seefeldt finance final

1. asset allocation 2. business cycle 3. corporate bonds 4. dividends 5. emergency fund 6. equity capital 7. line of credit 8. liquidity 9. maturity 10. speculative

1. The process of spreading assets among several different investments to reduce risk 2. The increase and decrease in a nation's economic activity 3. A corporation's written pledge to repay a specified amount of money with interest.: 4. A distribution of money, stock, or other property that a corporation pays to stockholders 5. An amount of money you can obtain quickly in case of immediate need 6. Money that a business obtains from its owners 7. The dollar amount that a lender makes available to a borrower 8. The ability to convert financial resources to cash without a loss in value 9. The date on which a bond is to be repaid 10. The name given to a high-risk investment

true

A budget is a spending plan that outlines how you will spend available income

$28,000

A family with $50,000 in assets and $22,000 of liabilities would have a net worth of

$1,185

Beverly Frickel purchased 100 shares of Gleason Systems stock for $32.50 per share. Her commission for this purchase was $25. She sold the stock two years later for $45 per share and a commission of $40. What was Beverly's total dollar return on this stock?

dividend

James Green just bought a stock which he expects will provide him with a quarterly cash payment, although that payment is not guaranteed. In fact, he expects the amount of the payment to vary over time. What type of payment is he expecting to receive?

common stock

Jeff Goldblum has just purchased a security which has no maturity date and no promised dividend payments. He can recoup his investment by either selling the security to another individual. What type of security did Jeff purchase?

preffered

Lindsey Holt owns stock in the Galloway Gems Company. She knows in advance that the dividend on this stock is a $1.50 per share. Given this, you know for sure that she purchased which type of stock?

$173,100

Patricia McDonald has determined the following information about her own financial situation. Her checking account is worth $545 and her savings account is worth $1,000. She owns her own home that has a market value of $119,000. She has furniture and appliances worth $8,500 and a laptop worth $1,200. She has a car worth $9,700 and owes $8,200 on her auto loan. She has also purchased some stock worth $5,500 and she has a retirement account worth $27,655. What is the total value of her assets?

buying a house

The following are examples of intangible-purchase goals, except:

intangible-purchase

________ goals relate to personal relationships, health, and education

anticipating spending through budgeting

a major activity in the planning component of financial planning is

items you own and amounts you owe

a personal balance sheet presents

$5,685

arnell Johnson bought 200 shares of Black Petroleum Company for $100 per share and paid a commission of $50. He sold the stock five years later for $125 per share and paid $65 commission. While he held the stock, it paid a dividend of $4.00 per share. What was Arnell's total dollar return on this stock?

$66,800

catherine Jones 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 mutual fund worth $4,500 and she has a retirement account worth $62,300. What is the value of her investment assets?

right to vote at annual meetings

christopher Pratt just bought shares of common stock. Which one of the following is he entitled to based on his ownership of these shares

auto loans

common long-term liabilities include

when the debt is due

current liabilities differ from long-term liabilities based on

higher interest rates

higher consumer prices are likely to be accompanied by

higher employment levels.

increased consumer spending will usually cause

false

increased demand for a product or service will usually result in lower prices for the item

increased demand by consumers without increased supply.

inflation is likely to result from:

$164,000

patricia McDonald has determined that the value of her liquid assets is $4,500, the value of her real estate is $135,000, the value of her personal possessions is $58,000, and the value of her investment assets is $72,000. 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 Patricia's net worth?

the Federal Reserve System

the Fed refers to

balance sheet

the current financial position of an individual or family is best presented with the use of a:

all of these must be disclosed

the federal government requires corporations selling new issues of securities to disclose information about itself in a prospectus. Which of the following must be disclosed

the money obtained from stockholders does not have to be repaid

to finance their business activities, many corporations prefer selling common stock because

stock split

valerie Kilmer owns stock in the Williams Widget Company. She was just advised that in the near future she will be receiving two shares for every one share she owns today. What has the company declared that will cause this change to her shares?

opportunity cost refers to

what a person gives up by making a choice

investment records

which category of a home file includes stock and bond purchase documents?

personal balance sheet and cash flow statement

which of the following are considered to be personal financial statements

saving money instead of taking a vacation

which of the following is an example of opportunity cost

inflation rate greater than loan rate

which of the following would increase the risk of a loan to the lender

present value of a single amount

which type of computation would a person use to determine the current value of a desired amount in the future

a lower money supply

Higher interest rates can be caused by

surplus

If a family planned to spend $400 for food during April but only spent $350, this difference would be referred to as a

variable expenses

flexible payments that change from month to month are referred to as

false

furniture, jewelry, and an automobile are examples of liquid assets

true

inflation reduces the buying power of the dollar

cash and items of value that can be easily converted to cash

liquid assets refer to:

false

money management refers to long-term investment decisions

liquidity risk

some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds. This problem refers to

economics

the study of how wealth is created and distributed is

false

time value of money refers to changes in consumer spending when inflation occurs

net worth

total earnings of a person minus the deductions for taxes and other items is called