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Test Bank for Essentials of Investments 12th Edition By Zvi Bodie, Alex Kane, Alan Marcus (All Chapters, 100% Original Verified, A+ Grade)$10.49
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Test Bank for Essentials of Investments 12th Edition By Zvi Bodie, Alex Kane, Alan Marcus (All Chapters, 100% Original Verified, A+ Grade)
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Essentials of Investments 12th Editi
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Essentials Of Investments 12th Editi
This Is Original 12th Edition of Test Bank From Original Author. All Other Files in the market are fake/old Edition. Other Sellers Have changed old Edition Number to new But Test Bank is old Edition.
Test Bank for Essentials of Investments 12th Edition By Zvi Bodie, Alex Kane, Alan Marcus (All ...
1 Chapter 1:__________ 1)Financial assets represent _______ of total assets of U.S. households in 2019.
A)about 70%
B)over 90%
C)under 10%
D)about 30%
2)Real assets in the economy include all but which one of the following?
A)Land
B)Buildings
C)Consumer durables
D)Common stock
3)In 2019, net worth represented _______ of the liabilities and net worth of commercial banks.
A)about 51%
B)about 91%
C)about 11%
D)about 31%
4)According to the Flow of Funds Accounts of the United States, the largest single asset of U.S.
households is _______.
A)mutual fund shares
B)real estate
C)pension reserves
D)corporate equity
5)According to the Flow of Funds Accounts of the United States, the largest liability of U.S.
households is _______.
A)mortgages
B)consumer credit
C)bank loans
D)gambling debtsEssentials of Investments, 12e Zvi Bodie, Alex Kane, Alan Marcus (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter
. 2 6) _______ is not a derivative security. A) A share of common stock B) A call option C) A futures contract D) A put option 7) According to the Flow of Funds Accounts of the United States, the largest financial asset of U.S. households is ________. A) mutual fund shares B) corporate equity C) pension reserves D) deposits 8) Active trading in markets and competition among securities analysts helps ensure that: 1. Security prices approach informational efficiency. 2. Riskier securities are priced to offer higher potential returns. 3. Investors are unlikely to be able to consistently find under - or overvalued securities. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2, and 3 9) The material wealth of society is determined by the economy's _______, which is a function of the economy's _______. A) investment bankers; financial assets B) investment bankers; real assets C) productive capacity; financial assets D) productive capacity; real assets 10) Which of the following is not a money market security? A) U.S. Treasury bill B) 6-month maturity certificate of deposit C) common stock D) mortgage backed security . 3 11) _______ assets generate net income to the economy, and _______ assets define allocation of income among investors. A) Financial; financial B) Financial; real C) Real; financial D) Real; real 12) Which of the following are financial assets? 1. Debt securities 2. Equity securities 3. Derivative securities A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2, and 3 13) _______ are examples of financial intermediaries. A) Commercial banks B) Insurance companies C) Investment companies D) All of the choices are correct. 14) Asset allocation refers to _______. A) the allocation of the investment portfolio across broad asset classes B) the analysis of the value of securities C) the choice of specific assets within each asset class D) None of the choices are correct. 15) Which one of the following best describes the purpose of derivatives markets? A) Transferring risk from one party to another. B) Investing for a short time period to earn a small rate of return. C) Investing for retirement D) Earning interest income . 4 16) Security selection refers to the _______. A) allocation of the investment portfolio across broad asset classes B) analysis of the broad asset classes C) choice of specific securities within each asset class D) top-down method of investing 17) Which of the following is an example of an agency problem? A) Managers engage in empire building. B) Managers protect their jobs by avoiding risky projects. C) Managers overconsume luxuries such as corporate jets. D) All of the options are examples of agency problems. 18) _______ is (are) a mechanism for mitigating potential agency problems. A) Tying income of managers to success of the firm B) Directors defending top management C) Antitakeover strategies D) All of the choices are correct. 19) _______ is (are) real assets. A) Bonds B) Production equipment C) Stocks D) Life insurance 20) _______ portfolio construction starts with selecting attractively priced securities. A) Bottom-up B) Top-down C) Upside-down D) Side-to-side .
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