Money matters final exam

A "float" period can be defined as: a. the principal balance due on a loan. b. a home equity loan. c. a lump-sum loan from a credit union. d. the interest charged during one billing period. e. a certain number of days during which no interest is charged.

a certain number of days during which no interest is charged.

What is the affordable monthly mortgage payment if your yearly gross income is $48,000 and monthly payments on an auto loan are $320? a. $1,200 b. $4,800 c. $1,500 d. $4,000 e. $320

a. $1,200

Forty years ago, you began investing $2,000 a year. Because your investments earned an average of 2 percent a year, your investment portfolio has a current dollar value of $120,804. How much did you earn on your investments over the 40-year period of time? a. $40,804 b. $120,804 c. $80,000 d. $40,000 e. $2,000

a. $40,804

Callan Patel is in the 24 percent tax bracket. A non-taxable employee benefit with a value of $500 would have a tax-equivalent value of approximately: a. $658 b. $528 c. $500 d. $360 e. $140

a. $658

Many financial planners recommend that investors choose a mutual fund with an expense ratio that is: a. 1 percent or less. b. over 4 percent. c. between 3 and 4 percent d. between 1 and 2 percent e. between 2 and 3 percent

a. 1 percent or less.

Chloe Jones has determined the following information about her own financial situation. Her checking account is worth $500 and her savings account is worth $900. 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 an annuity worth $5,500 and she has a retirement account worth $38,550. What is the value of her liquid assets? a. $1,400 b. $27,800 c. $171,900 d. $98,000 e. $44,050

a. 1,400

A $200 savings account that earns $8.50 interest in a year has a yield of _____________blank percent. a. 4.25 b. 13.00 c. 2.35 d. 11.25 e. 8.50

a. 4.25

What percent of the average worker's preretirement earnings is replaced by Social Security? a. 40% b. 90% c. 25% d. 70% e. 50%

a. 40%

Which of the following would be a benefit of establishing a trust? a. A trust can do all of these things. b. It can allow you to avoid probate and transfer assets immediately to beneficiaries c. It can reduce or provide for payment of estate taxes. d. It can ensure that your property serves a desired purpose after you die e. It can free you from managing your assets while providing you a regular income

a. A trust can do all of these things.

Samir Nazari has a type of all-inclusive health insurance that has a very low deductible and pays for hospital, surgical, medical, and other bills under one plan. What type of insurance does he have? a. Comprehensive major medical b. Cancer c. Disability income d. Long-term care e. Hospital indemnity

a. Comprehensive major medical

Which provision in a health insurance policy states that you will pay a flat dollar amount each time you receive a covered medical service? a. Copayment b. Elimination period c. Daily benefit d. Policy limit e. Benefit period

a. Copayment

Alia Mazwell must pay $500 for doctor's visits each year before her insurance company will make any payments for doctor's visits. What is this requirement called? a. Deductible b. Coinsurance c. Stop-loss provision d. Coordination of benefits e. Waiver of premium

a. Deductible

If you put $500 in a savings account and make no further deposits, what type of calculation would provide you with the value of the account in 10 years? a. Future value of a single amount b. Simple interest c. Present value of a single amount d. Present value of a series of deposits e. Future value of a series of deposits

a. Future value of a single amount

_____________blank is considered a variable operating cost of an automobile. a. Maintenance b. Insurance c. Interest on auto loan d. Depreciation e. Registration fee

a. Maintenance

Avianna Farmer just received a legal form in the mail from a firm in which she owns stock. This form lists the issues to be decided at the annual stockholders' meeting and asks her to give written permission for someone else to vote for her if she cannot attend. What form has she received in the mail? a. Proxy b. Voting rights c. Equity d. Call option e. Dividends

a. Proxy

Which of the following is not a variable expense? a. Rent or mortgage payments b. Medical expenses c. Clothing d. Vacations e. Food

a. Rent or mortgage payments

Xavier Robbinson is thinking about investing in an investment that is high-risk in the hope of earning a relatively large profit in a short amount of time. Which investment is he most likely considering? a. Speculative stock b. Low-risk bond c. Certificate of deposit d. Low-growth stock e. U.S. government bond

a. Speculative stock

When a lender uses your house as collateral to buy an annuity for you from a life insurance company, it is called a reverse annuity mortgage or: a. an equity conversion b. mortgage life insurance c. a level-premium annuity d. whole life insurance e. an obverse annuity mortgage.

a. an equity conversion

The most expensive loans are available from: a. finance companies. b. credit unions. c. friends. d. parents. e. federal savings banks.

a. finance companies.

