1)
The expected value of a vehicle at the end of a lease is called the:
A.residual value.
B.unit price.
C.sticker price.
D.capitalized cost.
E.money factor.
2)
A ______ is a financially independent firm that acts as the bondholder’s representative.
A.bond parent
B.bond holder
C.mediator
D.trustee
E.guardian
3)
In addition to inflation and consumer demand, what is another factor that can affect
career opportunities?
A.Demographic trends
B.Interest rates
C.Foreign competition
D.Changing uses of technology
E.Geographic trends
4)
Measuring risk associated with making most financial decisions is difficult because of
what factor(s)?
A.Inflation risk
B.Interest rate risk
C.Personal risk
D.Liquidity risk
E.All of these.
5)
Which one of the following would not be considered personal property by a
homeowner’s insurance policy?
A.Furniture
B.Jewelry
C.Outside deck
D.Computer lost while on vacation
E.iPod
6)
How many different types of basic life insurance are there?
A.1
B.2
C.3
D.4
E.5
7)
A VA-guaranteed loan program provides assistance to:
A.military veterans.
B.recent college graduates.
C.low-income homebuyers.
D.government employees.
E.the elderly.
8)
Home ownership rates are highest among those individuals in which age group?
A.Under 34
B.35 – 44
C.45 – 54
D.55 – 64
E.65 and over
9)
A conventional mortgage usually involves:
A.a variable interest rate.
B.a government guarantee.
C.a balloon payment.
D.equal payments.
E.a payment cap.
10)
Demand deposits are another term for:
A.savings accounts.
B.savings bonds.
C.checking accounts.
D.certificates of deposit.
E.investment accounts.
11)
Which of the following items is something that would typically not be stored in a safety
deposit box?
A.Rare coins
B.Copy of will
C.Automobile title
D.Marriage certificate
E.Checkbook
12)
Personal risks, property risks, and liability risks are types of ________ risk.
A.speculative
B.avoided
C.assumed
D.pure
E.reduced
13)
Jeremiah Brown has been making contributions into an individual retirement account
for his retirement. His contributions are not tax deductible but his earnings accumulate
tax free. 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)
The most common method of dealing with risk is:
A.risk avoidance.
B.risk reduction.
C.risk shifting.
D.risk assumption.
E.None of these
15)
Which of the following is a feature of an Education IRA (or Coverdell Education
Savings Account)?
A.Tax-deferred interest and earnings
B.10% early withdrawal penalty waiver when money is used for higher-education
C.Annual limit on individual contributions
D.Non-deductible contributions
E.All of these are features of an Education IRA.
16)
Exchange-traded funds make-up about what percent of all mutual funds?
A.5
B.8
C.12
D.15
E.25
17)
Illiquidity in real estate means that:
A.you can quickly find someone who is willing to pay full value to purchase the
property.
B.you don’t have a water well on the property.
C.you cannot quickly sell the property.
D.you don’t have financial leverage.
18)
Another term for liability coverage that protects you from claims if a client holds you
responsible for errors or you fail to perform as promised is:
A.umbrella policy.
B.personal property floater.
C.errors and omissions.
D.endorsement.
E.self-insurance.
19) Advance directives are legal documents that allow you to state what kind of health
care you want if you were too ill to speak for yourself. Advance directives most often
include which of the following?
A.Living will
B.Health care proxy
C.Letter of last instruction
D.Advance directives include all of these provisions.
E.Durable power of attorney