Exam 18: Appendix :personal-Finance-Appendix

A charge just for the privilege of having a credit card, whether you use it or not, is referred to as a(n) _____.

In the context of setting up your budget, which of the following expense tracking tools tracks your spending and suggests budget levels based on that spending?

Taking a pay cut from your temporary job to get experience in your career field most often lowers your chances of landing a good job.

In the context of investments, explain the importance of building a diversified financial portfolio.

In the context of financial securities, identify a true statement about certificates of deposit.

Allen is a college graduate, whereas his friend Glen has only completed high school. As a college graduate, Allen will most likely:

Investing refers to reducing consumption in the current time period in order to build future wealth.

Which of the following statements is true of credit cards?

Benedict applies for a credit card with a credit limit of $30,000. However, the issuing bank rejects his application because of his low credit score. While rejecting his application, the bank provides him with a free copy of his credit score. In this scenario, the bank is following the mandate of the _____.

Which of the following is a PayPal service that allows roommates, people sharing dinner, family members, and friends to share payments via an app-all without cash?

Thomas is a bondholder in the municipal corporation of Oklahoma. Not being much of a risk-taker, Thomas prefers these kinds of bonds as they are usually viewed as safe investments and interest income earned on these bonds is exempt from federal income taxes. Given this information, one can conclude that Thomas holds _____.

Derrick, a finance graduate, has joined an accounting firm. The firm opens a bank account for him in which his salary gets automatically deposited. He receives a modest but consistent amount of interest on the deposited amount. He does not use the money from the account for his daily expenses but keeps it aside to cover major future expenses. In the context of this scenario, which of the following accounts has the firm opened for Derrick?

After reviewing Brenda's current financial situation, Ronald, her friend, assesses that she has an unpaid credit card balance of $4,500, on which an annual percentage rate of 15% is applicable. In this case, the best advice that Ronald can give Brenda is to:

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

Norman, a musician, needs to buy sound equipment for his stage shows, but he does not have the required funds for it. He, therefore, purchases the equipment using a card issued by his bank that lets him clear the balance later. Although Norman does not need to pay the due amount immediately, he can only make purchases using the card for a limited amount of money. In this scenario, Norman's purchases are limited because he has a low _____.

In the context of protection for consumers, which of the following statements is true of the Dodd-Frank Act?

_____ refers to a process by which you earn interest not only on the money you directly invest but also on the interest you've earned in previous years.

Tom, a finance graduate, wants to identify the average credit scores among trainees in an organization. His research results show that the average credit score based on the Fair, Isaac and Company (FICO) scale is 695. This average credit score indicates that the trainees fall under the _____ category of creditworthiness.

Albert, a first-time investor in the stock market, has limited knowledge in trading in the stock market. He thus needs someone to guide him while buying and selling shares. He also needs assistance in financial planning and identifying good investment opportunities. In this scenario, Albert should hire a(n) _____.

In the context of financial securities, _____ are offered by banks and other institutions like credit unions.