Personal Finance Practice EOC Pt 2

Which investment option has the lowest risk when saving for retirement?

• penny stocks

• money market fund

• antique collectibles

• income and growth stocks

Maria has $500. She wants to double her money in five years. What interest rate does she need?

• 3.6%

• 6.9%

• 10.0%

• 14.4%

Which instrument, issued by financial institutions and insured by the FDIC, limits access to money?

• stocks

• mutual funds

• checking account

• certificate of deposit

What is an interest-bearing account that provides limited check writing and requires higher minimum balances?

• Dividend

• Money Market

• Stock

• Certificate of Deposit

How is APR defined for a consumer loan?

• actual primary rate

• annual primary rate

• actual percentage rate

• annual percentage rate

Meredith writes a check for $500 to a lender who gives her $450 in cash and keeps $50 in fees. The lender keeps the check until an agreed-upon date, then cashes the check. Which type of credit did Meredith use?

• title loan

• pawn loan

• rent-to-own

• payday loan

When Charlie and Wendy purchased their home, the bank required $3,000 for property taxes and insurance premiums. Which type of mortgage account is set up to handle this transaction?

• equity

• escrow

• truth in lending

• good faith estimate

What is an example of a secured loan?

• mortgage

• credit card

• student loan

• personal loan

What is an example of an unsecured loan?

• car loan

• mortgage

• credit card

• furniture loan

Joseph recently broke his ankle. His health insurance will pay part of the cost, but he must pay the rest on a schedule he worked out with the hospital. He is concerned that this debt will negatively affect his credit report. Which situation would cause Joseph's medical bill to lower his FICO score?

• He makes late payments.

• He has a large medical bill.

• He files an insurance claim.

• He pays the bill in installments.