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100

Short term goals may involve:

Planning a vacation

Saving for college

retirement planning

All of the above

Planning a vacation

100

A person who borrows money is called an _____. 

Creditor

Lender

borrower

cosigner


borrower

100

Experts recommend setting aside ___ pay in an emergency fund.

3-6 Months

1-2 Years

2-3 Years

3 or more years

3-6 Months

100

____ is a strategy to earn more money than the rate of inflation.

Liquidity

Refinancing

Consolidation

Investing

Investing

100

Current credit card legislation is designed to ______.

protect credit card company

protect the consumer

protect the government

None of the above


protect the consumer

200

If expenses were to exceed income on a budget (spending plan), what would be a financially smart solution?

Decrease expenses

Use a credit card more often

Earn less income

Increase spending

Decrease expenses

200

Which of the following is true of a credit card with a fixed interest rate?

The rate cannot be changed.

The rate can be changed with 60s days notice.

A rate change can be applied to existing balances.

None of the above

The rate cannot be changed.

200

When you own stock in a company that is assessed millions in fines for violating federal safety standards in its products, this is a case of:

inflation risk

industry risk

stock risk

company risk

stock risk

200

When a rental agreement contains a purchase option at the end of the rental term, the renter is said to have:

refusal of first right

a balloon option

the right of first refusal

a deferred- payment plan

the right of first refusal

200

The main objective of personal financial planning is to 

Plan for retirement

control your spending habits

reach personal and financial goals

increase the amount in your savings

reach personal and financial goals

300

When a company's overseas factory is destroyed during protests and rioting, this is  an example of:

Inflation Risk

Industry Risk

Political Risk

Company Risk

Political Risk

300

Which of the following is a risk-free investment?

Stocks

Corporate Bonds

Money Market Accounts

Real estate

Money Market Accounts

300

Which of the following is true of an FHA mortgage loan?

It allows for a smaller downpayment

It requires you to pay a monthly mortgage insurance premium

It is backed by the Federal Housing Admin.

All of the above

All of the above

300

An investment portfolio should:

concentrate of a single investment

exclude any high risk investments

have a strong foundation of safe investments

none of the above

have a strong foundation of safe investments

300

The higher the rating on an investment grade bond ____.

the higher the interest rate you will earn

the lower the interest rate you will earn

the more speculative it is

none of these

the lower the interest rate you will earn

400

Which of the following is a justifiable reason for not refunding a tenants security deposit?

Normal wear and tear of premise

excessive noise

holes in the walls

None of the above

holes in the walls

400

A portion of a corporations profits distributed to stockholders is called:

interest payments

gain on principal

return on investment

dividend

dividend

400

All of the following are advantages of using credit except:

Leverage

Convenience

Security

Decreased purchasing power

Decreased purchasing power

400

Out of pocket costs to the insured when a loss occurs?

Premium

Deductible

claim

policy

Deductible

400

Which of the following is NOT considered part of an estate but can reduce the amount of the estate?

A persons belongings and collectibles

Physical and intangible assets

debt

debt

500

The purpose of a cash flow statement is to

Budget for future spending

summarize assets and liabilities

project the future value of investments

list your cash inflows and outflows for a period of time

list your cash inflows and outflows for a period of time

500

Buying insurance is an example of which risk strategy?

Risk reduction

risk avoidance

risk transfer

risk assumption

risk transfer

500

The emphasis of savings is on

growth over time

safety principal

risky investments 

the accumulation of wealth

the accumulation of wealth

500

The legal process that allows a lender to take possession of a house because the borrower does not meet his or her mortgage obligations:

Garnishment

Foreclosure

Bankruptcy

Discharge

Foreclosure

500

What is a budget?

A personal financial statement that list cash inflows and cash outflows.

A personal financial statement that lists assets, liabilities, and net worth.

Financial planning tool used to track individuals values, needs, wants, and goals.

A spending and savings plan on your expected income and expenses for a period of time. 

A spending and savings plan on your expected income and expenses for a period of time.

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