1. Kelvin has $12,000 in outstanding student loans.

Which of the following criteria should Kelvin fulfill to be eligible for the Public Service Loan Forgiveness (PSLF) program?

He should be a volunteer in a nonprofit organization.

He should have made 50 qualifying payments toward his loan repayment.

He should be married and have at least three children.

He should be employed full-time in a not-for-profit organization.

2. Mark has a small business and he frequently dips into his savings to keep the firm afloat. He decides to invest all of his savings to maximize his returns over the next 5 years. He has alow to moderate level of risk tolerance and invests all his savings in real estate.

Why is real estate not a productive choice of investment for Mark?

a. Real estate investments decrease in value over time.

b. Real estate has low marketability risk.

c. Real estate is not a liquid investment option.

d. Real estate is the most liquid asset one can own.

3. The Singhs must sell their house in a short sale and the bank has agreed to forgive the remaining amount owed.

Which of the following is true in this scenario?

The short sale does not affect the Singhs' credit scores.

The amount forgiven for the Singhs is considered as taxable income.

The Singhs must sell their house for at least as much as the mortgage amount.

The lender or the bank is foreclosing on the Singhs' house.

4. The market price of Golden Inc. stock is $15 per share. The formula for P/E ratio is as follows: P/E ratio = Stock price per share / Earnings per share

If the stock earns $3 per share, then its P/E ratio is __________.

5

0.2

45

12