personal finance
Employees prefer direct deposits because:
The money is generally deposited in their checking account sooner than it would be if they had to deposit it in person
A high school student has begun to investigate the field of finance as a career choice. In deciding about the field, what question does the student focus on first?
Will I find a balance between financial rewards and personal satisfaction?
Why might rising interest rates depress stock prices:
Rising interest rates can result in lower business profits
Buying a treasury bill (T-bill) is best for investors who are looking for
A secure, low risk investment
A person owns a stock that pays a $2.00 share dividend. If the person chooses to reinvest that dividend, this means that the $2.00 will go toward buying
buying the same stock.
Financial services and products generally offered by banks and credit unions include:
Savings and loans
Most of the adverse information on a credit report appears for years
7 years
Who benefits the most from inflation?
Long-term fixed rate borrowers
A pharmacy is to drugs as the American Stock Exchange is to:
Securities
What is the largest equities market in the world?
New York Stock Exchange (NYSE)
Generally, the higher the deductible on an insurance policy, the
Lower the premium
When a person declares bankruptcy that fact will appear on the person's credit report for years
10 years
Which of the following is the federal law that requires the cost of credit to be disclosed to consumers in bold print on loan agreements?
Truth in Lending Act
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
The Securities and Exchange Commission
As an investment, a person decides to buy a small house that has three rental apartments. The profits from this investment may be lower than expected if:
One of the apartments is not rented
A person is convinced that a lending institution is charging too much interest for a loan. This person should be aware that
There are state usury laws
Lucy has no insurance. The situation(s) should she consider insuring against first are:
Losses resulting from an illness, accident, or disability
To determine the time value of depositing $100 in a savings account, a person needs to know the interest rate and:
The rate of inflation
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the investor would own at the moment of the split
80 shares of stock and the price of each share is $40
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This means that the
The brokerage firm is lending the investor 50% o
Which types of financial institution pay the highest rate of interest on savings account balances?
Credit Unions
The information that a lender must disclose to consumers applying for a cash loan is:
The annual percentage rate (APR) and/or the finance charge
The price of a security may be affected by:
current events
The interest earned on United States Series EE Savings Bonds is:
Exempt from state and local taxes
After five years of owning a Roth Individual Retirement Account (IRA), a person wants to buy his first home, the person can withdraw money from the Roth IRA:
Tax and penalty free