1)
Ease of mobility is an advantage of renting.
2)
Trade balance is defined as the difference between a country’s exports and its imports.
3)
Real estate advisors suggest a price-to-rent ratio of 25 or lower when you buy to
possibly avoid lower home value after your purchase.
4)
A defensive stock is a stock that typically sells for less than $1.
5)
It has been shown that there is a link between an individual’s education level and their
life expectancy.
6)
If your credit company invites you to skip a monthly payment without a penalty, they
are doing you a favor.
7) According to a recent American Association of Retired Persons (AARP) survey, over
40 percent of Americans age 45 or older have not drawn up a will.
8)
Functional resumes emphasize a person’s skills and abilities in categories such as
communications, research, and human relations.
9)
The minimum commission charged by most brokerage firms for buying or selling stock
is between $5 and $25.
10)
A general obligation bond is a bond that is repaid from the income generated by the
project it is designed to finance.
11)
With a registered coupon bond, only the registered owner can collect the principal at
maturity, but interest payments can be paid to anyone.
12)
An appraisal refers to the price for which a home has been sold.
13)
Which of the following options can a mutual fund investor use to purchase shares in an
open-end fund?
A.Regular accounts
B.Voluntary savings plan
C.Contractual savings plan
D.Reinvestment plan
E.All of these are ways to purchase shares in an open-end fund.
14)
According to Fair Isaac Corporation (FICO), a personal bankruptcy can cause an
immediate drop in your credit score of how many points?
A.100
B.150
C.180
D.210
E.260
15)
Physician expense insurance coverage excludes which of the following:
A.Visits to the doctor’s office
B.X-rays
C.Surgery
D.Lab tests
E.General physician care
16)
A functional resume is best for a person who:
A.has diverse skills.
B.is interested in a specific job.
C.has a continuous school and work record.
D.plans to advance in the same career area.
E.has just completed school.
17) Gary Ruhle has assets worth $2,400,000. Since he plans to travel and does not want
to oversee these assets, he has created a legal arrangement so the assets can be managed
by an officer of his local bank. What type of legal arrangement has he most likely
made?
A.Guardianship
B.Statutory will
C.Trust agreement
D.Living will
E.Letter of instruction
18)
Which one of the following is not included in the 5 C’s of credit?
A.Conditions
B.Cash flow
C.Collateral
D.Capacity
E.Character
19)
The high, inflated stock prices that occur during stock market bubbles are often driven
by investor optimism and:
A.increased corporate earnings.
B.a low unemployment rate.
C.changes in government regulation.
D.irrational exuberance.
20) Which statement is not true about a letter of last instruction?
A.It is also known as after-death wishes.
B.It should contain details about your funeral arrangements.
C.It should contain names of people to be notified of your death.
D.It is legally enforceable in all states.
E.It should contain information about the location of your bank accounts.
21)
Having a relationship with a mentor can provide the following benefit(s):
A.personalized training.
B.access to influential people.
C.emotional support during difficult times.
D.growth in technical and social areas of a career.
E.All of these.
22)
Which of the following is true?
A.More than 87 million individual Americans own mutual funds.
B.Nearly half of all U.S. households own mutual funds.
C.There are more than 12,000 mutual funds available.
D.By the end of 2009, the combined value of assets held by mutual funds exceeded
12.2 trillion dollars.
E.All of these statements are true.
23)
Stock dividends are determined by the:
A.chief financial officer.
B.board of directors.
C.stockholders.
D.corporate employees.
E.U.S. government.
24)
What does it mean when a credit card is cobranded?
25)
Explain the difference between arbitration and mediation.
26)
How do interest rates in the economy affect the price of a corporate bond?
27) E.
28) After graduating from a community college, you obtain a job as a medical records
technician. Your monthly take-home salary is $2,000. Your monthly expenses are
$1,600. Based on this information, what steps should you take to establish a long-term
investment program?
29) Cindy and John Appleby just inherited $30,000 and would like to invest the money
in a conservative mutual fund. Since they have never invested in mutual funds, they ask
for your help. In your own words, describe the sources of information available for
evaluating a mutual fund investment.
The following factors can be used to evaluate a potential investment in mutual funds:
(1) the internet;
(2) professional advisory services;
(3) current newspaper quotations;
(4) the fund’s prospectus;
(5) the fund’s annual report; and
(6) financial publications that include Business Week, Kiplinger’s Personal Finance
Magazine, Forbes, Money, and other finance or consumer oriented magazines.
They should also decide if they want to invest in a managed or index fund.
30)
What factors influence most people’s buying decisions?
31) What is the primary difference between common stock and preferred stock?
32)
What factors influence the type of housing a family will select?
33) C.