1)
Last year, High-Tech Electronics earned $1.50 per share. If the current market value for
a share of stock is $45, what is the firm’s P-E ratio?
A.0.03
B.3.30
C.30.00
D.33.00
E.45.00
2)
A scam that involves malicious software or an e-mail attachment that plants a virus or
worm in the user’s computer or in a server that directs traffic on the Internet is called:
A.a foreign scam.
B.a bogus campus card scheme.
C.pharming.
D.an internet pyramid scheme.
E.phishing.
3) In estate planning, if you are married:
A.you do not need a will as your spouse is entitled to all of your assets.
B.your estate planning becomes simpler once you have children.
C.you should let your spouse do all of your estate planning.
D.your situation is more complex than when you were still single.
4)
In addition to the Consumer Credit Counseling Service (CCCS), the following entities
also provide counseling services:
A.Universities
B.Credit unions
C.Military bases
D.State and federal housing authorities
E.All of these
5)
ABC Corporation has assets that total $12 million and liabilities that total $4 million. It
also has 500,000 shares of stock outstanding. What is the ABC’s book value per share?
A.$32
B.$24
C.$16
D.$8
E.$0
6)
Increased home building results in:
A.increased job opportunities.
B.higher wages.
C.increased consumer spending.
D.overall economic expansion.
E.All of these.
7)
Which one of the following financial service providers should be avoided because the
loans they offer are considered expensive and high-risk?
A.Pawn shop
B.Credit union
C.Savings and loan association
D.Mutual savings bank
E.Life insurance company
8)
For Moody’s and Standard & Poor’s, the first _____ individual bond-rating categories
represent investment-grade securities.
A.two
B.three
C.four
D.five
E.six
9)
Which of the following is least likely to affect the timing of purchases to help you
obtain bargains?
A.Changing mortgage rates
B.Time zones
C.Hurricane season
D.Political elections
E.Crop failures
10)
Maturity dates for intermediate term corporate bonds generally range from 5 to ___
years.
A.10
B.15
C.20
D.25
E.30
11)
Which of the following good(s) or service(s) are subject to an excise tax?
A.Gasoline
B.Tires
C.Cigarettes
D.Air travel
E.All of these
12)
Randal Ice is 57 years old, and has adjusted gross income of $32,000. He has medical
expenses for the year of $6,000. How much of these expenses can he deduct from
adjusted gross income?
A.$0
B.$2,400
C.$2,800
D.$3,600
E.$4,500
13)
____________ is considered a variable operating expense of an automobile.
A.Depreciation
B.Interest on auto loan
C.Insurance
D.Registration fee
E.Maintenance
14)
Which of the following is considered personal property for home insurance coverage?
A.Automobile
B.Garage
C.Furniture
D.House
E.Trees and shrubs
15)
Sean Rouse owns shares of common stock in Stowaway Transportation Company. The
company is getting ready to pay a dividend. Sean knows he must be registered on the
corporation’s books on the _______ date in order to receive the dividend.
A.record
B.ex-dividend
C.payment date
D.declaration
E.stockholders’ meeting
16)
Developing financial goals is the ______ step in the financial planning process.
A.first
B.second
C.third
D.fourth
E.fifth
17)
If the board of directors approves a two-for-one stock split, an investor who owns 150
shares before the split will own ____________ shares after the split.
A.75
B.150
C.225
D.300
E.450
18)
If you receive a phone call from a debt collector:
A.hang up on him or her.
B.expect follow-up written communication.
C.dispute the fact that you owe the money.
D.threaten the collector with a law suit.
E.contact your attorney immediately.