The price-earnings ratio for a stock investment is calculated as: :a. price per share divided by the earnings per share b. price per share divided by the number of shares outstanding c. price per share divided by the number of stockholders d. the earnings per share divided by the price per share e. the number of stockholders divided by the price per share

a. price per share divided by the earnings per share

The ______________blank property tax is based on the value of land and buildings. a. real estate b. personal c. proportional d. direct e. regressive

a. real estate

If you establish a(n) _____________blank trust, you retain the right to end the trust or change its terms during your lifetime. a. revocable b. testamentary c. living d. self-declaration e. irrevocable

a. revocable

An order to sell a particular stock at the next available opportunity after the market price of the stock reaches a specified price is called a _____________blank order. a. stop b. limit c. market d. discretionary e. round

a. stop

Tax-deferred retirement plans are a type of: a. tax shelter. b. passive income. c. itemized deduction. d. exemption. e. tax credit.

a. tax shelter.

The 500 in 200/500/50 refers to: a. the limit for all bodily injury claims from a single accident b. the total coverage for an accident c. the amount of the deductible d. property damage liability coverage. e. collision coverage

a. the limit for all bodily injury claims from a single accident

Home insurance premiums are affected most directly by: a. the number of claims in an area b. the profits of the insurance company. c. insurance agents' commission d. processing costs of claims e. government regulations that set premiums

a. the number of claims in an area

A legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a: a. trust b. proxy c. codicil. d. power of attorney e. rider

a. trust

The prices of life insurance policies: a. vary considerably among life insurance companies. b. are set by the government here in the United States c. are higher for females than males d. have remained constant over time e. are relatively the same for all policies

a. vary considerably among life insurance companies.

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

actual spending is greater than planned spending.

A credit purchase with 24 monthly payments of $87 and a down payment of $120 would have a total cost of: a. $1,287 b. $2,208 c. $1,200 d. $2,880 e. $2,088

b. $2,208

Pearl deposited $1,000 in an account paying 2 percent interest. The inflation rate is 5 percent. What is the buying power of the account after one year? a. $950 b. $970 c. $1,000 d. $1,020 e. $1,050

b. $970

Calculate the debt ratio for an individual who has $45,000 in assets and $17,500 in liabilities. a. 2.57 b. .39 c. .26 d. .45 e. 1.75

b. .39

After you buy new life insurance, you have a "free look" period of _____________blank days. a. 20 b. 10 c. 50 d. 30 e. 40

b. 10

A taxpayer with a taxable income of $45,328 and a total tax bill of $5,911 would have an average tax rate of ____ percent. a. 14.67 b. 13.04 c. 22 d. 12 e. 10

b. 13.04

Which of the following is an example of a conventional mortgage? a. A shared-appreciation mortgage b. A fixed-rate mortgage c. A buy-down d. An FHA mortgage e. A home equity loan

b. A fixed-rate mortgage

Before deciding to borrow money, you should ask yourself: a. Can I qualify for a loan? b. All of these choices are correct c. Do I need a loan? d. Can I afford a loan? e. None of these choices are correct.

b. All of these choices are correct

A saver will usually receive higher earnings with which one of the following types of savings plans? a. Debit account b. Certificate of deposit c. Share account d. Credit account e. Regular savings account

b. Certificate of deposit

Which type of insurance protects your ability to earn income in the event you are physically unable to work? a. Home and property b. Disability income c. Car d. Liability e. Life

b. Disability income

Which type of REIT owns and operates income-producing real estate? a. Compound b. Equity c. Simple d. Hybrid e. Mortgage

b. Equity

Which is true of investing in Series EE U.S. Savings Bonds? a. They can be redeemed any time without forfeiting interest. b. Federal income tax on earnings may be deferred until the bonds are redeemed. c. Series EE Bonds must be purchased for set amounts over $100. d. The interest rate on these bonds is adjusted twice a year for inflation. e. The interest earned is always exempt from federal income taxes.

b. Federal income tax on earnings may be deferred until the bonds are redeemed.

