Exam 18: Appendix :personal-Finance-Appendix

Which of the following statements is true of the Credit Card Accountability, Responsibility and Disclosure Act of 2009?

The Consumer Financial Protection Bureau was created by the _____.

In the context of financial securities, certificates of deposit:

From the perspective of many investors, the owners of common stock are more likely to receive a dividend than owners of preferred stock.

The Credit Card Accountability, Responsibility and Disclosure Act created the Consumer Financial Protection Bureau.

In the context of the Fair, Isaac and Company (FICO) score, a credit score between _____ indicates a fair to good creditworthiness.

Robin is a bondholder in Nacron Corporation, a software company. He receives an interest payment on the bond every year. When the bond reaches maturity, Robin will also receive an additional amount of money. In this case, the money that will be received by Robin when the bond matures is known as the _____.

The length of time you've held various credit accounts makes an impact on your individual Fair, Isaac and Company (FICO) score.

Identify a true statement about credit cards.

Investments that generate low returns tend to be riskier than investments that offer high returns.

In the context of building wealth for retirement, which of the following statements is true of a traditional individual retirement account (IRA)?

Karen is the sole breadwinner of her family. Every month, Karen has to pay electricity bills, water bills, and house rent. In this scenario, Karen's fixed monthly expenses are referred to as _____.

On the Fair, Isaac and Company (FICO) scale, Donald falls in the poor to below average category of creditworthiness. Based on the FICO scale, Donald is most likely to have a credit score between:

In the context of acquiring financial assets, identify a true statement about discount brokers.

In general, younger investors are more concerned about risk than older investors.

In the context of financial securities, certificates of deposit are considered to be among the safest investment options because:

The benefit of a(n) _____ is that the contributions you make reduce your taxable income in the same tax year, and the earnings on your contributions are tax deferred, allowing them to grow more rapidly.

In the context of retirement plans, the 401(k) plans are offered to employees of certain types of nonprofit organizations such as schools, religious organizations, and charities.

In the context of financial securities, certificates of deposit:

Jordan paid for his purchases by using a bank card that allowed him to buy goods without having to make immediate payment. He, however, failed to clear the balance on time and was charged with a late fee. In this scenario, Jordan used a _____.