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    FIN4020-CHAPTER 2-SAMPLE MCQs

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    Syahrul Aman Ismail
    This document contains 9 multiple choice questions about investments from Chapter 2. The questions cover topics such as the definition of stocks and debt, types of institutional and individual investors, investment goals, capital gains calculations, and the functions of investment banking firms. The questions test understanding of key concepts around different asset classes, investor types, and functions within the investment industry.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    FIN4020-CHAPTER 2-SAMPLE MCQs

    Uploaded by

    Syahrul Aman Ismail
    124 views2 pages
    This document contains 9 multiple choice questions about investments from Chapter 2. The questions cover topics such as the definition of stocks and debt, types of institutional and individual investors, investment goals, capital gains calculations, and the functions of investment banking firms. The questions test understanding of key concepts around different asset classes, investor types, and functions within the investment industry.

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    FIN4020-CHAPTER 2-SAMPLE MCQs.docx

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    This document contains 9 multiple choice questions about investments from Chapter 2. The questions cover topics such as the definition of stocks and debt, types of institutional and individual investors, investment goals, capital gains calculations, and the functions of investment banking firms. The questions test understanding of key concepts around different asset classes, investor types, and functions within the investment industry.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    124 views2 pages

    FIN4020-CHAPTER 2-SAMPLE MCQs

    Uploaded by

    Syahrul Aman Ismail
    This document contains 9 multiple choice questions about investments from Chapter 2. The questions cover topics such as the definition of stocks and debt, types of institutional and individual investors, investment goals, capital gains calculations, and the functions of investment banking firms. The questions test understanding of key concepts around different asset classes, investor types, and functions within the investment industry.

    Copyright:

    © All Rights Reserved
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    SAMPLE MCQs

    CHAPTER 2-INVESTMENT

    1. Stocks are a(n) ________ investment representing ________ of a business.


    A) direct; ownership B) direct; debt
    C) indirect; ownership D) indirect; debt

    2. Which of the following is NOT an investment as defined in the text?


    A) a certificate of deposit issued by a bank B) a new automobile
    C) a Malaysian Cagamas Bond D) a mutual fund

    3. Debt represents funds loaned in exchange for


    A) dividend income and the repayment of the loan principal.
    B) dividend income and an ownership interest in the firm.
    C) interest income and a partial ownership interest in the firm.
    D) interest income and the repayment of the loan principal.

    4. Which of the following are true concerning institutional investors?


    I. Institutional investors are professionals who manage money for other people.
    II. Banks, insurance companies and mutual funds are all institutional investors.
    III. Institutional investors are individuals who invest indirectly through financial institutions.
    IV. Institutional investors invest large sums of money.
    A) I and II only B) I, II and IV only
    C) II, III and IV only D) I, II, III and IV

    5. Advantages of investing in real estate potentially include


    I. rental income.
    II. liquidity.
    III. tax write offs.
    IV. capital gains.
    A) I and IV only B) II and IV only
    C) I, II and IV only D) I, II, III and IV

    6. Which of the following represent investment goals?


    I. saving for major expenditures such as a house or education
    II. sheltering income from taxes
    III. increasing current income
    IV. saving funds for retirement
    A) I and IV only B) I, III and IV only
    C) III and IV only D) I,,II, III and IV

    7. Sarah purchased a stock one year ago at a price of RM32 a share. In the past year, she has
    received an annual dividend of RM3. Today she sold the stock for RM38 a share. Her capital
    gain per share is
    A) RM3.00. B) RM6.00.
    C) RM(6.00). D) RM9.00.
    8. Speculative and growth oriented investments are least appropriate for
    A) young investors. B) middle-aged investors.
    C) retired investors. D) high income investors

    9. A major function of investment banking firms is


    A) providing loans to investors.
    B) providing financial planning services to individuals.
    C) assisting businesses when they issue stocks and bonds.
    D) developing investment strategies to neutralize risk.

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