1. An asset that is purchased with the expectation that it will produce income or appreciate at some point in the future. A. Bond C. Deposit D. Investment B. Stock 2. It is a firm or an organization that brings together money from various people and invests it in stocks, bonds, or other assets. A. Insurance Company C. Real Estate D. Mutual Fund B. Deposit 3. The largest market in the world in terms of trading volume, so much liquidity. A. Currency C. Commodities B. Stock D. Investment 4. It is a form of security that indicates the holder has proportionate ownership in the issuing corporation. A. Bond C. Deposit D. Investment B. Stock 5. An income based on the outstanding principal and current interest rate. A. Active income C. Passive income B. Interest income D. Dividend income 6. It is a fixed-income instrument that signifies a loan made by an investor to a borrower (typically corporate or government). A. Bond C. Deposit B. Stock D. Investment
1. An asset that is purchased with the expectation that it will produce income or appreciate at some point in the future. A. Bond C. Deposit D. Investment B. Stock 2. It is a firm or an organization that brings together money from various people and invests it in stocks, bonds, or other assets. A. Insurance Company C. Real Estate D. Mutual Fund B. Deposit 3. The largest market in the world in terms of trading volume, so much liquidity. A. Currency C. Commodities B. Stock D. Investment 4. It is a form of security that indicates the holder has proportionate ownership in the issuing corporation. A. Bond C. Deposit D. Investment B. Stock 5. An income based on the outstanding principal and current interest rate. A. Active income C. Passive income B. Interest income D. Dividend income 6. It is a fixed-income instrument that signifies a loan made by an investor to a borrower (typically corporate or government). A. Bond C. Deposit B. Stock D. Investment
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:1. An asset that is purchased with the expectation that it will produce income or appreciate
at some point in the future.
A. Bond
C. Deposit
D. Investment
B. Stock
2. It is a firm or an organization that brings together money from various people and invests
it in stocks, bonds, or other assets.
A. Insurance Company
C. Real Estate
D. Mutual Fund
B. Deposit
3. The largest market in the world in terms of trading volume, so much liquidity.
A. Currency
C. Commodities
B. Stock
D. Investment
4. It is a form of security that indicates the holder has proportionate ownership in the issuing
corporation.
A. Bond
C. Deposit
D. Investment
B. Stock
5. An income based on the outstanding principal and current interest rate.
A. Active income
C. Passive income
B. Interest income
D. Dividend income
6. It is a fixed-income instrument that signifies a loan made by an investor to a borrower
(typically corporate or government).
A. Bond
B. Stock
C. Deposit
D. Investment
7. These investments are impractical to invest directly considering storage, transportation,
and insurance costs involved.
A. Currency
C. Commodities
D. Investment
B. Stock
8. A risk management technique that combines a wide variety of investments within a
portfolio to reduce risk.
A. Risk retention
C. Market Trading
D. Diversification
B. Risk control
9. A contract (policy) in which an insurer compensates another against losses from specific
contingencies or dangers.
A. Commodities
C. Insurance
D. Mutual Fund
B. Deposit
10. Money, which is in the form of paper or coins that is usually issued by a government
and generally accepted at its face value as a method of payment.
C. Deposit
A. Currency
B. Stock
D. Investment
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