True/False Indicate whether the
statement is true or false.
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1.
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(3 points) Series HH bonds are no longer
issued.
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2.
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(3 points) A margin call is when a customer’s
commodity trading account exceeds the amount of money it is allowed to have and the customer is asked
to withdraw some funds from his or her account.
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3.
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(3 points) Munis is another name for corporate
bonds.
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4.
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(3 points) A foreigner may own U.S. Savings Bonds if
they are a civilian employee of the U.S. Government.
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5.
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(3 points) Generally, you do not pay income tax on
the interest earned on municipal bonds.
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6.
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(3 points) Stocks are normally bought and sold
through brokers.
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7.
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(3 points) The Chicago Board of Trade was
established in 1948.
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8.
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(3 points) A shareholder is the company who issues
the stock when a company goes public.
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9.
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(3 points) Minors may own U.S. Savings Bonds with no
stipulations or restrictions.
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10.
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(3 points) There is great potential for making a
large profit when investing in collectibles.
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11.
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(3 points) The truest indicator of the value of
stock is the price at which a share of stock can be bought and sold on the stock market. This is
known as the stock’s market value.
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12.
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(3 points) Another name for a futures contract is a
forward contract.
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13.
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(3 points) One negative about investing in real
estate is the general upkeep of the property.
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14.
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(3 points) When investing in stocks, the potential
for making a high profit is better than other investments, but the potential for losing money is also
high.
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15.
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(3 points) When dealing with fixed rate mortgages, a
change in the mortgage percentage rate rarely has any real change on the amount of interest paid to
the lender over the life of the loan.
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16.
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(3 points) Common stock has no stated dividend
rate.
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17.
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(3 points) Diversification is a tremendous benefit
of commodity investing.
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18.
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(3 points) The need for futures developed because
there were years where demand for grain would be high and there wouldn’t be enough to meet the
demand, causing those businesses to pay outrageous prices for grain; in other cases, the surplus of
grain would lower prices so much that farmers could not make any money.
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19.
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(3 points) Preferred stockholders have no stated
dividend rate on their stock.
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20.
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(3 points) A speculative investment is one that is
considered to be very risky.
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21.
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(3 points) When investing in collectibles, coins and
stamps are slightly better than other collectibles because they have actual monetary value and are
commonly collected.
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22.
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(3 points) An advantage to investment clubs is the
financial risk can be spread over many stocks and there are more people researching stocks for more
information.
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23.
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(3 points) Bonds are basically loans to corporations
and governments.
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24.
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(3 points) You are limited to $100,000 of Series I
bonds each year.
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Multiple Choice Identify the
choice that best completes the statement or answers the question.
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25.
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(3 points) Which of the following is NOT generally
considered positive when investing in real estate?
a. | You have to pay property tax | c. | Real estate generally
appreciates | b. | Gives the owner somewhere to live | d. | Increase in
equity |
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26.
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(3 points) Which of the following is NOT an example
of a commodity that is bought and sold at either the Chicago Board of Trade or the Chicago Mercantile
Exchange?
a. | livestock | c. | precious metals | e. | currency | b. | stocks | d. | grain |
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27.
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(3 points) Who is credited with establishing the
first futures market?
a. | The British | c. | The Chinese | b. | The Japanese | d. | The United States of
America |
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28.
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(3 points) Treasury Notes are sold in increments of
.........
a. | $1,000 | b. | $10,000 | c. | $25 | d. | $5,000 |
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29.
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(3 points) ____________ are short-term securities
that mature in one year or less from their date of issue.
a. | Series EE Bonds | c. | Treasury Bonds | b. | Series I Bonds | d. | Treasury Bills |
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30.
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(3 points) Which of the following is NOT traded at
the Chicago Board of Trade?
a. | rough rice | c. | oriented strand board | e. | wheat | b. | gold | d. | soybean meal |
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31.
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(3 points) Which of the following is not a common
collectible in which people invest?
a. | coins | c. | pogs | e. | stamps | b. | antiques | d. | sports cards |
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32.
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(3 points) Which of the following is a type of
stock?
a. | common | b. | Series I | c. | interest bearing | d. | discount |
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33.
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(3 points) Which is NOT a type of U.S. Savings Bond
discussed in your notes?
a. | Series HH | b. | Series I | c. | Series EE | d. | Series
G |
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34.
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(3 points) If you were to invest in Live Cattle,
Lean Hogs or Pork Bellies, at which commodities exchange would you buy them?
a. | Chicago Board of Trade | c. | Osaka Rice Exchange | b. | Chicago Mercantile Exchange | d. | New York Stock
Exchange |
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35.
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(3 points) When you buy into a company, you purchase
__________.
a. | bonds | b. | bills | c. | notes | d. | stock |
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36.
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(3 points) Which of the following is NOT traded at
the Chicago Mercantile Exchange?
a. | boneless beef | c. | pork bellies | e. | live cattle | b. | cheese | d. | soybeans |
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37.
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(3 points) Most hedgers can be broken into one of
five categories; which one listed below is NOT one of those categories?
a. | Farmers | c. | Processors | e. | Feedlot
Operators | b. | Feed Salesman | d. | Exporters |
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38.
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(3 points) A printed certificate with a promise to
pay a definite amount of money at a stated interest rate on a specified maturity date is the basic
definition for:
a. | interest | b. | bond | c. | IRA | d. | stock |
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39.
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(3 points) Profits from stock ownership are paid to
stockholders in the form of .........
a. | checks. | b. | cash. | c. | interest. | d. | dividends. |
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Numeric Response
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40.
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(3 points) What was the value of DWDP Stock on
2/25/19? (do not include the dollar sign in your answer; do include the decimal point)
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