Question 1

What are subprime loans?

Accepted Answer

Subprime loans are made to wouldbe home buyers who don't qualify for marketset interest rates because of one or more risk factors-income level, employment status, credit history, ability to make only a very low down payment. Interest rates may run from 8 percent to 10 percent and higher.

Question 2

The difference between your assets and your liabilities is called fair market value.

Accepted Answer

A) True 
 B)False  False

Question 3

_____ can erode the value of money over time.

Accepted Answer

A)  Deflation 
B)  Inflation 
C)  Interest 
D)  Poor economic times 
A)  Deflation 
B)  Inflation 
C)  Interest 
D)  Poor economic times B

Question 4

Your _____ is the difference between your assets and your liabilities.

Accepted Answer

A)  statement of cash-flow 
B)  liquidity 
C)  net worth 
D)  variance 
A)  statement of cash-flow 
B)  liquidity 
C)  net worth 
D)  variance

Question 5

If someone is insolvent, it's because they are spending more than they're earning.

Accepted Answer

A) True 
 B)False

Question 6

Most employer-sponsored health insurance plans include dental and eye coverage.

Accepted Answer

A) True 
 B)False

Question 7

The adjustablerate mortgage (ARM) has an interest rate tied to the increase or decrease of certain interest rates that your lender has to pay.

Accepted Answer

A) True 
 B)False

Question 8

Patricia Greene has just set some short-term goals. These goals should be all of the following except _____.

Accepted Answer

A)  for a definite time frame 
B)  realistic 
C)  very difficult to achieve 
D)  measurable 
A)  for a definite time frame 
B)  realistic 
C)  very difficult to achieve 
D)  measurable

Question 9

The first step in getting a job offer is to prepare a(an) _____.

Accepted Answer

A)  financial plan 
B)  résumé 
C)  cover letter 
D)  reference list 
A)  financial plan 
B)  résumé 
C)  cover letter 
D)  reference list

Question 10

For expenditures, if the actual amount is higher than the budgeted amount, the variance is favorable.

Accepted Answer

A) True 
 B)False

Question 11

Management risk is the risk that poor management of an organization with which you're dealing may adversely affect the outcome of your personalfinances planning.

Accepted Answer

A) True 
 B)False

Question 12

Stage 1 of an individual's financial plan should focus on preserving wealth.

Accepted Answer

A) True 
 B)False

Question 13

Subprime loans have very attractive interest rates because they are below the prime rate.

Accepted Answer

A) True 
 B)False

Question 14

Credit bureaus compile a numerical credit score called a FDIO score for each credit user.

Accepted Answer

A) True 
 B)False

Question 15

The purpose(s) of a cover letter is to:

Accepted Answer

A)  indicate why you are sending your resume. 
B)  detail your educational achievements and relevant job experiences. 
C)  highlight your qualifications. 
D)  both a and c. 
A)  indicate why you are sending your resume. 
B)  detail your educational achievements and relevant job experiences. 
C)  highlight your qualifications. 
D)  both a and c.

Question 16

Paula Gordon just completed an important job interview as an applicant. She is home now. What should she do

Accepted Answer

A)  Call the company and thank the interviewer. 
B)  Call the company and ask if she got the job. 
C)  Send a thank-you note 
D)  Send the receptionist a thank-you card and small gift. 
A)  Call the company and thank the interviewer. 
B)  Call the company and ask if she got the job. 
C)  Send a thank-you note 
D)  Send the receptionist a thank-you card and small gift.

Question 17

Mike gets 5% interest on his savings, but the inflation rate is 3%. So his rate of return is 8%.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not true about credit card costs

Accepted Answer

A)  You can avoid annual fees by shopping around but the tradeoff for no annual fee might be a higher interest rate. 
B)  Over-limit fees are charged whenever you exceed your credit line. 
C)  6% of late-payment fees are incurred by college students. 
D)  Cash advance fees are often about 1% of the amount borrowed. 
A)  You can avoid annual fees by shopping around but the tradeoff for no annual fee might be a higher interest rate. 
B)  Over-limit fees are charged whenever you exceed your credit line. 
C)  6% of late-payment fees are incurred by college students. 
D)  Cash advance fees are often about 1% of the amount borrowed.

