Finance

The central banking organization of the United States is called the ___ A Bank of America B United States reserve bank C federal bank reserve D federal reserve system

Federal reserve system

A good time to find a bargain on a swimsuit is at a(n) ____. a. after-holiday sale b. "white" sale c. "back-to-school" sale d. mid-season sale

Mid season sale

The largest financial advisers are monitored by the ____. a. Securities and Exchange Commission b. Chartered Financial Consultants c. Harvard Business Review d. Survey of Current Business

a. Securities and Exchange Commission

The following are all advantages of owning a condominium EXCEPT ____. a. easy to move b. pride of ownership c. tax benefits d. access to businesses

a. easy to move

All of the following are possible sources of money to invest EXCEPT ____. a. insurance policy b. employer-sponsored retirement plan c. inheritance D. Financial markets

a. insurance policy

In a Chapter 13 bankruptcy, the debtor usually gets to ____. a. keep most of his or her property b. discontinue alimony payments c. avoid paying debts arising from fraud d. stop payments on educational loans

a. keep most of his or her property

A higher interest rate is usually the trade-off for a ____. a. long-term loan b. secured loan c. short-term loan d. Simple interest loan

a. long-term loan

Credit card holders are known as convenience users when they ____. a. pay off their balances each month b. carry balances beyond the grace period c. pay finance charges d. Carry smart cards

a. pay off their balances each month

A lender may ask a buyer to deposit money in an escrow account for paying ____. a. property taxes b. closing costs c. loan interest d. the principal

a. property taxes

Problematic financial businesses include each of the following EXCEPT ____. a. savings and loan associations b. pawnshops c. check cashing outlets d. rent-to-own centers

a. savings and loan associations

Short-term capital gains are ____. a. taxed as ordinary income b. not taxed c. tax-exempt d. tax-deferred

a. taxed as ordinary income

When deciding how much to offer for a home, you should consider each of the following factors EXCEPT ____. a. whether the interior walls need painting b. how long the home has been on the market c. whether the current owners need to sell in a hurry d. how easily you can arrange financing

a. whether the interior walls need painting

What should homeowners do when preparing to sell their home? a. hire a home inspector b. remove all furniture and appliances c. set a high selling price so there is room for negotiation d. make needed repairs

d. make needed repairs

Factors that affect financial markets are ____. a. interest rates and GDP b. the Federal Reserve and taxes c. the unemployment rate and inflation d. political and social conditions

d. political and social conditions

If you deposit $100 in an account with an annual interest rate of 6 percent compounded monthly, after 12 months you will have ____. a. $6 c. $160 b. $6.18 d. $106.18

D $106.18

In recent years, some of the fastest growing job markets have been in ____. a. New York B Texas c. Illinois D Arizona

D Arizona

Products often purchased using price negotiation are ____. A shampoos B swimsuits C CD player D automobile

D automobiles

An example of open-end credit is a(n) ____. a. mortgage b. automobile loan c. installment loan d. credit card

D credit card

An example of a variable expense is ____. a. cable television charges B bus fare to school or work C insurance premiums D electric bills

D electric bills

When shopping, avoid ____. a. making a list b. store-brand products c. comparing prices d. impulse buying

D impulse buying

Renting is often a wise choice for someone who wants ____. a. pets b. stability c. privacy d. Mobility

D mobility

The trade off of making one choice instead of another is commonly referred to as ___ A trade decision B personal preference C. Economic choice D. Opportunity cost

D opportunity cost

Hairstyling and bookkeeping are examples of ___ A present value B future value C good D services

D services

A cover letter gives a potential employer ____. A a summary of your qualifications B a year-by-year outline of your experience C the highlights of your skills and abilities D the reason you want a particular job

D the reason you want a particular job

A drawback of paying on credit is having ____. a. additional fees B more interest on savings C extra money for emergencies D delivery charges

A additional fees

A position in which a person receives training by working with people who are experienced in a particular field is called ____. a. an internship b. a part-time job c. a classroom assignment d. an after-school activity

A an internship

Which of the following financial services is best suited for saving money over a period of years? a. certificate of deposit b. checking account c. demand deposit d. mortgage loan

