Personal Finance Final Exam Review

What signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings?

• Share

• Cash

• Asset

• Capital

A loan to purchase real estate is called a(n) ________ or trust deed.

• property loan

• credit card

• mortgage

• lender

The use of someone else's money, borrowed now with the agreement to pay it back later, is called ________.

• credit

• borrow

• capital

• free money

Applying the "Rule of 72", how many years would it take a person to double their money if they invested it at 3% annual percentage rate?

• 16 years

• 36 years

• 6 years

• 24 years

Dana's medical insurance will pay 80 percent of the cost of a procedure. The policy sets an allowable limit for the procedure at $2,000. Dana's doctor bills the insurer for $2,200. How much will Dana have to pay?

• $1,600

• $2,200

• $0

• $600

Which of the following would be considered an asset?

• A credit card account

• A checking account

• A car loan

• All of the above are assets

________ refers to financial assets you possess that are worth more than your debts.

• Capital

• Capacity

• Character

• Collateral

What is the statement showing money withheld by an employer for income and social security?

• Form 1040

• Form W-4

• Form W-2

• Form 1040 EZ

Use the following figures to find Barney’s income for June: Part-time job salary (after taxes): $300 Allowance for household chores: $25 Birthday check from parents: $25 Savings: $100 Cost of new shirt and pants: $80 Cost of two movies: $20 Cost of daily lunches: $100

• $400

• $300

• $325

• $350

The Goosen Corporation’s stock is selling for $50/share and its earnings per share are $10. Find the P/E ratio for Goosen Corporation.

• 500

• 5

• 50

• 10