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About Investment
Following are some of the multiple choice questions on the Investment with answers that will help the students in developing their knowledge.
Investment MCQ
1. 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
2. A raw material or primary agricultural product that can be bought and sold, such as copper or coffee
3. A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index
5. 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
7. 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.
9. 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.
10. A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years.
12. 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.
13. Degree of uncertainty on how likely the investor is to make money on an investment
14. A market where shares in corporations are bought and sold through an organized system.
16. A fee you’ll be charged for withdrawing money before a CD’s maturity date
18. The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage
25. 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
26. 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?
28. 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.
32. A part into which a companies capital is divided, entitling the shareholder to a portion of the profits.
33. A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.
34. If the mortgage rate is 4 percent and the expected inflation rate is 6 percent, then the real borrowing cost would be
39. Which of the following would increase the cost of capital to the firm (holding constant the other elements of the cost of capital)?
43. If a firm faces financing constraints on its investment spending, the most important determinant of how much it invests will be the
44. In the accelerator model of investment, when there is no change in output then investment is
45. Keynesians argue that investment is the most volatile component of GDP because of
46. Investment in the national income accounts includes which of the following?
47. There are no consequences for withdrawing money from a CD before the maturity date
48. A certificate issued by a bank to a person depositing money for a specified length of time.
49. This has a fixed interest rate that you leave in the bank for a fixed period of time.
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