PERSONAL FINANCE MIDTERM
What credit legislation gives businesses that extend credit to customers specific deadlines to follow in responding to customers' complaints about errors in their credit statements? a - fair credit billing act b - equal credit opportunity act c - truth in lending act d - fair credit reporting act
a
a fund that invests in stocks that tend to be undervalued or overlooked is called a - value fund b - growth fund c - blend fund d - sector fund
a
because stocks in pharmaceutical companies hold their value regardless of the state of the economy, they are known as .............. stocks a - defensive b - cylical c - speculative d - penny
a
finance charges are expressed as a(n) a - annual percentage rate b - monthly percentage rate c - annual balance rate d - monthly balance rate
a
of the following ownership investments, which allows access to an "expert" manager a - stock mutual funds b - collectibles c - real estate d - stocks
a
regular credit accounts are sometimes called open accounts because they allow a - credit users to buy at any time during a set period b - first time credit users to charge without having credit check c - long time credit users to purchase items without finance charges d - credit users to make the minimum payment at any time during the month
a
the amount of interest you earn in a typical savings account is about a - one percent b - 10 percent c - 11 percent d - 15 percent
a
the price of a mutual funds shares is determined by a - net asset value b - investment portfolio value c - liabilities d - outstanding shares
a
the purpose of the risk pyramid is to show a comparison of a - one investment to another b - stocks to stock mutual funds c - corporate bonds to municipal bonds d - one stock to another
a
understanding spending habits is a - the first step in creating a financial plan b - unrelated to setting financial goals c - not part of financial planning d - the last step in creating a financial plan
a
using money to make money is called a - investing b - saving c - inflation d - rule of 72
a
what source of credit buys borrowers contracts from sellers a - sales and finance companies b - commercial banks c - credit unions d - savings and loan associations
a
what type of credit account gives the customer a credit limit at the time the account is opened and allows the customer to make payments over a period of time or to pay off the total amount due each month a - revolving b - installment c - regular d - budget
a
what type of credit is commonly used to purchase large, expensive items such as cars a - installment b - regular c - budget d - revolving
a
which of the following best describes a marketable bond a - one that is bought and sold in the open market b - one that becomes a stock later on c - one that is issued by a governing body d - one that is paid back before maturity
a
which of the following is a commonly used bank credit card a - visa b - shell oil c - diners club d - Macy's
a
which of the following is a true statement about bank credit cards a - businesses must pay the bank a fee for each transaction b - bank credit cards are difficult to obtain c - bank credit cards are the same as installment credit d - borrowers must pay the balance in full each month
a
which of the following is considered a reliable bond a - government b - corporate c - callable d - puttable
a
which of the following is not a reason that companies issue stock a - to gain respect b - to fuel growth and expansion c - to develop new products d - to acquire other companies
a
which of the following is not an important variable of a bond fund a - the amount of time you spend researching the bonds in a fund b - the rate at which your money grows c - the average maturity of the bonds in the fund d - the credibility ratings of the bonds fund
a
which of the following is the best place to buy shares in a mutual fund a - fidelity investments b - main street local bank c - good hands insurance d - mike jones, financial planner
a
which of the following most accurately describes the relationship between risk and return a - for the potential of a high return, you usually accept a high risk b - for the potential of a low return, you usually accept a low risk c - for the potential of a high return, you usually accept a low risk d - for the potential of a low return, you usually accept no risk
a
which of the following phrases best describes the s in setting SMART goals a - specific details b - saving money c - sense of teamwork d - spending wisely
a
which type of stock comes with voting rights a - common b - a stock split c - small cap d - income
a
Financial planning can be describes as a way to a - wring all the fun out of life b - realize what it takes to get the things you really want c - make it right to treat yourself d - retire with a million dollars by the time your age 40
b
a good way to prioritize your financial goals is to a - rank goals according to what needs to be done first b - assign each goal to a general category c - rank every goal in numerical order d - recognize that all the goals are equally important
b
a place where investors can trade securities that have been issued by a corporation is known as a(n) a - primary market b - secondary market c - initial public offering d - stock market index
