1
A budget is a record of:
Profits and losses
Costs and benefits
Assets and liabilities
Income and expenses
2
A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage, but the total interest paid over the life of the loan will be less.
True
False
3
A certificate of deposit (CD) is issued by:
Banks
Corporations
U.S. government
Don’t know
4
A company calls you and offers an investment opportunity with very high returns. All you have to do is recruit some of your friends who will also invest and soon your checks will start rolling in. This is a description of which type of investment fraud?
Identity theft
A loan scam
Credit repair scam
A pyramid scheme
5
A company can be financed by issuing either shares or bonds. Which do you think is at greater risk for loss of principal for the investor?
Shares of stock
Bonds
They are equally risky
I don’t know the difference between shares and bonds
Do not know
Refuse to answer
6
A corporate debt instrument that is a promise to provide interest payments and to repay the principal on a specified date (maturity).
Stock
Treasury bill
Bond
Don’t know
7
A debit card and a direct deposit both involve:
Selling and buying stocks in the marketplace
The securing of credit and payment of interest
Electronic transfers to or from your checking account
Transaction fees regardless of where the transaction occurred
8
A blue chip stock is the stock of a:
New technology stock
A large well-known company
A defensive industry stock
Don’t know
9
A $400 tax is placed on all sports cars and this increases the price of sports cars. The economic way of thinking suggests that:
Fewer sports cars will be sold
More sports cars will be sold
The production of sports cars will cease to exist
The production of sports cars will be more profitable
10
A step in the claim approval process is:
If the claim is approved, the insurance company will settle the claim by paying the policyholder with a check
You discuss the claim with a loan office from your local banking institution
You obtain an explanation from the local police department as to why the claim should not be denied
The insurance adjuster investigates the claim and determines the new premium for future payment