Exam 18: Appendix Studentinstructor Review Cards

Federal law allows credit card companies to charge as much as they want for late fees.

Studies show that students who have internship experience are offered higher starting salaries.

The largest single asset for many households is the equity they have in their home.

You have a budget for your personal finances. Which of the following statements best explains this statement?

A full­service broker:

A _____ is a distribution of profits paid out to stockholders by a corporation.

When you purchase common stock it represents your ownership in the corporation.

When you contribute to a traditional IRA, the contributions you make reduce your taxable income in the same year.

Your Aunt wants advice on how to invest $10,000. During the course of the conversation, she mentions that she is looking for maximum level of financial security. Based on this information, the best suggestion would most likely be for her to invest the $10,000 in corporate stock.

A(n) _____ is a detailed forecast of your expected cash inflows (income) and cash outflows (expenditures), which helps control your financial situation.

Bernard is concerned about his current financial condition. In order to handle his finances better, he should:

A financial instrument that allows the stockholders to receive their dividend first, if one is paid by the company, is known as _____.

The payments you have the most control over are called your _____ payments.

Evaluate various options for investing to build wealth.

It is never a good idea to have a diversified portfolio because your investments are spread out and can result in increased risk.

The benefits of having a credit card include not having to carry cash and the ability to track expenditures.

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.

Why is investing earlier in life preferable?

A _____ account is an interest­earning account that is intended to satisfy obligations that your checking account cannot handle.

Currently, the most commonly used credit scoring system is the Fair, Isaac and Company (FICO) scale.