QUESTION 4 The Future Value is the term we use for the process of calculating how much money we will have at a known time in the future at a known interest rate. True False 1 points Save Answer QUESTION 5 A person's net worth is the difference between the value of the items he or she owns and the amounts that he or she owes to others. True False 1 points Save Answer QUESTION 6 A simple will is one that leaves everything to the spouse. True False 1 points Save Answer QUESTION 7 Demand deposits is another term for checking accounts. True False 1 points Save Answer QUESTION 8 Current liabilities are amounts that must be paid within a short period of time, usually less than a year. True False 1 points Save Answer QUESTION 9 The liquidity of a savings account refers to the rate of earning a person will receive. True False 1 points Save Answer QUESTION 10 Credit is an arrangement to receive cash, goods, or services now and pay for them in the future. True False 1 points Save Answer QUESTION 11 Parents or family members are often the source of least expensive loans. True False 1 points Save Answer QUESTION 12 When a company issues stock it is selling some or all of itself to the investing public, True False 1 points Save Answer QUESTION 13 Many people believe that location is the most important factor to consider when selecting a home. True False 1 points Save Answer QUESTION 14 Homeowners insurance policies that offer replacement cost for lost or damaged property is usually less costly than policies that use the actual cash (current market) value method. True False 1 points Save Answer QUESTION 15 There is no relationship between the risk associated with an investment and the return that you expect to get from the investment. True False 1 points Save Answer QUESTION 16 A cyclical stock is a stock that follows the business cycle of advances and declines in the economy. True False 1 points Save Answer QUESTION 17 A corporate bond is a corporation's written pledge that it will repay a specified amount of money with interest. True False 1 points Save Answer QUESTION 18 The major reasons why investors purchase mutual funds are professional management and diversification. True False 1 points Save Answer QUESTION 19 Inflation increases the buying power of the dollar. True False 1 points Save Answer QUESTION 20 Professor Atherton really enjoyed this semester and thought that the participation was terrific. True False 1 points Save Answer QUESTION 21 The ability to convert financial resources into usable cash with ease is referred to as: bankruptcy. liquidity. investing. saving. opportunity cost. 2 points Save Answer QUESTION 22 A cost associated with owning a home is: renters insurance the security deposit annual appreciation of the property property taxes the interest lost on the security deposit 2 points Save Answer QUESTION 23 Which of the following would be considered a long-term liability? A charge account payment A mortgage An installment loan An amount due for taxes The amount due on a credit card 2 points Save Answer QUESTION 24 A load fund is a mutual fund in which investors pay a commission (or sales charge) every time they purchase shares. that can be loaded into a great big dump truck. that is loaded with good stocks. that smart investors will want to load up on in their portfolio. all of the above. 2 points Save Answer QUESTION 25 By paying cash for a purchase, you: forgo the opportunity to keep the cash in an interest-bearing account. always get a cash discount. can build a better credit rating. get better personal service from store employees. have a better selection of goods than you do if you use credit. 2 points Save Answer QUESTION 26 The purpose of a security deposit is to: cover the cost of utilities pay for damages that a tenant might cause during his or her occupancy pay for the tenant's portion of the real estate property taxes. cover increases in monthly rent. meet government regulations for a safe building. 2 points Save Answer QUESTION 27 Starting a small business that may or may not succeed is an example of ___________ risk. pure speculative commercial personal liability 2 points Save Answer QUESTION 28 A cash flow statement, which we have also called an income statement and budget, reports on: your net worth. your current income and payments. the value of your investments. the balance in your checking account. the amount of your debt. 2 points Save Answer QUESTION 29 A very safe investment that generally attracts conservative investors is called a(n) ____________ stock. penny cyclical growth small cap blue chip 2 points Save Answer QUESTION 30 If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally: increase in value in the secondary market. decrease in value in the secondary market. remain unchanged in the secondary market. become worthless. be returned to the corporation. 2 points Save Answer QUESTION 31 The value of the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding is called the: book value outstanding balance per share value net asset value accounting value 2 points Save Answer QUESTION 32 A mutual fund in which no sales charge is paid by the individual investor is called a(n) ____________ fund. closed-end open-end load no-load convertible fund 2 points Save Answer QUESTION 33 What is the legal term that is used when a person dies without a will? Insensitive Intestate Infuriating Intermediate Intermittent 2 points Save Answer QUESTION 34 Why is financial planning for retirement vitally important? You can expect to live in retirement for many years. Social Security and your private pension may be insufficient to cover your cost of living. Inflation may diminish the purchasing power of your retirement savings. All of these factors are vitally important. None of these factors are important. 2 points Save Answer QUESTION 35 A person who will follow your instructions specified in your will is called a(n): beneficiary. trustor. witness. executor or executrix. codicil.