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. James also paid $55
commission. What was the total purchase price for this transaction?
A.$55.00
B.$127.00
C.$7,237.50
D.$7,255.00
E.$7,347.50
3)
Nick Rodr owns a home in Edmond, Oklahoma and pays $665 per year in insurance on
the home. The $665 is an example of a:
A.peril.
B.hazard.
C.risk.
D.premium.
E.liability.
4)
A stock that remains stable during declines in the economy is called a(n) ____________
stock.
A.defensive
B.cyclical
C.growth
D.income
E.blue-chip
5)
Initial public offerings (IPO’s) are a ___________ investment.
A.guaranteed
B.speculative
C.safe
D.conservative
E.blue chip
6)
Private Mortgage Insurance (PMI) is usually required if the down payment is less than
_____ percent of the purchase price of the home.
A.5
B.8
C.12
D.15
E.20
7)
A higher rate of return would result from a savings account that had which of the
following compounding frequencies?
A.Daily
B.Weekly
C.Biweekly
D.Monthly
E.Yearly
8)
A stock that pays higher than average dividends is called a(n) ____________ stock.
A.defensive
B.cyclical
C.growth
D.income
E.blue-chip
9)
The Homeowners Protection Act requires that a PMI policy be terminated automatically
when a homeowner’s equity reaches _____ percent of the property value at the time the
mortgage was executed.
A.5
B.9
C.12
D.18
E.22
10)
Which statement is not true about no-fault insurance systems?
A.They are intended to reduce the time and cost associated with the settlement of
automobile injury cases.
B.The systems vary from state to state.
C.Some states include property damage in the coverage.
D.Some states set limits on medical expenses, lost wages, and other claim settlements.
E.In recent years, all 50 states had some variation of the system.
11)
Many financial planners typically charge hourly consulting fees in the following range:
A.$10 – $30
B.$50 – $70
C.$75 – $200
D.$125 – $250
E.$150 – $300
12)
Up to how many days of skilled nursing care are covered by Medicare?
A.30
B.60
C.85
D.100
E.120
13)
Contingent deferred sales loads generally:
A.apply until the shares you own are in the fund for 10 years or more.
B.apply regardless of how long your shares have been invested.
C.increase as the length of time you have been in the fund increases.
D.decline gradually until there is no withdrawal fee.
14)
In the beginning of 2013, the average credit card debt for U.S. families was about how
much?
A.$5,400
B.$7,500
C.$10,200
D.$15,400
E.$18,100
15)
What type of warranty indicates that the seller has the right to sell a product?
A.Express warranty
B.Implied warranty
C.Warranty of title
D.Warranty of merchantability
E.Limited warranty
16)
If a rollover from a retirement fund or other IRA is not made directly to a similar
employer-provided retirement plan or an IRA, there will be a mandatory federal income
tax withholding equal to what percent of the taxable distribution?
A.5
B.10
C.15
D.20
E.25