Top Finance Quizzes & Trivia

We are in dire straits. We haven’t been able to turn a profit recently and things are not looking well. You have been designated as the new CFO and your task is to turn this entire thing around. Loans have already been made in the past so another one of those might not benefit us. Instead we should try and reduce costs drastically. Questions will pop up at every stage. Can you answer all of them?

What is the place considered to be the center of American finance? What are the six main sections that form the cash budget? Return on Investment is used to determine the profits gained in comparison to what? Make all the right decisions and save us from bankruptcy.

Finance Questions and Answers

What is the advantage of having a qualified annuity?

There is no advantage

Higher dividends

The employer receives a tax deduction for the contributions

Receiving a lump-sum settlement tax free

Finance question from

Chapter 14 Annuities

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Under a Straight Life Annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive:

Guaranteed minimum benefit

Nothing; the payments will cease

The amount paid into the annuity

The remainder of the principal

Finance question from

Chapter 14 Annuities

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A prospective Deferred Annuity owner is concerned about what would happen if the surrendered the annuity before the annuitization period. The agent most likely explained which of the following?

The owner will receive some of the money back, which will depend on the surrender value established by the insurer at the time that the contract is terminated

It is not possible to surrender an annuity before the annuitization period.

Non-Forfeiture Option guarantees that the owner will receive a surrender value of the contract

The insurance company will apply the money to another annuity or a Life Insurance policy, but the money cannot be returned

Finance question from

Chapter 14 Annuities

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Mortgage Insurance The GSE required standard MI Coverage on a 30-year, fixed rate loan with a 95% LTV is _______% coverage.

35%

30%

25%

18%

Finance question from

Underwriting Assessment January 2012

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LTV/CLTV If a lender approves a borrower for a mortgage loan of $135,000 for the purchase of a house costing $145,000, what is the loan’s LTV ratio? (Round up to the nearest 1%)

94%

107%

100%

86%

Finance question from

Underwriting Assessment January 2012

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General Which organizations(s) can pool loans for securitization?

Fannie Mae

Freddie Mac

Lenders

All of the above.

Finance question from

Underwriting Assessment January 2012

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Which of the following has the least influence on an individual’s values?

Media

Family

Religious affiliations

Grade average

Finance question from

Finance Pre/Post Test

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A need is best defined as:

the end result of something a person intends to acquire, achieve, do, reach, or accomplish in the near or distant future

something thought to be a necessity or essential items required for life

a fundamental belief or practice about what is desirable, worthwhile, and important to an individual

something unnecessary but desired or items which increase the quality of living

Finance question from

Finance Pre/Post Test

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Kaylee will save her allowance of $25 per month to purchase a $150 mp3 player in six months. This is an example of what type of goal?

Short-term goal

Long-term goal

Education Goal

This is not an example of a goal

Finance question from

Finance Pre/Post Test

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BHS Inc. determines that sales will rise from $300,000 to $500,000 next year. Spontaneous assets are 70% of slaes and spontaneous liabilities are 30% of sales. BHS has a 10% profit margin and a 40% divident payout ratio. What is the level of requied new funds?

20,000

100,000

50,000

75,000

Finance question from

Finance Exam 1

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A firm has forecasted sales of $3,000 in April, $4,500 in May, and $6,500 in June. All sales are on credit. 30% is collected the month of sale and the remainder the following month. What will be the balance in accounts receivable at the beginning of July?

$4,550

$1,950

$6,500

$5,100

Finance question from

Finance Exam 1

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Agency problems are least likely to arise in which organiztional form?

Corporation

subchapter S corporation

Sole Proprietorship

Limited Partnership

Finance question from

Finance Exam 1

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