Which one of the following would reduce gross income to obtain adjusted gross income? a. Charitable contributions b. IRA contributions c. Moving expenses d. Medical expenses e. Mortgage interest

b. IRA contributions

To determine the difference between two job offers with different salaries and employee benefits, you can use which method? a. Credit reporting b. Market value calculation c. Present value calculation of a pension program d. Present value calculation of a retirement plan e. Vesting

b. Market value calculation

Which of the following would be considered a long-term liability? a. Charge account :b. Mortgage c. Six-month cash loan d. Tax payment e. Insurance premium

b. Mortgage

Which of the following expenses is paid from an escrow account? a. Real estate agent's commission b. Property taxes c. Loan application fee d. Points e. Title insurance

b. Property taxes

Pilar Duarte is concerned about ABC company's ability to make future interest payments on their bonds. What ratio can help her evaluate this concern? a. Current yield calculation b. Times interest earned c. Bond price calculation d. Dividend yield e. Yield to maturity

b. Times interest earned

The appraised value of your home is the: a. price you paid to purchase the home. b. estimated current value of the property. c. amount of money a buyer has offered to purchase the home d. cost remaining after the down payment. e. value used to calculate property taxes.

b. estimated current value of the property.

REITs, Ginnie Maes, and Freddie Macs are examples of _____________blank real estate investments. a. speculative b. indirect c. risky d. low yield e. direct

b. indirect

A lease is a legal document that provides the right to take legal action by the __________blank for nonpayment of rent. a. tenant b. landlord c. builder d. homeowner e. realtor

b. landlord

If a homeowner leaves toys on stairs that results in injury to a delivery person, this may be ruled as: a. assigned risk b. negligence c. vicarious liability. d. coinsurance e. umbrella coverage

b. negligence

When a Treasury bill matures, the investor receives: a. the purchase price b. the face value c. a discount d. the interest only. e. a premium.

b. the face value

Opportunity cost refers to: a. money needed for major consumer purchases. b. what a person gives up by making a choice. c. the amount paid for taxes when a purchase is made d. current interest rates. e. evaluating different alternatives for financial decisions.

b. what a person gives up by making a choice.

Illiquidity in real estate means that: a. you don't have a water well on the property b. you cannot quickly sell the property at the market price c. you can quickly find someone who is willing to pay full value to purchase the property. d. there is an efficient market for the property e. you don't have financial leverage

b. you cannot quickly sell the property at the market price

In estate planning, if you are married: a. your planning consists solely of naming beneficiaries for your life insurance b. your situation is more complex than when you were still single c. you do not need a will as your spouse is entitled to all of your assets. d. you should let your spouse do all of your estate planning e. your estate planning becomes simpler once you have children

b. your situation is more complex than when you were still single

Shakeia Duncan wants to know what home price she can afford. Her annual gross income is $45,000. She owes $550 per month on other debts and expects her property taxes and homeowner's insurance to cost $225 per month. She knows she can get an 8 percent, 30-year mortgage so her mortgage payment factor is 7.34. She expects to make a 20 percent down payment. What is Shakeia's affordable home purchase price? Do not round intermediate calculations and round your final answer to the nearest $100. a. $88,600 b. $42,500 c. $110,700 d. $199,300 e. $254,800

c. $110,700

Nadia Asadi accidentally hit a utility pole. The cost to repair her car was $2,950, and she has a $500 collision deductible. How much will the insurance company be required to pay for the car repair? a. $250 b. $2,950 c. $2,450 d. $500 e. $1,000

c. $2,450

Amaya Cooper just purchased 100 shares in the All-American Fund. The purchase cost for each share was $10. If this fund charges a 3 percent load, what is the total amount of commission she will pay the investment company? a. $300 b. $500 c. $30 d. $230 e. $100

c. $30

Before a 2-for-1 stock split, Juliana's stock was valued at $60 per share. What is her per share value after the split? a. $60 b. $90 c. $30 d. $150 e. $120

c. $30

Your annual income is $90,000. You have a spouse, two kids, a dog and a mortgage - a typical family. What is your life insurance need based on the easy method? a. $310,000 b. $1,000,000 c. $441,000 d. $1,200,000 e. $630,000

c. $441,000

If Tae He-Ran borrows $300 for one year with an APR of 21 percent and an annual service fee of $6, what is her total cost of credit? a. $15 b. $6 c. $69 d. $21 e. $74

c. $69

A person has $1,550 in liabilities, monthly savings of $200, and monthly gross income of $2,000. What is the person's savings ratio? a. 0.77 b. 2.35 c. 0.10 d. 0.16 e. 12.90

c. 0.10

A person with erratic or seasonal income may need an emergency fund of _____________blank months or more. a. 2 b. 3 c. 6 d. 12 e. 10

c. 6

Which statement is true regarding a tax credit? a. A tax credit is the same as a tax deduction. b. A tax credit reduces taxable income. c. A tax credit reduces the amount of taxes owed. d. A charitable contribution is an example of a tax credit. e. Medical expenses are an example of a tax credit.

c. A tax credit reduces the amount of taxes owed.

