Question 1

Credit bureaus compile information from all of the sources listed EXCEPT:

Accepted Answer

A)   banks.
B)   creditors.
C)   merchants.
D)   court records.
E)   school transcripts.F) A) and B)
G) B) and E)

Question 2

Which of the following statements is true about stocks?

Accepted Answer

A)   Owners of stock securities are guaranteed a return on their investments.
B)   Stocks have a maturity date.
C)   Stocks represent a debt to be paid.
D)   Owners of stock securities are actual owners of the firm.
E)   Only institutional investors can own stock securities.F) A) and C)
G) A) and E)

Question 3

Ken plans to rent instead of buy a house.Which advantage of renting will he realize?

Accepted Answer

A)   tax deductions
B)   lower initial costs
C)   property value appreciation
D)   restricted lifestyle
E)   home improvement flexibilityF) A) and D)
G) B) and E)

Question 4

The maturity date of a bond is:

Accepted Answer

A)   the date on which the loan is given out.
B)   the date on which the loan repayment is due.
C)   always one year after the loan is given out.
D)   always more than one year after the loan is given out.
E)   the date on which the bond is worth the price of the bond.F) All of the above
G) A) and D)

Question 5

The study of finance involves all of the aspects listed about people and their financial resources EXCEPT:

Accepted Answer

A)   spend.
B)   save.
C)   invest.
D)   manage.
E)   store.F) A) and E)
G) All of the above

Question 6

Opportunity cost refers to:

Accepted Answer

A)   current spending habits.
B)   changing economic conditions that affect a person's cost of living.
C)   storage facilities to make financial documents easily available.
D)   trade-offs associated with financial decisions.
E)   avoiding the use of consumer credit.F) B) and C)
G) B) and E)

Question 7

What are some repayment options of student loans?

Accepted Answer

A)   pay a fixed amount each month, or pay-as-you-earn up to 10% of discretionary income
B)   pay increasing amounts, or pay-as-you-earn up to 15% of discretionary income
C)   pay a fixed amount each month, or pay in decreasing amounts over time
D)   pay in decreasing amounts, or pay when you can, but interest accumulates
E)   pay-as-you-earn up to 15% of discretionary income, or pay increasing amountsF) A) and C)
G) B) and C)

Question 8

A stock:

Accepted Answer

A)   represents a share of ownership in a corporation.
B)   represents a debt owed by a business or organization.
C)   is a portfolio.
D)   is an example of leverage.
E)   bypasses voting by the board of directors.F) B) and C)
G) A) and E)

Question 9

Which one of the following bonds would likely have the lowest risk?

Accepted Answer

A)   Treasury bill
B)   municipal bond
C)   corporate bond
D)   government agency bond
E)   junk bondF) C) and E)
G) B) and D)

Question 10

The highest bond rating issued by Moody's is:

Accepted Answer

A)   AAA.
B)   Aaa.
C)   A+.
D)   BB.
E)   Aa.F) C) and D)
G) B) and E)

Question 11

After a two-for-one stock split:

Accepted Answer

A)   earnings per share decrease.
B)   earnings per share increase.
C)   the total value of the company decreases.
D)   the total value of the company increases.
E)   dividend return on investment decreases.F) C) and D)
G) B) and D)

Question 12

All of the following are part of the monthly house payment EXCEPT:

Accepted Answer

A)   principal.
B)   real estate property taxes.
C)   homeowner's insurance.
D)   interest.
E)   equity.F) C) and E)
G) A) and B)

Question 13

Charlene Wells wants to invest her summer earnings.She wants less risk,so an investment where investors pool their money is required.Also,since she works all the time,she wants the investment to be managed by professional managers.What type of investment does Charlene want?

Accepted Answer

A)   stock
B)   T-bill
C)   corporate bond
D)   mutual fund
E)   real estateF) All of the above
G) A) and D)

Question 14

Private firms that accept deposits and extend loans are known as:

Accepted Answer

A)   bonds.
B)   banks.
C)   stocks.
D)   financials.
E)   securities.F) C) and D)
G) All of the above

Question 15

Which one of the following investments would provide the most predictable source of income?

Accepted Answer

A)   commodities
B)   junk bonds
C)   precious metals
D)   stock
E)   government bondsF) B) and E)
G) C) and E)

Question 16

________ typically have voting rights.

Accepted Answer

A)   Bondholders
B)   Stockholders
C)   Neither stockholders nor bondholders
D)   Both stockholders and bondholders
E)   All corporate executivesF) D) and E)
G) A) and D)

Question 17

Carl has found an apartment that has monthly rent payment of $950 and requires a one month's rent security deposit and a $500 damage deposit.In order to move in,Carl will probably be required to pay:

Accepted Answer

A)   $950.
B)   $1,450.
C)   $1,900.
D)   $2,400.
E)   $3,350.F) A) and E)
G) C) and D)

Question 18

You own a $1,000 bond that pays 9.25% interest.What is the amount of interest you will receive each six months?

