Transcript Final Exam Review
Final Exam Review
True or False: Determining how much money you should set aside for retirement and how those funds should be invested should not be of concern for people until they near their retirement age.
_________ bonds are issued by state and local government agencies.
In the loan repayment schedule, the term amortized refers to
The repayment of the principal through a series of equal payments
True or False: When money earns interest on interest, it is said to be compounding
Sandy had a beginning balance on her MasterCard statement of $300. This month she had purchases of $400, payments of $300, and a $100 cash advance. To avoid interest charges, Sandy must make a payment of: A. $500 B. $400 C. $100 D. Sandy cannot avoid interest charges
Sandy cannot avoid interest charges
The security that represents equity or ownership of a corporation is
True or False: A personal loan is different from a credit card in that it is normally used to finance one large purchase
Which one thing do you always have with common stock?
True or False: On an amortization schedule, more interest and less principle is paid each month as the loan matures.
True or False: Long-term liabilities are debts that will be paid at least three years into the future.
True or False: Goals with a time frame five or more years into the future are called intermediate-term goals.
Wanda Clark expects interest rates to decline in the next few months. To maximize her earnings, she should put her savings in a A. Savings Account B. Six Month CD C. Money Market account D. Two-year CD
Which of the following will not protect you from identity theft while on vacation?
A. Do not leave credit slips in restaurants B. Have your mail stopped C. Carry all credit cards, passports, and birth certificates with you.
D. Do not leave sensitive info. In your hotel room when you are not there.
Carry all credit cards, passports, and birth certificates with you.
All of the following may qualify for an auto discount except: A. a driver training program B. High grades C. Several cars insured with the same company D. under 25 years old
Under 25 years old
A budget will not do which of the following?
• • • • Anticipate cash shortages Determine the excess you have to invest Help determine if cash outflows will be suficient to cover cash inflows Determine the additional payments you can make to reduce personal debt
Help determine if cash outflows will be sufficient to cover cash inflows
All of the following are correct statements about credit except • • • • Creditor provides funds The interest is the total amount to be repaid Repayment will include interest Credit needs to be paid back in the future
The interest is the total amount to be repaid
Checking accounts may offer all of the following except • • • • Overdraft protection Stop payment services Account balance insurance in excess of $250,000 ATM privileges
Account balances insurance in excess of $250,000
True or False: The most important element in FICO credit scoring is your payment history
You can reduce your risk by
Diversifying your investments
Which of the following is not true about a CD • • • • They are long-term investments of two years or more They pay higher than T-bills Funds are locked in for specific periods of time A penalty is imposed for early withdrawal
They are long-term investments of two years or more