Econ Midterm Review

A person has $4,000 in medical expenses and an adjusted gross income of $32,000. If taxpayers are allowed to deduct the amount of medical expenses that exceed 7.5 percent of adjusted gross income, what would be the amount of the deduction in this situation? A. $300 B. $1,600 C. $2,400 D. $4,000 E. $32,000 Clear selection

$1,600

John Brown starts the month with a balance on his credit card of $1,000. The average daily balance for the month including purchase is $883. The average daily balance for the month excluding new purchase is $750. The bank charges 1.5 percent per month and uses the average daily balance including new purchases method. What would John's finance charges be for the month? A. $7.50 B. $13.25 C. $11.25 D. $15.00 E. $18.00

$13.25

Jane Doe has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is Jane's net worth? A. $267,500 B. $105,500 C. $162,000 D. $205,500 E. $132,000

$162,000

John Brown has adjusted gross income of $28,000. During the year, John decided he needed a larger home. He purchased a home on a golf course in the same town as his first home. John incurred $7,500 in moving expenses. How much of this can he deduct from adjusted gross income? A. $7,500 B. $6,340 C. $3,750 D. $750 E. $0

$0

If Jane Doe borrows $200 for one year with an APR of 12% and an annual service fee of $10, what is her total cost of credit? A. $10 B. $12 C. $24 D. $34 E. $42

$34

John's take-home-pay per month is $2,200. What is the maximum dollar amount of debt payments, excluding a home mortgage, he should have? A. $880 B. $440 C. $330 D. $220 E. $0

$440

With completion of a bachelor's degree one can expect to earn _____ in income over a 40-year period. A. $2.8 million B. $1.8 million C. $3.8 million D. $2.5 million E. $4.3 million

2.5 million

When prices are rising at a rate of 3 percent, the cost of products and services would double in ______ years. A.) 3 B.) 6 C.) 12 D.) 24 E.) 36

24

This morning, you received a phone call regarding a debt you allegedly owe. If you dispute this debt, you must write to the debt collector and request verification of the obligation. How many days do you have to send this letter? A. 5 B. 10 C. 15 D. 20 E. 30

30

When preparing her monthly budget, Jane Doe has a total spending allowance of $4,600. Each month she pays $1,200 in rent, $60 for cable television and Internet service, and $240 for her auto loan. What percentage of her budget goes for these fixed expenses? A. 6 percent B. 12 percent C. 27 percent D. 33 percent E. 40 percent

33 percent

An investment account that increases from $3,000 to $3,271 in one year is earning approximately ___ percent annual interest. A. 3 B. 5 C. 7 D. 9 E. 11

9

The information in your credit report is primarily used by the credit bureau to compute your A. debt to equity ratio B. FICO credit score C. debt payment to income ratio D. liquidity ratio E. long term capitalization ratio

FICO credit score

Which type of audit is the least complicated for taxpayers? A. a field audit B. an office audit C. a research audit D. a correspondence audit E. a documentation audit

a correspondence audit

A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is: A. the standard deduction. B. a tax credit. C. an itemized deduction. D. an exclusion. E. an exemption.

an exemption

Mathematical abilities, problem-solving skills, and physical dexterity are examples of: A. interests. B. survival skills. C. aptitudes. D. occupational attitudes. E. on-the-job training.

aptitudes

Who is most likely to benefit from inflation? A.) retired people B.) lenders C.) borrowers D.) low-income consumers E.) government

borrowers

John Brown is planning to lease an automobile. In an effort to minimize the price of the vehicle being leased, John should compare the ____________ at different leasing companies. A. down payment B. capitalized cost C. money factor D. residual value E. number of payments

capitalized cost

Which method of payment is likely to be the least expensive in the long run? A. bank credit card B. check written on a home equity line of credit C. cash D. store credit card E. cash advance on a Visa credit card

cash

Mortgage loans, automobile loans, and installment loans for purchasing furniture or appliances are examples of: A. a line of credit. B. a credit card loan. C. open-end credit. D. closed-end credit. E. convenience credit.

closed end credit

In a Chapter 7 bankruptcy, a person filing for relief is called a: A. bankrupt. B. debtor. C. dependent. D. criminal. E. creditor.

