BUSN 380 All Quizzes


BUSN 380 All Quizzes
(TCO 1) If you put $1,000 in a saving account and make no further deposits


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BUSN 380 Quizzes Week 1-7

BUSN 380 Quizzes Week 1-7


Quiz Week 1


(TCO 1) Brad Opper has a goal of “saving $50 a month for vacation.” Brad’s goal lacks: 

Measurable terms
A realistic perspective
Specific terms
The type of action to be taken
A time frame

(TCO 1)  The first step of the financial planning process is to:
develop financial goals.
Implement the financial plan.
Analyze your current personal and financial situation.
Evaluate and revise your actions.
Create a financial plan of action.

(TCO 1) Which of the following is an example of opportunity cost?
Renting an apartment near school
saving money instead of taking a vacation
setting aside money for paying income tax
purchasing automobile insurance
using a personal computer for financial planning

(TCO 1) Opportunity cost refers to:
money needed for major consumer purchases.
What a person gives up by making a choice.
The amount paid for taxes when a purchase is made.
Current interest rates.
Evaluating different alternatives for financial decisions.

(TCO 1) If a person deposited $50 a month for 6 years earning 8 percent, this would involve what type of computation?
Simple interest
future value of a single amount
future value of a series of deposits
present value of a single amount
present value of a series of deposits

(TCO 1) Which type of computation would a person use to determine current value of a desired amount for the future?
Simple interest
future value of a single amount
future value of a series of deposits
present value of a single amount
present value of a series of deposits

(TCO 1)  If inflation is increasing at 3 percent per year, and your salary increases at the same rate, how long will it take your salary to double?
30 years
24 years
18 years
12 years
It would never double

(TCO 1) A(n) _____ summarizes your current financial situation, analyzes your financial
needs, and recommends a direction for your financial activities. (Points : 1)

Insurance prospectus



Investment forecast

Financial plan

(TCO 1) The main goal of personal financial planning is:

Saving and investing for future needs

Reducing a person’s tax liability

Achieving personal economic satisfaction

Spending to achieve financial objectives

Saving, spending, and borrowing based on current needs

(TCO 1) The ability to convert financial resources into usable cash with ease is referred to as: 

Opportunity cost

(TCO 1) If you put $1,000 in a saving account and make no further deposits, what type of calculation would provide you with the value of the account in 20 years?
Future value of a single amount
simple interest
present value of a single amount
present value of a series of deposits
future value of a series of deposits

(TCO 1) The financial planning process concludes with efforts to
develop financial goals.
Create a financial plan of action.
Analyze your current personal and financial situation.
Review the financial plan.
Review and revise your actions.

(TCO 1)  If you desire your money to double in 6 years, what rate of return would you need to earn?
6 percent
8 percent
9 percent
10 percent
12 percent

 (TCO 1) From an economic standpoint, prices in the marketplace are determined through (Points : 1)

The stock market

The government


Supply and demand

Interest rates

(TCO 1) As Jean Tyler plans to set aside funds for her young children’s college education, she is setting a(n) _____ goal. (Points : 1)






(TCO 1) A family spends $40,000 on living expenses. With an annual inflation rate of
3%, they can expect to spend approximately _____ in 4 years. (Points : 1)






(TCO 1) Personal financial planning has a main goal of  (Points : 1)

Reducing a person’s tax liability

Saving and investing for future needs

Spending to achieve financial objectives

Saving, spending, and borrowing based on current needs

Achieving personal economic satisfaction

(TCO 1) When it comes to the financial planning process, the first step is to (Points : 1)

Develop financial goals

Implement the financial plan

Evaluate and revise your actions

Analyze your current personal and financial situation

Create a financial plan of action

(TCO 1) The simple calculation of interest can be performed by multiplying the amount in
a savings account by the (Points : 1)

Annual interest rate

Annual interest rate and the time period

Number of months in a year

Time period and number of months

Time period

(TCO 1) When supply and demand for goods affects the job market, this is considered to
be a(n) _____ influence. (Points : 1)






(TCO 1) A _____ résumé is designed to obtain a specific job. (Points : 1)






(TCO 1) Personal relationships, health, and informal education goals fall into the category
of _____ goals. (Points : 1)






(TCO 1) If John Smith is making plans to make holiday purchases at the end of the year, he is setting a(n) _____ goal. (Points : 1)






(TCO 1) In order to evaluate present value scenarios, _____ is/are needed. (Points : 1)



