Sample questions
Sample questions with answers.
From the practice pool, with the answers shown. The exam asks its own set of 40.
Commercial papers
1. Commercial paper is short-term unsecured debt issued by corporations to cover near-term funding needs, not a government instrument.
- True Correct answer
- False
Why: Commercial paper is a short-term corporate IOU, distinct from government-issued instruments like Treasury bills.
Basics in Markets
2. A friend calls stocks, bonds, and options all just "investments." What's the more precise umbrella term this course uses for that category?
- Asset category
- Brokerage account
- Investment portfolio
- Financial instrument Correct answer
Why: The course's umbrella term for stocks, bonds, options and the like is "financial instrument" — an investment portfolio, a brokerage account, and an asset category are different concepts.
Equity Funds & Vehicles
3. Equal weighting prevents a single company from dominating an index solely because its market cap surged.
- True Correct answer
- False
Basics in Markets
4. What best explains how prices are set in private markets?
- By continuous trading on an exchange
- By government-fixed rates
- By averaging recent public stock quotes
- By negotiated valuation and terms between parties Correct answer
Real Estate Instruments
5. When tenants leave or stop paying rent, property cash-flow falls and the loan can become stressed.
- True Correct answer
- False
Physical & Financial Commodities
6. Which factor is listed as influencing both cattle and hog prices?
- Exchange-rate policy
- Feed costs Correct answer
- Ocean freight rates
- Housing starts
Stocks
7. A Class C share is sometimes added for economic ownership with no ____.
- liquidity
- price
- influence Correct answer
- dividends
Bonds
8. Countries with weak economies, unstable politics, or high inflation may struggle to _____.
- eliminate taxes
- avoid growth
- expand exports
- repay Correct answer