The largest final expense for most families would be
a. food and lodging for mourners.
b. travel expenses during a long illness.
c. estate taxes.
d. funeral and burial expenses.
The bank’s profit margin is
A.27.27 percent.
B.23.08 percent.
C.21.31 percent.
D.18.46 percent.
E.none of the options.
Money markets trade securities that
I. mature in one year or less.
II. have little chance of loss of principal.
III. must be guaranteed by the federal government.
A.I only
B.II only
C.I and II only
D.I and III only
E.I, II, and III
The contract a home seller enters into with a real estate broker is called a
a.sales offer.
b.listing agreement.
c.uniform settlement agreement.
d.good-faith estimate.
How does a banker’s acceptance (BA) help create more international trade?
A way to defer income taxes to later years is to
a.contribute to individual retirement accounts.
b.defer income to a later year.
c.contribute to defined-contribution retirement plans.
d.all of these.
Refer to Figure 14-1. On the basis of Rosa’s price-to-sales ratio, would market analysts
generally be positive toward this stock?
Figure 14-1
Rosa’s is a small chain of Mexican food restaurants that features five delicious varieties
of salsa. The business has grown over the past ten years from a hobby to a small
corporation with 200,000 shares of common stock outstanding. The corporation has not
issued any preferred stock. The following is Rosa’s latest financial data:
NARREND
a.Yes
b.No
Brokered certificates of deposit are available through stockbrokers.
a.True
b.False
Figure 9-1
Janice and Ronald have decided to finance their first home with First American Bank.
They are buying their home for $210,000 and making a 20 percent down payment. They
will also be paying $3,000 in closing costs. First American has offered them the
following mortgage alternatives:
Interest Rate
Loan Term# of
PointsMonthly
Payment
Caps
15.5 percent fixed30 years1 $953—–
25 percent fixed30 years2 $902—–
33.5 percent fixed15 years1 $1,201—–
44.75 percent ARM30 years2 $8761 percent/year,
5 percent total
54.75 percent ARM30 years2 $8760 first two years/2 percent per year
thereafter
Refer to Figure 9-1. Assuming the taxes and insurance on this home will be $150 per
month and the lender requires a front-end ratio of 0.31, how much will Janice and
Roland’s monthly gross income need to be to qualify for loan 1?
a.$2,548
b.$2,935
c.$3,074
d.$3,558
Futures contracts usually focus on all of the following except
a.soybeans.
b.orange juice.
c.rubber.
d.coffee.
A _____ is an experienced person, such as a senior coworker, who offers friendly
career-related advice, guidance, and coaching to a less experiences worker.
a.sponsor
b.mentor
c.internee
d.career coach
Uniform principles, standards, and report forms for depository institutions are
prescribed by the
A.FDIC.
B.Federal Reserve.
C.Federal Financial Institutions Examination Council.
D.Office of Comptroller of Currency.
From October 1983 to July 1993, the Federal Reserve targeted
A.the Fed funds rate.
B.borrowed reserves.
C.nonborrowed reserves.
D.M1.
E.M3.
Which of the following is classified as a tangible asset?
a.Motorcycle
b.Cash
c.Real estate investment
d.401(k) retirement plan
Tax-sheltering for which of the following types of expenses cannot be had through a
type of FSA.
a.Physician expenses annot
b.Dependent care
c.Prescription drugs
d.Life insurance premiums
Prior to age 65, if one can itemize deductions, all of his or her qualifying unreimbursed
medical expenses will be deductible.
a.True
b.False
You find the following quote for a corporate bond ($1,000 par, paying interest
semiannually):
a. What was the range of the price for the given day?
b. How many dollars would you receive from each coupon payment?
c. Approximately what risk level is implied by the bond rating?
d. What would have been the Last Price on the day before?