Random 1
Budget & Saving
Housing
Investments
Risk
100

a person who borrows money is called _______

Lender

Creditor

Borrower

Borrower

100

Experts reccommend setting aside _____ pay in an emergency fund.

3-6 months

1-2 years

2-3 years

3-6 months

100
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:

Foreclosure

100

_____ is a strategy to earn more on your money than the rate of inflation.

Investing

Liquidity

Refinancing

Investing

100

The out of pocket cost to the insured when a loss occurs is called:

Deductible

200

The emphasis of savings is on:

Growth over time

Safety principal

Risky investments

The Accumulation of wealth

The Accumulation of wealth

200

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.

200

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

200

A portion of a corporation's profits distributed to stockholders is called:

Stocks

Dividends

gain on principal

ROI

Dividends

200

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

300

Which of the following are advantages of using credit EXCEPT:

Leverage

Convenience

Security

Decreased purchasing power

Decreased purchasing power

300

Long Term goals may involve:

Planning a Vacation

Saving for College

Retirement Planning

All of the above

Retirement Planning

300

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

300

Which of the following is a risk free investment?

Stocks, Money Market Accounts, Real Estate

Money Market Accounts

300

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

400

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

400

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

400

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

400

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

400

Buying insurance is an example of which risk strategy??

- Risk reduction

- risk Avoidance

- Risk Transfer

- Risk Assumption

Risk Transfer

500

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

500

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

500

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

500

The higher the rating on an investment grade bond;

The higher the interest rate

The lower the interest rate

The lower the interest rate

500

Current credit card legislation is designed to:

Protect Credit Card Company

Protect the Customer

Protect the government

None of the above

Protect the Customer