Solutions Manual Test Bank For Investments 12th Edition By Bodie PDF

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Summary

Test Bank, Solutions Manual, ebook, CONNECT Assignments and Learn Smart Quizzes for Investments 12th Edition By Zvi Bodie
ISBN10: 1260013839 , ISBN13: 9781260013832...

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5/30/2020

1.

Assignment Print View

Award:

The material wealth of a society is a function of

 

all financial assets. all real assets.

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all financial and real assets.



all physical assets.

The material wealth of a society is a function of all real assets.

Difficulty: 1 Basic

2.

Award:

_______ are real assets.

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Land

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Machines

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Stocks and bonds

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Knowledge



Land, machines, and knowledge

Land, machines and knowledge are real assets; stocks and bonds are financial assets.

Difficulty: 1 Basic

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3.

Assignment Print View 



Award:

The means by which individuals hold their claims on real assets in a well-developed economy are

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investment assets.

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depository assets.

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derivative assets.

 

financial assets. exchange-driven assets.

Financial assets allocate the wealth of the economy. Example: it is easier for an individual to own shares of an auto company than to own an auto company directly.

Difficulty: 1 Basic

4.





Award:

_______ are financial assets.

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Bonds



Machines



Stocks

 

Bonds and stocks Bonds, machines, and stocks

Machines are real assets; stocks and bonds are financial assets.

Difficulty: 1 Basic

5.





Award:

_________ financial asset(s).



Buildings are

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Land is a

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Derivatives are

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U.S. agency bonds are



Derivatives and U.S. agency bonds are

Buildings and land are real assets.

Difficulty: 1 Basic

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6.

Assignment Print View 



Award:

Financial assets

 

directly contribute to the country's productive capacity. indirectly contribute to the country's productive capacity.

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contribute to the country's productive capacity, both directly and indirectly.

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do not contribute to the country's productive capacity, either directly or indirectly.

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are of no value to anyone.

Financial assets indirectly contribute to the country's productive capacity because these assets permit individuals to invest in firms and governments. This in turn allows firms and governments to increase productive capacity.

Difficulty: 1 Basic

7.





Award:

In 2018, ____________ was the most significant real asset of U.S. households in terms of total value.



consumer durables



automobiles



real estate



mutual fund shares



bank loans

Assets Real assets Real estate Consumer durables Other Total real assets  Financial assets Deposits and money market shares Life insurance reserves Pension reserves Corporate equity Equity in noncorporate business Mutual fund shares Debt securities Other Total financial assets Total

$ Billion % Total         $ 28,816  23.5%  5,411  4.4   628  0.5  $ 34,855  28.4%            $ 12,442  10.1%   1,647  1.3    26,069  21.3    18,106  14.8    13,044  10.6    8,764  7.1    6,210  5.1    1,521  1.2   $ 87,802  71.6  $ 122,657  100.0% 

Liabilities and Net Worth Liabilities Mortgages Consumer credit Bank and other loans Other Total liabilities

Net worth

$ Billion  $    $           $

 10,437 3,865 1,207 219 15,727          106,929 122,657

$ Total       8.5%   3.2    1.0    0.2    12.8%                                       87.2   100.0%

Balance sheet of U.S. households Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 1 Basic

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8.

Assignment Print View 



Award:

In 2018, ____________ was the least significant financial asset of U.S. households in terms of total value.



real estate



mutual fund shares



debt securities

 

life insurance reserves pension reserves

Assets Real assets Real estate Consumer durables Other Total real assets  Financial assets Deposits and money market shares Life insurance reserves Pension reserves Corporate equity Equity in noncorporate business Mutual fund shares Debt securities Other Total financial assets Total

$ Billion % Total         $ 28,816  23.5%  5,411  4.4   628  0.5  $ 34,855  28.4%            $ 12,442  10.1%   1,647  1.3    26,069  21.3    18,106  14.8    13,044  10.6    8,764  7.1    6,210  5.1    1,521  1.2   $ 87,802  71.6  $ 122,657  100.0% 

Liabilities and Net Worth Liabilities Mortgages Consumer credit Bank and other loans Other Total liabilities

Net worth

$ Billion  $    $           $

 10,437 3,865 1,207 219 15,727          106,929 122,657

$ Total       8.5%   3.2    1.0    0.2    12.8%                                       87.2   100.0%

Balance sheet of U.S. households Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 1 Basic

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9.

