If you own stock in a company and the company does well,

the price of a share of stock will probably go up

Which of the following is a drawback of having credit?

spending more than you can afford

Long-term financial goals

sometimes conflict with short-term spending

If a borrower fails to repay a loan, a lender can

take the borrow's collateral as payment

a careful record of all the money that you earn and spend

Responsible credit card use

requires a full understanding of the APR

One purpose of saving money is to

collect enough for a major purchase

To prevent your impulse buying, you should

make a shopping list and stick to it

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Personal Finance Exam

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20 Questions concerning basic personal finance topics such as stocks,credit, consumer rights, and more.

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Questions 20

Answers

1
Pool of money from many people that is invested in a selection of individual stocks or bonds
mutual funds
stocks
bonds
2
Advertisements that appeal to your emotions can help you control impulse buying.
False
True
3
If you own stock in a company and the company does well,
the company will probably pay back their bonds
the price of a share of stock will probably go down
the price of a share of stock will probably go up
the company will probably issue a bond
4
Which of the following is a drawback of having credit?
spending more than you can afford
learning discipline by making monthly payments
5
Usually, if an investment is riskier, it will pay a higher rate of return?
True
False
6
Profit earned by the investor
dividend
balance
return
7
Long-term financial goals
can keep you from furthering your education
include spending money as you receive it
sometimes conflict with short-term spending
mean buying what you want when you want it
8
If a borrower fails to repay a loan, a lender can
sell the loan to someone else who can try to collect
take the borrow's collateral as payment
ask their local representative to help then get repaid
contact the Better Business Bureau to get the money
9
Which of the following is a consumer right as opposed to a consumer responsibility?
keeping accurate records
receiving safe products
reporting problems
making fair complaints
10
What is a budget?
a careful record of all the money that you earn and spend
the amount of money left over after subtracting expenses
the ability to pay later for something that you receiveToday
a monthly payment that teaches you financial discipline
11
Responsible credit card use
does not affect your credit score
means paying only the minimum payment
includes using credit cards for impulse buys
requires a full understanding of the APR
12
The right to redress means the right to be informed about dangerous products.
True
False
13
The APR is the annual cost of credit expressed as a percentage of the amount borrowed.
True
False
14
Mutual funds buy shares of stock in the top ten stocks in the stock market.
False
True
15
One purpose of saving money is to
increase risk when investing for the long term
collect enough for a major purchase
make a plan for expenditures and income
decrease interest when paying back a loan
16
The present time at which you can withdraw funds from your certificate of deposit is called
due date
collateral
completion
maturity
17
A person who loans someone money to buy an item is
a lender
a consumer
an investor
a borrower
18
Consumers have a responsibility to
comparison shop
provide a variety of products
prove that products are safe
buy the products and brands that they like
19
One reason for saving money is to have enough to make a down payment on an expensive item.
True
False
20
To prevent your impulse buying, you should
make a shopping list and stick to it
buy things that you know you will tire of quickly
shop with a friend who has similar issues.
purchase items displayed at the checkout counter.

Personal Finance Exam Flashcards | StudBud