Computer Study Guide

An option allows you to buy or sell the asset at a set price before the optionś maturity date

The first section of a balance sheet represents your

Sam's uncle will give him 7,000 in 3 years. With an 8% interest rate, what is his value now

What is the main factor in determining your potential income level

What is the present value of an annual payment of 1500 over 15 years at an annual rate of 3%

The concept of diversification is illustrated by the old saying

Investing in bonds is generally less risky than investing in stocks

The more efficient the market, the faster prices react to new information

Long term capital gains are taxed at ______ percent

which of the following would be included on a personal income statement

A strong record-keeping system allows you to

you save 500$ a year for the last 10 years. How much do you have if the interest was 6%

a physical asset such as a TV or a motorcycle is called a(n)

The nominal rate of interest will increase with an increase in the expected rate of inflation

Principle _ states that a person can expect to earn more return for a higher investment risk

Once a sound financial plan is in place, there should be no need to ever change it?

Market risk deals with the inability to sell security quickly at fair market value

A plan for controlling and forecasting your cash outflows is called a(n)

When market interest rates go up then returns__. When interest rate does down investment rates_

Matthew bought a used car. he found out the car needs to repair. he ask you what should he do

a portion of a stock's risk that Can´t be eliminated through investor diversification is called

Specialists make the market orderly by buying & selling stock to keep the market from changing

The present value interest factor is the inverse of corresponding future value interest factor

The present value of financial asset is what you should be willing to pay today for that asset

a solid understanding of personal finance will

As a young college graduate, your biggest investment ally is

_is found by dividing monetary assets by current liabilities and is a good measure of liquidity

The major reason to make a financial plan is to

A perpetuity is an annuity that continues forever.

Compounding is when the interest you have already earned on an investment earns interest

While each person's financial plan differs common factors are Flexibility Liquidity protection

In an amortized loan the earlier payments mostly go to pay interest and pay less for principle

The economic downturn that in 2008 demonstrated that Americans have sufficient emergency funds

An initial public offering is the first time the companyś stock is traded publicy

the economic downturn between 2007 and 2009, stocks declined in price. This is known as a(n)

What principle considers the value of compound interest

using financial ratios you can analyze the data found in your income statement & balance sheet

Churning occurs when a broker engages in trading a lot to generate more commissions

A full service broker will always get you a lower share price on your purchases of stock

what is the present value of $150 that will be received in four years ate 12% discount rate

As the owner of a corporate bond, this means I hold ownership position within the corporation

the selling previously of issue shares is a transaction that would be in the primary market

__ is the stated amount on the face of a bond, which the firm is to repay at the maturity date

Car loans and mortgage loans are typical annuities n the form of

an expenditure over which you have no control and are obligated to make is a

Current liabilities are those that can typically be paid off in full within 12 months

under what conditions should people hire a professional financial planner.

You currently have 11,167. What interest do you need to have 20,000 in 10 years

The collateral an investor must put up when holding short sale is known as a margin requirement

A typical young investor should have most of their retirement money allocated in common stocks

Suppose Jacob's assets are 15,000$. And his liabilities are 11,000. What is his net worth

In order for your financial plan to be realistic and attainable, it needs to be based upon your

The earlier you begin saving for retirement the easier it will be to reach your financial goals

Maiko lost her job and has no other funds What financial principle is best in this situation

to calculate your net worth, subtract your total debt from your total assets