1) Which statement is not true about an ethical will?
A.It is used to pass on your values and beliefs to your heirs.
B.It is a legally binding document.
C.It dispenses emotional and spiritual wealth.
D.It requires earnest self-examination.
E.It can be prepared without an attorney’s assistance.
2)
The legal document involved in renting an apartment is called a(n):
A.service contract.
B.mortgage.
C.lease.
D.security deposit.
E.escrow account.
3)
How frequently does the premium for a whole life policy change during the insured’s
life?
A.Every year
B.Every two years
C.Every five years
D.Every 10 years
E.It never changes
4)
Which of the following is a true statement?
A.If interest rates rise demand for second homes will rise.
B.If someone manages your rental property, expect to pay 5 to 10 percent in
management fees.
C.Rental expenses are not limited for tax purposes.
D.Rental expenses are treated as a passive loss once they exceed rental income.
5)
The value of items owned minus the amounts owed to others equals:
A.net assets.
B.net worth.
C.total liabilities.
D.total income.
6)
An increasing number of personal bankruptcy filers are baby boomers, who now
account for what percent of bankruptcies?
A.10
B.20
C.35
D.50
E.60
7)
Which of the following is a tip from retirement specialists on how to uncover hidden
taxes and other costs of a retirement area?
A.Contact the local Chamber of Commerce to get an economic profile.
B.Contact the state’s tax department to find out state, sales, and inheritance taxes.
C.Call a local CPA to find out which taxes are rising.
D.Rent for a while instead of buying immediately.
E.Retirement specialists recommend all of these actions to uncover hidden taxes and
costs.
8)
Which one of the following is not a danger signal of potential debt problems?
A.Paying the minimum balance due each month
B.Receiving notice of prompt payment from creditors
C.Using savings to pay for major purchases
D.Repaying loans faster than required
E.Depending on overtime and moonlighting to meet expenses
9)
The Sears Kenmore dishwasher is an example of a:
A.national brand.
B.store brand.
C.generic brand.
D.local brand.
E.regional brand.
10)
Masterworks Manufacturing has after-tax profits that total $625,000. If the firm has
250,000 shares, what is the amount of earnings per share?
A.$0.40
B.$1.00
C.$2.00
D.$2.50
E.$4.00
11)
Social Security covers what percent of all U.S. workers?
A.72
B.78
C.86
D.97
E.99
12)
A common criticism of including a career objective on a resume is that it:
A.may be too vague.
B.takes too much room on the resume.
C.is frequently the same as that of other candidates.
D.is not of interest to most employers.
E.usually does not relate to the job sought.
13)
Most home insurance policies provide coverage for:
A.earthquake damage.
B.flood damage.
C.an umbrella liability.
D.personal property floaters.
E.medical payments.
14)
Which one of the following is a junk’ bond?
A.Treasury bond
B.Bond rated B by Standard and Poor’s
C.Bond rated AAA by Standard and Poor’s
D.Insured municipal bond
E.Treasury bill
15)
Approximately ____ percent of people under 35 years old own stocks.
A.5
B.16
C.39
D.51
E.73
16)
Which one of these statements correctly applies to a Roth IRA?
A.Earnings on the account are tax-free after five years.
B.Annual contributions may exceed $2,000.
C.Deposits must be in federally-insured accounts.
D.Funds are only to be used for educational expenses.
E.Only self-employed workers can contribute to a Roth IRA.
17)
Explain why opportunity cost is an important concept in money management.