b
an increase in the cost of goods and services is known as a - interest b - inflation c - deflation d - investment
b
compounding can be described as a - avoiding inflation b - earning interest upon interest c - meeting financial needs d - risking the stock market
b
in investing, legal lending or owning agreements between individuals, businesses, or governments are known as a - bonds b - securities c - contracts d - guarantees
b
jamie owned 300 shares of stock in a certain company, worth 10 dollars per share. Then, the company announced that his 300 shares would become 600 shares, worth 5 dollars per share. This is an illustration of a - a stock exchange b - a stock split c - capital appreciation d - dividends
b
mutual funds that contain both stocks and bonds are known as a - exchange traded funds b - balanced funds c - money market funds d - index funds
b
of the following lending investments, which is not offered by a bank a - money market account b - municipal bond c - savings account d - certificate of deposit
b
of the following ownership investments, which involves owning items that gain or lose value overtime a - stock mutual funds b - collectibles c - real estate d - stocks
b
the credit card accountability, responsibility and disclosure act of 2009 ensures that credit contract terms a - can be published in the newspaper b - are written in plain language c - cannot be changed d - are subject to review by state legislatues
b
to get a general idea of the direction of the stock market today, check a a - secondary market b - stock market index c - stock exchange d - blue chip company
b
what credit legislation prohibits the denial of credit based on the applicant's gender, race, age or national origin a - fair credit billing act b - equal credit opportunity act c - truth in lending act d - fair credit reporting act
b
what source of credit offers its members small loans, installment credit and low interest rates a - sales and finance companies b - credit unions c - commercial banks d - savings and loan associations
b
what type of loan requires collateral a - unsecured b - secured c - signature d - note
b
when janine wants to know what others are willing to pay for a bond she owns, she looks at the a - bid rating b - bid price c - coupon rate d - bond rating
b
which of the following best describes the relationship between bonds and the stock market a - straight b - inverse c - liquid d - beneficial
b
which of the following factors influences the time value of money a - financial needs b - interest rates c - banks d - world events
b
which type of credit applies to utilities that have been consumed but not yet paid for a - revolving credit b - service credit c - secured loan d - unsecured loan
b
you are more likely to achieve your goals if they are a - based on needs only b - written down c - long term d - short term
b
Kent wants to learn as much as possible about the mutual fund hes thinking of investing in. Which of the following is the best place he could go for detailed information? a - the newspaper b - a trade magazine c - the funds prospectus d - the funds website
c
an amount of money borrowed by an individual or a business simply by signing a promissory note is know as a(n) a - regular credit account b - secured loan c - unsecured loan d - travel and entertainment card
c
choosing to buy an item at the check out counter is usually an example of a - poor use of credit b - influence the future c - impulsive spending d - smart shopping
c
financial planning is important because it can help u do all of the following except a - meet needs and wants b - influence the future c - understand economics and finance d - recognize the importance of income
c
for which of the following items would you save (rather than invest) a - retirement b - future children's college c - spring break d - house
c
melinda wants to invest in a bond, but her main concern is how soon shell be able to access the money shes invested. Melinda looks at the a - liquidity b - bid price c - yield d - bond rating
c
robyn bought 100 dollars worth of stock in a company, and now its worth 150 dollars. This is an illustration of a - a stock exchange b - a stock split c - capital appreciation d - dividends
c
since john wants to know the bonds interest rate, he needs to look at the bonds a - issuer b - maturity c - coupon d - par value
c
spiders and cubes are types of a - bond funds b - balanced funds c - exchange traded funds d - international funds
c
the single most important aspect of making a financial plan and setting goals a - learning to make hard choices b - making enough money c - getting started now d - choosing a career path
c
what a bond brings you over a period of time at a particular price is called the bonds a - bid price b - liquidity c - yield d - maturity
c
what type of credit account might be advertised as "90 days same as cash" a - installment b - regular c - budget d - revolving
c
which of the following is a reason that businesses extend credit to customers a - to save money b - to purchase stock as needed c - to be competitive d - to take advantage of convenience
c
which of the following is not a factor that determines how much investment risk you can handle a - what you want to accomplish b - how much time you have to accomplish it c - your income d - your personality
