Consumer Final Exam Review - Part 2

Question 1

Organization that protects consumers by preventing deceptive & unfair business practices

Accepted Answer

Federal Trade Commission (FTC)

Question 2

Protects investors, maintains fair, orderly & efficient markets; facilitates capital formation

Accepted Answer

Securities & Exchange Commission (SEC)

Question 3

Regulates interstate communications by radio, television, wire, satellite, and cable

Accepted Answer

Federal Communications Commission (FCC)

Question 4

The amount of money you pay at the time of an accident before insurance will cover the rest

Accepted Answer

Deductible

Question 5

What is the dealer's initial asking price for a new car called?

Accepted Answer

Sticker Price

Question 6

With insurance, as your premium increases, your deductible:

Accepted Answer

Decreases

Question 7

Power of interest earned on the original investment plus previously accumulated interest

Accepted Answer

Compound Interest

Question 8

Which of the following types of accounts/investments is most liquid?

Accepted Answer

Checking Account

Question 9

What are the TWO ways to make money in the stock market?

Accepted Answer

Capital Gains & Dividend Payments

Question 10

This type of account locks up your money for a specific time period for higher interest:

Accepted Answer

Certificate of Deposit (CD)

Question 11

The amount of money you pay monthly in return for insurance coverage

Accepted Answer

Premium

Question 12

Protects human health and the environment

Accepted Answer

Environmental Protection Agency (EPA)

Question 13

Money paid to a landlord at the beginning of a lease to cover damages by the tenant

Accepted Answer

Security Deposit

Question 14

Provides leadership on food/agriculture/natural resources/rural development & nutrition issues

Accepted Answer

Department of Agriculture (USDA)

Question 15

Promotes the safety of consumer products, by mandating recalls & setting safety standards

Accepted Answer

Consumer Product Safety Commission (CPSC)

Question 16

Which is NOT an advantage of owning a home

Accepted Answer

Ability to easily move

Question 17

Which is a type of retirement account that might be offered by your company?

Accepted Answer

401(k)

Question 18

When should you start investing?

Accepted Answer

As soon as possible

Question 19

Who will pay the highest auto insurance rates?

Accepted Answer

Teenage boy driving a sports car

Question 20

If you BUY 10 shares of stock for $10 each and SELL them for $5 each, your gain/loss is:

Accepted Answer

$50 loss

Question 21

Which of the following is the riskiest type of investment?

Accepted Answer

Single Stock

Question 22

The safest place to put your money is the stock market

Accepted Answer

False

Question 23

The stock in this image would be referred to as:

Accepted Answer

Volatile

Question 24

The lower the risk on an investment, the higher the potential return

Accepted Answer

False

Question 25

Which of the following is a retirement account that you can invest in on your own?

Accepted Answer

Roth IRA

Question 26

Typically speaking, bonds are riskier than stocks

Accepted Answer

False

Question 27

Spreading your investments among various investment vehicles is called liquidity

Accepted Answer

False

Question 28

Protects public health by assuring safety of food, drugs and other products

Accepted Answer

Food and Drug Administration (FDA)

Question 29

An advantage of this investment is the automatic diversification it provides:

Accepted Answer

Mutual Fund

Consumer Final Exam Review - Part 2

Questions 29

Consumer Final Exam Review - Part 2

Questions 29