Question 1

If you want to improve your credit score you should:

Accepted Answer

A)   get copies of your credit report.
B)   pay your bills on time.
C)   make sure you understand how your credit score is determined.
D)   beware of credit-repair scams.
E)   do all of the options listed here.F) A) and C)
G) C) and D)

Question 2

All of the following are signals of potential debt problems EXCEPT:

Accepted Answer

A)   paying only the minimum balance each month.
B)   missing payments or paying late.
C)   using savings to pay normal bills.
D)   depending on overtime to meet normal expenses.
E)   an employment contract.F) B) and E)
G) A) and D)

Question 3

A bond is:

Accepted Answer

A)   the creation of a new security by combining otherwise separate loan agreements.
B)   an ownership of a firm.
C)   a security that represents a debt to be paid.
D)   a market in which securities are traded after their first sale.
E)   a private firm that accepts deposits and extends loans.F) B) and D)
G) B) and C)

Question 4

How much interest would be paid on a credit card at the end of the second 30-day month on a one-year $1,000 loan at a 12.99% annual rate? Assume you pay nothing at the end of the first 30-day month.

Accepted Answer

First month: $1,000 ...

Question 5

What are some of the costs and benefits of home ownership?

Accepted Answer

Home ownership has many costs and benefi...

Question 6

Student loans are:

Accepted Answer

A)   typically only available for the poor.
B)   sponsored by large businesses who subsidize the interest rates.
C)   backed by the government at lower-than-market rates of interest.
D)   provided by the university, who pays part of the interest cost.
E)   available for any student, as long as he or she passes every course.F) A) and C)
G) C) and E)

Question 7

In determining your credit capacity,you should provide for basic necessities first.An example is:

Accepted Answer

A)   furniture.
B)   home furnishings.
C)   mortgage or rent.
D)   your automobile.
E)   durable goods.F) A) and B)
G) A) and E)

Question 8

Which of the following is a credit bureau?

Accepted Answer

A)   Federal Reserve
B)   Federal Trade Commission
C)   Better Business Bureau
D)   Experian
E)   FICOF) C) and D)
G) D) and E)

Question 9

A cost associated with home buying would be:

Accepted Answer

A)   renter's insurance.
B)   the security deposit.
C)   annual appreciation of the property.
D)   property taxes.
E)   interest lost on the security deposit.F) A) and D)
G) A) and C)

Question 10

A person borrows $200 from a payday loan company and pays $10 interest for two weeks.This would result in an annual interest rate of approximately ________.Ignore compounding.

Accepted Answer

A)   260%
B)   130%
C)   40%
D)   20%
E)   5%F) B) and D)
G) D) and E)

Question 11

Before a two-for-one stock split,Len's stock was valued at $50 per share.What is his per-share value after the split?

Accepted Answer

A)   $25
B)   $50
C)   $100
D)   $125
E)   $150F) A) and B)
G) A) and D)

Question 12

is the equation for the:

Accepted Answer

A)   interest rate of a stock.
B)   dividend of a stock.
C)   maturity value of a bond.
D)   par value of a bond.
E)   interest rate of a bond.F) A) and E)
G) B) and C)

Question 13

Which one of the following is an advantage of using credit?

Accepted Answer

A)   potential bankruptcy
B)   spending beyond your budget
C)   funding an emergency expense
D)   committing future income to pay for current purchases
E)   incurring interest chargesF) B) and D)
G) C) and D)

Question 14

The outstanding balance owed on a debt is the:

Accepted Answer

A)   APR.
B)   principal.
C)   finance charge.
D)   equity.
E)   amortization.F) A) and B)
G) A) and C)

Question 15

Ownership shares in a firm are known as:

Accepted Answer

A)   bonds.
B)   stocks.
C)   treasuries.
D)   mortgages.
E)   chips.F) A) and E)
G) B) and E)

Question 16

Jillian wants to rent an apartment that has monthly rent payments of $850 and requires a $400 security deposit and a $500 damage deposit.In order to move in,Jillian will probably be required to pay:

Accepted Answer

A)   $850.
B)   $1,250.
C)   $1,750.
D)   $2,100.
E)   $1,350.F) B) and E)
G) B) and D)

Question 17

A stock that pays predictable dividends is called a(n) ________ stock.

Accepted Answer

A)   defensive
B)   cyclical
C)   growth
D)   income
E)   blue-chipF) A) and C)
G) A) and E)

Question 18

An investment account that increases from $1,000 to $1,005 in a month is earning approximately ________ annual interest.

Accepted Answer

A)   0.5%
B)   5.0%
C)   0.05%
D)   10.0%
E)   6.0%F) A) and E)
G) None of the above

Question 19

Your friend Jamarcus is an award-winning chef.Jamarcus wants to start his own restaurant in Denver but is unable to obtain a loan from his local bank.Jamarcus has decided to issue a one-year bond with a par value of $6,000 and an interest rate of 10%.If you wanted to buy this bond,what would be the initial price?

