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A high school student has begun to investigate the field of finance as a career choice. In deciding about the field, the student should focus on which question first? - ✔️ ✔️ Will I find a balance between financial rewards and persnal satisfaction from work?
A Neon Oil Corporation tanker spilled oil in the ocean around Australia. As a result of this accident, the share price of this stock is likely to: - ✔️ ✔️ Decrease
A blue-chip stock can be described as: - ✔️ ✔️ A stock with a good reputation for quality management, products and services
A cash card generally: - ✔️ ✔️ Is purchased with a specific amount of money that can be used to pay for goods or services
A company offers direct deposit of employees' earnings. The company will still provide each employee with a statement that lists the employees' - ✔️ ✔️ Gross pay, the ammount and type of deductions and net pay.
A credit card finance charge is: - ✔️ ✔️ The dollar amount it cost to use credit
A creditor determines your creditworthiness on: - ✔️ ✔️ Character, collateral, and capacity
"The Fed" is short for: - ✔️ ✔️ The Federal Reserve System
A bank Certificate of Deposit is a: - ✔️ ✔️ Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals.
A blank endorsement on a check: - ✔️ ✔️ Creates a check that can be cashed by anyone
A creditor may deny credit because of: - ✔️ ✔️ Bad credit history
A factor that is likely to affect the market price of a stock is: - ✔️ ✔️ Corporate profits
A governement report indicated that the use of Pax's aspirin-free painkiller resulted in 100 cases of stomach poisoning. A large number of Pax's stockholders are likely to: - ✔️ ✔️ Sell shares causing the price of the stock to decline
A person buys a homeowner's insurance policy with a $250 deductible, which means the person will - ✔️ ✔️ Have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.
A person buys a homeowner's insurance policy with a $250 deductible, which means the person will: - ✔️ ✔️ Have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.
A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should - ✔️ ✔️ List the cash deposit separately from the check as well as the total of the deposit.
A publicly held corporation announces it is planning to merge with another publicly held corporation. Based on this information, an investor should be aware that the price of the stock - ✔️ ✔️ is unpredictble
A savings account earns the greatest amount of money when the interest on the account is compounded - ✔️ ✔️ Daily
A teenage boy has opened a checking account. He is surprised to find that though he is getting a written bank statement each month he is not getting his cancelled checks returned. The teenager should be aware that the reason cancelled checks are NOT returned is to - ✔️ ✔️ Save to bank money associated with returning copies of these checks.
A type of electronic funds transfer (EFT) is: - ✔️ ✔️ An ATM transaction
An investor buys 100 shares of a common stock @ $36.00 a share. The stock is now selling at $38.00 a share. When deciding whether to hold or sell the stock, which factor is it important for the investor to consider? - ✔️ ✔️ The commission charged for buying and selling the stock
Approximately, what is the annual finance charge for each $100 owed on a credit card with a 16% annual interest rate (APR)? - ✔️ ✔️ $16.
Banks use savings account deposits to: - ✔️ ✔️ Give loans to consumers and businesses
Ben's truck is crushed by a hit-and-run driver. Scott is hit by an uninsured driver. How will they receive payments? - ✔️ ✔️ Uninsured or no-fault motorist coverage
Carmen sold her stock in ABC company for a higher price per share than she bought it for. She realized a: - ✔️ ✔️ Capital gain
Finiancial services and products generally offered by banks and credit unions include: - ✔️ ✔️ Savings and Loans
Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him? - ✔️ ✔️ Savings account interest is taxable
Generally, the higher the deductible on an insurance policy, the - ✔️ ✔️ Lower the premium
George received a dividend from the company in which he is a stockholder. A dividend is: - ✔️ ✔️ Distribution of part of the company's profit
Gwen recieves a bill from her atuo insurance company, and she sends a check to the company to make sure her policy is not cancalled. The cost of her policy is called the: - ✔️ ✔️ Premium
How can individuals be prepared for losing their job or having a large medical expense?
- ✔️ ✔️ Save at least three months of income
How can you avoid becoming a victim of identity theft? - ✔️ ✔️ Avoid giving your Social Security number on a phone call you did not initate
How can you protect yourself against credit card fraud? - ✔️ ✔️ Be extremely careful about disclosing account information to unsolicited callers.
