1
Out of pocket cost to the insured when a loss occurs:
Premium
Deductible
claim
policy
Deductible
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
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
Short term goals may involve:
- Planning a Vacation
-Saving for college
- retirement planning
- All of the above
Planning a Vacation
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
All of the following are advantages of using credit except:
- leverage
- convenience
- security
- decreased purchasing power
decreased purchasing power
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.
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
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 a risk-free investment?
Stocks
Money Market Accounts
Corporate Bonds
Real Estate
Money Market Accounts
A person who borrows money is called an:
- creditor
- lender
- borrower
- cosigner
borrower
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
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
- 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
growth over time
safety principle
risky investments
the accumulation of wealth
the accumulation of wealth
A portion of a corporations profits distributed to stockholders is called a:
- interest payments
- gain on principal
- return on Investment
- dividend
dividend
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
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
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
Buying insurance is an example of which risk strategy?
- risk reduction
-risk avoidance
- risk transfer
- risk assumption
risk transfer
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
Experts recommend setting aside _____ pay in an emergency fund.
- 3-6 months
- 1-2 years
- 2-3 years
- 3 or more
3-6 months
- Investing
- Liquidity
- Refinancing
- Consolidation
Investing
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.
When is the test?
- Friday
- Wednesday
- Tuesday
Tuesday