Unit 4 Review: Finance

Question 1

The date on which the issuer has to repay the amount borrowed (known as face value) is called

Accepted Answer

the maturity date

Question 2

The total amount of income received by a person is known as his or her

Accepted Answer

gross income

Question 3

A consumer's credit history DOES NOT consist of information such as:

Accepted Answer

amount of used credit available

Question 4

Accepting credit cards is a good idea for a business, because it

Accepted Answer

allows broke consumers to purchase from you

Question 5

Interest is money you receive over time for

Accepted Answer

letting others borrow your money

Question 6

A mutual fund is nothing more than

Accepted Answer

a collection of stocks and/or bonds

Question 7

money management is important because

Accepted Answer

we need to plan what to do with the money we earn

Question 8

The formula for simple interest is

Accepted Answer

(principal) x (interest rate) x (time)

Question 9

Emergency funds should NOT be used to pay for

Accepted Answer

investments

Question 10

The following is NOT a form of legal tender

Accepted Answer

credit

Question 11

The income that is left after necessities (expenses) have been paid for is called

Accepted Answer

discretionary income

Question 12

_____ are profits from the sale of a capital asset such as stocks, bonds, or real estate.

Accepted Answer

capital gains

Question 13

_____ has a higher risk than ______

Accepted Answer

investing, saving

Question 14

It is important that people be aware of their disposable income because

Accepted Answer

that is the amount available for them to spend

Question 15

Advantages of a credit card do NOT include

Accepted Answer

Interest (higher cost of items)

Question 16

The following is NOT a Malaysian bank

Accepted Answer

Royal Bank Berhad

Question 17

The following is the correct formula for compound interest:

Accepted Answer

principal x (1 + interest rate) ^ time

Question 18

______ is the process of choosing among all the alternatives available in the marketplace.

Accepted Answer

consumer decision making

Question 19

Income is

Accepted Answer

all money coming in from various sources

Question 20

_____ is putting money aside for purchases you plan to make in the near future

Accepted Answer

saving

Question 21

The banks do NOT look for _____ when seeing who they'd like to lend money to

Accepted Answer

color

Question 22

Compound interest earns _____ than simple interest

Accepted Answer

more

Question 23

The following is NOT one of the key factors that influence consumer buying decisions

Accepted Answer

relationships

Question 24

The following is NOT an example of an advantage of a mutual fund:

Accepted Answer

Equality

Question 25

A consumer credit is a

Accepted Answer

a debt acquired for the purpose of purchasing a good/service

Question 26

Money’s true value is its

Accepted Answer

purchasing power

Question 27

______ is putting money into things such as stocks and bonds for the purpose of making money.

Accepted Answer

investing

Question 28

Stock represents

Accepted Answer

ownership of a corporation

Question 29

Compound interest is interest calculated on the principal plus

Accepted Answer

any interest already earned

Question 30

Credit is a contractual agreement in which a borrower receives

Accepted Answer

something valuable and agrees to repay the lender later

Question 31

A personal budget allows a family to determine

Accepted Answer

how their disposable income will be spent

Question 32

Impulse buying is

Accepted Answer

is when you purchase something that you didn’t plan to buy

Question 33

A business uses budgeting to

Accepted Answer

allocate resources

Question 34

It is important to shop around before you buy. You should NOT compare

Accepted Answer

color

Question 35

The organization that sells a bond is known as the

Accepted Answer

issuer

Question 36

"mad money" is the

Accepted Answer

portion that you can spend on whatever you want

Question 37

rate of return is also known as

Accepted Answer

yield

Question 38

If you pay your bills on time, your credit rating will

Accepted Answer

go up

Question 39

take-home-pay is also known as

Accepted Answer

disposable income

Question 40

Prices tend to rise, so the dollar buys less from one year to the next. This is called

Accepted Answer

inflation

Unit 4 Review: Finance

Questions 40

Unit 4 Review: Finance

Questions 40