A bond that guarantees that the person responsible for the property of another will faithfully exercise his or her duties is called a A) fiduciary bond. B) performance bond. C) court bond. D) contract bond. ANSWER Answer: A
Date: September 19th, 2020
Which is NOT a characteristic of a limited liability partnership? A) One or more of the partners must be a general partner to whom the privilege of limited liability does not apply. B) Prohibits the limited partners from participating in the management of the partnership. C) Partners pay taxes on dividends distributed. D) One or […]
Date: September 19th, 2020
Which of the following represents the correct ordering of standard deviation of returns over the period 1926 to 2014 (from highest to lowest standard deviation of returns)? A) common stocks, long-term government bonds, long-term corporate bonds, Treasury bills B) Treasury bills, long-term government bonds, long-term corporate bonds, common stocks C) Treasury bills, long-term government bonds, […]
Date: September 19th, 2020
You are going to pay $100 into an account at the beginning of each of the next 40 years. At the beginning of the 41st year you buy a 30 year annuity whose first payment comes at the end of the 41st year (the accounts earn 12%). How much will you receive at the end […]
Date: September 19th, 2020
Which of the following represents the correct ordering of returns over the period 1926 to 2014 (from lowest to highest return)? A) Treasury bills, common stocks, long-term corporate bonds, long-term government bonds B) Treasury bills, long-term government bonds, long-term corporate bonds, common stocks C) common stocks, long-term government bonds, long-term corporate bonds, Treasury bills D) […]
Date: September 19th, 2020
Which of the following statements about various types of surety bonds is true? A) A judicial bond guarantees that a public official will faithfully perform his or her duties for the protection of the public. B) A payment bond guarantees that the bonded person will appear in court. C) A license and permit bond guarantees […]
Date: September 19th, 2020
Which of the following statements about Generally Accepted Accounting Principles (GAAP) is NOT true? A) GAAP is a set of rule-based accounting standards established by the Financial Accounting Standards Board (FASB). B) GAAP is complex, providing more than 150 “pronouncements” as to how to account for different types of transactions. C) GAAP sets out the […]
Date: September 19th, 2020
Tracy is a trust officer at a bank. One of her responsibilities is to manage funds that have been set aside for the benefit of minor children. What type of bond guarantees that Tracy will faithfully execute her required duties in this capacity? A) fiduciary bond B) public official bond C) court bond D) performance […]
Date: September 19th, 2020
Which of the following statements about surety bonds is (are) true? I. The surety has a legal right to recover a loss payment it made on behalf of a defaulting principal. II. The obligee is the party who benefits from the bond if the principal fails to perform. A) I only B) II only C) […]
Date: September 19th, 2020
If you hold a portfolio made up of the following stocks: Investment Value Beta Stock X $4,000 1.5 Stock Y $5,000 1.0 Stock Z $1,000 .5 What is the beta of the portfolio? A) 1.24 B) 1.33 C) 1.00 D) 1.15 ANSWER D
Date: September 19th, 2020
