2.00 part 1

A marketplace where trading of securities such as equities, bonds, currencies, and derivatives occurs is referred to as a:

• call market.
• bear market.
• financial market.
• foreign exchange market.

Which is an advantage of a money market account over a savings account?

• The rate of return on a money market account is significantly better.
• Money market accounts provide corporate ownership rights.
• One can often write checks from a money market account.
• Money market accounts are insured by the FDIC.

Joe needs a safe place to store his income that allows him to withdraw money easily and frequently. Joe should consider opening which type of account?

• savings
• checking
• health savings
• individual retirement

The purpose of the risk pyramid is to show a comparison of:

• one stock to another.
• one investment to another.
• stocks to stock mutual funds.
• corporate bonds to municipal bonds.

Ownership investments are ideal for investors who are:

• risk-averse.
• risk-tolerant.
• close to retirement.
• just beginning to invest.

Investors take a risk for the potential of receiving a:

• bonus.
• prize.
• promotion.
• return.

One of the biggest risks to a real estate investment is:

• depreciation.
• a low rate of return.
• lacking FDIC insurance.
• the inability to write checks.

In investing, legal lending or owning agreements between individuals, businesses, or governments are known as:

• bonds.
• guarantees.
• securities.
• treaties.

Chris wants to open a small business, and he has a very good business plan that is likely to succeed. Where would Chris be most likely to go to apply for a loan?

• local bank
• national bank
• insurance provider
• mortgage company

Marcus wants to invest a portion of his money in long-term securities to finance his son's college education and his own retirement. To help him make the best investment decisions, Marcus should obtain the services of a:

• loan officer.
• licensed tax accountant.
• certified financial planner.
• credit-union representative.