Identify the background color of the U.S. $5.00 bill. - ✔️ ✔️ Green
If a business wants to raise capital but not create debt, it can: - ✔️ ✔️ Issue common stock
If you have a managed health care plan, it means you: - ✔️ ✔️ Usually must meet with your primary health care physician
If you have been denied credit, a job, a license, an insurance, policy, or a loan based on your credit report. You are entitled to receive a free copy of that credit report within how many days of denial? - ✔️ ✔️ 60
Insurance is frequently described as a method of "sharing the risk" because the" - ✔️ ✔️ Insured share
Jami lost her debit card. She did not report it missing for 3 months. If the unauthorized person used her debit card, her maximum libility is: - ✔️ ✔️ Unlimited liability
Jane opened her credit card bill and was surprised by the amount she owed. She cannot pay the full amount of the bill this month. The lowest dollar amount Jane is required to pay by the credit card company is the: - ✔️ ✔️ Minimum payment
Jennie owns Disney shares and cannot attend the annual stockholder meeting. She can: - ✔️ ✔️ Vote by mail or online through a proxy
Jim is a college senior with $50,000 in student loans. He earned $2,000 last year. He has no savings so he charged a $5,000 vacation on his credit card. How would you characterize Jim's use of credit? - ✔️ ✔️ It is irresponsible use of credit because his current income is low
Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question? - ✔️ ✔️ Some types of checking accounts pay interest
John has a college student loan that he has to repay after he graduates. He will make his monthly payments over ten years. He has the following kind of loans: - ✔️ ✔️ Installment
John's job provided the main income for his family. He died unexpectedly and had no life insurance. The probable financial consequence for his wife and two childern does not include: - ✔️ ✔️ An increase in income and expenses
Judi and Phil had a joint VISA credit card while they were married. They are now divorced. Who is responsible for the balance owed on the VISA card? - ✔️ ✔️ Both Judi and Phil
Lisa lost her debt card. She did not report it missing for one week. If an unauthorized person used her debit card, her maximum liability is: - ✔️ ✔️ $
Lucy has no insurance. The situation(s) should she consider insuring against first are: - ✔️ ✔️ Losses resulting from an illness, accident, or disability
Margaret wants to store a valuable coin collection and important papers. Generally, consumers should: - ✔️ ✔️ Rent a safe deposit box for their valuebles
Matt's wallet, with all his credit cards, was stolen. He needs to: - ✔️ ✔️ Notify each credit card company immediately
Matthew and Aliciia just had a baby. They received money as baby gifts and want to put it away for the baby's college tuition. Which of the following has the lowest potential growth rate over the next 18 years? - ✔️ ✔️ Savings accounts
Patty is selling her car through a newspaper advertisement. When she finds a buyer, she wants to form of payment which is guaranteed to be good. Which form of payment should she avoid? - ✔️ ✔️ A check
Predatory lending practices do not include which of the follwoing: - ✔️ ✔️ A loan that you can afford with an interest rate that is the same as the interest rate being charged by at least three other financial instituions
Predatory lending practices generally include: - ✔️ ✔️ Very high interest and fees
Purchases made with your debit card are usually: - ✔️ ✔️ Deducted immediately from your checking account
Richard's auto insurance policy ecpired on the 5/15/2002. Richard was upset with his insurance agent and decided to change insureance companies. At 10:00am on 5/16/2002, as he drove to a different agent to buy a new policy, he had an accident. Who is liable for the damage to his car and his personal injuries? - ✔️ ✔️ Richard
Robyn is an investor. Which financial product makes her a shareholder in a corporation? - ✔️ ✔️ Common stocks
Sara has invested in corporate bonds which are: - ✔️ ✔️ Loans to the issuer of the bond
Scott just got an ATM card to use and must choose a PIN (Personal Identification Number). How should he select a PIN that will give him maximum protection against anyone else being able to find out what his PIN is? - ✔️ ✔️ Use a random selection of letters and numbers
Shares of stock are also known as: - ✔️ ✔️ Equities
Susan gives Marie her ABC Credit Union debit card and personal identification number (PIN) so Marie could get $25 from Susan's bank account. Marie withdrew $100 instead of the agreed to $25. How can Susan get the $75 back? - ✔️ ✔️ No bank or government angency is obligated to reimbure Susan because she authorized Marie to use her ATM card and PIN
The activity of the New York Stock Exchange most closely resembles: - ✔️ ✔️ An auction house
The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that: - ✔️ ✔️ Money deposited in savings accounts are F.D.I.C. insured
The best suggestion you gave a friend who is writing a check for the first time is: - ✔️ ✔️ Date the check because it usually proof of payment
The denominations of coins in the United States are: - ✔️ ✔️ $.01, $.05, $.10, $.25, $.50, $1.