A certificate of deposit

Someone who enjoys nature and the outdoors may have an aptitude for a career in ____. a. forestry management B Clothes design C teething English D engineering

A forestry management

A good budget has all the following characteristics EXCEPT ____. A inaccessibility B flexibility C practicality D careful planning

A inaccessibility

Disagreements in small claims courts are usually settled by ____. a. judges c. mediation b. juries d.Arbitration

A judges

Spending, saving and investing to have the kind of life you want and financial security can be achieved by A personal financial planning B paying interest C discussing your financial situation with a friend D regulating inflation

A personal financial planning

An example of a liquid asset is a ____. a. savings account B bond c. retirement account D house

A savings account

Good places to look for job listings include all of the following EXCEPT ____. a. the Occupational Outlook Handbook b. newspapers C. the Internet d. job fairs

A the Occupational Outlook Handbook

Earning interest on previously earned interest is called ___ A. Compounding B. Economics C. Doubling down D. Inflation

A. Compounding

Series of equal regular deposits is called A serial deposits B an annuity C personal financial plan D a paycheck

B an annuity

High interest rates are likely to reduce employment opportunities in ____. a. food services b. construction c. teaching d. health care

B construction

The total dollar amount you pay to use credit is the ____. a. debt payment-to-income ratio b. finance charge c. annual percentage rate d. term of the loan

B finance charge

An example of a tax-exempt benefit is ____. A. vacation time B. free life insurance C. a 401(k) plan D. a flexible work schedule

B free life insurance

A demographic trend that has boosted careers in health, physical fitness, and recreational products is more ____. A. Working parents B leisure time C elderly people D ongoing job training

B leisure time

Financial plans that are more then five years off are called ___ A. Opportunity plans B. Long term goals C. Intermediate goals D. Attainable goals

B long term goals

Your net worth goes up when you ____. a. spend more than you earn B pay off previous debts c. borrow money to pay a deficit D withdraw money from your savings

B pay off previous debts

The first step in planning a budget is ____. A estimating income B setting financial goals C listing fixed expenses D budgeting for savings

B setting financial goals

Saving for vacation next summer or paying off small debts by the end of the year are examples of --- A opportunity planning B short term goals C long term goals D opportunity results

B short term goals

By law an employer must pay for a portion of ____. a. child care b. Social Security c. fitness programs d. Legal assistance

B social security

An example of a current liability is ____. a. A car loan B taxes c. A mortgage D student loan

B taxes

A disadvantage of using a safe-deposit box for keeping financial documents is that it ____. a. fails to protect documents from fire B takes up too much space in your home c. can cost $100 a year to rent D cannot restore cancelled checks

C can cost up to $100 a year to rent

The ways in which people make, distribute, and use their goods and services is called the _____ A. Opportunity cost B. Short-term goals C. Economy D. Wealth watch

C economy

The amount of goods and services available for sale is called A demand B reserve C supply D economy

C supply

One use of discretionary income is spending on ____. A groceries B transportation C videos D medication

C videos

Which question should you ask when selling real estate? a. Is the property in good condition? b. Can the buyer get the required financing? c. Will the property decrease in value? d. What is the condition of other properties in the area?

b. Can the buyer get the required financing?

Credit cards allow you to ____. a. spend only the amount in your account b. borrow money for a short term c. protect your checks from thieves d. transfer money between accounts on-line

b. borrow money for a short term

The first step in balancing a checkbook is ____. a. subtracting fees on the bank statement from the checkbook balance b. comparing checks in the check record with those on the statement c. adding interest earned to the checkbook balance d. adding recent deposits to the bank statement balance

b. comparing checks in the check record with those on the statement

Better Business Bureaus handle ____. a. class-action lawsuits b. complaints against local merchants c. potentially unsafe products d. standards for chemicals, cosmetics, and medical devices

b. complaints against local merchants

What might a buyer do to get a low interest rate? a. buy mortgage insurance b. pay points c. pay an application fee d. amortize

b. pay points

The purpose of the Dow Industrial Average is to ____. a. disclose a company's assets and liabilities b. provide statistical averages c. describe companies' management d. Improve investment skills

b. provide statistical averages

The lowest price is generally the wisest choice when ____. a. you can afford to buy any of the options b. quantity and quality are basically the same c. you cannot afford to buy the best quality d. prices and quality differ