Simple interest calculations


Payment information

(TCO 1) If an employee has tax-deferred benefits, this means that the benefits are (Points : 1)

Taxed at some point in the future

Not subject to state income tax

Exempt from federal income tax

Taxed at a special rate

BUSN 380 All Quizzes

(TCO 1) In order to evaluate one’s current financial position (including net worth), the
best tool that can be used is a (Points : 1)


Cash flow statement

Time-value-money report

Balance sheet

 (TCO 1) _____ refers to the natural abilities people possess that can be brought to the
workplace. (Points : 1)



Survival skills

Occupation techniques


(TCO 1) Cash and other items that are easily converted to cash are referred to as _____. (Points : 1)

Quick assets

Working assets

Liquid assets


Solvent items

(TCO 1) A person’s financial position can be improved if he or she experiences (Points : 1)

Increased liabilities

Reductions in earnings

Additional credit purchases

An increase in investments and savings

Lower amounts deposited in savings

(TCO 1) _____ is the ability to convert assets and financial resources into usable cash
relatively easily. (Points : 1)

(TCO 1) Which of the following situations best represents an individual facing insolvency? (Points : 1)

(TCO 1) Personal balance sheets can be used to analyze (Points : 1)

BUSN 380 All Quizzes

Quiz Week 2


(TCO 2) _____ can reduce taxable income. (Points : 1)

Portfolio income

Tax credits


Passive income

Earned income

(TCO 2) Whenever an individual takes on a personal effort and receives money, this is reported as _____ income. (Points : 1)





Capital gains

(TCO 2) _____ allows for a certain amount of money to be deducted from adjusted gross income, and the total can be based upon yourself, a spouse, and the number of dependents (Points : 1)

A tax credit

An exemption

An exclusion

Earned income

Portfolio income

(TCO 2) A person’s taxes are affected by an exclusion because (Points : 1)

The amount of taxable income is reduced

Itemized deductions will increase

Itemized deductions will decrease

A person’s tax rate will be lowered

The number of exemptions a person can claim will increase

(TCO 2) _____ would qualify a person for an exemption when computing taxable income. (Points : 1)

Mortgage interest

A tax shelter

A dependent

Charitable contributions

Passive income

(TCO 2) This type of tax is assessed on specific goods and services at the time of purchase. (Points : 1)




General sales

Value added

(TCO 2) When a taxpayer’s income increases $950 and the taxes owed increases from $7,867 to $8,177, the marginal tax rate is _____. (Points : 1)






(TCO 2) People who _____ must make estimated quarterly tax payments. (Points : 1)

Are employed in a foreign country

Receive dividends

Work for the government

Do not have adequate amounts withheld from income

(TCO 2) A(n) _____ is an all-purpose account that provides several services. (Points : 1)

NOW account

Asset management account

EFT account

Mutual fund

Money market account

(TCO 2) A notable difference between a lost debit card and a lost credit card is that _____. (Points : 1)

A credit card carries more risk of loss to the cardholder

A debit card carries more risk of loss to the cardholder

There is no cardholder liability if either type of card is lost

There is no difference in liability

(TCO 2) An example of a place where one will encounter high fees for loans when borrowing money is a _____. (Points : 1)

Credit union

Savings and loan association


Commercial bank

Mutual savings bank

BUSN 380 All Quizzes
(TCO 2) _____ are the major products offered by investment companies. (Points : 1)

Interest-bearing checking accounts

Variable-rate loans

Credit card accounts

Savings bonds

Mutual funds

(TCO 2) One of the characteristics of a certificate of deposit is that it can have (Points : 1)

High interest-rate risk

Low safety for savers

Limited liquidity

A variable rate of return

No minimum deposit amount

(TCO 2) When filing your taxes, a set amount on which no taxes are paid is called _____. (Points : 1)

Itemized deductions


An earned tax credit

The standard deduction

Capital gains

(TCO 2) Taxes owed can be reduced through _____. (Points : 1)

The standard deduction

A tax credit

An itemized deduction

An exclusion

An exemption

(TCO 2) U.S. savings bonds provide the following advantage. (Points : 1)

Interest earned is exempt from federal income taxes

Interest earned is deferred for federal tax purposes

A constant rate of earnings

They can be converted to other types of investments

(TCO 2) _____ can offer deposit accounts that are insured through the Federal Deposit Insurance Corporation. (Points : 1)

(TCO 2) The _____ is the rate that the Federal Reserve charges banks for loans. (Points : 1)

