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6. The Hang Seng is a reliable indicator of the economy of what country? a. Indonesia c. China b. Japan d. Taiwan

True or False 7. _____ Generally, consumer and investor pessimism and a sell off of shares accompanies a bull market. 8. _____ One sector of the stock market can be experiencing a bull market, while another is experiencing a bear market. 9. _____ Stocks move up and down independent of one another. 10. State three adjectives that describe a blue chip stock: ________________________________________________________________________________ ________________________________________________________________________________ 11. The Nasdaq Composite index is made up of ________ the stocks traded on the Nasdaq Exchange. a. 100 c. 3000 b. 200 d. all (over 5000) 12. Lester the Investor wants to compare how U.S. blue chip stocks are performing against the stocks of the top Japanese companies. Direct him to the right indexes. a. DJIA and NI225 c. DOW and IXIC b. DJIA and BOLSA d. SENSEX and HSI 13. Lester the Investor wants to compare the performance of the Mexican Stock Market against the performance of ther Sao Paulo Stock Exchange. Direct him to the right indexes. a. SENSEX and DJIA c. GSPC and NI225 b. IBOV and IXIC d. MEXBOL and IBOV Use the following chart to answer questions 13-15 14. What number is representative of the sum of the stock prices in this index: ______________ 15. What tells you whether, on average, the share prices are up or down from the last calculation? ______________ 16. What number indicates the percentage of change over time (ie. since the last calculation)? _____________ S&P 500 Jan 13 10:46 PM ET 1935.33  . 154 F T T Issued by large cap company, profitable , top quality, strong earnings history, mature , not a small cap; not a mid cap. 1935.33 the arrow .154 PRODUCT PREVIEW

309 THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY

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