c
which of the following is not a key factor involved with compounding growth a - the amount of money you invested b - how long your money is invested c - the risk of the stock market d - how much your investment grows each year
c
which of the following is not a source of credit a - savings and loan associations b - credit unions c - grocery stores d - commercial banks
c
which type of stock is considered a bargain a - income b - domestic c - value d - growth
c
with a lending investment, investors do which of the following a - hire a financial adviser b - maintain a minimum amount of money in the investment c - allow borrowers to use their money for a price d - avoid taking any risk
c
Darron is investigating a few corporate bonds for investment. He wants to know how likely it is that the corporations will pay back what they've borrowed. Darron needs to look at the a - liquidity b - issuer c - coupon rate d - bond rating
d
Teri decided to invest in a few different mutual funds rather than put all her investment dollars into one or two individual stocks. A stock in one of her mutual funds went bust, but since her money was spread out, Teri wasn't significantly affected. What advantage of mutual funds does Teris situation illustrate? a - liquidity b - professional money management c - convenience d - diversification
d
The arrangement by which businesses or individuals can purchase a good or service now and pay for it later a - interest b - convenience c - installments d - credit
d
a company that marcus invested in has earned a profit, and now marcus is receiving cash payment, this is an illustration of a - a stock exchange b - stock split c - capital appreciation d - dividends
d
a mutual fund that has no limit on the number of shares it can issue or the amount of money it can hold is called a(n) a - growth fund b - stock fund c - closed end fund d - open end fund
d
a stock with a price of 1 dollar or less is known as a ............... stock a - defensive b - cyclical c - value d - penny
d
commission fees associated with mutual funds are known as a - navs b - etfs c - expense ratios d - loads
d
emily has decided to use all her savings to buy a new car instead of a used one. what are the opportunity costs of that decision? a - the reliability and luxury of a new car compared to a used one b - the benefits she could have received by using public trans. instead c - the money she saves by not having to constantly repair a used car d - the benefits she could have received by using the additional cost of a new car another way
d
if you are 17 right now, when is the best age to start investing a - 32 b - 27 c - 25 d - 17
d
investors take a risk for the potential of receiving which of the following a - prize b - recognition c - bonus d - return
d
jackie purchased a television on credit, she made a down payment and signed an agreement to pay a specific monthly amount, including interest, over the next 12 months. This is an example of () credit a - budget b - revolving charge c - regular d - installment
d
many people pay for meals an lodging on credit through an a - unsecured loan b - installment credit account c - budget credit account d - travel and entertainment card
d
one advantage to setting attainable goals is that you a - work harder to achieve every high goal b - can picture it in your mind c - can measure your progress d - are less likely to become discouraged
d
what credit legislation specifies what info businesses are required to give customers in each of the different kinds of credit systems a - fair credit billing act b - equal credit opportunity act c - truth in lending act d - fair credit reporting act
d
what is the key to successful investing a - inflation b - avoiding opportunity costs c - the rule of 72 d - getting started early
d
when a business uses credit to purchase goods ans services, what benefit does it receive a - gaining new customers b - fostering customer loyalty c - encouraging customers to buy d - maintaining inventory levels
d
which credit legislation gives customers the right to inspect their credit history files a - fair credit billing act b - equal credit opportunity act c - truth in lending act d - fair credit reporting act
d
which of the following is a cost of credit a - discounts b - rebates c - fidelity bonds d - finance charges
d
which of the following is a financial want rather than a financial need a - food b - clothing c - shelter d - education
d
which of the following is a true statement about annual fees a - they apply to all bank credit accounts b - the law states that they can be no more than 100 dollars c - they are paid instead of finance charges d - the amounts vary from card to card
d
which of the following is not a benefit of investing in bonds a - performing well when economy is poor b - offering unmatched reliability c - helping you meet long term goals d - bringing you high returns
d
which of the following is not a loan to a governing body a - savings bond b - treasury bond c - municipal bond d - corporate bond
d
with an ownership investment, investors do which of the following a - buy a home to live in b - collect popular items c - invest in multiple corporations d - pay for the right to own something
d
