1. ____ is a short-term investment activity.

a.	Buying life insurance
b.	Buying bonds
c.	Investing in common stock
d.	Speculating in common stock
e.	Saving

2. Which of the following is least likely to be an investment objective?

a.	enhance current income
b.	save for a major purchase
c.	pay monthly bills
d.	accumulate funds for retirement
e.	seek shelter from taxes

3. Which of the following is a characteristic of an organized securities exchange?

a.	they facilitate trading unlisted securities
b.	municipal bonds are primarily traded in organized exchanges
c.	pink sheets are commonly used in these markets
d.	the NASDAQ is an example of an organized exchange
e.	trading in securities is carried out in a physical location

4. Which of the following is not a securities market

a.	capital market
b.	money market
c.	primary market
d.	secondary market
e.	Dow Jones market

5. Which of the following types of brokers is most likely to involve an investor trading electronically from his or her personal computer?

a.	Full service broker
b.	Bank broker
c.	Futures broker
d.	Online broker
e.	Market maker

6. The Securities Investor Protection Corporation insures brokerage firm accounts up to

a.	$500,000 per account and $250,000 in cash
b.	$250,000 per account and $100,000 in cash
c.	$1,000,000 per account and $500,000 in cash
d.	$500,000 per account and $250,000 in cash
e.	$500,000 per account and $100,000 in cash

7. Which of the following securities/investment acts regulates the sale of mutual fund shares?

a.	The Securities Act of 1933
b.	the Securities and Exchange Act of 1934
c.	The Investment Company Act of 1940
d.	The Sarbanes/Oxley Act of 2002
e.	The Securities and Protection Act of 1970

8. During a bull market

a.	prices go up
b.	prices go down
c.	prices remain stable
d.	investments are pessimistic
e.	cattle futures perform well

9. The most important investment prerequisites are

a.	adequate income and savings.
b.	adequate income and insurance.
c.	adequate insurance and liquidity.
d.	an investment plan and professional advice.
e.	consistency and risk awareness.

10. The most common reason given for investing is

a.	enhancing current income.
b.	saving for retirement.
c.	sheltering earnings from taxes.
d.	paying for an expensive vacation.
e.	saving for college education.