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Personal Finance Final Exam

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

(a)   is a folder or small book containing preprinted paper instruments issued to checking account holders and used to pay for goods or services.

2.

(a)   a signature or an equivalent stamp that authorizes payment or a transfer of funds, or other financial transaction.

3.

(a)   has no designated payee, so the person who possesses it can demand payment.

4.

(a)   is one where the endorser puts his signature on the instrument as well as writes the name of a person to whom order the payment is to be made.

5.

The most common (a)   is the phrase For Deposit Only written along with the payee's signature on the back of a check.

6.

The maker of a bill of exchange or check is called the (a)   .

7.

A (a)   is an individual or organization providing goods or services in exchange for money.

8.

(a)   is the party that has been ordered by the drawer to pay a certain sum of money to the person presenting the check.

9.

(a)   is a record of transactions in a checking account.

10.

(a)   includes deposits, charges, withdrawals, as well as the beginning and ending balance for the period, along with any interest earned.

11.

(a)   involves an employer or financial institution electronically depositing your paycheck into a bank account.

12.

Besides a scholarship or loan, another form of educational funding is a(n) (a)   , which is based on financial need, does not have to be repaid, and is often funded by the government.

13.

Interest drawn on the sum of the original principal plus interest is called (a)   interest.

14.

Money that is paid for the use of money is called (a)   .

15.

A savings or checking account at a credit union is called a(n) (a)   account.

16.

A(n) (a)   is a type of mutual fund that invests in low-risk securities and is considered safe even though it is not FDIC-insured.

17.

Deposits kept in credit unions are insured by the (a)   .

18.

Federal insurance for depositors in commercial banks and savings and loans is provided by the _________.

a)

money market funds

b)

FDIC

c)

Grant

d)

Full-service/Commercial

19.

_________ banks provide the widest variety of banking services of any of the financial institutions.

a)

money market funds

b)

FDIC

c)

Grant

d)

Full-service/Commercial

20.

A deposit that is set aside for a specified length of time at a specified rate is called a(n) _________.

a)

certification of deposit

b)

money market account

c)

money market funds

d)

liquidity

21.

A type of savings plan that offers a more competitive interest rate than a regular savings account is called a(n) _________.

a)

certification of deposit

b)

money market account

c)

money market funds

d)

liquidity

22.

The speed with which savings can be readily converted to cash is called _________.

a)

certification of deposit

b)

money market account

c)

money market funds

d)

liquidity

23.

The amount of money you place in savings is called _________.

a)

liquidity

b)

principal

c)

money market accounts

d)

charge account

24.

Money borrowed for education, called (a)   , can be subsidized or unsubsidized.

25.

The day on which a certificate of deposit must be renewed or cashed in is called the (a)   .

26.

(a)   is combining telephone, Internet, and cable TV into one package.

27.

A(n) (a)   is a nonrefundable charge for a service.

28.

The person who rents property is called the (a)   .

29.

A(n) (a)   is an individually owned unit in an apartment-style complex with shared ownership of common areas.

30.

A(n) (a)   is a refundable amount paid in advance to protect the owner against damage or nonpayment.

31.

(a)   is the process of using another’s property for a fee.

32.

A(n) (a)   rental contains basic furniture, such as a bed, dresser, sofa, chairs, and dining table and chairs.

33.

A(n) (a)   is a building with two separate living units that share a common central wall.

34.

The (a)   is the owner of the property that is rented or leased.

35.

A rental (a)   is a detailed list of current property conditions.

36.

Buildings that contain many small rooms for on-campus student housing are called (a)   .

37.

A(n) (a)   is a written agreement to rent property at a certain price for a specified period.

38.

A studio apartment, or a(n) (a)   , has one large room that serves as the living room, dining area, and bedroom.

39.

(a)   is the legal process of removing a tenant from rental property.

40.

(a)   is the process by which students join fraternities and sororities.

41.

The use of long-term savings to earn a financial return.

a)

Investing

b)

Inflation

c)

Initial Investing

d)

Systematic Investing

42.

A rise in the general level of prices

a)

Investing

b)

Inflation

c)

Initial Investing

d)

Systematic Investing

43.

A summary of a corporation’s financial results for the year and its prospects for the future.

a)

Portfolio

b)

Annual Report

c)

Financial Pages

d)

Return on Investments

44.

A debt obligation of a corporation or a state or local government.

a)

Stock

b)

Bond

c)

Mutual Funds

d)

Annuity

45.

A unit of ownership in a corporation.

a)

Stock

b)

Bond

c)

Mutual Funds

d)

Annuity

46.

The pooling of money from many investors to buy a large selection of securities.

a)

Stock

b)

Bond

c)

Mutual Funds

d)

Annuity

47.

A contract in which you make a lump-sum payment or series of payments that earn interest in return for regular disbursements, often after retirement.

a)

Stock

b)

Bond

c)

Mutual Funds

d)

Annuity

48.

Low-priced stocks of small companies that have no track record.

a)

Income Stock

b)

Penny Stock

c)

Common Stock

d)

Preferred Stock

49.

