. How much did Randy buy from Facebook?
4. An investment program funded by shareholders that trades in diversified
5. An amount of money paid by a company regularly to it's shareholders
6. The owner of a companies shares.
7. A part into which a companies capital is divided, entitling the shareholder to a portion of the profits.
8. A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.
9. Price paid at the purchase of bonds
10. Money borrowed for a project where their price is a function of the law of supply and demand. People who buy these ______ are lending money for a project.
11. High interest rates will
12. Business fixed investment
13. Inventory investment includes spending on
14. The flexible accelerator model of investment can be shown as
15. Which of the following would increase the cost of capital to the firm (holding constant the other elements of the cost of capital)?
16. If the life cycle theory of consumption holds, as the fraction of our population that is retired rises over the next 20 years, the national savings rate should
17. The largest component of investment is
18. Which of the following statements is (are) correct?
19. If the mortgage rate is 4 percent and the expected inflation rate is 6 percent, then the real borrowing cost would be
20. If a firm faces financing constraints on its investment spending, the most important determinant of how much it invests will be the
21. In the accelerator model of investment, when there is no change in output then investment is
22. Keynesians argue that investment is the most volatile component of GDP because of
23. Investment in the national income accounts includes which of the following?
24. A raw material or primary agricultural product that can be bought and sold, such as copper or coffee
25. Degree of uncertainty on how likely the investor is to make money on an investment
26. There are no consequences for withdrawing money from a CD before the maturity date
27. A certificate issued by a bank to a person depositing money for a specified length of time.
28. A sudden and extreme downturn in stock performance/value
29. A fee you’ll be charged for withdrawing money before a CD’s maturity date
30. The time period an investment is intended to last
31. A market where shares in corporations are bought and sold through an organized system.
32. A share of the value of a company, which can be bought, sold or traded as an investment and which gives the investor partial ownership of the company
33. A collection of stocks and/or bonds combined into one fund, which will be traded as a unit, typically chosen and actively managed by an expert in exchange for a fee from each investor.
34. A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years.
35. A bond, often having tax advantages for individual investors, issued by a state or local government, typically uses the loan to pay for public works to benefit its citizens.
37. The act of investing in a large variety of stocks, bonds and/or alternative investments, like gold or real estate, as a way to reduce your overall risk.
38. The overall collection of investments held by a person.
39. A security in which the investor loans money to a company or government, then pays regular interest to the bondholder and returns the principal on the bond’s maturity date
40. A payment made by a publicly traded corporation to its shareholders
41. A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index
42. Money set aside for unanticipated expenses or loss of income
43. The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage
44. The bridge between investors and borrowers is called
45. Gambling and investment are same thing.
46. Financial market is a part of security market
47. Shares investment are the component of
48. Exchanging one currency with another is a part of
49. Inflation can be managed with the help of
50. The two broad category of investment alternatives are
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