multiple choice questions busi 380

Question 1. 1. (TCO 1) After a lengthy job search, Judy Smith has found a place of employment; however, it is demanding and she is required to work long hours during the week and even on weekends, leaving little time for outside interests. Her decision to work at this job is an example of (Points : 4)

Question 2. 2. (TCO 1) Jack Johnson is interested in purchasing new furniture that currently costs $2,000. He is not sure if he can afford the furniture now, but is afraid the cost of the furniture will increase to $3,000 in 6 months. Which type of risk is Jack worried about? (Points : 4)

Question 3. 3. (TCO 1) Question 3. 3. (TCO 1) Which step in the financial planning process is demonstrated by a situation in which Royanne partially retires and travels to Europe using less costly transportation in order to save more money for the trip? (Points : 4)

Question 4. 4. (TCO 1) When you only have to pay taxes on an investment at a future point in time, this is referred to as a(n) (Points : 4)

Question 5. 5. (TCO 1) Through research, Martin Jones has learned that the housing market will begin to pick up over the next few years, creating the need for more real estate agents. This is an example of _____ influencing jobs in the future. (Points : 4)

Question 6. 6. (TCO 1) For January, Bethany DeWeese had cash inflows of $4,210 and cash outflows of $4,770, resulting in a (Points : 4)

Question 7. 7. (TCO 1) Sherry O'Neal is interested in opening a savings account and her bank offers several types. Her main concern is that she wants to have the ability to withdraw her money whenever she wants. She has an interest in opening an account that is best categorized as (Points : 4)

Question 8. 8. (TCO 1) When formulating a budget, _____ should be the very first item taken into account. (Points : 4)

Question 9. 9. (TCO 2) The _____ tax is an additional tax that many taxpayers with high incomes and high amounts of deductions must pay. (Points : 4)

Question 10. 10. (TCO 2) Megan McMillan has just won a Mega Millions lottery. This income would be classified as (Points : 4)

Question 11. 11. (TCO 2) The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Joyce has $198,000 in an individual account and $404,000 in a joint account with her husband, Dan. How much of Joyce's money is not covered by FDIC insurance? (Points : 4)

Question 12. 12. (TCO 2) The most liquid type of account would be a (Points : 4)

Question 13. 13. (TCO 3) All of the following are examples of closed-end credit except a(n) (Points : 4)

Question 14. 14. (TCO 3) If Cheryl Calvert is applying for a bank loan and the financial institution learns that she has been late in making payments on past loans, the bank is examining which of the five Cs? (Points : 4)

Question 15. 15. (TCO 3) An example of a credit bureau would be (Points : 4)

Question 16. 16. (TCO 3) A _____ will tend to work more with a borrower if he or she is facing legitimate payment problems. (Points : 4)

Question 17. 17. (TCO 3) Newton Jones made a 20% down payment of $15,000 on a new car. This is an example of _____ in order to reduce lender risk. (Points : 4)

Question 18. 18. (TCO 3) _____ is/are the primary reason(s) why consumers default on their debts. (Points : 4)

Question 19. 19. (TCO 5) When researching current price information for a bond or stock investment, the most readily available source of information for most consumers can be found within (Points : 4)

Question 20. 20. (TCO 5) If Chris is considering an investment in a pool that is managed by professional managers, most likely he is interested in investing in (Points : 4)

Question 21. 21. (TCO 5) The purpose of asset allocation is to (Points : 4)

Question 22. 22. (TCO 5) _____ involves the analysis of future earnings in order to make investment decisions. (Points : 4)

Question 23. 23. (TCO 5) A(n) _____ market is one in which previously issued financial securities are traded among investors. (Points : 4)

Question 24. 24. (TCO 5) Last year, High-Tech Electronics earned $1.50 per share. If the current market value for a share of stock is $60, what is the firm's P/E ratio? (Points : 4)

Question 25. 25. (TCO 5) Dave Harris has just purchased a bond with a face value of $1,000 that pays 6%. The purchase price of the bond was $900, and the bond will mature in 5 years. What is the yield to maturity for this bond? (Points : 4)