A type of stock that pays a variable dividend and gives the holder voting rights.

a)

Income Stock

b)

Penny Stock

c)

Common Stock

d)

Preferred Stock

50.

A type of stock that pays a fixed dividend but has no voting rights.

a)

Income Stock

b)

Penny Stock

c)

Common Stock

d)

Preferred Stock

51.

Stocks in corporations that have a consistent history of paying high dividends to stockholders.

a)

Income Stock

b)

Penny Stock

c)

Common Stock

d)

Preferred Stock

52.

(a)   is a popular stock market index that tracks 30 U.S. blue-chip stocks.

53.

(a)   is the largest equities-based exchange in the world, based on the total market capitalization of its listed securities.

54.

(a)   is an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.

55.

(a)   It is a broad index that is heavily weighted toward the important technology sector.

56.

Selling stock borrowed from a broker that must be replaced at a later time.

a)

Short Selling

b)

Dividends

c)

Capital Gains

d)

Return on Investments (ROI)

57.

Money paid to stockholders from the corporation’s earnings.

a)

Short Selling

b)

Dividends

c)

Capital Gains

d)

Return on Investments (ROI)

58.

(a)   tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.

59.

(a)   is a profit from the sale of property or an investment.

60.

An increase in the number of outstanding shares of a company’s stock.

a)

Par Value

b)

Earning Per Shares

c)

Stock Split

d)

Dividend Reinvestments

61.

Fires, floods, and other natural disasters are categorized as (a)   risk.

62.

A practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.

(a)  

63.

(a)   risks can arise from various factors such as recessions, inflation, exchange rate fluctuations, political instability, trade disputes, regulatory changes, and natural disasters.

64.

(a)   risks are made as conscious choices and are not just a result of uncontrollable circumstances.

65.

(a)   is an economic stake in an event for which a person or entity purchases an insurance policy to mitigate the risk of loss.

66.

(a)   protects against claims resulting from injuries and damage to people and/or property.

67.

(a)   are risks that directly affect an individual or family.

68.

(a)   damaged due to uncontrollable forces such as fire, lightning, hurricanes, tornados, or hail.

69.

(a)   is commonly interpreted to mean the chance of a single event resulting in large numbers of injuries, fatalities, or extensive property damage.

70.

(a)   a type of Operational Risk specifically the risk of being held liable or responsible for an action or inaction, whether or not at fault, resulting in a direct or indirect financial loss.

71.

(a)   the duration or period during which the policyholder is required to make payments for their insurance policy.

72.

(a)   is a specified amount of money that the insured must pay before an insurance company will pay a claim.

73.

(a)   means compensating a person for damages or losses they have incurred or will incur related to a specified accident, incident, or event.

74.

A (a)   is a defined dollar amount a patient pays for medical expenses.

75.

(a)   is the continuing process of identifying, analyzing, evaluating, and treating loss exposures and monitoring risk control and financial resources to mitigate the adverse effects of loss.

76.

(a)   is a process used to identify potential hazards and analyze what could happen if a disaster or hazard occurs.

77.

(a)   means to take on the legal responsibility of any consequences of participating in the risky activity.

78.

(a)   is when you lessen the potential damage that could be caused by a hazard or danger.

79.

(a)   is the transfer of risk(s) from one party to another party.

80.

(a)   is an approach that eliminates any exposure to risk that poses a potential loss.

81.

(a)   is the capacity for catching on fire.

82.

The (a)   regulates interstate and international communications by radio, television, wire, satellite, and cable.

83.

The (a)   regulates unfair competition, false or deceptive advertising, and deceptive product labeling.

84.

The (a)   is a federal law enforcement agency that investigates consumer complaints regarding illegal use of the mail.

85.

The (a)   is a nonprofit organization focused on creating a more trusting relationship between businesses and customers.

86.

(a)   is a nonprofit organization best known as the publisher of Consumer Reports.

87.

A(n) (a)   is a person who actively promotes consumer causes.

88.

The (a)   was proposed by President Kennedy, and it outlines basic consumer rights.

89.

A(n) (a)   is a reasonable, untrained person in a similar position.

90.

(a)   allows media stored on one device to be accessed from another place through another device.

91.

Consumers are (a)   when they record video or audio for later viewing or listening.

92.

(a)   generally means that you are asking the credit issuer to reverse the charge on your account.

93.

(a)   is a process in which a neutral third person, a negotiator, assists two parties in reaching a compromise that is acceptable to both sides.

94.

A(n) (a)   is one in which a large number of people with similar complaints against the same defendant join together to sue.

95.

A(n) (a)   is a court of limited jurisdiction that resolves cases involving small amounts.

96.

A(n) (a)   case involves a person who has a dispute with another person or entity.

97.

A(n) (a)   case involves a government unit that is accusing an individual of committing a crime.

98.

The (a)   is the presiding officer in the court and is either elected or appointed.

99.

A body of citizens known as the (a)   is sworn by a court to hear the facts submitted during a trial and to render a verdict.

100.

(a)   is the process of gathering and sharing evidence in a lawsuit.