finance test 2

¡Supera tus tareas y exámenes ahora con Quizwiz!

a demand deposit is also known as A checking account. A trust. A loan. A savings account. All of these are demand deposits.

a checking account

All of the following are deposit institutions except A commercial bank. A credit union. A finance company. A mutual savings bank. A savings and loan association.

a finance company

all of the following are deposit institutions except A commercial bank. A credit union. A finance company. A mutual savings bank. A savings and loan association.

a finance company

a drawback of a regular savings account is Easy access to deposits. Being insured. A low minimum balance. A low rate of return. Ease of withdrawal.

a low rate of return

Which of the following is an example of closed-end credit? A mortgage loan. A department store credit card. Overdraft protection. Travel and entertainment cards All of these are examples of closed-end credit.

a mortgage loan

Frank bought some miniblinds. Although he did not receive a written warranty, the blinds should be expected to open and close properly. What kind of warranty does Frank have? "As-is" warranty Express warranty Full warranty Implied warranty Limited warranty

implied warranty

Information about a personal bankruptcy may be reported in your credit file for 1 year. 3 years. 7 years. 10 years. Permanently.

10 years

What is the APY for a one-year $4,000 certificate of deposit with $280 interest? 5.8% 9% 8% 11.2% 7%

7%

The text identifies several phases in the research-based buying process. The correct order of the phases is Evaluating alternatives, preshopping activities, selection and purchase, postpurchase activities. Preshopping activities, selection and purchase, evaluating alternatives, postpurchase activities. Preshopping activities, evaluating alternatives, selection and purchase, postpurchase activities. Postpurchase activities, evaluating alternatives, preshopping activities, selection and purchase. Evaluating alternatives, selection and purchase, preshopping activities, postpurchase activities.

Preshopping activities, evaluating alternatives, selection and purchase, postpurchase activities.

a legal agreement that provides for the management and control of assets by one party for the benefit of another is known as A checking account. A trust. A loan. A savings account. None of these.

a trust

The question "What are your assets and net worth?" relates to Character. Capacity. Capital. Collateral. Conditions.

capital

Logan paid a bill with a special form. He received this form at his financial institution and had to pay the amount of the check plus a fee. He used a Certified check. Cashier's check. Merchant's check. Personal check. Traveler's check.

cashier's check

Under Chapter 7 of the U.S. bankruptcy code, All debts are forgiven. Alimony and child support debts are released. Certain assets receive some protection. Certain debts arising from educational loans Debt arising from driving while intoxicated is forgiven.

certain assets receive some protection

Nora bought a used car and was told that she needed a personal check with guaranteed payment. She obtained a Certified check. Cashier's check. Traveler's check. Money order. None of the above.

certified check

Steve bought a laptop that was defective. This laptop will be fixed or replaced by the manufacturer as long as he returns it in a reasonable amount of time. What type of warranty does he have on his laptop? "As-is" warranty Express warranty Full warranty Implied warranty Limited warranty

full warranty

what is correct about inflation? If inflation is 7% and your rate of return in your savings account is 4%, you will experience an overall gain in buying power. As the inflation rates increases, the interest rates offered to savers decrease. Inflation does not affect interest rates for savings accounts. In order to increase buying power, you need to earn a rate higher than the rate of inflation. If you earn 5% and inflation is 10%, your buying power will increase.

in order to increase buying power, you need to earn a rate higher than the rate of inflation

marcus bought a certificate of deposit whose interest rate is based on the stock market. sometimes, his earnings are higher than other similar cds, and at other times, his earnings are lower. her purchased a Bump-up CD. Callable CD. Portfolio CD. Promotional CD. Indexed CD.

indexed CD

The periodic charge for the use of credit is called A line of credit. A revolving check credit. Interest. A grace period. Principal.

interest

which of the following refers to the opportunity to withdraw your money on short notice without incurring a loss in value? Compounding Liquidity Minimum deposit Rate of return Safety

liquidity

a credit card is a type of Checking account. Trust. Loan/borrowing. Savings account. Cash account.

loan borrowing

A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost? Capitalized cost. Money factor. Payment schedule. Residual value. All of these.

money factor

A vehicle lease has several costs. Which of the following is the expected value at the end of the lease? Capitalized cost Money factor Payment schedule Residual value Trade-in value

residual value

Zoe signed the back of her check with the words "for deposit only." She used a(n) Blank endorsement. Restrictive endorsement. Deposit ticket. Special endorsement. Individual account.

restrictive endorsement

If a check is lost or stolen, you should use a Stop-payment order. Stale check. Bank statement. Blank endorsement. Deposit ticket.

stop-payment order

Sam is comparing the costs of two loans. The principal amount of each loan is $5,000. One is due in one year and the other is due in four years. Both have the same stated rate of annual interest. Which of the following is true? The principal paid for the one-year loan will be lower than the principal paid for the four-year loan. The principal paid for the one-year loan will be higher than the principal paid for the four-year loan. The interest charges for the one-year loan will be lower than the interest charges for the four-year loan. The interest charges for the one-year loan will be higher than the interest charges for the four-year loan. The interest charges and principal payments cannot be compared for the two loans.

the interest charges for the one-year loan will be lower than the interest charges for the four-year loan

The APR is the percentage cost of credit on a(n) ______________ basis. monthly quarterly semi-annual Yearly life-of-loan

yearly

which of the following will likely provide the most expensive loans? A credit card company An investment company A life insurance company A finance company A payday loan company

a payday loan company

Shelby has an account at a financial institution that will waive the monthly fee if she keeps a certain amount in savings. What kind of account does she have? A regular checking account. An activity account. An interest-earning checking account. Share draft account. All of these are correct.

a regular checking account

The finance charge for credit includes all of the following except Interest costs. Services charges. Credit-related insurance premiums. Appraisal fees. The amount borrowed.

the amount borrowed

All of the following are consumer credit protection laws except The Truth in Lending and Consumer Leasing Acts The Equal Credit Opportunity Act The Fair Credit Billing Act The Credit Lawsuit Act The Consumer Credit Reporting Reform Act

the credit lawsuit act


Conjuntos de estudio relacionados

Investment analysis exam 1: ch 1-2 short answer problems

View Set

Chapter 18: Human Resource Management: Small Business Considerations

View Set

BA 232 Business Management Chapter 9

View Set

Nitrogen containing Organic compounds

View Set