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.
3)
A renter is required to pay a security deposit of $800, on which 4 percent interest will
be paid. What amount would the person earn each year?
A.$100
B.$64
C.$32
D.$16
E.$4
4)
A fee that some investment companies charge for advertising and marketing a mutual
fund is called a:
A.14A-1 fee.
B.12b-1 fee.
C.18-2 fee.
D.403(b) fee.
5)
Which type of purchasing strategy involves comparing unit prices?
A.Timing purchases
B.Price comparison
C.Label information
D.Brand comparison
E.Store selection
6)
Allen Arnold has determined that the amount of money he spends on his mortgage
payment, car insurance payment, and cable bill totals $1,200 each month. What type of
expenses has Allen determined with this calculation?
A.Current liabilities
B.Long term liabilities
C.Net worth
D.Variable expenses
E.Fixed expenses
7)
Lynn Roy will retire in the next year and has $675,000 in savings and investments and
owns her own home that is worth $250,000. Which step in the financial planning
process does this situation demonstrate?
A.Determining her current financial situation
B.Developing her financial goals
C.Identifying alternative courses of action
D.Evaluating her alternatives
E.Implementing her financial plan
8)
In 2011, which country was the world’s largest producer of gold?
A.China
B.Australia
C.U.S.
D.Russia
E.Canada
9)
Which of the following can be a management problem when investing directly in real
estate?
A.Maintaining the rental property
B.Inability to sell your interest in a limited partnership
C.Disagreements among syndicate members
D.Limited financial liability
E.All of these are likely management problems when investing directly in real estate.
10)
Which of the following statements is not true about Treasury Inflation-Protected
Securities (TIPS)?
A.They are currently sold with 5-, 10-, and 30-year maturities.
B.The amount of principal increases with inflation and decreases with deflation.
C.They pay interest twice a year, at a fixed rate.
D.They can be held until maturity or sold before maturity.
E.Interest income and growth in principal are exempt from federal income tax.
11)
Most gold brokers require a minimum order of how many bullion coins?
A.5
B.10
C.25
D.50
E.There is no minimum order.
12)
Easing of international tensions or disinflation cause gold prices to:
A.skyrocket.
B.increase moderately.
C.remain stable.
D.decline.
13) a
14) What are the two basic types of credit? Give examples of both.
15)
Anyone who is in physical possession of a bearer bond can collect interest payments
and the face value of the bond at maturity regardless of whether or not they are the
rightful owner.
TRUE
16)
Explain how current interest rates can affect the price of a home.
17)
Explain the difference between a short-term capital gain and a long-term capital gain.
18) Brad Kellogg maintains a monthly balance in his checking account of
approximately $150, writes about 25 checks a month, and makes three deposits each
month. How would Brad decide which one of the following checking accounts he
should use?
19)
Describe the difference between full-service, discount, and on-line brokerage firms.
20)
Explain how a guaranteed insurability option works and why it is beneficial.