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WorksheetsMM Spring Final Part 2: Multiple Choice
Total questions: 40
Worksheet time: 13mins
Name
Class
Date
1.
the process of preparing a plan for transferring property during one's lifetime and at one's death.
a)
Retirement planning
b)
Estate Planning
c)
asset disposition
d)
none of these answer are correct
2.
The costs of buying a car typically include all of the following except
a)
down payment
b)
sales tax
c)
registration fee
d)
title insurance
3.
All of the following categories are used to classify stocks according to risk level except
a)
preferred stocks
b)
income stocks
c)
growth stocks
d)
defensive stocks
4.
Rate of Return on Investment (ROI)
a)
is used to evaluate the efficiency of an investment
b)
calculates the amount of return on an investment
c)
is a percentage calculated by dividing the total amount gained/lost by the amount invested
d)
all o f these choices are correct
5.
The steps involved in implementing a buying plan are
a)
comparison shopping, choosing a payment method, making the purchase, evaluating the purchase
b)
setting a spending limit, setting a time line, choosing a payment method, making the purchase
c)
choosing the item to buy, defining a spending limit, choosing a payment method, making the purchase
d)
setting a spending limit, setting a timeline, choosing the item to buy, making the purchase
6.
Which of the following statements regarding small claims court is correct?
a)
Cases involve relatively small amounts, usually less than $5,000
b)
Typically, attorneys are not allowed in court
c)
Cases are usually decided by a six-person jury
d)
All of these are correct
7.
Advantages of using credit include all of the following except
a)
reduced risk of identity theft
b)
increased purchasing power
c)
access to special benefits such as rewards programs
d)
increased leverage in the event of a dispute regarding a purchase
8.
Which type of employer-sponsored retirement plan is established for employees of schools, government units and nonprofit organizations?
a)
defined-benefit plan
b)
401(k) plan
c)
403(b) plan
d)
SEP-IRA
9.
Credit card companies can charge all of the following fees except
a)
billing dispute fees
b)
cash advance fees
c)
balance transfer fees
d)
penalty fees
10.
To qualify for a VA loan, you must be a
a)
first-time home buyer
b)
low-income buyer
c)
U.S. military veteran
d)
all of these
11.
Which of the following investments is not insured by the FDIC?
a)
Savings account with a bank
b)
Money Market deposit account
c)
Certificate of deposit
d)
Savings in a credit union
12.
Retirement plan contributions are not tax-deductible if they are made to a
a)
traditional IRA
b)
Roth IRA
c)
SEP-IRA
d)
Keogh Plan
13.
Which of the following statements is correct regarding an adjustable-rate mortgage (ARM)?
a)
The interest rate can change, but the monthly payment remains the same.
b)
An ARM is a better option than a fixed-rate mortgage if interest rates are rising
c)
An ARM cannot be refinanced
d)
None of these is correct
14.
When you are saving money, the emphasis is on
a)
obtaining the highest available rate of interest
b)
achieving short-term and intermediate goals based on a timeline
c)
safety of principal
d)
all of these are correct
15.
If the current minimum payment on a credit card balance is 3 %, the credit card issuer
a)
can lower the minimum payment but cannot increase it
b)
can increase the minimum payment but not more than once per year
c)
can increase the minimum payment at any time by any amount
d)
cannot increase the minimum payment more than 6 %
16.
Which type of bankruptcy involves the forfeiture of an individual's assets in exchange for the discharge of debts
a)
Chapter 7 bankruptcy
b)
Chapter 13 bankruptcy
c)
Chapter 11 bankruptcy
d)
All of these are correct
17.
To become a certified financial planner (CFP), you would have to
a)
complete educational requirements
b)
pass the CFP Board certification exam
c)
have a minimum of three years' experience in the financial planning field
d)
All of these are correct
18.
When your investments are growing at a rate faster than the rate of inflation, you are
a)
meeting your goals for retirement
b)
accumulating wealth
c)
outperforming the market
d)
all of these
19.
