Question

6. If a corporation goes bankrupt, who gets paid back first from any remaining funds? *
a. Common stock holders.
b. Preferred stock holders.
c. Bond holders.
d. Day traders.

7. What is the role of the Federal Deposit Insurance Corporation (FDIC)? *
a. To monitor the investments of banks.
b. To provide social insurance for the elderly.
c. To insure bank depositors against bank collapse.
d. All of the above.


8. Jose purchases a call option allowing him to buy shares of computer stock at $150 six months from now. He pays $20/share for the call option. At the end of six months, the computer stock is now trading at $250/share. How much profit will he make on this transaction? *

a. $250/share.
b. $200/share.
c. $80/share.
d. $75/share

9. A stock split can only benefit a stockholder if: *
a. The split occurs multiple times.
b. The split occurs during low interest rates.
c. The value of the split stock increase on the market.
d. The split occurs during high interest rates.

10. Which of the following contributed to the 1929 Stock Market Crash? *
a. Over-valuation of the stocks.
b. Purchasing of stocks on borrowed money (on margin).
c. A weak economy and stagnant wages.
d. All of the above.

Answer 1

@Mr.Z