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ABA CTFA Practice Test - Questions Answers, Page 69

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Which of the following depicts a bullish trend in stock market?

A.
Stock price drop below support level
A.
Stock price drop below support level
Answers
B.
Stock price rises above support level
B.
Stock price rises above support level
Answers
C.
Stock price drop below resistant level
C.
Stock price drop below resistant level
Answers
D.
None of given options
D.
None of given options
Answers
Suggested answer: D

An account that permits an investor to borrow part of the cost of investment firm a brokerage firm.

A.
Dealer account
A.
Dealer account
Answers
B.
Option account
B.
Option account
Answers
C.
Margin account
C.
Margin account
Answers
D.
Cash account
D.
Cash account
Answers
Suggested answer: C

Which order will be executed automatically at the current bid or ask price?

A.
Limit order
A.
Limit order
Answers
B.
Market order
B.
Market order
Answers
C.
Stop order
C.
Stop order
Answers
D.
Good till cancelled
D.
Good till cancelled
Answers
Suggested answer: B

In which of the following charts days do not matter?

A.
Line and pie charts
A.
Line and pie charts
Answers
B.
Bar and pie charts
B.
Bar and pie charts
Answers
C.
Bar and line charts
C.
Bar and line charts
Answers
D.
Point and figure charts
D.
Point and figure charts
Answers
Suggested answer: D

Long term directs in Dow Theory is depicted through:

A.
Holes
A.
Holes
Answers
B.
Strings
B.
Strings
Answers
C.
Waves
C.
Waves
Answers
D.
Tides
D.
Tides
Answers
Suggested answer: D

Which of the following is the ratio of a company's total market value (price times number of shares) divided by sales?

A.
Price to sales ratio
A.
Price to sales ratio
Answers
B.
Price to book value ratio
B.
Price to book value ratio
Answers
C.
Debt coverage ratio
C.
Debt coverage ratio
Answers
D.
Leverage ratio
D.
Leverage ratio
Answers
Suggested answer: A

Which of the following charts give the economic information on weekly or yearly basis?

A.
Line charts
A.
Line charts
Answers
B.
Bar charts
B.
Bar charts
Answers
C.
Pie charts
C.
Pie charts
Answers
D.
Symbol charts
D.
Symbol charts
Answers
Suggested answer: B

Companies that have capitalization amounts of more than $2 billion are known as ___________.

A.
Small cap companies
A.
Small cap companies
Answers
B.
Mid cap companies
B.
Mid cap companies
Answers
C.
Growth companies
C.
Growth companies
Answers
D.
Large cap companies
D.
Large cap companies
Answers
Suggested answer: B

Which one of the following is correct formula for calculating operating margin?

A.
Net Profit/Net Sales
A.
Net Profit/Net Sales
Answers
B.
Net income/Net Sales
B.
Net income/Net Sales
Answers
C.
Operating income/Net Sales
C.
Operating income/Net Sales
Answers
D.
Operating income/credit sales
D.
Operating income/credit sales
Answers
Suggested answer: C

Which of the following take place at the expansion stage of the industry life cycle?

A.
Firm operations get more stable and dependable
A.
Firm operations get more stable and dependable
Answers
B.
No rapid growth in demand
B.
No rapid growth in demand
Answers
C.
Costs get stable rather than decreasing or increasing
C.
Costs get stable rather than decreasing or increasing
Answers
D.
Sales growth decline as new products are developed
D.
Sales growth decline as new products are developed
Answers
Suggested answer: A
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