Investment Test Bank

In: Business and Management

Submitted By allisonclare
Words 3405
Pages 14
Multiple Choice Questions

1. In 2005, ____________ was the most significant real asset of U. S. nonfinancial businesses in terms of total value. A) equipment and software B) inventory C) real estate D) trade credit E) marketable securities

Answer: C Difficulty: Easy Rationale: See Table 1.4.

2. In 2005, ____________ was the least significant real asset of U. S. nonfinancial businesses in terms of total value. A) equipment and software B) inventory C) real estate D) trade credit E) marketable securities

Answer: B Difficulty: Easy Rationale: See Table 1.4.

3. In 2005, ____________ was the least significant liability of U. S. nonfinancial businesses in terms of total value. A) bonds and mortgatges B) bank loans C) inventories D) trade debt E) marketable securities

Answer: B Difficulty: Easy Rationale: See Table 1.4.

4. In 2005, ____________ was the most significant financial asset of U. S. nonfinancial businesses in terms of total value. A) cash B) trade credit C) trade debt D) inventory E) marketable securities

Answer: B Difficulty: Easy Rationale: See Table 1.4.

5. The material wealth of a society is equal to the sum of _________. A) all financial assets B) all real assets C) all financial and real assets D) all physical assets E) none of the above

Answer: B Difficulty: Easy Rationale: Financial assets do not directly contribute the productive capacity of the economy.

6. ____________ of an investment bank. A) Citigroup is an example B) Merrill Lynch is an example C) Goldman is an example D) B and C are each examples E) Each of the above is an example

Answer: E Difficulty: Easy

7. _______ are financial assets. A) Bonds…...

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