Assignment Print View 



Award:

In 2018, ____________ was the most significant financial asset of U.S. households in terms of total value.



real estate



mutual fund shares



debt securities



life insurance reserves



pension reserves

Assets Real assets Real estate Consumer durables Other Total real assets  Financial assets Deposits and money market shares Life insurance reserves Pension reserves Corporate equity Equity in noncorporate business Mutual fund shares Debt securities Other Total financial assets Total

$ Billion % Total         $ 28,816  23.5%  5,411  4.4   628  0.5  $ 34,855  28.4%            $ 12,442  10.1%   1,647  1.3    26,069  21.3    18,106  14.8    13,044  10.6    8,764  7.1    6,210  5.1    1,521  1.2   $ 87,802  71.6  $ 122,657  100.0% 

Liabilities and Net Worth Liabilities Mortgages Consumer credit Bank and other loans Other Total liabilities

Net worth

$ Billion  $    $           $

 10,437 3,865 1,207 219 15,727          106,929 122,657

$ Total       8.5%   3.2    1.0    0.2    12.8%                                       87.2   100.0%

Balance sheet of U.S. households Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 1 Basic

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10.

Assignment Print View 



Award:

In 2018, ____________ was the most significant asset of U.S. households in terms of total value.



real estate



mutual fund shares



debt securities



life insurance reserves



pension reserves

Assets Real assets Real estate Consumer durables Other Total real assets  Financial assets Deposits and money market shares Life insurance reserves Pension reserves Corporate equity Equity in noncorporate business Mutual fund shares Debt securities Other Total financial assets Total

$ Billion % Total         $ 28,816  23.5%  5,411  4.4   628  0.5  $ 34,855  28.4%            $ 12,442  10.1%   1,647  1.3    26,069  21.3    18,106  14.8    13,044  10.6    8,764  7.1    6,210  5.1    1,521  1.2   $ 87,802  71.6  $ 122,657  100.0% 

Liabilities and Net Worth Liabilities Mortgages Consumer credit Bank and other loans Other Total liabilities

Net worth

$ Billion  $    $           $

 10,437 3,865 1,207 219 15,727          106,929 122,657

$ Total       8.5%   3.2    1.0    0.2    12.8%                                       87.2   100.0%

Balance sheet of U.S. households Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 1 Basic

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11.

Assignment Print View 



Award:

In 2018, ____________ were the most significant liability of U.S. households in terms of total value.



credit cards



mortgages



bank loans



student loans



other forms of debt

Assets Real assets Real estate Consumer durables Other Total real assets  Financial assets Deposits and money market shares Life insurance reserves Pension reserves Corporate equity Equity in noncorporate business Mutual fund shares Debt securities Other Total financial assets Total

$ Billion % Total         $ 28,816  23.5%  5,411  4.4   628  0.5  $ 34,855  28.4%            $ 12,442  10.1%   1,647  1.3    26,069  21.3    18,106  14.8    13,044  10.6    8,764  7.1    6,210  5.1    1,521  1.2   $ 87,802  71.6  $ 122,657  100.0% 

Liabilities and Net Worth Liabilities Mortgages Consumer credit Bank and other loans Other Total liabilities

Net worth

$ Billion  $    $           $

 10,437 3,865 1,207 219 15,727          106,929 122,657

$ Total       8.5%   3.2    1.0    0.2    12.8%                                       87.2   100.0%

Balance sheet of U.S. households Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 1 Basic

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12.

Assignment Print View 



Award:

In 2018, which of the following financial assets make up the second highest proportion of the financial assets held by U.S. households?