(TCO 2) When a person is presenting a check in order to obtain cash, a _____ endorsement would be used. (Points : 1)

BUSN 380 All Quizzes

Quiz Week 3


(TCO 3) All of the following provide data to credit bureaus except (Points : 1)


Finance companies


Court records

The Internal Revenue Service

(TCO 3) Personal bankruptcy can be reported to credit bureaus for _____ years. (Points : 1)






(TCO 3) When a lender analyzes a borrower’s assets or net worth, this is called (Points : 1)






(TCO 3) The first step you should take if you are denied credit is to (Points : 1)

Increase your income and decrease your spending

Check your credit file at the consumer bureau

Hire an attorney and file a suit against the creditor

Reapply for credit

Sue the credit bureau that provided the negative information

(TCO 3) Which one of the selections can be categorized as a disadvantage of credit? (Points : 1)

The use of credit can allow you to receive advance notice of sales

The use of credit can allow for you to purchase previously inaccessible items

The use of credit allows for the purchase of goods even when funds are low

The use of credit can allow for the easier return of merchandise

The use of credit can lead to overspending

(TCO 3) By evaluating your credit options, you can do all of the following except (Points : 1)

Reduce your finance charges

Reconsider your decision to borrow money

Discover a less expensive type of loan

Find a lender that charges a lower rate

Purchase goods and services without specific limitations

(TCO 3) While collateralized loans may provide lower interest rates, these loans have a disadvantage because (Points : 1)

The loan must be repaid in a short period of time

You ruin your credit rating

The loan is difficult to obtain

Commercial banks do not make such loans

The assets used as collateral are tied up until the loan has been repaid

(TCO 3) What is the top reason why consumers default on their debts?  (Points : 1)

Medical expenses

Defective goods and services

Excessive use of credit

Fraudulent use of credit

Consumer fraud

(TCO 3) Examples of _____ include automobile and installment loans for purchasing furniture or appliances. (Points : 1)

A line of credit

A credit card loan

Open-end credit

Closed-end credit

Convenience credit

(TCO 3) The maximum percentage of your net income that should be spent on credit purchases is recommended to be _____. (Points : 1)






(TCO 3) One of the concerns and risks associated with cosigning is that (Points : 1)

You are not being asked to guarantee the debt

It is not your legal responsibility to pay the debt.

You’ll have to pay up to the full amount of the debt if the borrower does not pay

The creditor must first try to collect from the borrower

The creditor cannot garnish your wages

(TCO 3) The maximum debt-to-equity ratio limit for an individual (excluding one’s home mortgage) should be which one of the following? (Points : 1)


33 to 1




(TCO 3) One day, Gary notices that is neighbor has purchased a new Land Rover and it is sitting in his driveway. Gary decides that he also needs a new car and goes out and purchases a Hummer with a 6-year loan on it. Which reason for indebtedness is this an example of? (Points : 1)

Misunderstanding or lack of communication

Keeping up with the Joneses

The expectation of instant comfort

The use of money to punish

Overindulgence of children

(TCO 3) A signal of a potential debt problem would be (Points : 1)

Paying more than the minimum balance on credit cards each month

Making payments on time

Building up a savings account

Depending on overtime to meet normal expenses

The gradual but steady reduction in credit card balances

(TCO 3) If Tony Jones knows he can get a car loan for up to 5 years at a credit union but decides that he can easily repay the loan in 3 years, and therefore gets a 3-year loan, how is Tony reducing the lender’s risk? (Points : 1)

He is sharing the interest rate risk with his lender

He is pledging valuable assets that can be seized if the loan is not repaid

He is repaying the loan over a faster period of time

He is taking a larger stake in the asset he is purchasing

He is obtaining the loan from the credit union

BUSN 380 All Quizzes

(TCO 3) If Thomas borrows $500 for 1 year with an APR of 10% and an annual service fee of $20, what is his total cost of credit?  (Points : 1)






(TCO 3) Rick Mouney starts the month with a balance of $1,000 on his credit card. On the 10th day of the month, he purchases $200 in clothes with his credit card. On the 15th day of the month, he makes a payment on his credit card of $500. The average daily balance for the month including the new purchase is $883. The average daily balance for the month excluding the new purchase is $750. Rick’s interest rate is 1.5% for the month. Rick’s bank calculates the finance charge on the credit card by using the average daily balance, including new purchases. What would Rick’s finance charges be for the month? (Points : 1)






