Page 26 of 26 99. The money that a corporation receives from issuing bonds: A. is obtained from the owners of the business. B. is obtained from employee stock option programs. C. has been allocated to retirement programs. D. is obtained from lenders. E. does not have to be repaid. A mutual fund that invests only in the common shares of companies in the same industry is called an). fund. 100. A. B. C. D. E. money market growth-income income specialty small-cap This is the end of the final exam. 90. An advantage of Canada Savings Bonds is: A. interest earned is exempt from federal income taxes. B. they can be converted to other types of investments. C. interest earned is deferred for federal tax purposes. D. they are sold twice a year. E. a guaranteed rate of return. Collateral refers to the borrower's income or net worth. 91. 92. A. True B. False A type of corporate bond that can be exchanged, at the owner's (investor's) option, for a specified number of shares of the corporation's stock is called a(n) bond. A. B. C. D. E. mortgage subordinated convertible indenture debenture 93. The Gross Debt Service (GDS) ratio measures: A. your monthly mortgage payment as a percentage of gross monthly income. B. your monthly mortgage payment (principal and interest) plus heating costs and property taxes as a percentage of your gross monthly income. C. your monthly mortgage payment, including any outstanding debt as a percentage of gross monthly income. D. your annual mortgage payment, including any outstanding debt, as a percentage of gross annual income. E. your annual mortgage payment, including principal, interest, heating, taxes, and student loan debt as a percentage of gross annual income. 86. An investor who wants a predictable source of income from an investment would buy A. speculative investments. B. options. C. government bonds. D. commodities. E. common stocks. The type of share in which shareholders are assured that omitted dividends (dividend payments that have been skipped or missed) will be paid to them before dividends are paid on other company shares is called a 87. A B. C. D. E. common share convertible preferred cumulative preferred participating preferred callable preferred 88. When investors are optimistic about the direction of the overall economy and are actively buying more shares, it reflects what is known as a(n) market. bull A. declining B. bear C. D. equity E. inflective A "more safe" stock investment that generally attracts conservative investors is called an) stock. 89. A. B. C. D. E. blue-chip growth income cyclical penny