Corporate equity



Life insurance reserves



Mutual fund shares



Debt securities



Personal trusts

Assets Real assets Real estate Consumer durables Other Total real assets  Financial assets Deposits and money market shares Life insurance reserves Pension reserves Corporate equity Equity in noncorporate business Mutual fund shares Debt securities Other Total financial assets Total

$ Billion % Total         $ 28,816  23.5%  5,411  4.4   628  0.5  $ 34,855  28.4%            $ 12,442  10.1%   1,647  1.3    26,069  21.3    18,106  14.8    13,044  10.6    8,764  7.1    6,210  5.1    1,521  1.2   $ 87,802  71.6  $ 122,657  100.0% 

Liabilities and Net Worth Liabilities Mortgages Consumer credit Bank and other loans Other Total liabilities

Net worth

$ Billion  $    $           $

 10,437 3,865 1,207 219 15,727          106,929 122,657

$ Total       8.5%   3.2    1.0    0.2    12.8%                                       87.2   100.0%

Balance sheet of U.S. households Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 2 Intermediate

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13.

Assignment Print View 



Award:

In 2018, _______ of the assets of U.S. households were financial assets as opposed to tangible assets.



23.5%



87.2%



28.4%



58.4%



71.6%

Assets Real assets Real estate Consumer durables Other Total real assets  Financial assets Deposits and money market shares Life insurance reserves Pension reserves Corporate equity Equity in noncorporate business Mutual fund shares Debt securities Other Total financial assets Total

$ Billion % Total         $ 28,816  23.5%  5,411  4.4   628  0.5  $ 34,855  28.4%            $ 12,442  10.1%   1,647  1.3    26,069  21.3    18,106  14.8    13,044  10.6    8,764  7.1    6,210  5.1    1,521  1.2   $ 87,802  71.6  $ 122,657  100.0% 

Liabilities and Net Worth Liabilities Mortgages Consumer credit Bank and other loans Other Total liabilities

Net worth

$ Billion  $    $           $

 10,437 3,865 1,207 219 15,727          106,929 122,657

$ Total       8.5%   3.2    1.0    0.2    12.8%                                       87.2   100.0%

Balance sheet of U.S. households Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 2 Intermediate

14.





Award:

The largest component of domestic net worth in 2018 was

 

nonresidential real estate. residential real estate.



inventories.



consumer durables.



equipment and software.

Assets Commercial real estate Residential real estate Equipment and intellectual property Inventories Consumer durables Total

$ Billion $22,642 32,539  9,350  2,741  5,411 $ 72,683

     

Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 2 Intermediate

https://ezto.mheducation.com/hm finance.tpx

9/31

5/30/2020

15.

Assignment Print View 



Award:

The smallest component of domestic net worth in 2018 was



nonresidential real estate.



residential real estate.



inventories.



consumer durables.



equipment and software.

Assets Commercial real estate Residential real estate Equipment and intellectual property Inventories Consumer durables Total

$ Billion $22,642 32,539  9,350  2,741  5,411 $ 72,683

     

Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 2 Intermediate

16.





Award:

The domestic net worth of the U.S. in 2018 was



$9.350 trillion.



$22.642 trillion.



$32.539 trillion.



$72.683 trillion.



$80.983 trillion.

Assets Commercial real estate Residential real estate Equipment and intellectual property Inventories Consumer durables Total

$ Billion $22,642 32,539  9,350  2,741  5,411 $ 72,683

     

Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Difficulty: 2 Intermediate

https://ezto.mheducation.com/hm finance.tpx

10/31

5/30/2020

17.

Assignment Print View 



Award:

A fixed-income security pays

 

a fixed level of income for the life of the owner. a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security.



a variable level of income for owners on a fixed income.



a fixed or variable income stream at the option of the owner.

A fixed-income security pays a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security.

Difficulty: 1 Basic

18.





Award:

A debt security pays



a fixed level of income for the life of the owner.



a variable level of income for owners on a fixed income.



a fixed or variable income stream at the option of the owner.



a fixed stream of income or a stream of income that is determined according to a specified formula for the life o...