BUS 2204 Final Exam Unit 9 PDF

Preview

Summary

final exam personal finance bus 2204...

Description

BUS 2204 Personal Finance – Final Exam 9 ●

Warning: These answers have not been validated or corrected.

Question 1 Answer saved Marked out of 1.00

Question text Investments in gold, silver, and other precious metals __________. Select one: a. threaten the value of currency. b. lose their value during times of turmoil. c. serve as a hedge against inflation. d. have low transaction costs. e. are more liquid than cash. Question 2 Answer saved Marked out of 1.00

Remove flag

Question text An effect of deflation is that your money __________. Select one: a. is worth more and buys more. b. is worth less and buys less. c. has less purchasing power. d. is less useful as a medium of exchange. e. is more stable. Question 3 Answer saved Marked out of 1.00

Flag question

Question text Giving someone the unlimited right to make legal and financial decisions on your behalf is __________. Select one: a. a testamentary trust. b. naming an executor. c. durable power of attorney. d. a stated dollar amount will. e. a health care proxy. Question 4 Answer saved Marked out of 1.00

Flag question

Question text A balance sheet is a list of __________. Select one: a. assets. b. debts or liabilities. c. equity or net worth. d. a. and b. e. a., b., and c. Question 5 Answer saved Marked out of 1.00

Flag question

Question text You insure your dependents against financial hardship after your death through __________. Select one: a. estate taxes. b. long-term disability insurance. c. life insurance. d. a flexible savings account. e. private mortgage insurance. Question 6 Answer saved Marked out of 1.00

Flag question

Question text Recession and inflation have decreased the value of your investments. This is an example of __________. Select one: a. economic risk. b. industry risk. c. company risk. d. asset class risk. e. market risk. Question 7 Answer saved Marked out of 1.00

Flag question

Question text Direct real estate investments involve __________. Select one: a. owning property. b. renting commercial property. c. owning shares in a company that owns property. d. a. and b. e. a., b., and c. Question 8 Answer saved Marked out of 1.00

Remove flag

Question text Your return objective represents __________. Select one: a. your investment risk. b. the annual return needed to meet your goals. c. your time horizon. d. the amount you have to invest to start with. e. your risk tolerance. Question 9 Answer saved Marked out of 1.00

Flag question

Question text The time value of money is an important concept in __________. Select one: a. determining the frequency of cash flows. b. valuing a series of future cash flows. c. predicting discount rates. d. adding the number of cash flows. e. identifying the amount of cash flows. Question 10 Answer saved Marked out of 1.00

Remove flag

Question text A summary of income and expenses over a period of time is called __________. Select one: a. a balance sheet. b. an income statement. c. net worth. d. a cash flow statement. e. a budget. Question 11 Answer saved Marked out of 1.00

Flag question

Question text A will that leaves everything to a spouse is called a __________. Select one: a. simple will. b. holographic will. c. traditional marital share will. d. statutory will. e. living will. Question 12 Answer saved Marked out of 1.00

Flag question

Question text The purpose of pro forma financial statements is to show __________. Select one: a. projected future value. b. consequences of choices. c. scenarios for financial planning. d. a. and b. e. a., b., and c. Question 13 Answer saved Marked out of 1.00

Flag question

Question text Buying stocks or corporate or government bonds is a way to invest in __________. Select one: a. the capital market. b. the credit market. c. the labor market. d. the buyers’ market. e. the sellers’ market. Question 14 Answer saved Marked out of 1.00

Remove flag

Question text Your risk tolerance represents __________. Select one: a. your wealth or net worth. b. the amount of money you stand to lose. c. your ability or willingness to take chances. d. the amount of time separating you from your money. e. your return objective. Question 15 Answer saved Marked out of 1.00

Flag question

Question text Investment risks include all the following EXCEPT __________. Select one: a. default risks. b. economic risks. c. industry and company risks. d. asset class risks e. market risks. Question 16 Answer saved Marked out of 1.00

Flag question

Question text The Accounting Equation states that __________. Select one: a. Assets – Debt = Net Worth. b. Assets = Liabilities + Equity. c. Assets = Debt + Net Worth d. Assets = Income – Cash Flows. e. Assets + Debt = Liquidity Question 17 Answer saved Marked out of 1.00

Remove flag

Question text A calculation showing your mortgage payment per $1,000 of the loan is the mortgage __________. Select one: a. interest rate. b. maturity date. c. factor. d. principal. e. amortization. Question 18 Answer saved Marked out of 1.00

Flag question

Question text In performing an attribute analysis you compare products in terms of __________. Select one: a. their demand or popularity and resale value. b. the characteristics most important to you. c. price and the cost of maintenance or repair. d. the transaction costs in relation to quality. e. their appearance and performance. Question 19 Answer saved Marked out of 1.00

Flag question

Question text An investment policy statement outlines __________. Select one: a. an investor’s return objectives, risk preferences, and constraints. b. an investment advisor’s approach to applying portfolio theory. c. an institution’s goals and investment decisions. d. an investment firm’s disclosures to clients. e. a company’s disclosures to investors. Question 20 Answer saved Marked out of 1.00

Flag question

Question text A comprehensive budget may include any of the following components EXCEPT __________. Select one: a. a specialized budget. b. a tax budget. c. a cash flow statement. d. an operating budget. e. a capital budget. Question 21 Answer saved Marked out of 1.00