__________blank coverage protects your automobile from risks such as glass breakage, falling objects, vandalism, or damage caused by hitting an animal. a. Collision b. Medical payments c. Comprehensive physical damage d. Towing and emergency road service e. Wage loss

c. Comprehensive physical damage

Easton Willis has five kids and a lot more debt than a typical family. What method would probably be the best method for him to use to calculate his insurance needs? a. Nonworking spouse method b. Soccer mom method c. Family need method d. Easy method e. DINK method

c. Family need method

Camilla Padilla uses her Visa card to purchase a new digital camera and lens. What type of credit did Camilla use? a. Installment sales credit b. Closed-end credit c. Open-end credit d. Installment cash credit e. Single lump-sum credit

c. Open-end credit

Chen Zhihao was playing softball and got hurt sliding into second base. She gets an x-ray at her doctor's office to make sure her ankle isn't broken. Which part of her basic health insurance coverage should help pay for this x-ray? a. Hospital expense b. Medicare Part B c. Physician expense d. Surgical expense e. Major medical expense

c. Physician expense

Bai Cheng has received $35,000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but is uncertain as some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about? a. Liquidity b. Diversification c. Risk d. Investment growth e. Inflation

c. Risk

Sonya Ellis is buying shares in a mutual fund that avoids companies that do harm to people, animals, and the environment. What type of mutual fund is this? a. Index fund b. Growth fund c. Socially responsible fund d. Sector fund e. Small-cap fund

c. Socially responsible fund

Lucas Estrada is planning to lease an automobile. In an effort to minimize the price of the vehicle being leased, Lucas should compare the _____________blank at different leasing companies. a. number of payments b. down payment c. capitalized cost d. residual value e. money factor

c. capitalized cost

If you need to withdraw your investment money in two years, you should probably invest in: a. mutual funds b. long-term corporate bonds c. certificates of deposits d. stocks. e. long-term government bonds

c. certificates of deposits

Future value calculations involve: a. discounting. b. add-on interest. c. compounding. d. simple interest. e. an annuity.

c. compounding.

People are more likely to lose their incomes due to __________blank than death. a. war b. unemployment c. disability e. a layoff

c. disability

The current market value (price) of a mutual fund's portfolio minus the mutual fund's liabilities equals a figure, that when divided by the number of shares outstanding, results in the: a. accounting value b. outstanding balance c. net asset value or NAV d. LIBOR rate e. book value.

c. net asset value or NAV

An example of a direct real estate investment is a: a. real estate investment trust b. mortgage pool c. single-family dwelling d. real estate syndicate e. limited partnership.

c. single-family dwelling

For a corporation, equity capital is provided by: a. bondholders b. government agencies c. stockholders. d. lenders e. financial managers

c. stockholders.

A tax-deferred employee benefit is: a. never subject to federal income tax. b. never subject to state income tax. c. taxed at some future time. d. taxed at a special rate. e. only available to union employees.

c. taxed at some future time.

Ailani Groom owns a $1,000 corporate bond that pays 6 percent. What is the dollar amount of each semiannual interest payment? a. $300.00 b. $600.00 c. $60.00 d. $30.00 e. $3.00

d. $30.00

As a result of the COVID-19 pandemic, new cons resulted in several scams including: a. stimulus check swindles. b. fake coronavirus charities. c. fraudulent COVID-19 test kits and treatments. d. All of these choices are correct. e. work-at-home scams.

d. All of these choices are correct.

