If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Pension plan
B. IRA
C. Social security (FICA)
D. Vesting plan
2. Car insurance that pays for your injuries when you’re in an accident in your car is _______.
A. comprehensive
B. liability
C. medical
D. collision
3. Jane Marko buys a car for ,400.00. In three years, the car depreciates 48% in value. How much is the car worth in three years?
A. ,800.00
B. ,788.00
C. ,472.00
D. ,928.00
4. Which of the following devices imparts ownership in a corporation?
A. Stock
B. Bond
C. Savings account
D. U.S. Treasury Bill
5. Ray Cupple bought a basic car costing ,150.00, with options costing 8.00. There is a 6% sales tax in his state and a combined .00 license and registration fee. What was Ray’s total cost?
A. ,938.00
B. ,541.28
C. ,547.00
D. ,591.28
6. The Hamilton Brush Company issued 2,500 shares of common stock worth 0,000.00 total. What is the par value of each share?
A. .00
B. .00
C. 0.00
D. 0.00
7. Which of the following is intended primarily to enhance a person’s tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA
8. A share of stock in the Bree Medical Supply Company is quoted at 35 1/4 . Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?
A. You made a profit of .00.
B. You suffered a loss of .00.
C. You made a profit of 5.00.
D. You suffered a loss of 0.00.
9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.
D. Test-drive the car.
10. Jane has a checkbook balance of .00. She then writes two checks, one for .00 and one for .50. She also deposits .00. She then uses her calculator to determine her new balance. Which of the following is the correct series of keys she should press?
A. 6 8 + 7 5 – 5 – 6 2 . 5 0
B. ON/C 6 8 – 5 – 6 2 . 5 0 + 7 5 =
C. 6 8 + 7 5 – 6 2 5 0 – 5 =
D. ON/C 6 8 + 7 5 = 5 = 6 2 . 5 0
11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
A. liability
B. collision
C. no-fault
D. medical
12. On which of the following types of policies is it a certainty that the insurance company will have to make payment? (We have assumed that the policy has been kept current, payments have been made, and the insurance company remains in business.)
A. Life insurance
B. Comprehensive car insurance
C. Medical insurance
D. Liability insurance
13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.
14. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. investments
B. savings
C. interest
D. IRA
15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy.
16. All insurance is based on a principle called
A. premium earnings.
B. investment premiums.
C. division of risk.
D. cash value coverage.
17. In a health insurance policy, a statement that an applicant won’t be covered for a certain pre-existing condition is called a/an
A. exclusion.
B. supplement.
C. waiting period.
D. major medical coverage.
18. The coverage included in an automobile insurance policy that covers property damage is _______ insurance.
A. supplemental
B. liability
C. major medical
D. term
19. A master plan is devised for
A. emergencies.
B. investments.
C. short-term goals.
D. long-range goals.
20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. series EE bond
B. promissory note
C. preferred stock
D. mutual fund
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{ 3 comments… read them below or add one }
if you had spent the same amount of energy reading your textbook that you spent typing all that in you would know the answers and you would benefit from the experience.
no one is going to do your homework in life.
Why would I want to do your homework?
yea i agree with Billy, its ur hw, u should do it on ur own, no one wants to do it.