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2
3
4
5
100

Out of pocket cost to the insured when a loss occurs:

Premium

Deductible

claim

policy

Deductible

100

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

- the rate cannot be changed

- the rate can be changed with 60 days notice

- the rate change can be applied to existing balances.

- None of these are true

None of these are true

100

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

100

Short term goals may involve:

- Planning a Vacation

-Saving for college

- retirement planning

- All of the above

Planning a Vacation

100

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

- Garnishment

- Foreclosure

- Bankruptcy

- Discharge

Foreclosure

200

All of the following are advantages of using credit except:

- leverage

- convenience

- security

- decreased purchasing power

 decreased purchasing power

200

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

Normal wear and tear

holes in the walls

excessive noise

none of the above

holes in the walls.

200

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

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

200

Which of the following is a risk-free investment?

Stocks

Money Market Accounts

Corporate Bonds

Real Estate

Money Market Accounts

300

A person who borrows money is called an:

- creditor

- lender

- borrower

- cosigner

borrower

300

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

- It allows for a smaller down payment

- Its requires you to pay a monthly mortgage insurance premium.

- It is backed by the Federal Housing Administration (FHA)

- All of the above

All of the Above

300

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 the first refusal

- a deferred- payment plan

the right of the first refusal

300
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

300
The emphasis of savings is on:


growth over time

safety principle

risky investments

the accumulation of wealth

the accumulation of wealth

400

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

- interest payments

- gain on principal

- return on Investment

- dividend

dividend

400

An investment portfolio should:

- have a strong foundation of safe investments

- concentrate on a single investment

- exclude any high- risk investments

- None of these

have a strong foundation of safe investments

400

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

400

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

- decrease expenses

- use a credit card more often

- earn less income

- increase spending

decrease expenses

400

Buying insurance is an example of which risk strategy?

- risk reduction

-risk avoidance

- risk transfer

- risk assumption

risk transfer

500

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

Experts recommend setting aside _____ pay in an emergency fund.

- 3-6 months

- 1-2 years

- 2-3 years

- 3 or more

3-6 months

500
______ is a strategy to earn more on your money than the rate of inflation

- Investing

- Liquidity

- Refinancing

- Consolidation


Investing

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 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.

500

When is the test?

- Friday

- Wednesday

- Tuesday

Tuesday