Random 1
a person who borrows money is called _______
Lender
Creditor
Borrower
Borrower
Experts reccommend setting aside _____ pay in an emergency fund.
3-6 months
1-2 years
2-3 years
3-6 months
Foreclosure
_____ is a strategy to earn more on your money than the rate of inflation.
Investing
Liquidity
Refinancing
Investing
The out of pocket cost to the insured when a loss occurs is called:
Deductible
The emphasis of savings is on:
Growth over time
Safety principal
Risky investments
The Accumulation of wealth
The Accumulation of wealth
What is a budget??
- Financial statement that list cash inflows and outflows
- Financial statement that list assets, liabilities, and net worth.
- A spending and savings plan based on your expected income and expenses for a period of time.
A spending and savings plan based on your expected income and expenses for a period of time.
Which is a reason for not refunding a tenant's security deposit?
Noise, normal wear and tear, holes in the wall
Holes in the wall
A portion of a corporation's profits distributed to stockholders is called:
Stocks
Dividends
gain on principal
ROI
Dividends
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
Which of the following are advantages of using credit EXCEPT:
Leverage
Convenience
Security
Decreased purchasing power
Decreased purchasing power
Long Term goals may involve:
Planning a Vacation
Saving for College
Retirement Planning
All of the above
Retirement Planning
Which is true of an FHA mortgage loan?
Small down payment
Requires mortgage insurance premium
Backed by the FHA
All of the above
All of the above
Which of the following is a risk free investment?
Stocks, Money Market Accounts, Real Estate
Money Market Accounts
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
Company Risk
Company Risk
Which of the following is true of a credit card with a fixed interest rate?
Rate cannot be changed
Rate can be changed with 45 days notice
Rate change can be applied to existing balances
Rate can be changed with 45 days notice
If expenses were to exceed income on a budget, what would be financially smart?
Decrease expenses
Use more credit
Earn less income
Increase spending
Decrease expenses
When the rental agreement contains a purchase option at the end of the rental term, the renter is said to have:
The right of first refusal
Refusal of first right
The right of first refusal
An investment portfolio should:
Have a strong foundation of safe investments
Concentrate on single investments
Exclude high-risk investments
None
Have a strong foundation of safe investments
Buying insurance is an example of which risk strategy??
- Risk reduction
- risk Avoidance
- Risk Transfer
- Risk Assumption
Risk Transfer
The purpose of a cash flow statement is to:
budget for future spending
Summarize assets and liabilities
project 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
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
Which of the following is NOT considered art of an estate but can reduce the amount of the estate?
- A persons belongings and collectibles
- Physical and intangible assets
- Savings and investments
- Debt
Debt
The higher the rating on an investment grade bond;
The higher the interest rate
The lower the interest rate
The lower the interest rate
Current credit card legislation is designed to:
Protect Credit Card Company
Protect the Customer
Protect the government
None of the above
Protect the Customer