WorksheetsEPF Final Review # 1
Total questions: 25
Worksheet time: 18mins
Name
Class
Date
1.
1. The ability of an asset to be converted into cash quickly without loss of value is _______.
a)
maturity date
b)
certificate of deposit
c)
liquidity
d)
all of the above
2.
2. To accumulate enough money to meet your long-term needs, you should start saving _______.
a)
late
b)
early
c)
annually
d)
all of the above
3.
3. Which statement defines Net Worth?
a)
The use of borrowed money to buy securities
b)
An assigned dollar value that is printed on a stock certificate
c)
The difference between your assets and your liabilities
d)
The movement of money into or out of a business, project, or financial product
4.
4. The date on which an investment, insurance policy, or loan becomes due for payment is the _______.
a)
maturity date
b)
mutual assent
c)
Mortgage
d)
all of the above
5.
5. Retirement income paid by a company is called
a)
rents and profits
b)
Social Security
c)
401(k)
d)
Pension
6.
6. A tax-deferred retirement plan available to self-employed persons and their employees is called a(n) _______.
a)
Keogh Plan
b)
labor union
c)
insurance
d)
all of the above
7.
7. If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?
a)
Sales tax may be charged on the interest that you earn
b)
You cannot earn interest until you pass your 18th birthday
c)
Earnings from savings account interest may not be taxed
d)
Income tax may be charged on the interest if your income is high enough
8.
8. Gross pay is _________ net pay.
a)
greater than
b)
less than
c)
equal to
d)
unrelated to
9.
9. A rise in the general level of prices is referred to as _______
a)
growing prices.
b)
inflation
c)
infidelity
d)
all of the above
10.
10. Michel Ward borrowed $5,000 at a 9% add-on rate for three years. What is the monthly payment?
a)
$176.00
b)
$167.00
c)
$450.00
d)
$276.00
11.
11. If you have caused an accident, which type of automobile insurance would cover damage to your own car?
a)
term
b)
collision
c)
comprehensive
d)
liability
12.
12. Using a brokerage firm, a qualified investor buys 1,000 shares of a common stock at $50 a share on 50% margin. This means that the:
a)
investor will pay $5,000 for the shares
b)
investor is buying 2,000 shares
c)
brokerage firm is lending the investor 50% of the money.
d)
brokerage firm will own 50% of the 100 shares of stock that were purchased.
13.
13. A stock market is
a)
a place to buy fruit.
b)
a market for stocks of corporations
c)
a place where things are placed on shelves
d)
All of the above
14.
14. Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
a)
its Board of Directors
b)
The Federal Reserve
c)
The World Bank.
d)
The Securities and Exchange Commission (SEC)
15.
15. What does IRA stand for?
a)
Independent resale Account
b)
Individual Retirement Account
c)
Individual Relator Association
d)
Inside Relief Association
16.
16. What is the largest equities market in the world?
a)
Egyptian Exchange (EGX)
b)
NASDAQ market
c)
New York Stock Exchange (NYSE)
d)
Over-the-counter (OTC) market
17.
17. Economics is:
a)
the study of choices people and communities make regarding the way they produce and purchase goods and services
b)
a factor that causes a producer’s average cost per unit to fall as more units are produced
c)
an activity related to the production and distribution of goods and services
d)
a steady long term rise in real GDP
18.
18. The most liquid type of investment is a:
a)
corporate bond
b)
certificate of deposit
c)
real estate holding
d)
money market account
19.
19. Investors select “blue chip” stocks because they:
a)
are large public corporations
b)
can avoid financial difficulties
c)
have a reputation for quality management and sometimes pay dividends
d)
are listed on the American Stock Exchange
20.
20. Explain the terms for a 401k
a)
When employees choose the percentage of salary they want to contribute to their account
b)
Social Security benefits of retirement
c)
Government pensions
d)
Social security
21.
21. A pharmacy is to drugs as the New York Stock Exchange is to
a)
interest
b)
stock advisors
c)
securities
d)
mutual funds
22.
22. In the financial world, a CD is a
a)
Compact Disk
b)
Court of Defense
c)
Certificate of Deposit
d)
Corporate Deduction
23.
23. When completing your W-4 form, what are allowances?
a)
When you clean the house and get money for it
b)
Form W-4
c)
Exempt status of money
d)
Number that reduces the amount of tax withheld from your paycheck
24.
24. What is the 20/10 Rule?
a)
Apply to mortgage loans for housing
b)
Adjust-debt problems
c)
Borrow no more than 20% of yearly salary, monthly payments more than 10% of take home pay
d)
Maintain 20 credit card accounts over 10 years
25.
25. What is a dividend?
a)
Part of a corporations profits paid to stock holders
b)
Capital gains
c)
Stock holders profits
d)
A disadvantage to owning a stock
100 %