36)Which method of determining life insurance needs is designed specifically for a working couple with no dependents? a. "Family need" method b. Easy method c. "Nonworking" spouse method d. DINK method e. The multiple of income method

d. DINK method

Which of the following can be a management problem when investing directly in real estate? a. Disagreements among syndicate members b. Financial planners do not support buying small properties c. Limited financial liability d. Finding reliable tenants e. Inability to sell your interest in a limited partnership

d. Finding reliable tenants

Reynaldo Mendez wants to buy a new sail boat. He is planning on making a $9,000 cash down payment, which is a large portion of the cost of what he is financing. In which way is Reynaldo reducing his lender's risk? a. He is sharing the interest rate risk with his lender. b. He is repaying the loan over a faster period of time. c. NOT THIS ONE d. He is taking a higher stake in the asset he is purchasing. e. He is increasing his monthly payments.

d. He is taking a higher stake in the asset he is purchasing.

_____________blank risk refers to the danger of changes in buying power during times of rising or falling prices. A) Liquidity B) Income C) Personal D) Inflation E) Interest Rate

d. Inflation

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death? a. Tenants in common b. Tenancy by default c. Tenancy by the entirety d. Joint tenants with the right of survivorship e. Tenancy by seniority

d. Joint tenants with the right of survivorship

Olivia Sanchez was seriously injured in a car accident and is paralyzed from the waist down. Luckily, she has an insurance policy that will pay for someone to come in and help with her daily activities such as bathing, dressing, and household chores. What type of insurance policy is this likely to be? a. Disability income b. Cancer c. Comprehensive major medical d. Long-term care e. Hospital indemnity

d. Long-term care

Which type of computation would a person use to determine the current value of a desired amount in the future? a. Simple interest b. Future value of a single amount c. Future value of a series of deposits d. Present value of a single amount e. Compound interest

d. Present value of a single amount

What is the most common reason given by American mutual fund owners for investing in funds? a. Saving for emergencies b. To reduce taxable income c. Saving for a new car d. Saving for retirement e. Saving for someone's education

d. Saving for retirement

Which one of the following bonds would likely have the lowest risk? a. Corporate bond b. Common stock c. Municipal bond d. Treasury bill e. Junk bond

d. Treasury bill

What type of personal liability coverage is also called a personal catastrophe policy? a. Personal property floater b. Coinsurance floater c. Medical payments coverage d. Umbrella policy e. Assigned risk clause

d. Umbrella policy

Graham Ebbetts is permanently disabled while on the job. Which of the following is the most likely source of disability income for Graham? a. Social Security b. His employer c. An individual insurance policy d. Worker's compensation e. His health insurance policy

d. Worker's compensation

A mutual fund that invests in stocks and bonds with the primary objectives of conserving principal, providing income, and long-term growth is called a(n) _____________blank fund. a. money market b. growth c. industry d. balanced e. income

d. balanced

Savings compounded _____________blank would have the highest effective yield. a. weekly b. monthly c. annually d. daily e. semiannually

d. daily

Payments that do not vary from month to month are _____________blank expenses. A) fixed B) usage C) variable D) luxury E) output

d. fixed

Inflation is likely to result from: a. lower demand by consumers. b. increased production by business c. lower interest rates. d. increased demand by consumers without increased supply e. an increase in the supply of a product

d. increased demand by consumers without increased supply

Discretionary income is: a. referred to as take-home pay. b. referred to as disposable income. c. referred to as net pay. d. money left over after paying for housing, food, and other necessities. e. a person's earnings after deducting taxes and other items.

d. money left over after paying for housing, food, and other necessities.

Capital gains refer to: a. tax-exempt investments. b. portfolio income. c. earnings from passive activities. d. profits from the sale of a capital asset. e. earnings from investments such as dividends or interest.

d. profits from the sale of a capital asset.

Individuals and families purchase life insurance primarily to: a. keep up with people with a similar financial situation b. make early retirement possible c. fund lavish retirement vacations d. protect someone who depends on them from financial losses caused by their death. e. pay liability claims resulting from accidents.

d. protect someone who depends on them from financial losses caused by their death.

The main purpose of the Edmund's Used Car Prices is to: a. reduce sales of stolen vehicles. b. list cars available for sale from government agencies. c. monitor safety problems of existing vehicles. d. provide current used-car prices. e. provide VIN numbers for vehicles.

d. provide current used-car prices.

Sadie Morales is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to help: a. lobby for improved consumer protection laws. b. recommend reputable companies in an area. c. represent businesses in government hearings. d. resolve consumer complaints with local merchants. e. evaluate products and services for quality.

d. resolve consumer complaints with local merchants.