The alternative dispute resolution process includes
a)
dispute letter, mediation, and litigation
b)
negotiation, arbitration, and litigation
c)
negotiation, mediation, and arbitration
d)
dispute letter, arbitration, and litigation
20.
_ is the process of making choices that reflect your goals by considering all of the pros and cons along with
a)
Financial responsibility
b)
Planned spending
c)
Decision making process
d)
System Consolidation
21.
_ is the chance that changes in the business cycle (periods of economic growth or decline) will affect the value of an investment
a)
Inflation risk
b)
Nonmarket Risk
c)
Industry Risk
d)
Market Risk
22.
Most creditors use the _______ method for computing interest
a)
adjusted balance
b)
previous balance
c)
average daily balance
d)
none of these are correct
23.
New issues of securities are sold through
a)
stock exchange
b)
primary market
c)
secondary market
d)
full-service brokers
24.
An item that has the same value across the market with little or no difference in quality among producers is a(n)
a)
commodity
b)
collectible
c)
option
d)
All of these are correct
25.
All of the following actions may help prevent credit card fraud except
a)
notifying creditors immediately if your card is lost or stolen
b)
verifying website security when shopping online
c)
tearing up old receipts and credit card statements when you no longer need them
d)
storing your credit card information on a merchant's secure website
26.
Holding a variety of investments for the purpose of reducing overall risk is called
a)
diversification
b)
dollar-cost averaging
c)
defensive investing
d)
risk avoidance
27.
__ is the failure to pay your debts as required by agreement or by law
a)
Foreclosure
b)
Credit delinquency
c)
Repossession
d)
Garnishment
28.
A money market fund
a)
is insured by the FDIC up to $250,000
b)
usually pays a lower interest rate than a money market deposit account
c)
is a type of mutual fund that invests in low-risk securities
d)
All of these are correct
29.
An initial public offering (IPO) makes it possible for a company to
a)
become a member of a stock exchange
b)
issue preferred stock
c)
establish a franchise network
d)
sell stock to the general public
30.
Recommended ways to keep credit costs to a minimum include
a)
Pay cash for small purchases
b)
Keep the number of credit accounts you have to a minimum
c)
Comparison shop when getting a loan or credit card
d)
All of these are correct
31.
A __________ is a request to buy a stock at a specific price to ensure that you don't pay more than a set dollar amount.
a)
market order
b)
limit order
c)
stop order
d)
discretionary order
32.
To be legally binding, a contract requires
a)
a notary stamp
b)
consideration
c)
a written document
d)
All of these are correct
33.
Which of the following statements applies to a line of credit?
a)
No collateral is required
b)
No interest is charged on the unused portion of the line of credit
c)
The maximum amount that can be borrowed is set
d)
All of these apply
34.
The _______ is an independent bureau within the Federal Reserve System designed to assist consumers and protect them from abusive practices in the financial services industry
a)
Federal Trade Commission
b)
US Treasury Division
c)
Consumer Financial Protection Bureau
d)
Federal Bureau of Investigation
35.
A written plan that allocates expenses among roommates so that each person pays his or her share is called _
a)
a group budget
b)
shared responsibility
c)
logistics
d)
a rental contract
36.
A daily newspaper that provides detailed coverage of the business and financial world is
a)
The Wall Street Journal
b)
Forbes
c)
Barron's
d)
All of these are correct
37.
A type of credit that allows you to purchase goods or services only from a specific store or merchant is a (an)
a)
charge card
b)
store account
c)
revolving account
d)
access account
38.
How do buy-and-hold investors make money?
a)
cash dividends
b)
long-term capital gains
c)
stock dividends and/or stock splits
d)
All of these are correct
39.
A corporate bond that allows the issuer to repay the bond before the maturity date is called a
a)
convertible bond
b)
callable bond
c)
premium bond
d)
none of these
40.
Sarbanes–Oxley (SOX) was created in response to
a)
liar loans
b)
fraud and misconduct by officers of large corporations
c)
the financial crisis of 2007–2008
d)
predatory lending practices
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