Final Exam Review

Final Exam Review
True or False: Determining how
much money you should set aside
for retirement and how those funds
should be invested should not be of
concern for people until they near
their retirement age.
_________ bonds are issued by state
and local government agencies.
In the loan repayment schedule,
the term amortized refers to
The repayment of the principal
through a series of equal payments
True or False: When money earns
interest on interest, it is said to be
Sandy had a beginning balance on
her MasterCard statement of $300.
This month she had purchases of
$400, payments of $300, and a $100
cash advance. To avoid interest
charges, Sandy must make a
payment of:
A. $500
B. $400
C. $100
D. Sandy cannot avoid interest charges
Sandy cannot avoid interest
The security that represents equity
or ownership of a corporation is
Common Stock
True or False: A personal loan is
different from a credit card in that it
is normally used to finance one large
Which one thing do you always
have with common stock?
Voting Rights
True or False: On an amortization
schedule, more interest and less
principle is paid each month as the
loan matures.
True or False: Long-term liabilities
are debts that will be paid at least
three years into the future.
True or False: Goals with a time
frame five or more years into the
future are called intermediate-term
Wanda Clark expects interest rates
to decline in the next few months.
To maximize her earnings, she
should put her savings in a
A. Savings Account
B. Six Month CD
C. Money Market account
D. Two-year CD
Two-Year CD
Which of the following will not
protect you from identity theft while
on vacation?
A. Do not leave credit slips in restaurants
B. Have your mail stopped
C. Carry all credit cards, passports, and birth certificates with you.
D. Do not leave sensitive info. In your hotel room when you are not
Carry all credit cards, passports,
and birth certificates with you.
All of the following may qualify for
an auto discount except:
A. a driver training program
B. High grades
C. Several cars insured with the same company
D. under 25 years old
Under 25 years old
A budget will not do which of the
• Anticipate cash shortages
• Determine the excess you have to invest
• Help determine if cash outflows will be
suficient to cover cash inflows
• Determine the additional payments you can
make to reduce personal debt
Help determine if cash outflows will
be sufficient to cover cash inflows
All of the following are correct
statements about credit except
Creditor provides funds
The interest is the total amount to be repaid
Repayment will include interest
Credit needs to be paid back in the future
The interest is the total amount
to be repaid
Checking accounts may offer all of the
following except
• Overdraft protection
• Stop payment services
• Account balance insurance in excess of
• ATM privileges
Account balances insurance in
excess of $250,000
True or False: The most important
element in FICO credit scoring is
your payment history
You can reduce your risk by
Diversifying your investments
Which of the following is not true
about a CD
• They are long-term investments of two years
or more
• They pay higher than T-bills
• Funds are locked in for specific periods of time
• A penalty is imposed for early withdrawal
They are long-term investments
of two years or more

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