QUESTION NO: 1
The total assets of a corporation are $840,000, of which $350,000 are current items. Total liabilities are
$ 460,000, of which $290,00 are fixed obligations. How much is the corporation's working capital?
The total assets of a corporation are $840,000, of which $350,000 are current items. Total liabilities are
$ 460,000, of which $290,00 are fixed obligations. How much is the corporation's working capital?
Correct Answer: D
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QUESTION NO: 2
Which of the following persons would consider annual reports of a corporation as the most important
factor in making investment decisions?
Which of the following persons would consider annual reports of a corporation as the most important
factor in making investment decisions?
Correct Answer: C
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QUESTION NO: 3
The term "mutual fund" is popularly used for which of the following?
The term "mutual fund" is popularly used for which of the following?
Correct Answer: D
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QUESTION NO: 4
Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?
Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?
Correct Answer: B
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QUESTION NO: 5
Bubba sells short 100 XYZ at $60 and makes the required Regulation T deposit of 50%. XYZ then rises I
price to $65. At this point what is the credit balance?
Bubba sells short 100 XYZ at $60 and makes the required Regulation T deposit of 50%. XYZ then rises I
price to $65. At this point what is the credit balance?
Correct Answer: B
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QUESTION NO: 6
Which of the following will not result in termination of a limited partnership?
Which of the following will not result in termination of a limited partnership?
Correct Answer: B
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QUESTION NO: 7
The initial Federal Reserve Bank margin requirement is set at 60% and Bubba purchases 100 shares of
XYZ at $100 per share. He deposits $6,000 of the $10,000 purchase price in his account. If XYZ
increases in value to $150 per share, how much excess equity would Bubba have in his account?
The initial Federal Reserve Bank margin requirement is set at 60% and Bubba purchases 100 shares of
XYZ at $100 per share. He deposits $6,000 of the $10,000 purchase price in his account. If XYZ
increases in value to $150 per share, how much excess equity would Bubba have in his account?
Correct Answer: A
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QUESTION NO: 8
Which of the following best describes phantom income?
Which of the following best describes phantom income?
Correct Answer: A
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QUESTION NO: 9
A leveraged company is best described as one that has a small portion of its capitalization represented
by:
A leveraged company is best described as one that has a small portion of its capitalization represented
by:
Correct Answer: B
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QUESTION NO: 10
Which of the following is true about a customer with a frozen account?
Which of the following is true about a customer with a frozen account?
Correct Answer: C
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QUESTION NO: 11
Bubba's margin account has $2,000 of SMA. If he buys $10,000 of new securities, how much additional
cash must he deposit assuming a Reg T requirement of 50%?
Bubba's margin account has $2,000 of SMA. If he buys $10,000 of new securities, how much additional
cash must he deposit assuming a Reg T requirement of 50%?
Correct Answer: C
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