debtor

Which of the following is usually the largest fixed expense for a new vehicle? A. insurance B. gasoline C. registration, license, and fees D. parking E. depreciation

depreciation

Estimated quarterly tax payments must be made by people who: A. are employed in a foreign country. B. receive dividends. C. work for the government. D. do not have adequate amounts withheld from income. E. itemize deductions.

do not have adequate amounts withheld from income

John Brown has done some research and has discovered that economists believe interest rates will rise significantly over the next two years. Blake believes that this will lead to fewer homes being sold and fewer jobs in the banking and mortgage industries. This is an example of __________________ influencing jobs in the future. A. demographic trends B. economic conditions C. industry trends D. geographic trends E. educational trends

economic conditions

Which one of the following is not included in gross income? A. Tax credit. B. Exemption. C. Exclusion. D. Earned income. E. Portfolio income.

exclusion

Payday, cash advance, check advance, and post- dated checks are _________ loans. A. inexpensive B. medium-priced C. expensive D. low APR E. variable APR

expensive

John Brown has determined that the amount of money he spends on his mortgage payment, car insurance payment, and cable bill totals $1,200 each month. What type of expenses has John determined with this calculation? A. current liabilities B. long Term liabilities C. net worth D. variable expenses E. fixed expenses

fixed expenses

A __ allows a taxpayer to put pre-tax dollars into an employer-sponsored program to cover medical and child care costs. A. tax credit B. tax deduction C. flexible spending account D. tax deferred investment E. tax exempt investment

flexible spending account

A debit card: A. immediately deducts the cost of your purchase from your bank account. B. credits your account at the moment you buy goods or services. C. is a new type of a credit card issued by VISA International. D. is another name for a travel and entertainment card. E. typically has a credit limit of $1,000.

immediately deducts the cost of your purchase from your bank account

John Brown has decided he needs a new car so that he has reliable transportation to work. He is getting recommendations from his friends as to what might be a good car to purchase. He is also looking at the Consumer Reports magazine to determine what they recommend as a safe, low maintenance car and he has searched some web sites on the internet as well. What step in the purchasing process is Hector carrying out? A. problem identification B. information gathering C. evaluating alternatives D. determining the purchase price E. post purchase activities

information gathering

Which one of the following is not a source that provides data to credit bureaus? A. banks B. finance companies C. merchants D. court records E. Internal Revenue Service

internal revenue service

A trust has the purpose of: A. solving a person's financial problems B. obtaining low-interest loans C. handling daily money management activities D. managing the assets of a person E. improving a person's budgeting skills

managing the assets of a person

The ______________ property tax is based on the value of land and buildings at some point in time. A. personal B. real estate C. direct D. proportional E. regressive

real estate

Which of the following would increase the risk of a loan? A.) rising consumer prices B.) a short time to maturity C.) lower consumer prices D.) constant interest rates E.) a good credit rating

rising consumer prices

Purchasing a new CD upon maturity of the current CD is commonly referred to as: A. creating a CD portfolio. B. rolling over. C. refinancing. D. calling a CD. E. bumping up.

rolling over

John Brown likes to play golf. This would be an example of a(n) _________ factor that influences his purchasing decision. A. economic B. social C. personal D. global E. financial

social

Tax-deferred retirement plans are a type of: A. exemption. B. itemized deduction. C. passive income. D. tax shelter. E. tax credit.

tax shelter

John Brown has set up a legal agreement that allows the First State Bank of Orlando to manage funds set aside for his daughter's college education. What type of financial service is John using? A. payment service B. savings service C. borrowing service D. trust service E. asset management

trust service

Ms. Doe is a single mom with three children; Sue is 18 and a high school senior, Eric is 20 and a college sophomore, and JoJo is 25 and unemployed. All three children live at home. How many exemptions can Ms. Doe claim on her tax return? A. 1 B. 2 C. 3 D. 4 E. 0

4

John Brown has a savings account with $550 in it. He knows that he can withdraw this money whenever he wishes. This would be an example of: A. money management. B. an opportunity cost. C. a limited asset. D. a liquid asset. E. net worth analysis.

a liquid asset

Float can be defined as: A. the interest charged during one billing period. B. the principal balance due on a loan. C. a home equity loan. D. a period of time during which no interest is charged. E. a lump-sum loan from a credit union.

