Ch 19 Financial Literacy

Question 1

Which of the following is a function of financial institutions?

Accepted Answer

All of the Above

Question 2

A measures of an individual’s credit risk that is used by lenders when determining is they will give you a loan

Accepted Answer

FICO Score

Question 3

The best way to reduce risk is to practice __________ and buy mutual funds

Accepted Answer

portfolio diversification

Question 4

All of the following are financial institutions EXCEPT

Accepted Answer

Credit Rating Companies

Question 5

What type of account is high risk, has fees, but allows for chance of high reward?

Accepted Answer

Mutual fund

Question 6

The three companies that rate bonds all of the following EXCEPT

Accepted Answer

Equifax

Question 7

All of the following are business organizations EXCEPT

Accepted Answer

Financial Institutions

Question 8

An independent federal agency that insures up to $250,000 money that is deposited in a single bank.

Accepted Answer

Federal Deposit Insurance Corporation (FDIC)

Question 9

Paying your bills on time, having low credit card balances, and having credit accounts for a long time will

Accepted Answer

raise your credit score

Question 10

What is NOT a cost of declaring bankruptcy?

Accepted Answer

continued collection efforts, foreclosure and eviction

Question 11

Interest is

Accepted Answer

the price of using money

Question 12

Which of the following is considered an open-ended loan?

Accepted Answer

credit card

Question 13

On which line do you spell out the amount spent, instead of writing numerically?

Accepted Answer

B

Question 14

If you have one of the pictured items, then

Accepted Answer

have loaned the US govt. $

Question 15

Which type of retirement plan is tax-deferred until you take out the money

Accepted Answer

Traditional IRA

Question 16

Which of the following is NOT affected by your credit report?

Accepted Answer

getting a payday loan

Question 17

All of the following are dischargeable debt EXCEPT

Accepted Answer

Student Loans

Question 18

Which type of student loan is described below?

Accepted Answer

Direct Subsidized Loans

Question 19

Business with operations in different countries

Accepted Answer

Multi -national

Question 20

A Certificate of Deposit is different than a savings account because it requires:

Accepted Answer

penalties for early withdrawals

Question 21

Which of the following is a good FICO score?

Accepted Answer

742

Question 22

What is a benefit of owning a home?

Accepted Answer

ability to build equity and credit history

Question 23

Which of the following types of loans is used to purchase a house?

Accepted Answer

Mortgage

Question 24

“Liquidation” bankruptcy is for individuals and businesses with insufficient income to pay debts is known as ___

Accepted Answer

Chapter 7

Question 25

Certificates of ownership in corporations which investors buy.

Accepted Answer

Stocks

Question 26

If paying $67.54 at SaveMart for groceries, where do you write "SaveMart"?

Accepted Answer

A

Question 27

Which of the following is a benefit of renting instead of buying a home?

Accepted Answer

no maintenance or upkeep costs

Question 28

Which of the following improves your credit score?

Accepted Answer

maintaining a low balance on multiple credit cards

Question 29

What is one of the wisest decisions you could make to be financially stable?

Accepted Answer

Create a budget

Question 30

Forever 21 filed for his type of bankruptcy that will keep it in business and pay its debt over time

Accepted Answer

Chapter 11

Question 31

The legal proceeding involving a person or business that is unable to repay outstanding debts.

Accepted Answer

Bankruptcy

Question 32

Which of the following accounts has the highest risk?

Accepted Answer

Mutual Fund

Question 33

All of the following are ways that corporations raise capital EXCEPT

Accepted Answer

Merging with other corporations

Question 34

Having a bankruptcy may result in the following EXCEPT

Accepted Answer

Increase Credit Score

Question 35

All of the following are the "three C's of Credit" EXCEPT

Accepted Answer

Capitalization

Ch 19 Financial Literacy

Questions 35

Ch 19 Financial Literacy

Questions 35