Question 21

Securities are made up of

	A.	All of these.
	B.	stocks.
	C.	bonds.
	D.	mutual funds.

Question 22

A bond

	A.	represents a debt owed by a business or organization.
	B.	represents a share of ownership in a corporation.
	C.	is a portfolio.
	D.	an example of leverage.

Question 23

An investment that can be sold quickly but only by making price concessions suffers from ____ risk.

	A.	financial
	B.	market volatility
	C.	marketability
	D.	liquidity

Question 24

A stock

	A.	represents a debt owed by a business or organization.
	B.	an example of leverage.
	C.	represents a share of ownership in a corporation.
	D.	is a portfolio.

Question 25

Amy and Maxwell Walker have decided to invest their investment dollars: 40 percent in stocks, 30 percent in bonds, and 30 percent in cash equivalents. Over the past year, the market value of their bonds increased while the market value of their stocks declined. Using the asset allocation model, they should now

	A.	sell some of their stocks and buy more bonds.
	B.	sell some of their bonds and buy more stocks.
	C.	use some of their cash equivalents to buy more stocks.
	D.	use some of their cash equivalents to buy more bonds.