Quiz
1. The strategy of investing in different kinds of assets to reduce risk is called:
- Bi-polar investing
- Dollar cost averaging
- Diversification
2. The interest rate the Federal Reserve charges banks for short-term loans is the:
- Discount rate
- Prime rate
- Periodic rate
3. In addition to setting interest rates, the Federal Reserve affects monetary policy through open market operations, which are the:
- Buying or selling of U.S. government securities
- Cash reserves each bank must keep on hand to satisfy consumer demand
- Annual review of all stock market regulations, required by Congress
4. Beta measures the:
- Volatility of a particular stock
- Stability of a nation's monetary system
- Financial worthiness of a company
5. Many financial advisers recommend DRIPs, which are:
- Depreciating real income portfolios
- Debt reduction incentive programs
- Dividend reinvestment plans
6. When purchasing corporate bonds, investors:
- Receive stock paying a fixed dividend
- Earn tax-free interest income
- Are making a loan to the company
7. A zero coupon bond would:
- Not require a sales charge
- Pay no interest until it matured
- Be sold by the U.S. Treasury Department
8. The primary purpose of the International Monetary Fund is to:
- Promote international monetary cooperation
- Serve as a bank for the United Nations
- Ensure that interest rates are the same in member nations
9. Offshore banks are:
- Located in Caribbean nations
- Exempt from International Monetary Fund regulation
- Licensed by countries with minimal taxation and financial regulations
10. A brass plate bank is:
- An established, blue chip institution
- A bank authorized to sell insurance
- A bank with no offices
1. The strategy of investing in different kinds of assets to reduce risk is called:
Diversification
2. The interest rate the Federal Reserve charges banks for short-term loans is the:
Discount rate
3. In addition to setting interest rates, the Federal Reserve affects monetary policy through open market operations, which are the:
Buying or selling of U.S. government securities
4. Beta measures the:
Volatility of a particular stock
5. Many financial advisers recommend DRIPs, which are:
Dividend reinvestment plans
6. When purchasing corporate bonds, investors:
Are making a loan to the company
7. A zero coupon bond would:
Pay no interest until it matured
8. The primary purpose of the International Monetary Fund is to:
Promote international monetary cooperation
9. Offshore banks are:
Licensed by countries with minimal taxation and financial regulations
10. A brass plate bank is:
A bank with no offices