Let's Prepare For Finance Exam

82 Questions | Total Attempts: 83

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Finance Quizzes & Trivia

Questions and Answers
  • 1. 
    Credit Cards allow you to ...
    • A. 

      Spend only the amount in your account

    • B. 

      Borrow money for a short term

    • C. 

      Protect your checks form thieves

    • D. 

      Transfer money between accounts online

  • 2. 
    The most commonly used payment service is an....
    • A. 

      Savings account

    • B. 

      Certificate of Deposit

    • C. 

      Checking Account

    • D. 

      Mutual Fund

  • 3. 
    The rate of return on an investment is greatest when the interest is compounded....
    • A. 

      Daily

    • B. 

      Weekly

    • C. 

      Monthly

    • D. 

      Yearly

  • 4. 
    When writing a check, include all of the following EXCEPT
    • A. 

      The Current date

    • B. 

      An endorsement on the back

    • C. 

      Your signature on the front

    • D. 

      The name of the payee

  • 5. 
    You give up liquidity when you....
    • A. 

      Buy a certificate of deposit

    • B. 

      Use an ATM

    • C. 

      Open a savings account

    • D. 

      Recharge a stored value card

  • 6. 
    If a check is stolen, you might ask the bank for....
    • A. 

      Overdraft protection

    • B. 

      Copies of cancelled checks

    • C. 

      A stop-payment order

    • D. 

      A bank reconciliation form

  • 7. 
    Using a debit card to pay for a meal in a restaurant is called....
    • A. 

      A point-of-sale transaction

    • B. 

      A trade-off

    • C. 

      A Direct Deposit

    • D. 

      An online transaction

  • 8. 
    A possible drawback to using an ATM for your daily cash needs is....
    • A. 

      Uncertaintly about how much you will need

    • B. 

      The service fee for its use

    • C. 

      Running up a large bill

    • D. 

      Interest charges

  • 9. 
    An investor can trade a bond for shares of the corporate stock if the bonds is a
    • A. 

      Mortgage bond

    • B. 

      Debenture

    • C. 

      Convertible bond

    • D. 

      Subordinated Debenture

  • 10. 
    The investment that offers the highest rate of return is...
    • A. 

      An agency bond

    • B. 

      A treasury note

    • C. 

      An EE savings bond

    • D. 

      A treasury bond

  • 11. 
    Which of these Standard & Poor ratings designates the riskiest investment?
    • A. 

      A

    • B. 

      B

    • C. 

      AA

    • D. 

      BBB

  • 12. 
    Only a fixed number of shares are issued for....
    • A. 

      A no-load fund

    • B. 

      A load fund

    • C. 

      A closed-end fund

    • D. 

      An open-end fund

  • 13. 
    Diversification is a key reason for buying a
    • A. 

      Corporate bond

    • B. 

      Municipal bond

    • C. 

      Treasury note

    • D. 

      Mutual fund

  • 14. 
    To reach maturity, treasury bills take between
    • A. 

      13 to 52 weeks

    • B. 

      1 to 10 years

    • C. 

      6 months to 30 years

    • D. 

      10 to 30 years

  • 15. 
    Municipal bonds are offered by all the following levels of government EXCEPT
    • A. 

      Federal

    • B. 

      State

    • C. 

      County

    • D. 

      City

  • 16. 
    Standard and Poor's rating for an investment-grade bond is
    • A. 

      B

    • B. 

      BB

    • C. 

      BBB

    • D. 

      C

  • 17. 
    Only the bond owner can collect interest from a
    • A. 

      Registered bond

    • B. 

      Registered coupon bond

    • C. 

      Bearer bond

    • D. 

      Zero-coupon bond

  • 18. 
    Investors pay penalty fees if they fail to make regular purchases of shares when ivesting in a mutual fund under a
    • A. 

      Regular account transaction

    • B. 

      Voluntary savings plan

    • C. 

      Contactual savings plan

    • D. 

      Reinvestment plan

  • 19. 
    A lender may ask a buyer to deposit money in an escrow account for paying
    • A. 

      Property taxes

    • B. 

      Closing costs

    • C. 

      Loan interest

    • D. 

      The principal

  • 20. 
    The most popular type of housing in the United States is
    • A. 

      Single family homes

    • B. 

      Multiunit homes

    • C. 

      Condominiums

    • D. 

      Mobile homes

  • 21. 
    In the first years of a mortgage, most of the monthly payment goes toward paying off the
    • A. 

      Points

    • B. 

      Property taxes

    • C. 

      Principal

    • D. 

      Interest

  • 22. 
    A disadvantage of renting is
    • A. 

      More responsibilities

    • B. 

      High initial costs

    • C. 

      Restricted lifestyle

    • D. 

      Eligibility for tax deductions

  • 23. 
    Your biggest monthly expense as a tenant is the
    • A. 

      Rent

    • B. 

      Security deposit

    • C. 

      Utilities

    • D. 

      Renter's insurance

  • 24. 
    Generally mortgage insurance is required when the buyers' down payment is
    • A. 

      100%

    • B. 

      20%

    • C. 

      10%

    • D. 

      25%

  • 25. 
    The portion of the purchase price that a buyer pays the seller when signing a purcahse agreement is called the
    • A. 

      Earnest money

    • B. 

      Escrow

    • C. 

      Application fee

    • D. 

      Down payment

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