1)
Prepaid interest may be a part of a mortgage agreement.
2)
In the U.S., administrative costs consume nearly 11 percent of health care dollars,
compared to 1 percent under Canada’s socialized system.
3)
A home equity loan is based on the difference between the current market value of your
home and the amount you still owe on your mortgage.
4)
Discretionary income is money left over after paying for housing, food, and other
necessities.
5)
A person’s birth date, sex, height, and weight should only be included on a resume if
that information relates specifically to qualifications for an employment position.
6)
The P-E ratio is the price of a share of stock divided by the corporation’s earnings per
share.
7)
Treasury bills are issued in minimum units of $10,000 with maturities that range from
10 to 30 years.
8)
It is legal for an interviewer to ask you about your marital status.
9)
An elevator speech is a short, persuasive, focused summary of your unique experiences
and skills used when networking.
10)
Treasury bonds are issued in $5,000 units with 10-year maturities.
11)
Gross Domestic Product (GDP) measures the total value of goods and services
produced within a country’s borders, excluding items produced with foreign resources.
12)
Since 1990, bond yields for high-quality corporate bonds have increased significantly.
13)
Most speculative risks are considered to be uninsurable.
14)
Which of the following is considered a tax-sheltered annuity plan (TSA)?
A.401k plan
B.Section 403b plan
C.Section 457 plan
D.Both Section 403b and Section 457 plans
E.401k, Section 403b, and Section 457 plans
15)
The legal responsibility for the financial cost of another person’s losses or injuries is
referred to as:
A.theft.
B.robbery.
C.liability.
D.assigned risk.
E.collusion.
16)
A stock that follows the business cycle of advances and declines in the economy is
called a(n) ____________ stock.
A.defensive
B.cyclical
C.growth
D.income
E.blue-chip
17)
Your right to at least a portion of the benefits you have accrued under an employer
pension plan is called:
A.vesting.
B.inflation-adjusted survivorship.
C.lump-sum withdrawal option.
D.guaranteed formula-based benefit.
E.none of these.
18)
Renting is more advantageous than buying a home when you are seeking:
A.lower short-term living costs.
B.a place to remodel.
C.a long-term investment.
D.tax benefits.
E.permanence of residence.
19)
Using a home security system is an example of ____________ risk.
A.shifting
B.accepting
C.reducing
D.sharing
E.transferring
20)
For 2013, bond yields for high-quality corporate bonds have been approximately how
much?
A.2%
B.4%
C.6%
D.8%
E.10%
21)
An estimated _____ people in the U.S. are “unbanked”, using a variety of alternative
services rather than having a bank account.
A.1 million
B.6 million
C.12 million
D.17 million
E.25 million
22)
Which type of life insurance policy provides coverage from the beginning of the
contract to maturity and guarantees payment of a specified sum to the insured, even if
he or she is still living at the end of the contract period?
A.Credit life insurance
B.Endowment life insurance
C.Industrial life insurance
D.Group life insurance
E.Universal life insurance
23)
More people have ______ insurance than any other kind of health insurance.
A.hospital expense
B.surgical expense
C.physician expense
D.major medical expense
E.dental expense
24)
An example of a liquid asset is:
A.furniture.
B.jewelry.
C.automobile.
D.cash value of life insurance.
25)
Your home insurance policy has a $500 deductible. If a windstorm causes $2,000
damage to your home, what amount of the claim would the insurance company pay?
A.$2,000
B.$1,000
C.$1,500
D.$500
E.$0
26)
A cost associated with home buying would be:
A.renter’s insurance.
B.the security deposit.
C.annual appreciation of the property.
D.property taxes.
E.interest lost on the security deposit.
27)
The maximum dollar amount that can be borrowed using the cash advance provision on
a credit card is called the:
A.credit ceiling.
B.finance charge.
C.interest rate.
D.line of credit.
E.rate of return.
28)
A chronological resume sequences personal data based on:
A.experience.
B.education.
C.areas or ability.
D.career goal.
E.time.
29)
When buying an automobile, the best warranties are usually offered by a(n):
A.auction company.
B.private party.
C.used car dealer.
D.fleet sales company.
E.new car dealer.
30)
According to the 2012 Trustees Report, in what year is it projected that the funds
available for paying Social Security benefits will be exhausted at current benefit and tax
rates?
A.2021
B.2033
C.2047
D.2056
E.2062
31)
Which form of homeowner’s policy provides coverage for the most risks?
A.Special
B.Basic
C.Broad
D.Tenants
E.Modified coverage
32)
The reduction of a loan balance through payments made over a period of time is called:
A.a buy-down.
B.shared-appreciation.
C.prepaid interest.
D.amortization.
E.a rate cap.
33) Explain what a will is and what occurs at your death if you do not have one.
34)
Most REITs specialize in one property type only.
TRUE
35)
Darlene Elkin has the following financial amounts: checking accounts $850, savings
account $3,500, credit card balance $300, jewelry $1,600, real estate valued at $78,000,
a mortgage on the real estate of $23,000. What is the total of Darlene’s assets? What
actions could she take to increase her net worth?
36)
What does the term subrogation mean as it relates to motor vehicle property damage
coverage?
37)
A friend comes to you for advice about improving their credit score. What advice would
you give them? Make sure to include the five steps for improving your credit score.
38)
Explain simple interest.