a period of time during which no interest is charged

Which one of the following people is least likely to have to file a federal income tax return? A. a U.S. citizen who is a resident of Puerto Rico B. a U.S. citizen living and working in a foreign country C. a person earning less than $9,000 D. a person over age 65 E. a college student

a person earning less than $9,000

Recently, John Brown was on a bus tour in a mountainous area. The bus broke down forcing the group to stay overnight. Group members had to pay for their own hotel bills. John believes that the hotel cost for the group should be paid by the tour company. Which legal action would be most appropriate? A. small claims court B. mediation C. legal aid society D. arbitration E. class action suit

class action suit

A valuable asset pledged to assure loan payments and subject to seizure upon default is called: A. capacity. B. character. C. capital. D. collateral. E. conditions.

collateral

You can often obtain medium-priced loans from: A. parents or family members. B. American Express. C. Diners Club. D. finance companies. E. commercial banks and credit unions.

commercial banks and credit unions

John Brown is applying for a loan from a bank. The bank is concerned because John is an airline pilot for United Airlines. The bank thinks that John may be laid off in the near future. Which one of the 5 Cs of credit is the bank concerned with? A. character B. capacity C. capital D. collateral E. conditions

conditions

What should you do if your identity is stolen? A. contact the fraud departments of each of the 3 major credit bureaus B. ignore the problem and hope that it will go away C. close all of your accounts and do not say anything to anyone D. pay all the charges for which you are billed, even if they are not yours, so you can keep your credit accounts E. all of the answers

contact the fraud department of each of the 3 major credit bureaus

Jane Doe is a member in a store that is a nonprofit organization that buys grocery items in bulk. Members can save a considerable amount on the groceries they purchase in the store. Jane is most likely shopping in which type of store? A. department store B. specialty store C. discount store D. convenience store E. cooperative

cooperative

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury? A. credit life insurance B. credit accident and health insurance C. credit property insurance D. credit casualty insurance E. credit disability insurance

credit accident and health insurance

Which one of the following agencies can produce for a subscribing member, almost instantaneously, a report about your past and present credit activity? A. federal reserve bank in your district B. consumer sentinel network C. federal trade commission D. public assistance office E. credit bureau

credit bureau

Which of the following lenders is most likely to be sympathetic about legitimate payment problems? A. credit union B. payday advance company C. finance company D. department store E. commercial bank

credit union

Consumer credit: A. is a privilege of the affluent. B. dates back to colonial times. C. carries no finance charge. D. is not a major force in our economy. E. use has been declining in recent years.

dates back to colonial times

Checking accounts are frequently referred to as ____________ deposits. A. common B. time C. current D. loan E. demand

demand

Compared to a job, a career: A. is often less financially rewarding. B. requires minimum training. C. demands regular updating of knowledge. D. has limited opportunities for advancement. E. is one who engage in for your lifetime.

demands regular updating of knowledge

The profits from a mutual savings bank go to the: A. creditors. B. loan applicants. C. stockholders. D. depositors. E. community in which it operates.

depositors

Jane Doe wants to travel after she retires as well as pay off the balance of the loan she has on the home she owns. Which step in the financial planning process does this situation demonstrate? A.) determining her current financial situation B.) developing her financial goals C.) identifying alternative courses of action D.) evaluating her alternatives E.) implementing her financial plan

developing her financial goals

John Brown has gone to monster.com as well as his local newspaper and has found five job possibilities that he feels fit his abilities and interests. Which step in the career planning process has Brock completed? A. assess and research personal goals and abilities. B. evaluate the employment market to identify specific employment opportunities. C. develop a resume and cover letter to apply for specific positions. D. interview for specific positions and assess the interview performance. E. evaluate financial and other factors of positions offered.

evaluate the employment market to identify specific employment opportunities

The main purpose of Consumers Union is to: A. evaluate the quality of products and services. B. reduce fire hazards of home appliances. C. handle consumer complaints from government workers. D. represent the government in consumer complaint hearings. E. provide environmental information on automobiles.

evaluate the quality of products and services

John Brown claimed an additional $3,000 in deductions he knowingly knew he did not qualify for so he could reduce his tax bill. This is referred to as tax: A. avoidance. B. acceleration. C. evasion. D. delaying. E. deferment.