(TCO 3) If Sarah goes out and spends $600 in new clothes for herself, putting it all on her credit card after her husband returns at 4 a.m. the previous morning from a night on the town, this is an example of which of the following? (Points : 1)

(TCO 3) _____ families rely heaviest on student loans to finance college.  (Points : 1)

(TCO 3) One of the five Cs of lending refers to a borrower’s financial ability to meet credit obligations; this is called (Points : 1)

BUSN 380 All Quizzes

Quiz Week 4


(TCO 5) Which of the following statements is false? (Points : 1)

When choosing an investment, it is necessary to consider the risk factor

During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation

The interest rate risk associated with investments in bonds is the result of changes in business conditions faced by companies

The risk of business failure deals with changes in the value of stocks and bonds due to changes and risks within a business itself

The prices of stocks, bonds, and other investments fluctuate in the market

(TCO 5) A $1,000 corporate bond pays 6.5% a year. What is the annual interest you will receive?  (Points : 1)






(TCO 5) _____ risk occurs when an investment does not keep up with increasing price levels in our economy. (Points : 1)




Business failure


(TCO 5) John Farmer recently received a legal form from the company where he owns stocks that list the issues to be decided at the annual stockholders’ meeting. The item asks that he signs something that allows someone else to vote for him. What has he received? (Points : 1)



Voting rights


None of the above

(TCO 5) You received a notice that shares of stock you purchased and own will be divided into a larger number. Ultimately, you will get two shares for every share that you own. What has happened? (Points : 1)

A dividend split

A proxy split

A stock split

A banana split

An equity split

(TCO 5) If Orlando Blodgett is buying the stock of the Getaway Caribbean Cruise Company. If he buys the stock today, knowing it is the first day it is selling without the dividend for this quarter, on what date is Orlando buying the stock? (Points : 1)

Record date

Sale date

Payment date

Ex-dividend date

None of the above

(TCO 5) A(n) _____ fund is a fund to which annual or semiannual deposits are made for the purpose of redeeming a bond issue. (Points : 1)






(TCO 5) A government security issued in minimum units of $100 with a 30-year maturity is called a (Points : 1)

subordinated bond

Treasury bill

Treasury note

Treasury bond

Savings bond

(TCO 5) Which of the following statements accurately describe a line of credit? (Points : 1)

A line of credit is already approved before the money is actually needed

A line of credit is not available immediately when needed

A line of credit cannot be obtained at a credit union, savings and loan association, or bank

A line of credit cannot provide an alternative source of funds if an emergency does develop

A line of credit is a long-term loan

(TCO 5) Which of the following individuals should have the highest tolerance for risk? (Points : 1)

Joan Cummings, who is a single mother with two small children

Darren Carter, who works for American Airlines and is worried that he is going to be laid off soon
Barry Parks, who is an investment banker and earns over $200,000 per year

Michael Clark, who is 74 years old and been retired for 6 years

Fred Funderbunk, who delivers pizzas and makes about $15,000 per year

(TCO 5) Which of the following statements is false? (Points : 1)

No one is going to make you save the money; you need to start a program

To be useful, investment objectives must be very specific

Investment goals can be different for each individual

Because investment objectives deal with the future, it is useful to plan more than 5 years in the future

A long-term investment objective involves a time period of 2 years or less

(TCO 5) If an investment objective is considered to be long term, then this means the goal should be achieved in what time frame? (Points : 1)

Less than 2 years

In 2–5 years

More than 5 years

Less than 1 year

None of the above

(TCO 5) Arnell Johnson bought 250 shares of Black Petroleum Company for $95 per share. He paid a commission of $55 when he purchased this stock. He sold the stock 5 years later for $115 per share. When he sold it he paid a commission of $70. While he held the stock, it paid a dividend of $3.50 per share. What was Arnell’s total dollar return on this stock? (Points : 1)






(TCO 5) Dividends must be approved by a firm’s board of directors, and (Points : 1)

Dividend payments are paid out of profits

Dividends are guaranteed

Dividends are paid before a firm’s taxes are paid

Dividends are usually paid twice a year

Dividends can be paid forever

BUSN 380 All Quizzes

(TCO 5) You have purchased preferred stock that can be exchanged for common stock at your option. What kind of stock is this? (Points : 1)





None of the above

(TCO 5) Which of the following statements is false? (Points : 1)

