1. (TCO 1) Jacob has moved into a home with a large acreage and is now finding that his smaller lawnmower is no longer functional. He needs to purchase a riding mower. How would you categorize Jacob’s goal? (Points : 4)
Determining her current financial situation
Developing her financial goals
Identifying alternative courses of action
Evaluating her alternatives
Implementing her financial plan
a tax-deferred benefit.
a tax-exempt benefit.
|8. (TCO 1) An example of _____ is a situation in which you would use a software program to help track your spending each week. (Points : 4)|
an opportunity cost
a balance sheet
a penalty if money is withdrawn early.
a lower rate of interest if redeemed within the first 5 years.
a minimum required holding period.
a lack of FDIC insurance.
a higher rate of taxation than other alternative investments.
looks nothing like typical debit cards.
has decreased in popularity since the mid-1990s.
works the same as a credit card.
may be eroded by fees and eventually expire.
is currently being used for very limited purposes.
declare personal bankruptcy
borrow from a loan shark to make the payment
let the borrower go to a collection agency
contact your creditors and try to work out a modified payment plan with them
When establishing an investment program, you should begin by monitoring your investments.
When you are choosing an investment, you should examine only the interest rate risk factor associated with each investment.
When establishing an investment program, you should examine the potential return offered by different investment alternatives.
Leave the financial planning to the professionals.
There is no need to monitor your investments after you have made your investment decision.
dividends to common stock owners
cash to buy shares of stock from shareholders
cash to buy bonds from current bondholders
interest to bond owners
dividends to preferred stock owners
|28. (TCO 3) Lori Walker purchased a new car 9 months ago, and decides to take it in for servicing under the warranty. Lori is involved in which step of the purchasing process? (Points : 4)|
Determining the purchase price
value used to calculate property taxes
estimated current market value
price you paid to purchase the home
amount of money a buyer has offered to purchase the home
cost remaining after the down payment
building and other structures
additional living expenses
junk bond fund
intermediate corporate bond fund
municipal bond fund
short-term government bond
world bond fund
|Question 40. 40. (TCO 6) A benefit associated with an investment in a real estate limited partnership is that the investor (Points : 4)|
does not have to worry about capital gains tax.
does not have to pay federal income tax.
does not have to pay state income tax.
can invest in a shopping center or large building by investing as little as $5,000.
faces an investment that is very liquid.