Spring 2025 Personal Finance Semester Exam

The ZRB Company promises to ship LST Inc. 200 units of product by a certain date, and LST Inc. promises to pay ZRB $25,000 for the product within 14 days of receipt. This is an example of a(n)

• bilateral contract

• executed agreement

• defensible agreement

Which of the following is a characteristic of debtor-creditor relationships:

• ​​​​​​​Controlled by industry standards

• ​​​​​​​Designed to monitor accounts

• ​​​​​​​Regulated by various laws

An investment scam that involves hyping up small, unheard-of stocks is a(n)

• pump-and-dump scheme

• affinity fraud scheme

• Ponzi scheme

When a producer changes from an expensive resource to one that is less expensive, this is an example of

• finding another source

• conserving a resource

• finding an alternative resource

A problem on a drilling platform in the Gulf of Mexico has affected the amount of oil that is extracted and refined in the region. Because it is the summer travel season, the demand for gasoline is increasing; however, there is less gasoline available, and the prices for gasoline spike. What economic condition does this situation best describe?

• ​​​​​​​Scarcity

• ​​​​​​​Opportunity cost

• ​​​​​​​Input maximization

A business that decides to lease its current building instead of buying it is transferring risk through

• contractual agreement

• avoidance

• business organization

One type of economic risk that a business usually experiences is

• perishability

• competition

• dishonesty

Which type of inflation is harmful to the economy?

• ​​​​​​​Hyperinflation

• ​​​​​​​Demand-pull inflation

• ​​​​​​​Negative inflation

Which of the following is a benefit of using a debit card instead of a credit card:

• There is no risk of going into debt

• You can spend more money at a time

• Expenses can be paid at a later date

When Matthew receives a check four times a year for income he has earned on his stock investments, he is receiving

• credit

• dividends

• cash