W!SE REVIEW

A Neon Oil Corporation tanker spilled oil in the ocean around Australia. As a result of this accident, the share price of Neon Oil stock is likely to

• increase

• stay the same

• decrease

• fluctuate

Why does a corporation issue bonds?

• to comply with the SEC

• to keep from being bought-out by another corporation

• to expand ownership of the corporation

• to raise money for the expansion or other company operations

Generally, investors buy blue chip stocks because they are issued by corporations that

• have a reputation for steady earnings and quality management

• are known for high volatility and risk

• offer the highest dividend yields in the market

• are newly established and rapidly growing

Which of the following investment products is guaranteed by the federal government?

• preferred stock

• corporate stock

• US Treasury notes

• common stock

You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for a loss. The $500 the insurance did not pay is a result of your policy having a:

• deductible

• premium

• co-payment

• exclusion

Which factor would most likely lead to an increase in the interest rate on a person's credit card?

• number of purchases

• late payments

• number of cash advances

• total amount charged

If a business wants to raise capital but not create debt, it can:

• Issue Common Stock

• Float a bond issue

• Borrow money from a commercial bank

• Borrow money from the government

When the market has a steady incline in the stock prices over a period of time, it is known as a:

• bear market

• bull market

• sideways market

• volatile market

The activity of the New York Stock Exchange most closely resembles:

• an auction house

• a bank

• a dance hall

• a retail store

A person buys a homeowner's insurance policy with a $250 deductible, which means the person will

• receive the full claim amount without any deductions

• have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company

• only pay for damages that exceed $250

• not have to pay anything out of pocket for claims