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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 4-7.

Multiple Choice Questions

1. Burton G. Malkiel is an American economist, most famous for what classic finance book?
(a) The Millionaire Next Door: The Surprising Secrets of America's Wealthy.
(b) Extreme Money: Masters of the Universe and the Cult of Risk.
(c) The Wall Street MBA: Your Personal Crash Course in Corporate Finance.
(d) A Random Walk Down Wall Street.

2. OPEC has maintained its headquarters where since 1965?
(a) Vienna.
(b) Havana.
(c) Sydney.
(d) Toronto.

3. What does the author refer to as a situation where individuals work in their own best interest, leading to an improved standard of living for society in general?
(a) Capitalism.
(b) Asset allocation.
(c) Money market.
(d) Communism.

4. Michael Jensen refers to company stock options as what in Chapter 2?
(a) "Managerial heroin."
(b) "Cocaine for businessmen."
(c) "A trough of money."
(d) "Wall Streets marijuana."

5. In an insurance policy, what is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses?
(a) Inflation.
(b) Subsidy.
(c) Deductible.
(d) Collateral.

Short Answer Questions

1. According to the author, the Hope Scholarships were a plan wherein students could borrow money for college and pay back their loans after they graduated using what?

2. What is a collective investment scheme that aims to replicate the movements of an index of a specific financial market regardless of market conditions?

3. According to the author, there are two lessons to be learned from a monopoly situation. What is the first?

4. In finance, what is a debt security in which the authorized issuer owes the holders a debt and, depending on the terms, is obliged to pay interest to use and/or to repay the principal at a later date?

5. What represents the original capital paid into or invested in the business by its founders?

(see the answer key)

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