evasion

The state of Oklahoma imposes a tax of $.17 per gallon on gasoline. What type of tax is this most likely to be? A. general sales tax B. excise tax C. personal property tax D. income tax E. estate tax

excise tax

Which form would an individual use who has less than $100,000 in taxable income from wages, salaries, tips, unemployment compensation, interest, or dividends, and who is married and does not itemize deductions? A. Form 1040X B. Form 1040EZ C. Form 1040A D. Schedule A E. Schedule E

form 1040A

A person who has worked in many fields and has a variety of skills in categories such as communications, research, and personnel administration would probably be best served with the use of a ____________ résumé. A. targeted B. functional C. chronological D. goal-oriented E. career change

functional

The Rule of 78s demonstrates that a borrower pays: A. more interest at the beginning of the loan period. B. more interest at the end of the loan period. C. more interest in the middle of the loan period. D. less interest than indicated by the APR E. equal amounts of interest throughout the loan

more interest at the beginning of the loan period

The major service offered by investment companies is: A. interest-bearing checking accounts. B. variable-rate loans. C. credit card accounts. D. savings bonds. E. mutual funds.

mutual funds

A Whirlpool dishwasher is an example of a: A. national brand. B. store brand. C. generic brand. D. local brand. E. regional brand.

national brand

The value of items owned minus the amounts owed to others equals: A. net assets. B. net worth. C. total liabilities. D. total income. E. budgeted expenses.

net worth

Most cars bought from private parties have: A. no implied warranties. B. a 30-day return privilege. C. a limited warranty. D. no express warranty. E. a government-supported repair guarantee.

no express warranty

If you think that your bill is wrong, you should first: A. contact the local credit bureau and inform it of the billing error. B. complain to the Better Business Bureau. C. contact your state consumer protection agency. D. notify the creditor in writing within 60 days after the bill was mailed. E. contact your attorney to settle the matter. Clear selection

notify the creditor in writing within 60 days after the bill was mailed

Which of the following information is required on food labels? A. open dating B. unit pricing C. generic name D. common product name E. brand name

open dating

John Brown goes on Jeopardy and earns $875,000 in winnings. What type of income is this? A. earned Income B. investment Income C. passive Income D. other Income E. deferred Income

other income

Which lender is likely to ask you to write a check for $115 before granting you a $100 loan? A. credit union B. payday advance company C. finance company D. department store E. commercial bank

payday advance company

John Brown writes a check to pay for day care for his son. What type of financial service is John using? A. payment service B. savings service C. borrowing service D. trust services E. asset management

payment service

A high tech scam that uses spam or pop-up messages to deceive you into revealing your credit card number, bank account information, social security number, passwords, or other sensitive information is called: A. pharming B. phishing C. Internet pyramid scheme D. bogus "campus card" scheme E. foreign scam

phishing

John Brown has developed a budget that he follows each month. John has an envelope for each type of expenditure. After he cashes his paycheck, he puts the amount of cash in each envelope that he plans to spend on that category each month. What type of budget has John created? A. mental budget B. physical budget C. written budget D. computerized budget E. none of the answers

physical budget

Revolving check credit is a: A. credit arrangement that has no extra costs. B. prearranged loan for a specified amount that you can use by writing a special check. C. credit arrangement that has no specific repayment plan. D. synonym for installment cash credit. E. synonym for single lump-sum credit.

prearranged loan for a specified amount that you can use by writing a special check

The purpose of a screening interview is to: A. make business contacts. B. reduce the number of applicants for a job. C. locate potential people for advancement within the company. D. judge the best qualified candidates for a position. E. obtain information on available jobs in an area.

reduce the number of applicants for a job

A person's net worth would increase as a result of: A. reduced amounts owed to others. B. reduced earnings. C. increased spending for current living expenses. D. decreased value of personal possessions. E. decreased value of investments.

reduced amounts owed to others

The Truth-in-Savings law requires that financial institutions: A. provide insurance for savings accounts. B. send customers monthly bank statements. C. report annual percentage yield on savings. D. offer adjustable rate savings accounts. E. become members of the Federal Reserve System.

