1)
Which of the following can cause a bond investor to lose money?
A.Selling a bond prior to maturity and at a time when the market interest rate exceeds
the bond’s interest rate
B.Converting a bond into shares of common stock that have a lesser combined value
and immediately selling those shares
C.By the issuer going out of business when there are insufficient assets to pay the
bondholders
D.By the issuer defaulting
E.All of these circumstances can cause a bond investor to lose money.
2)
What is the purpose of a cover letter?
A.Obtain career planning information
B.Request a reference for a job
C.Develop resume information
D.Research a career area
E.Express interest in a job
3)
If you are a woman, a creditor must:
A.require a spouse to cosign a loan.
B.ask about your birth control practices or family plans.
C.consider whether you have a telephone listing in your own home.
D.refuse individual credit in your own name.
E.consider income from your employment.
4)
In order to determine net worth, you would create what kind of report?
A.Written budget
B.Balance sheet
C.Cash flow statement
D.SWOT analysis
E.Physical budget
5)
Which home improvement is least likely to increase the value of your home?
A.Energy efficient features
B.A remodeled kitchen
C.An extra bathroom
D.A converted basement
E.An exercise room
6)
The risk premium you receive as a saver is based in part on:
A.your credit rating.
B.the amount of money you are borrowing.
C.the uncertainty associated with getting your money back.
D.the expected rate of inflation.
E.the uncertainty associated with getting your money back and the expected rate of
inflation.
7)
To raise capital, many corporate financial managers prefer selling common stock
because:
A.it doesn’t have to be repaid until 10 to 15 years after it has been issued.
B.interest payments to stockholders are lower than interest paid to a bank.
C.common shareholders have no voting rights.
D.interest paid to stockholders is tax deductible.
8)
The current yield for a bond is determined by dividing the annual income amount by
which of the following:
A.face value.
B.number of periods.
C.dollar amount of annual interest.
D.current market value.
9)
The quality rating given by Standard & Poor’s to highly-speculative bonds is:
A.high-grade.
B.default.
C.investment-grade.
D.medium-grade.
10)
As a national average, a year in a nursing home costs:
A.$32,000
B.$49,000
C.$63,000
D.$88,000
E.$96,000
11)
The beta of the S&P 500 is:
A.0.
12)
Excessive indebtedness can result in:
A.heavy drinking.
B.a neglect of children.
C.marital problems.
D.drug abuse.
E.Almost any bad stress-induced behavior could be a result of excessive indebtedness,
including all of these behaviors.
13)
During the past month, Jennifer Ernet had income of $3,000. During the month, her net
worth declined by $200. If no other financial activities occurred, this means Jennifer’s
payments for the month were:
A.$3,200
B.$3,000
C.$2,800
D.$200
E.$0