You want to buy a $250,000 house and you will use a conventional mortgage. What is
the minimum down payment you have to make to avoid having to purchase mortgage
insurance?
A.$10,000
B.$20,000
C.$30,000
D.$40,000
E.$50,000
A T-bond with a $10,000 par is quoted at a bid of 92:11 and an ask of 92:17. If you
bought the bond and then immediately sold it at the same quotes, how much money
would you gain or lose (ignore commissions)?
A.$12.50
B.-$12.50
C.-$18.75
D.$18.75
E.$0.00
Under the Affordable Care Act, your level of income used to calculate the maximum tax
penalty if you do not have a health care plan is your
a.adjusted gross income.
b.modified adjusted gross income.
c.gross income.
d.taxable income.
About __________________ of federally insured banks are nationally chartered and
about __________________ of federally insured banks are members of the Federal
Reserve.
A.77 percent; 65 percent
B.65 percent; 77 percent
C.34 percent; 22 percent
D.20 percent; 34 percent
E.40 percent; 60 percent
A Treasury security in which periodic coupon interest payments can be separated from
each other and from the principal payment is called a
A.STRIP.
B.T-note.
C.T-bond.
D.G.O. bond.
E.Revenue bond.
Refer to Figure 4-1. If Tony and Liz owe $3,296 in taxes on their taxable income what
is their final tax liability after taking the credits for which they qualify?
a.$0
b.$1,296
c.$2,296
d.$3,296
The major monetary policy-making arm of the Federal Reserve is the The Federal Open
Market Committee is the correct answer.
A.Board of Governors.
B.Council of Federal Reserve Bank presidents.
C.Office of the Comptroller of the Currency.
D.Federal Reserve Bank of New York.
E.none of the options
Homeowner€s insurance can pay for additional expenses such as temporary lodging and
food as well as for repairing or replacing property.
a.True
b.False
In 2012, the U.S. imported goods and services worth about _____________ and
exported about _________ leading to a current account ____________.
A.$3.3 trillion; $3.0 trillion; deficit
B.$3.2 trillion; $3.4 trillion; surplus
C.$3.4 trillion; $3.2 trillion; surplus
D.$3.2 trillion; $3.4 trillion; deficit
E.$3.0 trillion; $3.0 trillion; balance
The lower the interest expense ratio, the provision for loan loss ratio, the noninterest
expense ratio, and the tax ratio the _______________ the _______________.
A.lower; PM
B.higher; PM
C.lower; AU
D.higher; AU
E.lower; EM
A bank with short-term floating-rate assets funded by long-term fixed-rate liabilities
could hedge this risk by
I. buying a T-bond futures contract.
II. buying options on a T-bond futures contract.
III. entering into a swap agreement to pay a fixed rate and receive a variable rate.
IV. entering into a swap agreement to pay a variable rate and receive a fixed rate.
A.I and III only
B.I, II, and IV only
C.II and IV only
D.III only
E.IV only
Which of the following statements about mortgage markets is/are true?
I. Mortgage companies service more mortgages than they originate.
II. Servicing fees typically range from 2 percent to 4 percent.
III. Most mortgage sales are with recourse.
IV. The government is involved in the residential mortgage markets.
A.I, III, and IV only
B.II, III, and IV only
C.I, II, and IV only
D.II and III only
E.I and IV only
____ is not covered under your automobile bodily injury and property damage liability
coverage (Section A).
a.Damage to property of others
b.Bodily injuries to passengers in your vehicle
c.Property damage to your vehicle
d.Bodily injuries of pedestrians hit by your vehicle