Question :
151.AU.S.Treasurybondisa
a.storeofvalueandcommonmediumofexchange.
b.storeofvalue,butnotacommonmediumofexchange.
c.acommonmediumofexchange,butnotastoreofvalue.
: 1261793
151.AU.S.Treasurybondisa
a.storeofvalueandcommonmediumofexchange.
b.storeofvalue,butnotacommonmediumofexchange.
c.acommonmediumofexchange,butnotastoreofvalue.
d.neitherastoreofvaluenoracommonmediumofexchange.
152.Amutualfund
a.isafinancialmarketwheresmallfirmsmutuallyagreetosellstocksandbondstoraisefunds.
b.isfundssetasidebylocalgovernmentstolendtosmallfirmswhowanttoinvestinprojectsthataremutuallybeneficialtothefirmandcommunity.
c.sellsstocksandbondsonbehalfofsmallandlessknownfirmswhowouldotherwisehavetopayhighinteresttoobtaincredit.
d.isaninstitutionthatsellssharestothepublicandusestheproceedstobuyaselectionofvarioustypesofstocks,bonds,orbothstocksandbonds.
153.Mutualfunds
a.providediversification.Shareholdersassumealloftheriskassociatedwiththemutualfund.
b.providediversification.Governmentinsuranceeliminatestheriskofmutualfundshareholders.
c.donotprovidediversification.Shareholdersassumealloftheriskassociatedwiththemutualfund
d.donotprovidediversification.Governmentinsuranceeliminatestheriskofmutualfundshareholders.
154.Theprimaryadvantageofmutualfundsisthatthey
a.alwaysprovidethehighestreturn.
b.alwaysallowpeopleto“beatthemarket.”
c.allowpeopletodiversifyandreducerisk.
d.allowpeopletodiversify,whichincreasesriskandreturn.
155.Itisclaimedthatmutualfundshavetwoadvantages.Thefirstisthatmutualfundsallowpeoplewithsmallamountsofmoneytodiversify.Thesecondisthatmutualfundsprovidetheskillsofprofessionalmoneymanagerswhobuystockstheybelievewillbethemostprofitableandtherebyincreasethereturnthatmutualfunddepositorsearnontheirsavings.
a.Economistsstronglyagreewithbothclaims.
b.Economistsareskepticalofbothclaims.
c.Economistsareskepticalofthefirstclaim,butstronglyagreewiththesecond.
d.Economistsstronglyagreewiththefirstclaim,butareskepticalofthesecond.
156.Theprimaryadvantageofmutualfundsisthatthey
a.alwaysmakeareturnthat”beatsthemarket.”
b.allowpeoplewithsmallamountsofmoneytodiversify.
c.providecustomerswithamediumofexchange.
d.Alloftheabovearecorrect.
157.Theoldadage,“Don’tputallyoureggsinonebasket,”isverysimilartoamodernbitofadviceconcerningfinancialmatters:
a.“Buylowriskbonds.”
b.“Useamediumofexchange.”
c.“Diversify.”
d.“Intermediate.”
158.Asamoneymanagementfee,mutualfundsusuallychargetheircustomers
a.between0.5and2.0percentofassetseachyear.
b.between1.5and3.0percentofassetseachyear.
c.nothing,becausetheyreceivecommissionsfromthefirmswhosestocktheybuy.
d.aflatfeeofabout$50.
159.Itisclaimedthatasecondaryadvantageofmutualfundsisthat
a.aninvestorcanavoidinvestmentchargesandfees.
b.theygiveordinarypeopleaccesstoloanablefundsforinvesting.
c.theyusuallyoutperformstockmarketindexes.
d.theygiveordinarypeopleaccesstotheskillsofprofessionalmoneymanagers.
160.Indexfunds
a.typicallyhaveahigherrateofreturnandhighercoststhanmanagedmutualfunds.
b.typicallyhaveahigherrateofreturnandlowercoststhanmanagedmutualfunds.
c.typicallyhavealowerrateofreturnandhighercoststhanmanagedmutualfunds.
d.typicallyhavealowerrateofreturnandlowercoststhanmanagedmutualfunds.
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