Stockholders elect the board of directors

Stockholders pay taxes on dividends

Intelligent investors must be concerned about future after-tax profits

Dividend payments may not be reduced or omitted at any time

Corporate dividends may not always be paid in cash

(TCO 5) Nancy Groom owns one $1,000 corporate bond issued by Chevron. The bond has a yield of 10% and pays 8% interest semiannually. How much interest will Ms. Groom receive in 1 year? (Points : 1)






(TCO 5) The _____ describes legal conditions for a corporate bond. (Points : 1)

Trustee contract

Bondholder’s covenant

Bond indenture

Corporate charter

Bond debenture

(TCO 5) All of the statements are false except for which? (Points : 1)

Convertible corporate bonds are more secure than government bonds

Convertible bonds often pay 3–4% more interest than nonconvertible bonds

Because of the conversion feature, it is not necessary to evaluate convertible corporate bonds

Even if convertible bondholders convert their investment to common stock, the bondholders still receive interest payments

In reality, there is no guarantee that bondholders will convert to common stock even if the market value of the common stock does increase in value

(TCO 5) A _____ is a bond typically secured by assets. (Points : 1)

Debenture bond

Corporate bond

Mortgage bond

Preemptive bond

Treasury bond

BUSN 380 All Quizzes

Quiz Week 5


(TCO 1) Referring to consumer purchases, an example of a personal opportunity cost is (Points : 1)

Buying on credit

Selecting a commonly known brand

The influence of advertising on consumers

Time used to compare prices

Government regulation of deceptive business-government activities in an effort to prevent consumer fraud.

(TCO 1) In order to receive the best warranty if you desire some assurance of quality when buying a used car, you should purchase the vehicle from a(n) (Points : 1)

New car dealer

Private party

Used car dealer

Fleet sales company

Auction company

(TCO 1) A 16-ounce package selling for $1.80 would have a unit price of (Points : 1)


$28.80 a pound

$11.25 an ounce

$8.80 a quart

12 cents an ounce

(TCO 1) Service contracts may not always be the best solution for consumers because of (Points : 1)

Poor service from repair companies

Limited coverage of repairs

Weak government regulation of service contract companies

High costs and a low chance of need

The fact that few places are available for repairs

(TCO 1) The Better Business Bureau has a major purpose to (Points : 1)

Recommend reputable companies in an area

Evaluate products and services for quality

Lobby for improved consumer protection laws

Resolve consumer complaints

Represent business in government hearings

(TCO 1) Consumers have an option to go to small claims court to (Points : 1)

Regulate fair business activities

Resolve minor complaints

Allow consumers with similar complaints to take action as a group

Provide hearing on proposed consumer protection laws

Assist low-income consumers who need legal help

(TCO 1) If you decide to purchase a vehicle from a private party, then you will have (Points : 1)

No implied warranties

No express warranty

A limited warranty

A 30-day return privilege

A government-supported repair guarantee

(TCO 1) The purpose of a cooperative is to (Points : 1)

Solve consumer complaints

Test consumer products for quality

Lobby for changes in consumer protection laws

Obtain brand-name items for less than wholesale

Sell products or services to members at reduced prices

(TCO 1) When someone states that he or she has purchased a good or service on impulse, this means that this individual has (Points : 1)

Evaluated alternatives

Gathered information

Comparison shopped

Selected the least desirable alternative

Made an unplanned purchase

(TCO 1) When reviewing the Edmund’s Guide, you will find information pertaining to (Points : 1)

Safety problems of existing vehicles

Price data

Sales of stolen vehicles

Cars available for sale from government agencies

Car repairs

(TCO 3) When making the decision to buy a home or rent, renting would be more suitable for an individual who (Points : 1)

Has limited funds currently available

Has difficulty establishing credit

Wants to reduce his or her taxes

Enjoys remodeling his or her residence

Desires the financial benefits of increased equity

(TCO 3) A _____ mortgage is basically a home equity loan. (Points : 1)

Shared appreciation


Growing equity

Graduated payment


(TCO 3) A home owner will often realize a benefit of (Points : 1)

A low security deposit

Increased property value

The amortization of the growth of equity

The tax deductibility of the down payment

Low maintenance

BUSN 380 All Quizzes

(TCO 3) Lonette and Al received a statement reporting that they paid $6,000 in mortgage interest during the past year. If they are in a 28% tax bracket, this deduction may reduce their taxable income by(Points : 1)






(TCO 3) Property restrictions can also be referred to as (Points : 1)

