EPF Final Review

Which insurance will pay for your guitar if it is stolen from your rented apartment?

• homeowner's

• liability

• renter's

• comprehensive

Which is FALSE about most ATM cards?

• You need a bank account to use an ATM card.

• You can get cash at many places around the world, for a fee

• Your account balance typically is not visible

• You can typically use your card 24 hours per day

What is the main goal of the Federal Reserve?

• keep the banking system safe and stable

• promote payday lending as a banking alternative

• protect US banks from foreign competition

• balance the government budget

Which is NOT an example of an unfair trade practice?

• bid rigging

• intense advertising

• price fixing

• market division

Why is it a bad idea to only pay the minimum due on your credit card?

• you will reduce your balance too quickly

• you will pay more for all of your credit purchases

• your credit score will fall dramatically

• you will lose reward points

Based on the Rule of 72, how long will it take $15,000 to double at 12 percent interest?

• 10 years

• 8 years

• 6 years

• 4 years

What is the purpose of insurance?

• enhance asset value

• prevent all losses

• build wealth

• protect against risk

Which insurance is required by law?

• life

• auto liability

• auto collission

• long term care

Why buy share in a mutual fund instead of a share of stock in a single company?

• reduce risk

• obtain ownership in multiple companies

• diversify your investments

• all of the responses are correct

What is a measure of the total value (in dollars) of a publicly traded company?

• earnings per share (EPS)

• dividend yield

• market capitalization

• total shares outstanding