Exam 18: Appendix Studentinstructor Review Cards

As a small investor, Bernie has decided to invest in the Alpha Fund. This mutual fund only invests in the common stock of companies located in the United States. One benefit of investing in mutual funds is:

All contributions to a Roth IRA are:

Dividends are a distribution of profits paid out to shareholders of a corporation.

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 requires issuers to give a 5­day notice before making significant changes to credit agreements.

One key to establishing a sizable savings balance is to:

A debit card allows you to make "cash­like" purchases, because your bank balance is reduced immediately each time your card is used.

One benefit of utilizing commercial personal finance software packages such as Quicken or Moneydance is that these packages:

A corporate bond is a formal IOU issued by a corporation.

After a review of your friend's current financial situation, you discovered she was carrying a $4,500 credit card balance with an APR of 12%. The best advice you can give to your friend is to:

Ownership of stock offers the possibility, but not the guarantee, of two types of financial returns:

Investing involves reducing consumption today in order to acquire assets that build future wealth.

The FDIC insures individual deposits up to $250,000 per account in FDIC­ insured banks.

Like a Roth IRA, the contributions made to a 401(k) plan are not tax­ deductible.

A grace period is the period of time you have to pay your credit card balance before interest or fees are assessed.

Companies are legally required to pay dividends on corporate stock.

Kenneth, a college student, is addicted to playing video games, and buys new games every other week. He calls his dad asking him to increase his weekly allowance. His dad refuses and tells him to manage his expenses with the agreed upon amount he currently receives. Which of the following would best help Kenneth manage his finances?

A _____ allows you to make purchases now and to defer the payment into the future.

As a conservative investor, you are concerned about the preservation of capital and much less concerned with capital gains. Based on this information, you should consider investing in _____, since they are considered very safe investments.

If a company declares to pay dividends to stockholders, common stockholders cannot receive a dividend until all preferred dividend are paid in full.

The first step in developing a budget is to analyze: