Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy free practice questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
The following information are contained in the annual report except:
Correct
Annual reports include financial statements (such as income statements, balance sheets, and statements of cash flows), notes to the financial statements, accounting policies, statements and reports from management, directors, chairmen, and/or auditors, material risk disclosures, and other information.
Incorrect
Annual reports include financial statements (such as income statements, balance sheets, and statements of cash flows), notes to the financial statements, accounting policies, statements and reports from management, directors, chairmen, and/or auditors, material risk disclosures, and other information.
-
Question 2 of 10
2. Question
Which of the following statements is false?
Correct
Prospectuses are formal documents which brokers are legally required to file with the SEC. They provide information about investments being offered for sale to the public, giving information so that investors can make intelligent and informed decisions. Stocks and bonds have two types of prospectuses, preliminary and final.
Incorrect
Prospectuses are formal documents which brokers are legally required to file with the SEC. They provide information about investments being offered for sale to the public, giving information so that investors can make intelligent and informed decisions. Stocks and bonds have two types of prospectuses, preliminary and final.
-
Question 3 of 10
3. Question
Which of the following statements is false about red herrings?
Correct
Red herrings are preliminary prospectuses. They are called such, not because they are misleading (as are “red herrings” in logic and rhetoric), but because they include a statement in red lettering on the cover declaring that they are preliminary, and thus that some items might be subject to change.
Incorrect
Red herrings are preliminary prospectuses. They are called such, not because they are misleading (as are “red herrings” in logic and rhetoric), but because they include a statement in red lettering on the cover declaring that they are preliminary, and thus that some items might be subject to change.
-
Question 4 of 10
4. Question
The following are true about systematic risk except?
Correct
Systematic, or un-diversifiable, risk is intrinsic to the whole market or market subdivision and may not be negated through diversification. It is also called market risk as it is risk that any investor in the market takes on. Examples of systematic risk range from wars to volatile interest rates.
Incorrect
Systematic, or un-diversifiable, risk is intrinsic to the whole market or market subdivision and may not be negated through diversification. It is also called market risk as it is risk that any investor in the market takes on. Examples of systematic risk range from wars to volatile interest rates.
-
Question 5 of 10
5. Question
Which of the following is not a systematic risk?
Correct
Systematic, or un-diversifiable, risk is intrinsic to the whole market or market subdivision and may not be negated through diversification. Examples:
-Market risk.
-Interest rate risk.
-Inflation risk.Incorrect
Systematic, or un-diversifiable, risk is intrinsic to the whole market or market subdivision and may not be negated through diversification. Examples:
-Market risk.
-Interest rate risk.
-Inflation risk. -
Question 6 of 10
6. Question
Which of the following is true about commercial paper?
I. It is characterised by a short duration.
II. Its short duration makes it a very safe investment choice.
III. Commercial paper is typically issued in denominations of $100,000.
IV. Commercial paper typically matures no longer than six months.Correct
Commercial paper is a money market instrument characterized by a short duration and an unsecured nature. Its maturities typically go no longer than nine months, with the average maturity being one to two months. Commercial paper is considered a very safe investment due to the fact that a company’s financial situation is easy to forecast in such a short time period. Typically, it is issued in denominations of $100,000, which limits investor access.
Incorrect
Commercial paper is a money market instrument characterized by a short duration and an unsecured nature. Its maturities typically go no longer than nine months, with the average maturity being one to two months. Commercial paper is considered a very safe investment due to the fact that a company’s financial situation is easy to forecast in such a short time period. Typically, it is issued in denominations of $100,000, which limits investor access.
-
Question 7 of 10
7. Question
Identify the false statements.
I. Commercial paper is only issued by corporations of low risk that show strong stability.
II. A high interest rate is paid on funds invested in commercial paper.
III. The interest received on certificate of deposits always keep pace with inflation.
IV. High risk corporations often issue commercial papers.Correct
commercial paper is only issued by corporations of low risk that show strong stability. Investors find these characteristics to be highly attractive, but the high demand and low risk result in a low interest rate paid on funds invested in commercial paper.
The interest received on CDs is typically low and tied to prime and in some cases do not keep pace with inflation.Incorrect
commercial paper is only issued by corporations of low risk that show strong stability. Investors find these characteristics to be highly attractive, but the high demand and low risk result in a low interest rate paid on funds invested in commercial paper.
The interest received on CDs is typically low and tied to prime and in some cases do not keep pace with inflation. -
Question 8 of 10
8. Question
The following statements are false, except:
I. Treasury bills are short term debt instruments with a maturity of two years.
II. Treasury bills fall in the fixed income sector is the market.
III. Treasury bonds are the safest bonds available to investors.
IV. There are three types of treasury securities.Correct
Treasury bills are short-term debt instruments issued by the United States government with a maturity of less than one year. They are issued at a discount to par and fall into the money market instruments.
Treasury bonds are backed by the full faith and credit of the United States government, making them some of the safest bonds available to investors.Incorrect
Treasury bills are short-term debt instruments issued by the United States government with a maturity of less than one year. They are issued at a discount to par and fall into the money market instruments.
Treasury bonds are backed by the full faith and credit of the United States government, making them some of the safest bonds available to investors. -
Question 9 of 10
9. Question
Regarding treasury bills, which of the following is true.
I. They are issued in denominations of $10,000.
II. The greatest amount of T-bills purchasable at one time is $5 million.
III. No interest payments are made in the debt instrument.
IV. They are money market instruments.Correct
Treasury bills, commonly referred to as T-bills, are short-term debt issued by the United States government. They are most commonly issued with maturities of one month, three months, and six months. T-bills are issued in denominations of $1,000 dollars. The greatest amount of T-bills purchasable at one time is $5 million. Treasury bills are issued at a discount to par and redeemed at par by the U.S. government. This differs from traditional debt securities in that no interest payments are made on the debt instrument.
Incorrect
Treasury bills, commonly referred to as T-bills, are short-term debt issued by the United States government. They are most commonly issued with maturities of one month, three months, and six months. T-bills are issued in denominations of $1,000 dollars. The greatest amount of T-bills purchasable at one time is $5 million. Treasury bills are issued at a discount to par and redeemed at par by the U.S. government. This differs from traditional debt securities in that no interest payments are made on the debt instrument.
-
Question 10 of 10
10. Question
The following are money market securities except:
I. Treasury notes
II. Treasury bills
III. Commercial paper
IV. Certificate of depositCorrect
The two most common and most useful types of money market instruments are commercial paper and Treasury bills, or T-bills.
Treasury notes are issued at par value with a fixed rate of interest and fall in the fixed income sector of the market.Incorrect
The two most common and most useful types of money market instruments are commercial paper and Treasury bills, or T-bills.
Treasury notes are issued at par value with a fixed rate of interest and fall in the fixed income sector of the market.