1)
Which one of the following is an advantage of renting?
A.Unrestricted lifestyle
B.Tax benefits
C.Fewer responsibilities
D.An ability to build equity
E.Increased equity
2)
Personal risks are the uncertainties surrounding the loss of income or life due to all
except:
A.professional misconduct.
B.premature death.
C.illness.
D.disability.
E.unemployment.
3)
Time deposits are another name for:
A.checking accounts.
B.loans and charge accounts.
C.savings accounts.
D.government securities.
E.profits earned by a financial institution.
4)
Beta is a measure that compares the volatility associated with a specific stock issue with
the volatility of which stock index?
A.S&P Index
B.Dow Jones Industrial Average
C.NASDAQ Composite Index
D.FTSE 100 Index
E.CAC 40 Index
5)
The stock exchange known to trade stock for innovative, growth companies is the:
A.NYSE.
B.NASDAQ.
C.American Stock exchange.
D.S & P 100.
E.STSE.
6)
Every year, what percent of the adult U.S. population suffers a long-term disability?
A.12
B.14
C.18
D.23
E.25
7)
The purpose of the invoice price is to inform customers of the:
A.sales tax on the vehicle.
B.suggested retail price.
C.sticker price.
D.charge for optional extras.
E.dealer’s cost.
8)
Bruce Willis has been making contributions into an individual retirement account on
behalf of his nonworking wife. What type of individual retirement account is this?
A.Traditional IRA
B.Roth IRA
C.Spousal IRA
D.Coverdell Education Savings Account
E.SEP-IRA
9)
Establishing a(n) ___________ ensures that you will have an amount of money that can
be obtained quickly in case of immediate need.
A.traditional IRA
B.emergency fund
C.Roth IRA
D.403b
E.401k
10)
Characteristics of successful budgets include that they are:
A.well-planned.
B.realistic.
C.flexible.
D.clearly communicated.
E.All of these
11) Which of the following is a part of estate planning?
A.Making a will
B.Setting up a trust
C.Accumulating funds for your future
D.Providing for your family’s financial security after you die
E.All of these are part of estate planning.
12)
A _________ is a building that contains exactly two separate homes.
A.mobile home
B.duplex
C.condominium
D.prefabricated home
E.cooperative
13)
Ben Carmichael has been making contributions into an individual retirement account
for his retirement. His contributions are tax deductible as his employer does not offer a
retirement plan. What type of individual retirement account does he have?
A.Traditional IRA
B.Roth IRA
C.Spousal IRA
D.Coverdell Education Savings Account
E.401(k)
14)
Which of the following would be found in a mutual fund’s prospectus?
A.Statement describing the risk factors associated with the fund
B.Description of the fund’s past performance
C.Information about the fund’s management
D.The process for buying and selling shares in the fund
E.All of these would be found in a prospectus.