Introduction to Finance Semester Test Review

The top salary you can make.

• Productivity

• Earning Potential

• Career

• Human Capital

How is the employee paid?

• Wages

• Salary

Wages, salary, and commission are examples of what type of income?

• Passive

• Earned

• Portfolio

How many hours did this employee work during this pay period?

• 72

• 40

• 80

• 08

Is debt-to-income a factor when a lender is assessing whether to loan a borrower money?

• No

• Yes

How many hours of vacation has this employee used for this pay period?

• 08

• 62

• 18

• 16

What is a credit score?

• A score from a test given to borrowers by lenders

• An average of all o fa borrower's credit accounts

• A number that represents the risk a lender takes on a borrower

• A number that represents how much money a borrower owes

Phil Reagan has written a check to USA Electronics for $1152.65. Is this check filled out correctly?

• No

• Yes

Lillian purchased a house for $150,000. Lillian and her husband invested $50,000 into home improvements. Lillian and her husband were able to sell the house for $200,000. Is this an example of portfolio income?

• No

• Yes

The quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services.

• Earning potential

• Human capital

• Opportunity Cost

• Productivity