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)
Consumable-products goal
Durable-products goal
Intangible goal
Intermediate goal
Long-term goal
Determining her current financial situation Developing her financial goals Identifying alternative courses of action Evaluating her alternatives Implementing her financial plan |
networking. vesting. a tax-deferred benefit. a tax-exempt benefit. break even. |
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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) |
money management
an opportunity cost
a balance sheet
creative accounting
electronic analysis
$357 $870 $513 $508 $151 |
a penalty if money is withdrawn early.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. |
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skip town 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. |
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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 |
Fundamental Technical Efficient market Chart Plot |
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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) |
Problem identification
Information gathering
Evaluating alternatives
Determining the purchase price
Postpurchase activities
$3,405 $2,625 $2,500 $3,050 $3,175 |
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 |
$2,000 $1,000 $1,500 $500 $2,500 |
building and other structures additional living expenses personal property personal liability specialized coverage |
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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.