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100
RadioShack offers shares of stock to investors at a consistent rate of 6% without any voting rights. What type of stock is it offering? A. Bond B. Common stock C. Mutual fund D. Preferred stock
D. Preferred stock
200
Bob sells specialty guitars and hopes to exchange the guitars for a much higher value than the purchase price. Which type of investment could the guitars become? A. Collectibles B. Commodities and futures C. Commodity exchanges D. Gold, silver, and precious metals
A. Collectibles
200
James received a $100 check. He wants to endorse this check over to Steve. Which type of endorsement should James use? A. Blank B. Full C. Non-endorsement D. Restrictive
B. Full
200
How are common and preferred stocks similar? A. Both pay limited dividend payments. B. Both have a risk of loss of a investment. C. Both have the same amount of risk. D. Both stockholders have voting rights.
B. Both have a risk of loss of a investment
200
How much interest is earned on a balance of $1,800 that is compounded semiannually at a 6% interest rate for an account maintained for one year? A. $109.62 B. $110 C. $154 D. $175
A. $109.62
200
Which is the FIRST step in opening a checking account? A. Completing a signature card B. Completing a bank reconciliation C. Ordering a set of checks D. Receiving the first cancelled check
A. Completing a signature card
300
Maria prefers an endorsement that will make sure checks are used for deposits only to her business account. Which type of endorsement is preferred? A. Blank endorsement B. Full endorsement C. Non-endorsement D. Restrictive endorsement
D. Restrictive endorsement
300
How are common and preferred stocks different? A. Common stock pays stockholders limited dividend payments. B. Common stockholders have non-voting rights. C. Preferred stock stockholders have priority in dividend payments. D. Preferred stock stockholders have a minimum period of ownership.
C. Preferred stock stockholders have priority in divided payments.
300
Phil is writing a company check and just completed writing the amount of the check in words. What should Phil do NEXT? A. Write the payee's name B. Sign the check C. Write in the numerical amount of the check D. Write in the purpose of the check
D. Write in the purpose of the check
300
How much interest is earned on a balance of $1,000 for a certificate of deposit that is compounded at an 8% interest rate for an account maintained for three years? A. $135.00 B. $241.30 C. $259.71 D. $301.89
C. $259.71
300
Sam prefers a savings plan that allows him to earn interest on previously earned interest. Which type interest does he prefer? A. Compound B. Money market C. Simple D. Variable
A. Compound
400
Mary needs a savings plan that will allow her to access her money as cash for potential emergency needs. Which type of evaluation factor of saving is she considering? A. Liquidity B. Potential return C. Safety and risk D. Taxes
A. Liquidity
400
The Federal Reserve System approved the merger of Wachovia Bank and Wells Fargo Bank. This is an example of which service of the Federal Reserve System? A. Acting as a clearinghouse B. Approving bank mergers C. Managing the discount rate D. Participating in open market activities
B. Approving bank mergers
400
The city government needs 1.2 million dollars to build a new medical facility. Which type of bond investment opportunity would help the city government obtain funding for the facility? A. Corporate bond B. Municipal bond C. Treasury bills D. Treasury notes
B. Municipal bond
400
The Federal Reserve System aids in transferring funds between banks in North Carolina and New Jersey. This is an example of which service of the Federal Reserve System? A. Clearinghouse B. Participation in open market operations C. Supervision of banks D. Managing the discount rate
A. Clearinghouse
400
Mary's business has $5,000 to start a savings plan at a local bank. She is comparing the interest rates between a mutual fund and a regular savings account. Which evaluation factor of saving is Mary considering? A. Liquidity B. Potential return C. Safety and risk D. Taxes
B. Potential return
500
Ted deposits money in a savings plan regularly. The interest he earns on this plan is indicative of how the money markets are doing. Which savings plan is he using? A. Bond investment B. Certificate of deposit C. Money market account D. Savings account
C. Money market account
500
Some customers recently learned that they can exchange quilts purchased from Tyson's Antique Store over 25 years ago for higher prices than they were originally purchased. Which type of investment are the quilts? A. Collectibles B. Commodities exchanges C. Currency D. Gold, silver, and precious metals
A. Collectibles
500
The Federal Reserve System supplied the monetary system with $300 billion. This is an example of which service of the Federal Reserve System? A. Acting as a clearinghouse B. Approving bank mergers C. Managing the discount rate D. Participating in open market activities
D. Participating in open market activities
500
Jack is reviewing his investment portfolio to make sure it includes options that will allow him to access money immediately. Which type of evaluation factor of saving is he considering? A. Liquidity B. Potential return C. Safety and risk D. Taxes
A. Liquidity
500
Mary prefers a relatively safe investment that will allow her to withdraw money after a few days without losing any of her principal. Which is the BEST investment choice for Mary? A. Bond investment B. Certificate of deposit C. Money market account D. Stock investment
C. Money market account
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