Question 26. 26. (TCO 5) A characteristic of serial bonds is that they (Points : 4)

Question 27. 27. (TCO 5) What is the current yield for a $1,000 corporate bond that pays 8% and has a current market value of $800? (Points : 4)

Question 28. 28. (TCO 3) If Damian Clowder has researched the price of a car online and then decides to go negotiate with a local dealership, Damian is involved in which step of the purchasing process? (Points : 4)

Question 29. 29. (TCO 1) If Bradley Smith gives a cashier a document at a point of purchase with the expectation of obtaining a discount, he is using a (Points : 4)

Question 30. 30. (TCO 3) Isabel would spend $250 per week on groceries for her family if she did not use coupons. Her coupons save her 10% of that amount. She puts the amount saved into her savings account. How much will she have in her savings account at the end of the first year? Ignore interest earnings. (Points : 4)

Question 31. 31. (TCO 3) When a loan is made based on the equity value of a home and the loan provides a homeowner with tax-free income until the home is sold (to pay back the loan), this is called a(n) (Points : 4)

Question 32. 32. (TCO 4) Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $300 two years ago and has an expected life of 6 years. A comparable microwave costs $425 today. What amount will the insurance company pay? (Points : 4)

Question 33. 33. (TCO 4) If Deloris Johnson hires a housekeeper who breaks her leg when she trips on stairs, this loss would be covered under _____ as a part of her homeowners insurance policy. (Points : 4)

Question 34. 34. (TCO 4) Martina has a policy that includes a $500 deductible and a coinsurance provision requiring her to pay 10% thereafter. Her medical bills total $5,500. What amount is she required to pay personally? (Points : 4)

Question 35. 35. (TCO 4) _____ is a healthcare institution that directly contracts with specific medical care specialists in order to provide healthcare services in exchange for a fixed, prepaid monthly premium. (Points : 4)

Question 36. 36. (TCO 4) If Mary Lou applies for a life insurance policy and lies about her age, a _____ provision will state that her benefits will be what her premium would have bought if she had been truthful about her age. (Points : 4)

Question 37. 37. (TCO 4) If Frank has a term life insurance policy that is _____, this means that he can obtain additional years of protection at the end of the initial term without the need for a medical examination. (Points : 4)

Question 38. 38. (TCO 6) The Capitalist Mutual Fund's net asset value is $28.25. The fund has liabilities of $3 million and 1,600,000 shares have been issued. What is the value of the fund's portfolio? (Points : 4)

Question 39. 39. (TCO 6) A mutual fund that invests in companies with a market capitalization of less than $2 billion is called a(n) (Points : 4)

Question 40. 40. (TCO 6) If a person is interested in investing in real estate, but wants to be assured that there will be some level of diversification, he or she will want to consider (Points : 4)

Question 41. 41. (TCO 6) Judith recently inherited several pieces of diamond jewelry from her aunt. This jewelry is an example of (Points : 4)

Question 42. 42. (TCO 6) If Jeremiah's employer makes nontaxable contributions to a plan in his name and his salary is reduced by the same amount, Jeremiah has a (Points : 4)

Question 43. 43. (TCO 6) Randall owns a condo worth $240,000, a car valued at $25,000, and miscellaneous assets worth $7,500. He owes $185,000 on the condo and $15,000 on the car and has no other debts. His retirement account, in which he is fully vested, contains $27,500 in mutual funds. He is insured with a $500,000 term life insurance policy. What is his net worth? (Points : 4)

Question 44. 44. (TCO 7) Larry has been facing health issues and is afraid that he will be unable to take care of upcoming financial transactions as his health deteriorates. As a result, he decides to file a(n) _____ so that his niece will be granted the ability to act on his behalf. (Points : 4)

Question 45. 45. (TCO 7) Marion would be acting in the capacity of a(n) _____ if she is selected to manage the assets of her 16-year-old niece until the niece reaches the age of 21. (Points : 4)