b. quantity and quality are basically the same

An advantage of a cooperative is that it ____. a. has a limited number of products b. saves its members money c. offers few customer services d. Sells only to its members

b. saves its members money

The Consumer Credit Counseling Service offers to ____. a. erase legitimate debts that consumers owe b. supervise debt repayment plans c. grant money for repaying debts d. help debtors declare bankruptcy

b. supervise debt repayment plans

An example of an attached home is a ____. a. one-story ranch b. townhouse c. prefabricated house d. Mobile home

b. townhouse

Which is not a speculative investment? a. collectibles b. treasury bills c. commodities d. options

b. treasury bills

When writing a check, include all of the following EXCEPT ____. a. the current date b. the name of the payee c. your signature on the front d. an endorsement on the back

d. an endorsement on the back

Compared with commercial banks, credit unions generally offer ____. a. higher interest rates on loans b. fewer financial services c. higher interest on savings d. lower fees and loan rates

d. lower fees and loan rates

The following are all consumer credit protection laws EXCEPT the ____. a. Credit Card Accountability and Responsibility and Disclosure Act b. Equal Credit Opportunity Act c. Check Clearing for the 21st Century Act d. Consumer Credit Reporting Reform Act

c. Check Clearing for the 21st Century Act

The Federal Deposit Insurance Corporation insures depositors against losing their money in the case of a ____. a. lost debit card b. stolen paycheck c. bank failure d. death in the family

c. bank failure

Which risk component is most likely at fault when an investor's stock becomes worthless? a. inflation b. interest rates c. business failure d. financial markets

c. business failure

Which of the "five Cs of credit" require that a person's assets exceed his or her liabilities? a. character b. capacity c. capital d. Collateral

c. capital

To earn high interest rates on a certificate of deposit, you must accept all the following limitations EXCEPT ____. a. leaving money in for the term of the deposit b. paying a penalty when money is withdrawn early c. completing a monthly bank reconciliation d. depositing a minimum amount

c. completing a monthly bank reconciliation

An advantage of direct selling is ____. a. prompt delivery b. easy return policies c. convenience d. swift refunds

c. convenience

A home inspector is responsible for ____. a. negotiating a house's purchase price b. recommending lawyers and real estate agents c. evaluating the house and the land d. arranging financing for the purchase

c. evaluating the house and the land

The interest is tax deductible on a ____. a. bank loan b. credit union loan c. home equity loan d. Credit card loan

c. home equity loan

A cash flow statement gives you important feedback on your ____. a. assets and liabilities b. short-term and long-term debts c. income and spending patterns d. net pay and gross pay

c. income and spending patterns

In which kind of savings plan does the interest rate vary from month to month? a. regular savings b. certificate of deposit c. money market d. Us savings bonds

c. money market

A disadvantage of renting is ____. a. more responsibilities b. high initial costs c. restricted activities d. eligibility for tax deductions

c. restricted activities

A pension plan is a ____. a. plan for maternity leave b. plan for increases in pay c. retirement plan funded in part by employers d. free life insurance policy

c. retirement plan funded in part by employers

The court system set up by every state to settle minor disagreements is called ____. a. the Supreme Court b. the Consumer Safety Commission c. small claims court d. night court

c. small claims court

A corporation gets it equity capital from its ____. a. sole proprietor b. partners c. stockholders d. professional managers

c. stockholders

A bank pays the full amount of a mortgage to ____. a. the buyer b. A savings and loan association c. the seller d. an escrow account

c. the seller

Of the following investments, the one with the most predictable income is ____. a. gold b. commodities c. real estate d. U.S. Savings Bonds

d. U.S. Savings Bonds

A savings option many employers offer is ____. a. paying interest on employees' savings b. sending employees' children through college c. writing a check for employees' savings accounts d. putting paycheck deductions in employees' retirement funds

d. putting paycheck deductions in employees' retirement funds

A credit bureau is required to follow reasonable procedures to make sure that ____. a. creditors extend credit to retirees b. eligible borrowers on public assistance receive credit c. banks avoid the practice of redlining d. the information in a person's file is correct

d. the information in a person's file is correct