Question

1. High-risk investment techniques include all of the following except:

a. selling short.

b. buying common stock for cash.

c. trading in stock options.

d. buying stock on margin.

e. trading in commodities.

2. Stock of a company that distributes the majority of its profits to its shareholders in the form of dividends is known as:

a. an income stock.

b. an ETF.

c. a growth stock.

d. a derivative.

e. a sector stock.

3.

The Federal Reserve uses _______ to regulate the nation's supply of money in order to maintain a healthy economy.

a. budgetary policy

b. taxation

c. fiscal policy

d. monetary policy

e. federal spending

4. Which of the following statements would be an example of a medium-term goal?

a. Pay off the mortgage on the house by 2030.

b. Save $2,000 over the next two years toward the purchase of a new car.

c. Pay off my credit card balance within the next 60 days.

d. Have all of my student loans paid off within 10 years of graduation.

e. Register for next semester's classes by the end of the month.

Answer 1

1. High risk investment techniques include all of the following except -

B. Buying common stock for cash

This does not include high risk as you have paid for the investment and the maximum you can loose is the principal amount.

2. Stock of a company that distributes the majority of its profit to its shareholders in the form of dividend is known as -

A. An income stock

Income stocks are those that give constant dividend every year.

3. The Federal Reserve uses ___ to regulate the Nation's supply of money in order to maintain a healthy economy-

D. Monetary policy

The Reserve Bank of a country uses the monetary policy in order to maintain the required cash flow in the economy.

4. Which of the following statements would be an example of a medium term goal?

B. Save $2000 over the next two years towards the purchase of a new

Other goals are for a very short period i.e. 60 eays or for very long period i.e. 10 years.

Let me know in the comment section in case of any doubt.