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 10 percent a year while U.S.
government bonds have returned about what percent?
A.1
B.3
C.5
D.7
E.9
3)
The amount of income that a person or household has to spend after deductions for
taxes and other items is called:
A.take-home pay.
B.discretionary income.
C.surplus.
D.budget variance.
4)
The legal conditions for a corporate bond are described in the:
A.trustee contract.
B.bondholder’s covenant.
C.corporate charter.
D.bond indenture.
5)
What is the number one reason why consumers default on their debts?
A.Medical expenses
B.Defective goods and services
C.Excessive use of credit
D.Fraudulent use of credit
E.Consumer fraud
6)
Gary Smith is purchasing one living unit in a building. What type of housing is Gary
most likely going to live in?
A.Condominium
B.Duplex
C.Cooperative
D.Prefabricated home
E.Mobile home
7)
Which of the following is a requirement of a REIT?
A.Distribute at least 90 percent of the taxable annual earnings to shareholders
B.Hire independent real estate professionals to carry out certain management activities
C.Have at least 100 shareholders and no more than one half of the shares being owned
by 5 or fewer people
D.Invest at least 75 percent of the total assets in real estate
E.All of these are requirements of a REIT.
8)
A medical-spending account (MSA) allows people to pay health care costs with pretax
dollars.
9)
A 32-ounce package selling for $1.60 would have a unit price of:
A.$1.60.
B.$2.00 a pound.
C.5 an ounce.
D.80 a quart.
E.12 an ounce.
10)
Before a 2-for-1 stock split, Lisa’s stock was valued at $50 per share. What is her per
share value after the split?
A.$25
B.$50
C.$100
D.$125
E.$150
11)
Ted pays $4,500 in real estate property taxes and is in the 28 percent tax bracket. What
is the value of this federal tax deduction?
A.$4,500.
B.$3,240.
C.$2,500.
D.$1,260.
E.$500.
12)
Which of the following sources can be used by an investor to obtain a corporation’s
annual report?
A.Internet
B.Corporation’s website
C.800 telephone number
D.Written request
E.All of these sources can be used by an investor to obtain an annual report.
13)
Which document is used to transfer ownership of property from one party to another?
A.Title
B.Escrow account
C.Settlement statement
D.Appraisal
E.Deed
14)
Money received in the form of dividends or interest is commonly called:
A.earned income.
B.investment income.
C.passive income.
D.tax-deferred income.
E.tax-exempt income.
15)
Financial intermediaries include the following:
A.bank.
B.credit unions.
C.insurance companies.
D.investment companies.
E.All of these.
16)
Which of the following is an example of a conventional mortgage?
A.An FHA mortgage
B.A buy-down
C.A fixed-rate mortgage
D.A shared-appreciation mortgage
E.A home equity loan
17)
The easy method of determining life insurance is based on the rule of thumb that a
“typical family” will need about what percent of a wage-earner’s salary for seven years?
A.20
B.40
C.50
D.70
E.80
18)
Money that is usually deposited with the lending institution for the payment of property
taxes and homeowner’s insurance is called:
A.points.
B.an escrow account.
C.a rate cap.
D.closing costs.
E.a buy-down.
19)
What is covered by Medicare Parts A and B?
A.Intermediate and custodial nursing care
B.Out-of-hospital prescription drugs
C.Private-duty nursing
D.Routine checkups
E.Hospice care