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Unformatted text preview: 4. Which of the following statements regarding the Dow Jones Industrial Average
(DJIA) is false?
A. The DJIA is not very representative of the market as a whole.
B. The DJIA consists of 30 blue chip stocks.
C. The DJIA is affected equally by changes in low and high priced stocks.
D. The DJIA divisor needs to be adjusted for stock splits.
E. The value of the DJIA is much higher than individual stock prices.
15. The largest component of the money market is ____________.
A. repurchase agreements
B. money market mutual funds
E. savings deposits
16. What does the term "negotiable" mean with regard to negotiable certificates of
A. The CD can be sold to another investor if the owner needs to cash it in before its
B. The rate of interest on the CD is subject to negotiation.
C. The CD is automatically reinvested at its maturity date.
D. The CD has staggered maturity dates built in.
E. The interest rate paid on the CD will vary with a designated mark...
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This note was uploaded on 04/11/2013 for the course ECON 1710 taught by Professor Qiu during the Fall '10 term at Brown.
- Fall '10