Accepted Answer

A)   $4.62
B)   $9.25
C)   $92.50
D)   $46.25
E)   $23.13F) C) and D)
G) A) and B)

Question 19

You friend Michelle is starting a fitness center that specializes in helping people get in shape through exercise and eating healthy.Because her business is new and risky,she is unable to obtain a loan from the local bank.You agree to pay $7,500 for a one-year bond from Michelle with an interest rate of 5%.The par value of the bond is:

Accepted Answer

A)   $7,875.00.
B)   $7,500.00.
C)   $7,142.86.
D)   $7,000.00.
E)   $375.00.F) C) and D)
G) B) and E)

Question 20

According to Moody's,bonds with extremely poor prospects of attaining any real investment standing are rated:

Accepted Answer

A)   A.
B)   B.
C)   C.
D)   E.
E)   F.F) D) and E)
G) A) and E)

Exam 19: Personal Finance

You own a $1,000 bond that pays 9.25% interest.What is the amount of interest you will receive each six months?

Correct Answer
verified

According to Moody's,bonds with extremely poor prospects of attaining any real investment standing are rated:

Correct Answer
verified

________ typically have voting rights.

Correct Answer
verified

The maturity date of a bond is:

Correct Answer
verified

Private firms that accept deposits and extend loans are known as:

Correct Answer
verified

After a two-for-one stock split:

Correct Answer
verified

Carl has found an apartment that has monthly rent payment of $950 and requires a one month's rent security deposit and a $500 damage deposit.In order to move in,Carl will probably be required to pay:

Correct Answer
verified

Credit bureaus compile information from all of the sources listed EXCEPT:

Correct Answer
verified

Opportunity cost refers to:

Correct Answer
verified

Which of the following statements is true about stocks?

Correct Answer
verified

The highest bond rating issued by Moody's is:

Correct Answer
verified

All of the following are part of the monthly house payment EXCEPT:

Correct Answer
verified

A stock:

Correct Answer
verified

Which one of the following bonds would likely have the lowest risk?

Correct Answer
verified

Ken plans to rent instead of buy a house.Which advantage of renting will he realize?

Correct Answer
verified

What are some repayment options of student loans?

Correct Answer
verified

Correct Answer
verified

Charlene Wells wants to invest her summer earnings.She wants less risk,so an investment where investors pool their money is required.Also,since she works all the time,she wants the investment to be managed by professional managers.What type of investment does Charlene want?

Correct Answer
verified

The study of finance involves all of the aspects listed about people and their financial resources EXCEPT:

Correct Answer
verified

Which one of the following investments would provide the most predictable source of income?

Correct Answer
verified

Exam 19: Personal Finance

You own a $1,000 bond that pays 9.25% interest.What is the amount of interest you will receive each six months?

Correct AnswerverifiedShow Answer

According to Moody's,bonds with extremely poor prospects of attaining any real investment standing are rated:

Correct AnswerverifiedShow Answer

________ typically have voting rights.

Correct AnswerverifiedShow Answer

The maturity date of a bond is:

Correct AnswerverifiedShow Answer

Private firms that accept deposits and extend loans are known as:

Correct AnswerverifiedShow Answer

After a two-for-one stock split:

Correct AnswerverifiedShow Answer

Carl has found an apartment that has monthly rent payment of $950 and requires a one month's rent security deposit and a $500 damage deposit.In order to move in,Carl will probably be required to pay:

Correct AnswerverifiedShow Answer

Credit bureaus compile information from all of the sources listed EXCEPT:

Correct AnswerverifiedShow Answer

Opportunity cost refers to:

Correct AnswerverifiedShow Answer

Which of the following statements is true about stocks?

Correct AnswerverifiedShow Answer

The highest bond rating issued by Moody's is:

Correct AnswerverifiedShow Answer

All of the following are part of the monthly house payment EXCEPT:

Correct AnswerverifiedShow Answer

A stock:

Correct AnswerverifiedShow Answer

Which one of the following bonds would likely have the lowest risk?

Correct AnswerverifiedShow Answer

Ken plans to rent instead of buy a house.Which advantage of renting will he realize?

Correct AnswerverifiedShow Answer

What are some repayment options of student loans?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Charlene Wells wants to invest her summer earnings.She wants less risk,so an investment where investors pool their money is required.Also,since she works all the time,she wants the investment to be managed by professional managers.What type of investment does Charlene want?

Correct AnswerverifiedShow Answer

The study of finance involves all of the aspects listed about people and their financial resources EXCEPT:

Correct AnswerverifiedShow Answer

Which one of the following investments would provide the most predictable source of income?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified