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70 Cards in this Set

  • Front
  • Back
Being financially secure involves balancing what you can earn with
what you spend
The first step in evaluating your financial health consists of
all of the above
while reviewing your current financial plan, you discover that you most likely won't achieve your long term financial goals. what should you do now?
all of these would be realistic things to do
the term that considers having money readily available when you need it is the concept of
liquidity
liabilities are best described as
financial debts and obligations for which you owe
which of the following are not typically found on a balance sheet
both b and d are not found on a balance sheet
net worth, or your general level of worth is found by
subtracting your liabilities from your assets
a statement that records where your money has come from and where it has gone over some period of time is called a
income statement
john madrid put 1000 into a mutual fund yeilding 18%. approx how long will it take to double in value
four years
suppose that you invested 100$ in a bank account that earned 10% . how much would you have on deposit at the end of the ten years
$259.40
which one of the following is the "enemy" of compound interest and makes it very difficult to reach your financial goals
inflation
what is the present value today of $150 that will be received in four years from now if the discount rate is 12%
$95.40
identify your filing status, as an unmarried taxpayer with atleast one child or relative living with you, for whom you provide all support
head of the household
three years ago your purchased a share of CompUTech stock for 4$ which you could sell today at the current market price of 150$. what would be your capital gain on the sale, ignoring commissions
$146
the amount of income taxes you actually pay is based upon your
taxable income
from the list below choose the item that is not a permissible itemized tax deduction
interest paid on credit cards
which of the following would offset your tax liability in a direct dollar for dollar manner and may actually increase your tax refund beyond the amount paid during the tax year
tax credit
what is the name for an automatic loan made to your checking account whenever your account does not contain enough cash to cover the checks that you have written against it
overdraft protection
which of the following is not typically an additional fee charged to consumers who use credit cards as outlined in the textbook
merchant discount fee
if you are a convenience user of credit cards, _________ is important to you
a, b, and c above
the choice of a credit card is a matter of personal credit card philosophy. if you are a credit user, the most important decision factor is the card's
APR on the unpaid balance
jdhfjsdhfjdshfjd how much is your potential maximum liability
$50.00
what is the loan clause stating that if you default on a secured loan, the lender can repossess whatever is secured, as well as bill you for the difference if that repossession does not cover what you owe
insurance clause
a federal direct student loan has tremendous advantages over other types of loans, what are they?
the interest is deferred until after you graduate or quit school
home equity/second mortgage loans have two important advantages over most other types of loans. they are
tax deductibility of interest and lower interest rates
many lenders will hold dave to the 28/36 rule in evaluating his application for mortgage. what does the 36 mean
mortgage insurance is required during the first 36 months of the loan
what will the courts decide if you file chapter 7 personal bankruptcy
all of the above
congrats! you have just agreed on the final price for your new car and now you have to finance the purchase. the negotiated price of the new car is $18,500 and you will receive 5,500 for your trade in. what will your monthly payment be on a 48 month loan with a 7% APR
311.35
you pay for an investigation of the public record to determine the current legal owner of the property. this is called a
title search
you are considering obtaining a mortgage of 220,000. a lower APR is available, but you must pay 2 points to buy the rate down. how much must you pay in dollars
4,400
.....which the interest rate charged fluctuates with the level of current interest rates is called
ajustable rate mortage
Phillip morris wants to know in which of these conditions is life insurance very important
a and b are correct
john purchases life insurance policy on his wide betty where he pays the premium and will receive the life insurance money when she dies. john is both the _________ and the ______ who will receive the ______ upon the death of betty, the __________
policy owner; beneficiary; face amount; insured
why is credit card insurance not such a good deal
all of the above
what are the advantages of term life insurance
both a and c are correct
what are the main features of whole life insurance
all of the above are correct
jdsfkldjfksdjfksdjfksj what type of insurance plan do you have
preferred provider organization
an employer-sponsored medical plan that allows each employee to have pretax earnings deposited into a specially designated account for the purpose of paying bills is called
flexible spending amount
hguhkhjkh what are the benefits of HSA?
all of the above are true about HSA's
health insurance that provides payments to the insured in the event that the insured's income is interrupted by illness, sickness, or an accident is called
disability
why is long term care insurance needed
all of the above
suppose that you just purchased a policy that provided excess liability insurance protection against lawsuits and judgments for 5 million. this policy is most commonly called
personal umbrella policy
the ________ is the amount that you are self insured for before insurance coverage kicks in
deductible
dkjfhjdshf where would you look for damage payment
your guest's automobile liability coverage
your 100/300/100 split limit liability policy will pay what losses
up to 100,000 per person for medical claims
you currently own seven difference company's stocks, tow rental houses, and three government bonds. together these assets are considered ______ to an investor
portfolio
the __________ rate is the interest to be paid annually on a bond as a percentage of par value
coupon interest
as a young college graduate, your biggest investment ally is
time
which statement about lending investments is usually true
You know ahead of time exactly
djfdfdjh since the first time I-Link is trading its stock, your bother will be involved in
initial public offering
if a private, individual investor wishes to purchase a stock in a corporation, where do they need to go for the purchase
to a stock broker
a ________ is an order to buy or sell a set number of securities immediately at the best price available
market order
what is the interest rate earned on a deposit that grew from 250 to 502.75 in the last 5 years
15%
how much can you borrow today if you can make payments of 3,600 a year for the next five years and the interest rate is 10%
13647.60
A group of 100 shares if common stock is reffered to as
round lot
barney q. hopkins borrows stock from his broker with the goal of ___
selling high / later buying low
A _____ increases the number of stock shares outstanding by replacing each exisiting...
stock split
Jessica wanted to guage stock performance is general..
Dow Jones Industrial Average
How do bonds differ from investing in common stocks?
B. Bonds generally provide a better stream of income than common
The largest single player and payer in the bond market is
the US government
If you were considering the purchase of a bond issued by a state, county, or city, you would be considering..
Muni
Treasury Bonds are generally viewed as being risk-free, given the gov. ability to ____ and ____
Tax; print more money
One of the problems with most bonds is that their coupon payment is fixed and rising inflation...
TIPS
Which of the following would not be a reason why investors migt choose a mutual fund?
All of the above
Diversifitcation reduces
Risk
Which type of risk can an ivestor effectively manage by investing in broadly diversified Mutual Funds
Unsystemic Risk
A mutual fund that does not charge a commission to own its shares is called a
No-Load Fund
Which of the following will negatively effect your return on investment with mutual funds?
All of the above are correct
Which of the following mutual fund services is similar in concept to compounding and the time value of money?
Automatic Reinvestment
youpurchased 100 shares of a fund for $24.50 per share. its current NAV is 30.75 per share. there were no other distributions. what is your total return?
25.51%