Free Financial Advisor Series 65 Question and Answers

Question 1

Which of the following factors will determine and have an impact on the interest rate a borrower pays?

Accepted Answer

all of the above

Answer

the borrower's credit quality

Answer

inflation expectations

Answer

the length of time over which the funds will be borrowed

Question 2

The "FED" (Federal Reserve Board) uses all of the above to affect the US economy, and more especially, the money supply, EXCEPT:

Accepted Answer

raising or reducing the prime rate

Answer

raising or reducing the discount rate

Answer

raising or reducing the reserve requirements for commercial banks

Answer

purchasing and selling U.S. Treasury securities in the open market

Question 3

Which of the following central tendency measures is described as determining the value that is found most frequently in a particular distribution of numbers?

Accepted Answer

mode

Answer

mean

Answer

range

Answer

median

Question 4

Except for: All of the following describe a business cycle trough.

Accepted Answer

all of the above are characteristics of a business cycle trough

Answer

a positive forward outlook for consumer spending to increase

Answer

a moderate rate of inflation

Answer

a gradual transition for the Gross Domestic Product (GDP) growth rate from a negative to a positive

Question 5

All of the information about a stock's pricing patterns and trendlines is accurate, EXCEPT for:

Accepted Answer

A head and shoulders bottom suggests that the stock price will continue to trend down going forward.

Answer

during a time when prices are rising The trendline will join each of the stock's price pattern bottoms.

Answer

The amount of times the price pattern contacts a stock's trendline determines its validity.

Answer

all of the above are true

Question 6

The balance statement of a firm contains all of the information below, EXCEPT for:

Accepted Answer

It's a great tool for indicating to analysts whether a company is on the upswing or falling off the rails.

Answer

it communicates the value of a company in what it owns and what it owes

Answer

assets = liabilities + owner's equity

Answer

owner's equity is equal to a company's "net worth"

Question 7

The following are all illustrations of systematic risk, EXCEPT:

Accepted Answer

financial risk

Answer

market risk

Answer

interest rate risk

Answer

purchasing power risk