56) Which of the following investments is the most liquid? A) Municipal bond B) Interest-bearing checking account 9 Corporate bond D) Certificate of deposit E) Preferred stock 56) 57)If your monthly expenses total $2,000, you should save at least emergency fund before focusing on your investment program. A) $10,000 57) in an E) $1,000 B) $6,000 9 $2,000 D) $4,000 58) According to some financial experts like Suze Orman, how much of an investment program should a 50-year-old have in growth investments? A) 60% 58) E) 50% D) 30% B) 40% C) 70% 59) You are considering an investment in a municipal bond that has a yield of 4 %. Your tax rate is 25%. What is your taxable equivalent yield? A) 3.75% 59) E) 4% D) 0.75% B) 5.33% )4.25% 60) 60) Assume that you purchase a $1,000 bond issued by Harley-Davidson that pays 6% interest each year, paid every 6 months. What is the amount of each interest payment? A) $6.00 E) $60.00 B) $30.00 D) $3.00 9S1,000 61) 61) To survive a crisis, you can take the following steps: A) notify your lenders if you are unable to make payments B) monitor the value of your investment and retirement accounts )establish a larger than usual emergency fund D) know what you owe and reduce your spending E) All of the above 62) Amanda wants to be part of the most basic form of ownership for a corporation. She should invest in A) Bonds. B) Common stock. ) Dividends. D) A savings account. E) A proxy. 11 63) A distribution of money, stock, or other property that is paid to the stockholders of a company is called a A) Bond. B) Common stock. ) Dividend. D) Savings account E) Proxy 64) 64) A legal form that requests that stockholders transfer their voting rights to individual(s) is called a A) Bond, B) Common stock. C) Dividend. D) Savings account. E) Proxy 65) 65) MNOP Inc. declared a $1.00 dividend with a record date of Thursday, September 15, and a payment date of Thursday, October 20, Cheri wants to purchase this stock and receive the dividend. What is the latest date that she needs to have purchased the stock in order to receive the dividend? A) September 15 B) September 13 9October 18 D) September 12 E) September 19 66) Which of the following statements about stock splits is correct? A) If a company has a 3-for-1 split, the price will increase by a factor of 3. B) If a company has a 2-for-1 split, the price will be doubled. c) If a company has a 4-for-1 split, the new number of shares will be four times as many as before the split. D) If a company has a 5-for-1 split, the new number of shares will be equal to the old number of shares divided by 5. E) None of these is correct. 66) 57) Megan decided to start investing in stocks. Which of the following should she do first? A) Choose stocks based on recommendations from her family members. B) Base her investing decisions on hot tips she hears at work Research the corporations she is interested in as well as their industries. D) Buy stocks based solely on her stockbroker's recommendation. E) Pick stocks at random