Question 21

A fund of real estate holdings that can be privately held or publicly traded on an exchange is a __________.

Select one:

a. syndicate.

b. limited partnership.

c. real estate investment trust.

d. direct investment fund.

e. mortgage-backed fund.

Question 22

Recession and inflation have decreased the value of your investments. This is an example of __________.

Select one:

a. economic risk.

b. industry risk.

c. company risk.

d. asset class risk.

e. market risk.

Question 23

Examples of annuities include all the following EXCEPT __________.

Select one:

a. savings plans.

b. layaway purchases.

c. mortgages.

d. one-time cash flows.

e. retirement plan payouts.

Question 24

A period of declining productivity lasting less than half a year is called __________.

Select one:

a. the gross domestic product.

b. a depression.

c. a recession.

d. an expansion.

e. a contraction

Question 25

An investment policy statement outlines __________.

Select one:

a. an investors return objectives, risk preferences, and constraints.

b. an investment advisors approach to applying portfolio theory.

c. an institutions goals and investment decisions.

d. an investment firms disclosures to clients.

e. a companys disclosures to investors.

Question 26

The time value of money is an important concept in __________.

Select one:

a. determining the frequency of cash flows.?

b. valuing a series of future cash flows.

c. predicting discount rates.

d. adding the number of cash flows.

e. identifying the amount of cash flows.

Question 27

You insure your dependents against financial hardship after your death through __________.

Select one:

a. estate taxes.

b. long-term disability insurance.

c. life insurance.

d. a flexible savings account.

e. private mortgage insurance.

Question 28

The costs of leasing are __________.

Select one:

a. the down payment

b. the lease payments.

c. the buyout.

d. a. and b.

e. a., b., and c.?

Question 29

Your risk tolerance represents __________.

Select one:

a. your wealth or net worth.

b. the amount of money you stand to lose.

c. your ability or willingness to take chances.

d. the amount of time separating you from your money.

e. your return objective.

Question 30

A budget for short-term goals involving recurring items is called a/an __________.

Select one:

a. operating budget.

b. comprehensive budget.

c. capital budget.

d. a. and b.

e. a., b., and c.

Question 31

The purpose of pro forma financial statements is to show __________.

Select one:

a. projected future value.

b. consequences of choices.

c. scenarios for financial planning.

d. a. and b.

e. a., b., and c.