PFL
When monies are withheld from an employee's paycheck to cover taxes and insurance, these funds are the employee's
A. payroll deductions.
B. net pay.
C. credit expenses.
D. gross earnings.
A. payroll deductions.
A company that sells securities to the public must
A. guarantee that securities will always be valuable.
B. discourage investors from asking questions.
C. tell investors about the risks of these securities.
D. avoid selling risky securities
C. tell investors about the risks of these securities.
Delilah is developing her personal financial plan, which includes an investing plan. As a young professional, she is hoping to invest money now so that she has something to live off of in retirement. Delilah's investment goal is best characterized by which of the following strategies:
A. Safety
B. Merit
C. Income
D. Growth
C. Income
The 52-week high and low can tell investors
A. if the company has a lot of debt.
B. if it is a good time to buy or sell.
C. whether to invest in a stock or mutual fund.
D. how many times a stock has been sold.
B. if it is a good time to buy or sell.
JaVaughn wants to borrow $2,500 to buy a car. Which of the following financial institutions is most likely to lend JaVaughn the money:
A. Mortgage company
B. Retail bank
C. Investment bank
D. Financial holding company
B. Retail bank
A flood has caused damage to a company's inventory warehouse. This is an example of what type of risk that enterprise risk management addresses?
A. Security
B. Legal
C. Strategic
D. Operational
D. Operational
Soren participates in the London Stock Exchange, where investors trade stock amongst themselves without involvement from the issuing companies. Which of the following best describes this type of market:
A. Primary market
B. Tertiary market
C. Virtual market
D. Secondary Market
D. Secondary Market
What type of insurance coverage should a new car owner purchase to protect their car from the risk of vandalism?
A. Collision
B. Uninsured/Underinsured Motorist
C. Comprehensive
D. Liability
C. Comprehensive
Mina has a $3,000 investment held for four years in her savings account with 10% interest paid annually. What is the future value of her money?
A. $5,100
B. $3,400
C. $3,500
D. $4,200
D. $4,200
Talia manages a business's accounts payable, accounts receivable, inventory, and cash. Talia is responsible for
A. the business's capital structure.
B. market risk management.
C. working capital management.
D. capital investment decisions
C. working capital management.
When Gabriela’s parents passed away, their assets were transferred to her. Those assets were taxed by the federal government according to their current market value. This is an example of a(n) __________ tax
A. estate
B. tax
C. excise
D. income
A. estate
Questions like "What are your investment goals?" and "What's your time horizon?" are useful in determining one's
A. activity quota.
B. bond rating.
C. risk tolerance.
D. personal volatility
C. risk tolerance.
Which of the following is a true statement about ticker symbols:
A. They are made up of the first three letters of a company's name.
B. They uniquely identify a company.
C. They tell you what kind of stock it is.
D. They are only given to companies on the New York Stock Exchange
B. They uniquely identify a company.
What type of variance analysis involves determining the difference between the standard costs and the actual costs of raw materials used for production?
A. Purchase price
B. Material yield
C. Selling price
D. Fixed overhead
A. Purchase price
What do bond yields typically do during an economic expansion?
A. Remain unchanged
B. Gradually decrease
C. Drop to near zero
D. Increase
D. Increase
Which of the following is a benefit for employees who pursue ongoing education:
A. A greater chance for a raise
B. Greater employee retention
C. Decreased marketability
D. Highly skilled workforce
A. A greater chance for a raise
What is the purpose of using diversification strategies?
A. To decrease equity
B. To reduce risk
C. To control debt
D. To manage price
B. To reduce risk
A company's corporate governance is most often impacted by __________ expectations.
A. employee
B. digital
C. stakeholder
D. legal
C. stakeholder
Molly has money to invest, but she wants to be sure she doesn't lose her hard-earned money in a scam. Which of the following opportunities should Molly avoid:
A. The stock market
B. Ponzi scheme
C. Roth IRA
D. 401k
B. Ponzi scheme
According to Isaac's pay stub, his total earnings before deductions are $1,425. His total deductions are $255. What is Isaac's net income?
A. $1,298
B. $1,425
C. $1,170
D. $1,680
C. $1,170