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.
3)
A payment cap keeps the payments on an adjustable-rate mortgage at a given level or
limits the amount to which those payments can rise.
4)
Current interest rates can affect the price of a home.
5)
References are generally omitted from a resume.
6)
For many years, the United States has ranked highest among industrial nations in
savings rate.
7)
Credit unions will provide loans to non-members in some situations.
8)
The stages that an individual goes through based on age, financial needs, and family
situation is called the:
A.financial planning process.
B.budgeting procedure.
C.personal economic cycle.
D.adult life cycle.
9)
The average U.S. household has ______ credit cards.
A.3
B.5
C.7
D.9
E.12
10)
Which one of the following is issued by state and local governments?
A.Treasury bond
B.Treasury bill
C.Municipal bond
D.Corporate bond
E.Common stock
11)
The Affordable Health Act of 2010 requires new health plans to allow young people to
remain on their parents’ insurance policy until what age?
A.23
B.24
C.25
D.26
E.27
12)
What percent of mutual funds within each category receive a 5-star rating from
Morningstar?
A.5
B.10
C.15
D.20
E.25
13)
After a 2-for-1 stock split:
A.earnings per share decrease.
B.earnings per share increase.
C.capitalization decreases.
D.capitalization increases.
E.dividend yields decrease.
14)
A long-term investment technique that allows investors the option to reinvest cash
dividends to purchase stock of the corporation is called:
A.a direct investment plan.
B.a dividend reinvestment plan.
C.dollar cost averaging.
D.buy-and-hold.
E.day trading.
15) Your executor can be which of the following:
A.a family member.
B.a friend.
C.an attorney.
D.an accountant.
E.Your executor can be any of these.
16)
A vehicle sold “as is” has:
A.a limited warranty.
B.no express warranty.
C.a 30-day guarantee.
D.a full warranty on parts but not labor.
E.a 90-day guarantee.
17)
According to a recent survey, what percent of U.S. households carry one or more credit
cards?
A.40
B.60
C.75
D.80
E.90
18)
Possible sources of income for many retirees include:
A.Social Security.
B.other public pension plans.
C.employer pension plans.
D.personal retirement plans and annuities.
E.All of these are possible sources of income for retirees.
19) If your beneficiary is too young or unable to handle money wisely, which kind of
trust allows the beneficiary to receive small amounts of money at specified intervals?
A.A spendthrift trust
B.A charitable lead trust
C.A charitable reminder trust
D.A self-declaration trust
E.A generation-skipping trust
20)
Stuart Michelson has invested in several pieces of real estate. Which one of the
properties that Stuart owns would be considered commercial real estate?
A.4 bedroom home that he does not rent out
B.20 acre tract of farm land that is sitting idle
C.Fourplex that he rents to college students
D.100 acres of land in the mountains that he hopes to subdivide and sell as residential
lots
E.All of these can be considered commercial real estate.
21)
Which of the following federal consumer credit laws sets the procedures for promptly
correcting billing errors?
A.Fair Credit Reporting Act
B.Truth in Lending Act
C.Equal Credit Opportunity Act
D.Fair Credit Billing Act
E.Consumer Credit Reporting Reform Act
22)
Differentiate between a cooperative and a condominium. Be sure to include a
discussion of the ownership and responsibility for the common areas.
23)
Why do corporations issue stock? Why do investors buy that stock?
24)
What are the main sources of consumer information?
25) A unique feature of a self-declaration trust is that the creator of the trust is also the
trustee.
TRUE
26)
If you are planning on starting a business, what 3 main issues must you consider?
27)
Bonds are generally considered a relatively safe investment. How is it possible to lose
money on bonds?
28)
What are the two types of life insurance companies? Explain the basic features of each
type.
29)
Explain the Rule of 78s.