Archives

1) Which of the following reasons explain why investors purchase bonds? A.To provide asset allocation B.To produce income for current financial needs C.To match maturity dates with future financial needs D.To have a conservative investment during an economic downturn E.Investors […]

1) People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits? A.20 B.40 C.60 D.80 E.100 2) Which of the following would not be considered personal property under a typical homeowner’s insurance […]

1) Most speculators use a buy and hold technique. 2) The most frequent users of payday loans are workers who have become trapped by debts or poor financial decisions. Answer: TRUE 3) A renter is required to pay a security […]

1) Tax evasion is the use of illegal actions to reduce one’s taxes. 2) In order to calculate savings ratio, the amount saved each month is divided by net income. Answer: FALSE 3) A payment cap keeps the payments on […]

1) The primary reason people buy a vacation home is: A.to use as a family vacation retreat. B.for tax reasons. C.for rental income. D.for their grown children to live in. E.to eventually use it as their primary residence. 2) Which […]

1) Federal laws limit the amount of fraudulent charges that a consumer is liable for in the case of a lost or stolen card to: A.$50 B.$100 C.$150 D.$250 E.$500 2) Over the past 50 years, stocks have returned approximately […]

1) Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance? A.Completing a driver’s training program B.Earning straight A’s in college C.Installing an alarm system in her car D.Participating in a carpool five days […]

1) This type of financial institution is known to frequently offer the lowest loan rates: A.Commercial bank B.Savings and loans association C.Mutual savings bank D.Credit union E.Investment companies 2) James Brewer purchased 100 shares of stock for $72 a share. […]

1) What kind of audit requires that a taxpayer visit an IRS office to clarify some aspect of his or her tax return? A.Office audit B.Correspondence audit C.Field audit D.Taxpayer compliance measurement program audit E.Random audit 2) In how many […]

1) The process of establishing a monetary fund to cover the cost of a loss is called: A.risk avoidance. B.self-insurance. C.risk shifting. D.risk reduction. E.endorsement. 2) Up to what percent of your Social Security benefits may be subject to federal […]

1) For government bonds, the price that a dealer is willing to pay for a government security is called the: A.dirty price. B.asked price. C.bid price. D.clean price. 2) A simple will, which leaves everything to the spouse, is also […]

1) Debit cards are also often called: A.bank cards. B.ATM cards. C.cash cards. D.check cards. E.All of these 2) As of 2013, what is the maximum yearly amount that an individual can give as a gift without incurring gift tax […]

1) Which of the following can cause a bond investor to lose money? A.Selling a bond prior to maturity and at a time when the market interest rate exceeds the bond’s interest rate B.Converting a bond into shares of common […]

1) Prepaid interest may be a part of a mortgage agreement. 2) In the U.S., administrative costs consume nearly 11 percent of health care dollars, compared to 1 percent under Canada’s socialized system. Answer: TRUE 3) A home equity loan […]

1) Ease of mobility is an advantage of renting. 2) Trade balance is defined as the difference between a country’s exports and its imports. Answer: TRUE 3) Real estate advisors suggest a price-to-rent ratio of 25 or lower when you […]

1) An escrow account is designed to reduce the cost of a mortgage. 2) A list of grades received in school is commonly included on a resume. Answer: FALSE 3) Financial planning has specific techniques that will be effective for […]

1) Last year, High-Tech Electronics earned $1.50 per share. If the current market value for a share of stock is $45, what is the firm’s P-E ratio? A.0.03 B.3.30 C.30.00 D.33.00 E.45.00 2) A scam that involves malicious software or […]

1) Which one of the following is an advantage of renting? A.Unrestricted lifestyle B.Tax benefits C.Fewer responsibilities D.An ability to build equity E.Increased equity 2) Personal risks are the uncertainties surrounding the loss of income or life due to all […]

1) Which statement is not true about an ethical will? A.It is used to pass on your values and beliefs to your heirs. B.It is a legally binding document. C.It dispenses emotional and spiritual wealth. D.It requires earnest self-examination. E.It […]

1) The expected value of a vehicle at the end of a lease is called the: A.residual value. B.unit price. C.sticker price. D.capitalized cost. E.money factor. 2) A ______ is a financially independent firm that acts as the bondholder’s representative. […]

1) Which type of government agencies publish materials to assist consumers with buying decisions and financial planning? A.Federal B.Local C.State D.All of these E.None of these 2) A REIT is a firm that pools investor funds and invests them in […]

1) A ____________ resume presents a person’s education, work experience, and other information in a reverse time-sequence. A.goal-oriented B.functional C.chronological D.targeted E.data base 2) A cost associated with renting would be: A.property insurance. B.maintenance costs. C.title insurance. D.security deposit. E.points. […]

1) Ashley Riley wants to buy the stock of XYZ Company at a specified price. What type of order should she place? A.Market order B.Limit order C.Stop order D.Discretionary order E.Common order 2) The first step of the career planning […]

1) If an investor uses a reinvestment plan to invest income dividends and capital-gain distributions: A.then both the income dividends and capital-gain distributions are tax-exempt. B.only the income dividends are tax-exempt. C.only the capital-gain distributions are tax-exempt. D.both the income […]

1) Which of the following would be an advantage of leasing a vehicle? A.Automatic ownership interest in the car B.Unlimited mileage on the car C.No need to meet credit requirements D.Lease payments are likely to be lower than loan payments […]

1) An advantage of purchasing diamonds for investment purposes is that: A.diamonds are not easily turned into cash. B.diamonds are relatively limited in supply. C.diamonds are largely controlled by DeBeers Consolidated Mines of South Africa. D.the grading of diamonds is […]