PFLit

Margo signed a lease to rent a small building for her business. In exchange for the use of the facility, Margo will pay monthly rent. What component of a legally binding contract does the rent represent?

• Competent parties

• Consideration

• Legality

• Agreement

An offer must be made by one party and accepted by the other party in order for a contract to be

• put in written form.

• notarized.

• legally binding.

• interpreted correctly.

Which of the following is an example of involuntary debt:

• Unsecured line of credit

• Automobile loan

• Fixed-rate mortgage

• Court judgment lien

A "spoof," or a fake email that appears real, is part of what investment scam?

• Pump and dump

• A pyramid scheme

• Affinity fraud

• Phishing

Which of the following is an example of a regulation that protects investors:

• Brokerage firms are required to abide by equal opportunity employment laws.

• Individuals are not allowed to purchase and sell more than five stocks per week.

• Companies must honestly and publicly disclose their business information.

• Newspapers and magazines are not allowed to report on stock market trends.

When providing services to clients, financial professionals have the responsibility to supply

• accurate information.

• payment options.

• credit counseling.

• bank statements.

What should you do if a financial client reports a problem with her/his portfolio?

• Call the client back later after s/he has calmed down.

• Apologize and resolve the problem immediately.

• Ask the manager to return the client's call.

• Waive the client's fees for his/her next five transactions.

Which of the following is typically an effective method to build trusting relationships with financial clients:

• Contacting clients only when problems arise with their accounts

• Using precise technical language when explaining financial products

• Asking others in the organization to follow up after sales transactions

• Explaining the benefits and drawbacks of different financial products

The inputs that allow businesses to operate are called economic

• incentives.

• services.

• models.

• resources.

One of the main reasons why individuals make investments based on their future financial needs is to

• develop a living will.

• avoid paying taxes.

• set up a trust fund.

• generate retirement income.