report annual percentage yield on savings

Jane Doe is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to: A. recommend reputable companies in an area. B. resolve consumer complaints. C. lobby for improved consumer protection laws. D. evaluate products and services for quality. E. represent business in government hearings.

resolve consumer complaints

If you have a problem with your creditor, the best solution is to: A. file a lawsuit against the creditor. B. solve your problem directly with the creditor. C. complain to the Federal Reserve System. D. complain to the Board of Governors. E. wait for creditor action.

solve your problem directly with the creditor

One aspect of financial planning is to make wise decisions as to what to purchase and when to purchase it. Which aspect of financial planning does this deal with? A.) borrowing B.) spending C.) managing risk D.) investing E.) retirement and estate planning

spending

An unauthorized person who obtains a credit report under false pretenses may be: A. sued by the lender. B. sued by the borrower. C. jailed for 5 years. D. subject to a fine and imprisonment. E. placed on a probation.

subject to a fine and imprisonment

In the bank reconciliation process, service fees should be: A. added to the bank statement balance. B. subtracted from the bank statement balance. C. added to the checkbook balance. D. subtracted from the checkbook balance. E. ignored.

subtracted from the checkbook balance

A person's net worth is computed by: A. adding assets and liabilities. B. deducting current living expenses from total assets. C. subtracting total liabilities from total assets. D. subtracting assets from current liabilities. E. adding liabilities and budgeted expenses. Clear selection

subtracting total liabilities from total assets

The main economic influence that determines prices is: A.) the stock market B.) interest rates C.) employment D.) government spending E.) supply and demand

supply and demand

Which federal law allows consumers to withhold payment for faulty or defective goods or services (within certain limitations) when purchased with a credit card? A. Truth in Lending Act B. Fair Credit Reporting Act C. Fair Credit Billing Act D. Equal Credit Opportunity Act E. Fair Debt Collection Practices Act

Fair Credit Billing Act

Which federal law regulates the use of credit reports, requires the deletion of obsolete information, and gives you access to your file? A. Truth in Lending Act of 1969 B. Fair Credit Billing Act of 1975 C. Equal Credit Opportunity Act of 1975 D. Fair Credit Reporting Act of 1971 E. Fair Debit Collection Practices Act of 1978

Fair Credit Reporting Act of 1971

Which one of the following is a retirement plan that allows a $5,000 annual contribution with tax-free earnings after five years? A. Roth IRA B. Education IRA C. Keogh Account D. 401(k) Plan E. SEP

Roth IRA

Which federal consumer credit law regulates the advertising of credit terms? A. Fair Debt Collection Practices Act B. Equal Credit Opportunity Act C. Fair Credit Billing Act D. Fair Credit Reporting Act E. Truth in Lending Act

Truth in Lending Act

Which one of these statements best describes the major criticism of service contracts? A. Repair companies provide poor service. B. Service contracts are included in the initial price of the product and thus are not optional. C. The government regulation of service contract companies is weak. D. The contracts are expensive and contain a lot of exclusions. E. There are a limited number of authorized repair facilities.

the contracts are expensive and contain a lot of exclusions

John Brown recently became aware of implied warranties that exist for consumer purchases. An implied warranty exists as a result of: A. a stated intent of the seller. B. actions by consumers. C. the intended use of a product. D. rulings of federal consumer agencies. E. a written statement from the manufacturer.

the intended use of a product

Which interest formula may be used by creditors to determine how much interest you have paid at any point in a loan? A. simple interest formula B. compound interest formula C. multiple compound interest formula D. the rule of 78s E. the rule of 72s

the rule of 78s

Sarah Doe husband goes out with the 'boys' for a night on the town and gets home at 4 am waking everyone in the house. In response, Sarah goes out the next day and spends $500 in new clothes for herself putting it all on her credit card. Which one of the answers best explains Sarah's spending? A. misunderstanding or lack of communication B. the use of money to punish C. the expectation of instant comfort D. keeping up with the Joneses E. overindulgence of children

the use of money to punish

An example of a personal opportunity cost would be: A.) interest lost by using savings to make a purchase B.) higher earnings on savings that must be kept on deposit a minimum of six months C.) lost wages due to continuing as a full-time student D.) time comparing several brands of personal computers E.) having to pay a tax penalty due to not having enough withheld from your monthly salary

time comparing several brands of personal computers

The purpose of a "special" endorsement is to: A. cash a check. B. deposit a check. C. transfer a check to another person. D. withdraw cash from your account. E. reduce the charge for service fees.

