Question

Of the following investments, which has the lowest risk?

Question 23 options:

	government bonds
	conservative mutual funds
	futures
	blue chip stocks
	junk bonds

In general, the riskier an investment, the greater the opportunity for a large return.

Question 24 options:

	True
	False

In a bond offering, financial advisors MOST often buy bonds of the company ________.

Question 26 options:

	at higher than face value
	at face value
	at lower than face value
	at twice face value
	at par value

Defensive stocks usually have a stock price that is greatly affected by the state of the economy.

Question 29 options:

	True
	False

A utility company that pays a good dividend can best be characterized as a growth stock.

Question 30 options:

	True
	False

Commercial banks are financial institutions that raise funds from businesses and individuals in the form of checking and savings accounts and use those funds to make loans to businesses and individuals.

Question 16 options:

	True
	False

An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in association with a new product is brand ________.

Question 5 options:

	extension
	awareness
	licensing
	association
	privatizing

A package contains a snack food bag with a manufacturer's brand and a container of dip with the brand of a different manufacturer. This is an example of a(n) ________ brand.

Question 6 options:

	generic
	private
	individual
	co-brand
	family

Answer 1

Q-23 Government Bonds have the lowest level of risk because these bonds are backed by government bonds. These will default only when the government of the country defaults the chances of which is lowest among the options given.

Q-24, This is true. The greater the risk and uncertainty, larger the probability of higher returns. Safer investments fetch less return as risk is less and the investment goes into investment products with lesser risk and are conservative

Q-26 In a bond offering, financial advisors MOST often buy bonds of the company at lower than the face value. This is because, for these bonds the maturity amount is face value and issue price is at a discount to face value to ensure the issue amount + interest equals face value at maturity.

Q-29 FALSE - Defensive stocks usually have a stock price that is not greatly affected by the state of the economy. They tend to perform better than broader market during the time of recession and do not perform as per state of economy. They generally do not perform worse in case state of economy is not good and also do not perform exceptionally well when state of economy is well.

Q- 30 FALSE. A utility company that pays a good dividend can not be characterized as a growth stock. Growth stocks are those stock which prefer not to pay dividend and retain the profits and invest in the business for future growth. Dividend paying stocks do not see possibility of investing profits and hence pays dividends.

Q- 16 TRUE, Commercial banks are financial institutions that raise funds from businesses and individuals in the form of checking and savings accounts and use those funds to make loans to businesses and individuals

Q-5

An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in association with a new product is brand LICENSING.

q-6

A package contains a snack food bag with a manufacturer's brand and a container of dip with the brand of a different manufacturer. This is an example of a(n) CO brand.