Q.1
In the accelerator model of investment, when there is no change in output then investment is
  • zero
  • positive
  • negative
  • one
Q.2
Keynesians argue that investment is the most volatile component of GDP because of
  • a. volatile changes in permanent income.
  • b. volatile expectations.
  • c. volatile changes in current income.
  • d. volatile changes in productivity.
  • all of above
Q.3
Investment in the national income accounts includes which of the following?
  • a. Purchases of durable equipment and structures
  • b. Residential construction expenditures
  • c. Changes automobile sales
  • d. Both a and b
  • e. All of the above
Q.4
A raw material or primary agricultural product that can be bought and sold, such as copper or coffee
  • CD
  • Dividend
  • Commodity
  • Bond
Q.5
Degree of uncertainty on how likely the investor is to make money on an investment
  • Index
  • Risk
  • Maturity
  • Penalty
Q.6
There are no consequences for withdrawing money from a CD before the maturity date
  • True
  • False
Q.7
A certificate issued by a bank to a person depositing money for a specified length of time.
  • Mutual Fund
  • Index
  • Bond
  • Certificate of Deposit (CD)
Q.8
A sudden and extreme downturn in stock performance/value
  • Index
  • Crash
  • Penalty
  • Risk
Q.9
A fee you’ll be charged for withdrawing money before a CD’s maturity date
  • Index
  • Interest
  • Risk
  • Penalty
Q.10
The time period an investment is intended to last
  • Maturity Date
  • Term
  • Interest
  • Diversification
Q.11
A market where shares in corporations are bought and sold through an organized system.
  • Portfolio
  • Index
  • Stock Market
  • CD
Q.12
A share of the value of a company, which can be bought, sold or traded as an investment and which gives the investor partial ownership of the company
  • CD
  • Mutual Fund
  • T-Note
  • Stock
Q.13
A collection of stocks and/or bonds combined into one fund, which will be traded as a unit, typically chosen and actively managed by an expert in exchange for a fee from each investor.
  • Stock
  • Bond
  • T-Note
  • Mutual Fund
Q.14
A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more thanyears.
  • T-Note
  • Mutual Fund
  • Emergency Fund
  • CD
Q.15
A bond, often having tax advantages for individual investors, issued by a state or local government, typically uses the loan to pay for public works to benefit its citizens.
  • Index Fund
  • Commodity
  • Municipal Bond
  • Emergency Fund
Q.16
Semiannually means
  • Once a year
  • Every other year
  • Twice a year
  • Four times a year
Q.17
The act of investing in a large variety of stocks, bonds and/or alternative investments, like gold or real estate, as a way to reduce your overall risk.
  • Dividends
  • Mutual Fund Investing
  • Portfolio
  • Diversification
Q.18
The overall collection of investments held by a person.
  • Fund
  • Portfolio
  • Savings Account
  • Certificate of Deposit
Q.19
A security in which the investor loans money to a company or government, then pays regular interest to the bondholder and returns the principal on the bond’s maturity date
  • Index Fund
  • Dividend
  • Bond
  • T-Note
Q.20
A payment made by a publicly traded corporation to its shareholders
  • Dividend
  • Index
  • Commodity
  • T-Note
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