transfer a check to another person

Which of the following is the point at which retirement contributions made on your behalf by the company belong to you even if you no longer work for the company? A. networking B. vesting C. a tax deferred benefit D. a tax exempt benefit E. break even

vesting

The rate of return on a savings account is also referred to as: A. liquidity. B. compounding. C. yield. D. opportunity cost. E. asset turnover.

yield

Jane Doe has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her personal assets? A. $2,050 B. $98,000 C. $27,800 D. $44,050 E. $171,900

$27,800

An online buying club requires an annual fee of $60 in order to qualify for a 15 percent discount on purchases. What amount would a person have to buy in order to save enough to cover the cost of the membership? A. $15 B. $60 C. $165 D. $400 E. $600

$400

John Brown has monthly net income of $1,050. He has a house payment of $450 per month, a car loan with payments of $250 per month, a Visa card with payments of $50 per month, and a credit card with a local department store with payments of $100 per month. What is John's debt payments-to-income ratio? A. 2.63 B. 1.24 C. 0.81 D. 0.38 E. 0.50

0.38

_____________ families rely heaviest on student loans to finance college. A. Low-income B. Middle-income C. High-income D. Large E. Small

middle-income

A budget deficit would result when a person's or family's: A. actual expenses are less than planned expenses. B. actual expenses are greater than planned expenses. C. actual expenses equal planned expenses. D. assets exceed liabilities. E. net worth decreases.

actual expenses are greater than planned expenses

John Brown wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is John reducing his lender's risk: A. He is sharing the interest rate risk with his lender. B. He is pledging valuable assets that can be seized if the loan is not repaid. C. He is taking a larger stake in the asset he is purchasing. D. He is repaying the loan over a faster period of time. E. None of the other answers.

he is taking a larger stake in the asset he is purchasing

Increased consumer spending will usually cause: A.) lower consumer prices B.) reduced employment levels C.) lower tax revenues D.) lower interest rates E.) higher employment levels

higher employment levels

For which of the following types of credit plans is the interest tax deductible? A. home equity loan B. auto loan C. credit card D. life insurance policy cash value loan E. personal cash loan from a credit union

home equity loan

Using the services of financial institutions will be most evident in your effort to: A.) develop financial goals B.) evaluate and revise your actions C.) analyze your current personal and financial situation D.) implement the financial plan E.) create a financial plan of action

implement the financial plan

Which one of the following is the best example of a long-term goal for a young couple? 1 point A. a new car B. reduction of amounts owed on credit cards C. increased savings D. income for retirement E. funds for a vacation A. a new car B. reduction of amounts owed on credit cards C. increased savings D. income for retirement E. funds for a vacation

income for retirement

Which of the following is an example of an industrial trend that could affect the job market? A. increased use of computers in manufacturing B. fewer children being born C. higher interest rates D. lower inflation rates affecting spending E. more families with both parents working

increased use of computers in manufacturing

Jane Doe purchases a sofa, love seat and reclining chair for her family room and will make payments of $65 per month for the next twenty-four months. What type of credit did Jane use? A. installment sales credit B. installment cash credit C. single lump sum credit D. revolving credit E. incidental credit

installment sales credit

A personal balance sheet presents: A. amounts budgeted for spending. B. income and expenses for a period of time. C. earnings on savings and investments. D. items owned and amounts owed. E. family financial goals.

items owned and amounts owed

Jane Doe is considering investing in 30 year Corporate Bonds issued by Duke Energy Company. She knows that she will earn an interest rate of 8% by purchasing these bonds. However, she is concerned because she might need to take her money out of this investment in a year and she has heard that she might have to sell the bonds at a significantly lower price than she will purchase them for. What type of risk is Mary concerned about? A.) inflation risk B.) interest rate risk C.) income risk D.) personal risk E.) liquidity risk

liquidity risk

The term networking refers to: A. using the internet to locate job listings. B. making and using contacts to obtain and update career information. C. accessing career databases online. D. building a list of references to provide to prospective employers. E. designing an electronic system for storing resumes and job related information.

making and using contacts to obtain and update career information