1. Bondholders must be paid in full before stockholders receive any money.
TRUE
FALSE

2. The least expensive way for an individual to buy Trreasury bonds is.....
from a bank
from an insurance agent
from an investment firm
from the US Treasury's ''Treasury Direct'' program.

3. If you own a Treasury instrument which matures in 8 years, this instrument is known as....
an IOU.
a note.
a bill.
a bond.

4. The ''Rule of 72'' can help you compute how long it will take for money to double. It is called the ''Rule of 72'' because, for example, given the interest rate of 10%, it will take 7.2 years for your money or principle to double. How many years will it take to double given and interest rate of 6 percent?
6 years
7.2 years
12 years
2 years

5. When you purchase a company's stock certificate, you become a ________ of that company.
creditor
debtor
owner
customer

6. The difference between total assets and total liabilities on the balance sheet is ...
Return on Equity (ROE)
Net Assets
Net Income
Shareholder Equity

7. A valuation ratio of a company's current share price compared to its per-share earnings is referred to as P/E ratio.
TRUE
FALSE

8. A mutual fund avoids so-called ''sin'' investments (for example, companies involved in tobacco or gambling) is following what investment strategy?
Active Investing
Socially Responsible Investing
Passive Investing
Index Investing

9. A retirement savings plan that is funded by employee contributions and often matching employer contributions is a(n)...
Individual Retirement Account (IRA).
CPA plan.
IRS plan.
401(k) plan.

10. The benefits of owning a mutual fund include all of the following except....
diversification.
professional money management.
fixed price
convenience.

11. Treasury bills, notes, and bonds are considered the safest forms of investments in the United States, because they are backed by the...
bank.
tax payers,
full faith and credit of the U.S.
Federal Reserve.

12. A money manager that looks at a company's financials before he of she decides to invest in the stock of that company would be what type of investor?
Technical Investor
Economic Investor
Value Investor
Scuttlebutt Investor

13. If a company wanted to raise capital (money) without creating a legal obligation to repay the capital, the company would issue...
stock.
bonds.
IOUs.
a loan.

14. 401(k) plans take their name from the section of the IRS code which created them.
TRUE
FALSE

Stock Exchange Curriculum Test

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