A family with $50,000 in assets and $22,000 of liabilities would have a net worth of: a. $50,000 b. $41,000 c. $67,000 d. $22,000 e. $28,000

e. $28,000

Joaquin Garcia earns $40,000 a year. His monthly expenses total $2,500. What is the minimum amount of money that he should set aside in an emergency fund? a. $2,500 b. $5,000 c. $10,000 d. $20,000 e. $7,500

e. $7,500

Credit bureaus obtain data from which of the following? a. Finance companies b. Banks c. Merchants d. Credit card companies e. All of these choices are correct.

e. All of these choices are correct.

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. Fintech involves which of the following?A.Apps, websites, and mobile devices for bankingB.Artificial intelligence, robotics, and dronesC.Blockchain, crowdfunding, and cryptocurrencies a. Only A b. Only B c. Only C d. Only A and B e. All of these choices are correct.

e. All of these choices are correct.

Which of the following is the process of spreading your money among several different types of investments to lessen risk? a. Bond laddering b. Professional management c. Dollar appreciation d. Book entry e. Asset allocation

e. Asset allocation

Which provision in a health insurance policy prevents you from collecting benefits from two or more group policies that would in total exceed the actual charges? a. Exclusions and limitations b. Assigned benefits c. Guaranteed renewable d. Benefit limits e. Coordination of benefits

e. Coordination of benefits

Rafael Barroso 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? a. Capital gain b. Interest c. Option premium d. Rebate e. Dividend

e. Dividend

Emma plans to rent instead of buying her housing. Which advantage of renting will she realize? a. Restricted lifestyle b. Property value increases c. Tax deductions d. Home remodeling flexibility e. Ease of mobility

e. Ease of mobility

Ana is trying to decide whether to lease or buy a car. Which one of the following is not a factor necessary in making the comparison? a. Residual value b. Down payment c. Mileage overage charges d. Monthly lease payments e. Gasoline costs

e. Gasoline costs

Which of the following is true of a testamentary trust? a. It is valuable for experienced beneficiaries. b. It does not provide the benefit of asset management c. It is not established by your will. d. It becomes effect upon your signature. e. It does not protect your assets from the probate process.

e. It does not protect your assets from the probate process.

The stock exchange known to trade stock for innovative, forward-looking mainly tech oriented growth companies is the: a. STSE b. S&P 100. c. American Stock exchange d. NYSE. e. Nasdaq

e. Nasdaq

You probably have little or no need for life insurance if you are: a. a two-earner household with a mortgage b. gainfully employed c. married and your spouse works d. divorced and have two children e. a single person living with your parents.

e. a single person living with your parents.

A(n) _____________blank fund is a fund that generally invests in the stocks or other securities contained in a specific stock or securities index. a. closed-end b. open-end c. load d. no-load e. exchange-traded

e. exchange-traded

Real property equity investments are a possible hedge against: a. recession b. deflation. c. disinflation d. unemployment e. inflation

e. inflation

Equity financing is a preferred choice to provide financing for a corporation because: a. only interest must be paid for the first five years b. a lender is always available to provide this type of financing. c. it can wait five years before buying back the shares d. repayment doesn't have to be made for ten years or more e. it does not have to be repaid.

e. it does not have to be repaid.

The rule of 78s dictates that a borrower pays: a. more interest in the middle of the loan period. b. more interest at the end of the loan period. c. equal amounts of interest throughout the loan d. less interest than indicated by the APR. e. more interest at the beginning of the loan period.

e. more interest at the beginning of the loan period.

Renter's insurance would include coverage for: a. house and other structures b. earthquake damage c. flood damage. d. umbrella liability e. personal property

e. personal property

An IRA, Keogh plan, and 401(k) plan are examples of: a. tax-exempt retirement plans. b. self-employment insurance programs. c. job-related expenses that are tax deductible. d. capital gains. e. tax-deferred retirement plans.

e. tax-deferred retirement plans.

If you dispute the accuracy of information in your credit file: a. you have no means of correcting it. b. you must wait at least six months prior to launching an investigation. c. the credit bureau has no power to change it. d. you should sue the credit bureau. e. the credit bureau must reinvestigate and modify or remove inaccurate data.

e. the credit bureau must reinvestigate and modify or remove inaccurate data.

Sloane owes $2,450 on her car loan. According to Edmund's Used Car Prices, her car is valued at $1,850. The term used to refer to this situation is: a. pre-approval. b. capitalized cost. c. money factor d. residual value. e. upside-down.

e. upside-down.