Sam prefers a savings plan that allows him to earn interest on previously earned interest. Which type
interest does he prefer?
100
Money market account
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?
100
Option 4: loan for 1 year
Jenny has the option of borrowing $300 at a 3% interest rate. Which loan option would cost her the most
money?
100
Credit counseling
Sky Blue Credit Repair Company assists clients with spending less on debt and eliminating credit problems.
With which type of credit assistance does the company provide?
100
$259.71
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?
200
Potential return
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?
200
Municipal bond
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?
200
Collectibles
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?
200
Collectibles
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?
200
Truth-in-Lending Law
Mary paid only $50 for unauthorized charges made to her Capital One MasterCard. Which regulation
protected her?
300
Preferred stock stockholders have priority in dividend payments.
How are common and preferred stocks different?
300
$109.62
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?
300
Capacity
Josh maintained minimum living expenses while working on his job for the past six years. Which "C" of
credit is he MOST LIKELY to meet?
300
Option 1: loan for 6 months
Tim has the option of borrowing $5,000 at a 3% interest rate from a local bank. Which loan option would
allow Tim to pay the LEAST amount of money?
300
Credit report
ABC Rental Company requires applicants to verify reputation for paying bills in order to determine
potential credit risk. Which factor examined by creditors does the company require?
400
Liquidity
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?
400
Both have a risk of loss of a investment.
How are common and preferred stocks similar?
400
Equal Credit Opportunity Act
JCPenney makes sure all applicants are creditworthy before issuing any of them credit cards. Which
regulation is JCPenney adhering?
400
Credit card
Jenny charged $300 worth of gifts while shopping at several stores. Which type of credit did Jenny use?
400
Credit reports to other businesses
Which is an example of a service provided by a credit bureau?
500
Preferred stock
RadioShack offers shares of stock to investors at a consistent rate of 6% without any voting rights. What type
of stock is it offering?
500
Money market account
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?
500
Charge account
Mary makes prearranged equal payments monthly to Progress Energy. Which type of credit did Mary use?
500
Liquidity
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?
500
Charge account
Justin paid $20 at the end of a doctor's visit and agreed to pay the balance in 30 days. He will avoid any cost
for this credit. Which type of credit did Justin use?