Flag question

Question text A period of declining productivity lasting less than half a year is called __________. Select one: a. the gross domestic product. b. a depression. c. a recession. d. an expansion. e. a contraction. Question 22 Answer saved Marked out of 1.00

Flag question

Question text The relationship between the passage of time and the value of assets is called __________. Select one: a. the time value of money. b. liquidity. c. present value. d. future value. e. nominative value. Question 23 Answer saved Marked out of 1.00

Flag question

Question text Automobile insurance coverage for financial losses of people in the other car injured in an accident you cause is called __________. Select one: a. property damage liability. b. bodily injury liability. c. comprehensive physical damage. d. medical payments coverage. e. uninsured motorists protection. Question 24 Answer saved Marked out of 1.00

Flag question

Question text Hazards covered by the homeowner’s policy include all the following EXCEPT __________. Select one: a. explosions. b. floods and earthquakes. c. riots. d. smoke damage. e. damage caused by aircraft or vehicles. Question 25 Answer saved Marked out of 1.00

Flag question

Question text A budget for short-term goals involving recurring items is called a/an __________. Select one: a. operating budget. b. comprehensive budget. c. capital budget. d. a. and b. e. a., b., and c. Question 26 Answer saved Marked out of 1.00

Flag question

Question text When your expenses are greater than your income you have __________. Select one: a. sufficient cash to cover expenses. b. more capital to sell. c. a budget deficit. d. a budget surplus. e. reduced consumption. Question 27 Answer saved Marked out of 1.00

Flag question

Question text A fund of real estate holdings that can be privately held or publicly traded on an exchange is a __________. Select one: a. syndicate. b. limited partnership. c. real estate investment trust. d. direct investment fund. e. mortgage-backed fund. Question 28 Answer saved Marked out of 1.00

Flag question

Question text The costs of operating a car include all the following EXCEPT __________. Select one: a. price. b. fuel. c. maintenance and repair. d. property taxes. e. insurance and registration. Question 29 Answer saved Marked out of 1.00

Flag question

Question text To avoid unwelcome adjustments, you should __________. Select one: a. be conservative in your expectations. b. stick with long-term goals. c. redo your budget each week. d. switch to less desirable choices. Question 30 Answer saved Marked out of 1.00

Remove flag

Question text The Consumer Price Index is a measure of __________. Select one: a. recession. b. inflation. c. purchasing power. d. GDP. e. consumption. Question 31 Answer saved Marked out of 1.00

Flag question

Question text Megan’s balance sheet shows that on February 7, 2010 she had assets totaling $27,600 and debts totaling $32,500. Which of the following statements best describes her situation? Select one: a. She had equity. b. She had positive cash flow. c. She had negative net worth. d. She had liabilities. e. She had liquidity. Question 32 Answer saved Marked out of 1.00

Flag question

Question text The costs of leasing are __________. Select one: a. the down payment b. the lease payments. c. the buyout. d. a. and b. e. a., b., and c. Question 33 Answer saved Marked out of 1.00

Flag question

Question text The stocks in Wayne’s investment portfolio lost value in the recession, but he also had CDs and a savings account. The effect of his investment diversification on his finances was to __________. Select one: a. increase spending. b. reduce risk. c. increase income. d. reduce cost. e. increase variety. Question 34 Answer saved Marked out of 1.00

Flag question

Question text If the demand for labor is greater than the supply, then __________. Select one: a. the price of labor is lower. b. the price of labor is higher. c. there are fewer jobs available. d. a. and c. e. b. and c. Question 35 Answer saved Marked out of 1.00

Flag question

Question text Examples of annuities include all the following EXCEPT __________. Select one: a. savings plans. b. layaway purchases. c. mortgages. d. one-time cash flows. e. retirement plan payouts. Question 36 Answer saved Marked out of 1.00

Flag question

Question text Funds structured to increase return through active management with the expectation of a down market are called __________. Select one: a. lifestyle funds. b. leveraged funds. c. inverse funds. d. open-end funds. e. closed-end funds. Question 37 Answer saved Marked out of 1.00

Flag question

Question text Which life stage typically is best characterized by the following financial circumstances: career building, family building, increased earning, increased spending, asset accumulation, desire to protect dependents and assets, decrease in willingness to assume risk? Select one: a. Adolescence b. Early adulthood c. Middle adulthood d. Late adulthood e. Old Age Question 38 Answer saved Marked out of 1.00

Flag question

Question text A mortgage in which you borrow a monthly income via a loan against your home equity that you don’t have to pay back for as long as you live there is called a/an __________. Select one: a. reverse mortgage. b. balloon mortgage. c. home equity loan. d. adjustable rate mortgage. e. fixed rate mortgage. Question 39

Answer saved Marked out of 1.00

Remove flag

Question text Uninsurable risks that offer a chance of loss or gain are called __________. Select one: a. speculative risks. b. pure risks. c. risk shifts. d. trade-offs. e. risk avoidance. Question 40 Answer saved Marked out of 1.00

Flag question

Question text A kind of annuity that consists of cash flows of equal amounts occurring at regular intervals and that continues indefinitely is __________. Select one: a. a perpetuity. b. the rate of compounding. c. interest from bonds. d. the minimum value kind. e. the time value of money....