Question 19

With _____, the interest earned on your savings in a given time period is added to the money in your savings account, and the new total (principal plus interest) earns more interest.

Accepted Answer

A)  APY 
B)  simple interest 
C)  compounding 
D)  bonds 
A)  APY 
B)  simple interest 
C)  compounding 
D)  bonds

Question 20

Debit cards can be expensive to use because:

Accepted Answer

A)  they can cause you to overdraft your checking account and consequently incur an overdraft fee. 
B)  the finance charge on debit cards is higher than on credit cards. 
C)  the annual fee for these cards is higher than for credit cards. 
D)  merchants charge a fee when you use them. 
A)  they can cause you to overdraft your checking account and consequently incur an overdraft fee. 
B)  the finance charge on debit cards is higher than on credit cards. 
C)  the annual fee for these cards is higher than for credit cards. 
D)  merchants charge a fee when you use them.

What are subprime loans?

The difference between your assets and your liabilities is called fair market value.

_____ can erode the value of money over time.

Your _____ is the difference between your assets and your liabilities.

If someone is insolvent, it's because they are spending more than they're earning.

Most employer-sponsored health insurance plans include dental and eye coverage.

The adjustablerate mortgage (ARM) has an interest rate tied to the increase or decrease of certain interest rates that your lender has to pay.

Patricia Greene has just set some short-term goals. These goals should be all of the following except _____.

The first step in getting a job offer is to prepare a(an) _____.

For expenditures, if the actual amount is higher than the budgeted amount, the variance is favorable.

Management risk is the risk that poor management of an organization with which you're dealing may adversely affect the outcome of your personalfinances planning.

Stage 1 of an individual's financial plan should focus on preserving wealth.

Subprime loans have very attractive interest rates because they are below the prime rate.

Credit bureaus compile a numerical credit score called a FDIO score for each credit user.

The purpose(s) of a cover letter is to:

Paula Gordon just completed an important job interview as an applicant. She is home now. What should she do

Mike gets 5% interest on his savings, but the inflation rate is 3%. So his rate of return is 8%.

Which of the following is not true about credit card costs

With _____, the interest earned on your savings in a given time period is added to the money in your savings account, and the new total (principal plus interest) earns more interest.

Debit cards can be expensive to use because:

The Foundations of Business

Business Ethics and Social Responsibility

Business in a Global Environment

Selecting a Form of Business Ownership

The Challenges of Starting a Business

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Teamwork and Communications

Marketing: Providing Value to Customers

Product Design and Development

Operations Management in Manufacturing and Service Industries

The Role of Accounting in Business

Managing Financial Resources

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 14: Personal Finances

What are subprime loans?

The difference between your assets and your liabilities is called fair market value.

_____ can erode the value of money over time.

Your _____ is the difference between your assets and your liabilities.

If someone is insolvent, it's because they are spending more than they're earning.

Most employer-sponsored health insurance plans include dental and eye coverage.

The adjustablerate mortgage (ARM) has an interest rate tied to the increase or decrease of certain interest rates that your lender has to pay.

Patricia Greene has just set some short-term goals. These goals should be all of the following except _____.

The first step in getting a job offer is to prepare a(an) _____.

For expenditures, if the actual amount is higher than the budgeted amount, the variance is favorable.

Management risk is the risk that poor management of an organization with which you're dealing may adversely affect the outcome of your personalfinances planning.

Stage 1 of an individual's financial plan should focus on preserving wealth.

Subprime loans have very attractive interest rates because they are below the prime rate.

Credit bureaus compile a numerical credit score called a FDIO score for each credit user.

The purpose(s) of a cover letter is to:

Paula Gordon just completed an important job interview as an applicant. She is home now. What should she do

Mike gets 5% interest on his savings, but the inflation rate is 3%. So his rate of return is 8%.

Which of the following is not true about credit card costs

With _____, the interest earned on your savings in a given time period is added to the money in your savings account, and the new total (principal plus interest) earns more interest.

Debit cards can be expensive to use because:

The Foundations of Business

Business Ethics and Social Responsibility

Business in a Global Environment

Selecting a Form of Business Ownership

The Challenges of Starting a Business

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Teamwork and Communications

Marketing: Providing Value to Customers

Product Design and Development

Operations Management in Manufacturing and Service Industries

The Role of Accounting in Business

Managing Financial Resources

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters