Term 1 of 50
The price of a security may be affected by:
fixed expenses
obligating events
current events
external events
Term 2 of 50
A person buys a homeowner's insurance policy with a $250 deductible, which means the
person will:
not have to pay anything in case of a claim
receive a discount on the insurance premium
have to pay the first $250 which will be deducted from the claim settlement paid by the
insurance company
get a higher claim settlement from the insurance company
Term 3 of 50
A company offers a defined-contribution pension plan which means that upon retirement the
employee will receive:
A fixed monthly payment for life
A percentage of the company's profits each year
The total amount of money contributed plus investments earnings
A lump sum payment at the start of employment
,Term 4 of 50
Expenditures that remain constant from one time period to another are:
finance charge
fixed expenses
variable expenses
periodic expenses
Term 5 of 50
A stock broker or financial consultant:
Current events
Building, land, vehicles
Gives financial advice to clients
Sells money orders and certified checks
Term 6 of 50
Money of saving, investing, or spending cannot be from:
Earning interest on a savings account
Receiving a bonus from work
Capital losses from the sale of stock
Winning a lottery jackpot
Term 7 of 50
A man budgeted $200 a month for clothing. This month the man spent $150 on clothing
therefore that budget item is considered to have:
a budget variance
a balance sheet
a custodial payment
a spending variance
,Term 8 of 50
Buying a treasury bill (T-bill) is best for investors who are looking for:
short-term savings instruments
more of the same stock
a secure, low risk investment
the rate of inflation
Term 9 of 50
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
New york Stock Exchange (nyse)
Financial accounting Standards Board (fasb)
Exempt from state and local taxes
Securities and Exchange Commission (SEC)
Term 10 of 50
A person owns a stock that pays a $2.00 a share dividend. If the person chooses to reinvest
that dividend, this means that the $2.00 will go toward buying:
more of the same stock
one of the apartments is not rented
have to pay the first $250 which will be deducted from the claim settlement paid by the
insurance company
a collateralized loan
, Term 11 of 50
A good example of a well-stated financial goal is:
Invest $5,000 in stocks in two years
Spend $5,000 on luxury items in two years
Save $5,000 for a vacation in two years
Pay off $5,000 in credit card debt in two years
Term 12 of 50
What is meant by an uncollateralized loan?
A personal loan without assets to cover the loan amount
A loan secured by property or savings
A loan where the borrower must provide collateral
A loan with multiple guarantors for added security
Term 13 of 50
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share
on 50% margin. This means that the:
brokerage firm is lending the investor 50% of the money.
brokerage firm is charging the investor 50% commission on the trade.
investor is required to pay 50% of the stock price upfront.
investor is buying the stock at a 50% discount.
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