Chapter 01
The Investment Environment

Multiple Choice Questions 1. In 2007, ____________ was the most significant real asset of U.S. households in terms of total value.
A. consumer durables
B. automobiles
C. real estate
D. mutual fund shares
E. bank loans
See Table 1.1.

Difficulty: Easy 2. In 2007, ____________ was the least significant financial asset of U.S. households in terms of total value.
A. real estate
B. mutual fund shares
C. debt securities
D. life insurance reserves
E. pension reserves
See Table 1.1.

Difficulty: Easy

3. In 2007, ____________ was the most significant asset of U.S. households in terms of total value.
A. real estate
B. mutual fund shares
C. debt securities
D. life insurance reserves
E. pension reserves
See Table 1.1.

Difficulty: Easy 4. In 2007, ____________ was the most significant liability of U.S. households in terms of total value.
A. credit cards
B. mortgages
C. bank loans
D. student loans
E. other debt
See Table 1.1.

Difficulty: Easy 5. The largest component of domestic net worth in 2007 was ____________.
A. non-residential real estate
B. residential real estate
C. inventories
D. consumer durables
E. equipment and software
See Table 1.2.

Difficulty: Moderate

6. In 2007, ____________ was the most significant real asset of U.S. nonfinancial businesses in terms of total value.
A. equipment and software
B. inventory
C. real estate
D. trade credit
E. marketable securities
See Table 1.4.

Difficulty: Easy 7. In 2007, ____________ was the least significant real asset of U.S. nonfinancial businesses in terms of total value.
A. equipment and software
B. inventory
C. real estate
D. trade credit
E. marketable securities
See Table 1.4.

Difficulty: Easy 8. In 2007, ____________ was the least significant liability of