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 purchase bonds for all of these reasons.
2)
Investors purchase corporate bonds for:
A.interest income.
B.possible increase in value.
C.repayment at maturity.
D.All of these features are reasons to purchase a corporate bond.
E.None of these features are reasons to purchase a corporate bond.
3)
Legislation that requires that loan applicants be given certain information, including an
estimate of closing costs, before the closing is known as:
A.the Real Estate Settlement Procedures Act.
B.the Cooperative Lending Act.
C.the Truth in Lending Act.
D.the Title Insurance Act.
E.the Real Estate Investment Act.
4)
What can you do to responsibly reduce your health care costs?
A.Get some exercise.
B.Gain a little extra weight.
C.Smoke and drink.
D.Live dangerously.
E.Don’t seek medical care.
5)
____________ is the settlement of a difference by a third party whose decision is
legally binding.
A.Negotiation
B.Mediation
C.Arbitration
D.Servicing
E.Cooperative action
6)
Medical insurance is which part of Medicare?
A.Part A
B.Part B
C.Part C
D.Part D
E.Part E
7)
About what percent of Americans have no emergency fund?
A.5
B.10
C.25
D.40
E.50
8)
Wearing a seat belt in an automobile to protect yourself against injury is an example of
____________ risk.
A.reducing
B.assuming
C.pooling
D.shifting
E.avoiding
9)
Which of the following is not a characteristic used to grade certified diamonds?
A.Weight
B.Country of origin
C.Clarity
D.Quality of cut
E.Color
10)
In recent years, approximately what percent of new jobs in the U.S. economy occurred
in companies with fewer than 100 employees?
A.10
B.25
C.50
D.80
E.90
11)
Two types of education savings plans are the Coverdell Education Savings Account and
the:
A.401k.
B.529 plan.
C.Keogh plan.
D.traditional IRA.
E.Roth IRA.
12)
Which one of the following is an advantage of buying?
A.Mobility
B.Tax benefits
C.Fewer responsibilities
D.Minimal financial commitment
E.Declining equity
13)
What is prepaid interest charged by a mortgage company called?
A.Escrow
B.Points
C.Origination fee
D.Title fee
E.Deed
14)
The items produced for a single retail chain are commonly sold under a ____________
brand.
A.store
B.government
C.regional
D.chain
E.national
15)
Which of the following information is required on food labels?
A.Open dating
B.Unit pricing
C.Generic name
D.Common product name
E.Brand name
16)
A few months ago, you sent a certified letter to a debt collector and requested
verification of a debt the collector says you owe. You know the letter was received by
the collector but you have received no response to your request. Today, you received a
letter threatening court action. What should you do?
A.Pay the debt and protect your credit rating
B.Insist that communications about the debt cease
C.Renegotiate payment terms with the creditor
D.Sue the collection agency
E.Pay half the outstanding balance