Tuesday, April 5, 2011
1. The likelihood of an occurrence of an unwanted event is:
C. Opportunity Cost
D. Financial Risk
2. The value of the next best alternative investment when faced with mutually exclusive investment choices is:
A. Opportunity Cost
B. Liquidity Risk
D. Tax Shelter
3. What is the use of borrowed funds by the investor with the anticipation of increasing investment returns?
4. Investing in a variety of assets to spread risk is Diversification.
T / F
5. Oligopoly is a control over a market by a single supplier.
T / F Oligopoly is a few suppliers with control over a market. Monopoly is a single supplier that has control over a market.
6. Psychic benefit is the pride associated with real property ownership.
T / F Pride of ownership is the pride that goes with real property ownership where psychic benefit is a perk to owning real property.
7. An increase in normal prices is known as inflation.
T / F
8. The increase in an assets value is known as depreciation.
T / F An increase in an assets value is known as appreciation.