Accepted Answer

A)   $6,600.00.
B)   $5,500.50.
C)   $6,000.00.
D)   $5,000.00.
E)   $5,454.54.F) A) and C)
G) None of the above

Question 20

Which one of the following investments would rank the highest with regard to safety,that is,lowest risk?

Accepted Answer

A)   government bond
B)   common stock
C)   commodities, such as oil
D)   corporate bond
E)   real estateF) A) and C)
G) All of the above

Exam 19: Personal Finance

Correct Answer
verified

A stock that pays predictable dividends is called a(n) ________ stock.

Correct Answer
verified

If you want to improve your credit score you should:

Correct Answer
verified

A person borrows $200 from a payday loan company and pays $10 interest for two weeks.This would result in an annual interest rate of approximately ________.Ignore compounding.

Correct Answer
verified

is the equation for the:

Correct Answer
verified

Which one of the following investments would rank the highest with regard to safety,that is,lowest risk?

Correct Answer
verified

A bond is:

Correct Answer
verified

Student loans are:

Correct Answer
verified

Which one of the following is an advantage of using credit?

Correct Answer
verified

Which of the following is a credit bureau?

Correct Answer
verified

Ownership shares in a firm are known as:

Correct Answer
verified

A cost associated with home buying would be:

Correct Answer
verified

All of the following are signals of potential debt problems EXCEPT:

Correct Answer
verified

How much interest would be paid on a credit card at the end of the second 30-day month on a one-year $1,000 loan at a 12.99% annual rate? Assume you pay nothing at the end of the first 30-day month.

Correct Answer
verified
First month: $1,000 ...
View Answer

Jillian wants to rent an apartment that has monthly rent payments of $850 and requires a $400 security deposit and a $500 damage deposit.In order to move in,Jillian will probably be required to pay:

Correct Answer
verified

In determining your credit capacity,you should provide for basic necessities first.An example is:

Correct Answer
verified

Before a two-for-one stock split,Len's stock was valued at $50 per share.What is his per-share value after the split?

Correct Answer
verified

What are some of the costs and benefits of home ownership?

Correct Answer
verified
Home ownership has many costs and benefi...
View Answer

The outstanding balance owed on a debt is the:

Correct Answer
verified

An investment account that increases from $1,000 to $1,005 in a month is earning approximately ________ annual interest.

Correct Answer
verified

Exam 19: Personal Finance

Correct AnswerverifiedShow Answer

A stock that pays predictable dividends is called a(n) ________ stock.

Correct AnswerverifiedShow Answer

If you want to improve your credit score you should:

Correct AnswerverifiedShow Answer

A person borrows $200 from a payday loan company and pays $10 interest for two weeks.This would result in an annual interest rate of approximately ________.Ignore compounding.

Correct AnswerverifiedShow Answer

is the equation for the:

Correct AnswerverifiedShow Answer

Which one of the following investments would rank the highest with regard to safety,that is,lowest risk?

Correct AnswerverifiedShow Answer

A bond is:

Correct AnswerverifiedShow Answer

Student loans are:

Correct AnswerverifiedShow Answer

Which one of the following is an advantage of using credit?

Correct AnswerverifiedShow Answer

Which of the following is a credit bureau?

Correct AnswerverifiedShow Answer

Ownership shares in a firm are known as:

Correct AnswerverifiedShow Answer

A cost associated with home buying would be:

Correct AnswerverifiedShow Answer

All of the following are signals of potential debt problems EXCEPT:

Correct AnswerverifiedShow Answer

How much interest would be paid on a credit card at the end of the second 30-day month on a one-year $1,000 loan at a 12.99% annual rate? Assume you pay nothing at the end of the first 30-day month.

Correct AnswerverifiedFirst month: $1,000 ...View AnswerShow Answer

Jillian wants to rent an apartment that has monthly rent payments of $850 and requires a $400 security deposit and a $500 damage deposit.In order to move in,Jillian will probably be required to pay:

Correct AnswerverifiedShow Answer

In determining your credit capacity,you should provide for basic necessities first.An example is:

Correct AnswerverifiedShow Answer

Before a two-for-one stock split,Len's stock was valued at $50 per share.What is his per-share value after the split?

Correct AnswerverifiedShow Answer

What are some of the costs and benefits of home ownership?

Correct AnswerverifiedHome ownership has many costs and benefi...View AnswerShow Answer

The outstanding balance owed on a debt is the:

Correct AnswerverifiedShow Answer

An investment account that increases from $1,000 to $1,005 in a month is earning approximately ________ annual interest.

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
First month: $1,000 ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Home ownership has many costs and benefi...
View Answer

Correct Answer
verified

Correct Answer
verified