The federal agency that regulates the securities industry is the: - ✔️ ✔️ Securities and Exchange Commission
The most liquid type of investment is: - ✔️ ✔️ A money market account
The National Creedit Union Administration (NCUA) insures accounts in: - ✔️ ✔️ Credit unions
The only type of life insurance that does not develop a cash value is: - ✔️ ✔️ Term life insurance
The price of a security may be affect by: - ✔️ ✔️ Current events
The price of the Candy Corporation Stock will generally increase when there is: - ✔️ ✔️ Positive news about corporate earnings
The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are: - ✔️ ✔️ Salaries, wages, and tips
The process of setting aside money and putting it to work by having it earn intrest or dividends or gain value in the equities market with the idea of having additional funds to use in the future is described as: - ✔️ ✔️ Savings and Investing
The purpose of Insurance is NOT to: - ✔️ ✔️ Diversify an investment portfolio
The term used to describe the ease and speed with which you can convert savings or an investment to cash is: - ✔️ ✔️ Liquidty
The type of credit card issued by an oil company, bank, or department store is: - ✔️ ✔️ A revolving charge card
To make sure you will always remember your automated teller machine (ATM) card person identification number (PIN), you should write the PIN and keep it: - ✔️ ✔️ In a secure place at home
Traverlers checks, often use for vacations: - ✔️ ✔️ Function as cash and are easily replaced if lost
When money is not used and goods and services are exchanged for other goods and services, this system is called: - ✔️ ✔️ Barter
When the market has a steady decline in stock prices over a period of time, it is known as a: - ✔️ ✔️ Bear market
Which documents should be stored in a safe-deposit box? - ✔️ ✔️ Mortgage loan papers.
Which factor would most likely lead to an increase the interest rate on a person's credit card? - ✔️ ✔️ Late payments
Which financial product can you buy for $25, is safe,and will be worth $50 at a future date? - ✔️ ✔️ Series EE savings bond
Which financial product may pay a divident? - ✔️ ✔️ Common stock
Which financial product typically pays the highest rate of intrest - ✔️ ✔️ Certificate of deposit
Which of the following insurance covers vehicles? - ✔️ ✔️ Automobile
Which of the following investment products is guaranteed by the federal government? - ✔️ ✔️ U.S. Treasury notes
Which of the following is a disadvantage of using phone cards, debit cards, electronic transfers, and ATM cards? - ✔️ ✔️ They expose consumers to greater likelihood of identity theft
Which of the following is your rught as a shareholder of common stock? - ✔️ ✔️ The right to recieve dividends if paid
Which of the following lenders charge the highest interest rate? - ✔️ ✔️ Pawn shop
Which of the following provides an increase in assets or wealth? - ✔️ ✔️ Having capital gains
Which of the following provides an increase in assets or wealth? - ✔️ ✔️ Having capital gains
Which of the following statements is usually true about indivuals who are financially literate? - ✔️ ✔️ They understand the basics of personal finance and money management
Which statement does NOT accurately describe a characteristic of cash value for whole life insurance? - ✔️ ✔️ Policy that accumulates chash value is less expensive than a policy that does not accumulate cash value
You have a checking account balance of $100 and you deposit a personal $200 check from your brother in you checking account. When will you be able to withdraw $150 in cash? - ✔️ ✔️ 3 to 7 days later, depending on your bank's check clearance policy
You used your credit card to buy flower at the florist. The dollar amount of the purchase was: - ✔️ ✔️ Added to your credit card bill and you pay for it at a later date
Which statement is FALSE about most ATM (Automated Teller Machine) cards? - ✔️ ✔️ You can always get cash anywhere in the world with no fee.
Which statment best decribes the relationship between a person's education level and that person's potential earning power? - ✔️ ✔️ A person with a professional degree is likely to earn at least four times as much per year as a person who did not complete high school.
Who uses consumer credit reports in making decisions? - ✔️ ✔️ Lenders
Why does a corporation issue bonds? - ✔️ ✔️ To raise money for expansion or other company operations
Why is maintaining a good credit history important to your future? - ✔️ ✔️ A good credit history can help your obtain a job, or a loan.
Why is term life insurance usually the least expensive type of life insurance? - ✔️ ✔️ The policy only pays a death benefit
You are behind on your debt payments and go to a responsible credit counseling service, the Consumer Credit Counseling Services. How can they help you? - ✔️ ✔️ They can work with those who loaned you money to set up a repayment schedule you can afford to make.
You can continue to charge purchases on your credit card when: - ✔️ ✔️ The amount you owe on the card is below your credit limit.
You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for the loss. The $500 the insurance did not pay is a result of your policy having a: - ✔️ ✔️ Deductible