Cooperative agreements

Zoning laws

Common areas

Title insurance provisions

Refinancing clauses

(TCO 3) Todd Foley is applying for a $100,000 mortgage. He can get a $600 monthly payment for principal and interest and no points, or a $550 monthly payment with one point. How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment? (Points : 1)






(TCO 3) FHA and VA mortgages may offer attractive terms to prospective home buyers, but one disadvantage of these mortgages is that they may have (Points : 1)

Higher risk

A longer processing time

Higher interest rates

Increased monthly payments

Down payment requirements

(TCO 3) You should still contact and use a(n) _____ if you sell your home without the use of a real estate agent. (Points : 1)

(TCO 3) If Jennifer Garland lives in a home assembled in a factory that was then moved to the living site, she is most like living in a (Points : 1)

(TCO 3) When one observes negative amortization, this means that there (Points : 1)

BUSN 380 All Quizzes

Quiz Week 6


(TCO 4) A _____ form of a homeowner’s policy would be needed if you purchase a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy. (Points : 1)




Modified coverage


(TCO 4) If you decide to install a new home security system with cameras, this is an example of _____ risk. (Points : 1)






(TCO 4) The failure to take ordinary and reasonable care is referred to as (Points : 1)


A benefit


High risk

A hazard

(TCO 4) If a worker damages your home while painting several rooms, and you take action against the worker’s employer to cover the cost of the damage, this is an example of a(n) _____ liability. (Points : 1)



Common situation



(TCO 4) If a home insurance policy contains a component that covers additional living expenses, then this component is designed to (Points : 1)

Pay for medical expenses of people injured on your property

Cover damage to property while away from home

Reimburse a homeowner for damage done by a visitor

Pay for temporary housing while your home is repaired

Pay for repairs caused by fire or other hazards

(TCO 4) If a home inspection reveals defective house wiring, then this is an example of a (Points : 1)






(TCO 4) The 50 in 100/300/50 refers to _____ coverage. (Points : 1)


Bodily injury liability

Property damage liability

Medical payments

Comprehensive physical damage
(TCO 4) If you obtain a _____ home insurance policy, this will cover accidental damage to another person’s property by a member of your family. (Points : 1)


Personal property

Medical payments

Additional living expenses

Personal liability

(TCO 4) A(n) _____ is an insurance policy provision that requires that the insured pay for part of the loss of a claim if the property is not insured for the specified percentage of the replacement value. (Points : 1)

Personal property floater


Umbrella coverage

Coinsurance clause

Assigned risk clause

(TCO 4) Financial responsibility laws (Points : 1)

Reduce auto insurance costs

Assist poor drivers in getting insurance coverage

Pay for the high medical costs of auto accident victims

Require uninsured motorists coverage

Protect the public from financial losses due to auto accidents

(TCO 4)) The 250 in 250/500/100 refers to (Points : 1)

Property damage liability coverage

The limit for bodily injury claims that can be paid to one person

Collision coverage

The total coverage for an accident

The amount of the deductible

(TCO 4) Individuals and families purchase life insurance primarily to (Points : 1)

Pay liability claims resulting from accidents

Fill financial needs created by the loss of the breadwinner

Fund lavish retirement vacations

Keep up with people with a similar financial situation

Make early retirement possible

(TCO 4) A two-earner couple likely will have (Points : 1)

The greatest need for life insurance

No need for life insurance

A moderate need for life insurance, especially if the couple has a mortgage

The greatest need for an annuity

The exact same life insurance needs as all other two-earner couples

(TCO 4) Your annual income is $50,000. What is your life insurance need based on the easy method? (Points : 1)






(TCO 4) If you have purchased a medical insurance policy with a very low deductible and the policy pays for hospital, surgical, medical, and other bills under one plan, this is a called a _____. (Points : 1)

Low-cost policy

Hospital indemnity policy

Long-term care insurance

Cancer insurance policy

Comprehensive major medical insurance policy

(TCO 4) The most common type of permanent life insurance is called (Points : 1)

Whole life

Term life

Universal life

Modified life

Variable life

BUSN 380 All Quizzes

(TCO 4) All of the following are innovative ways that concerned groups are containing healthcare costs except for (Points : 1)

The establishment of incentives to encourage preventive care

Encouraging the use of prepaid group practices

The establishment of community education programs so people can learn to take better care of them

Encouraging doctors to pay cash for routine medical costs

Picketing at hospitals and physician offices

(TCO 4) In order to reduce your healthcare costs, you should do your best to (Points : 1)

Live dangerously

Gain a little extra weight

Smoke and drink

Stay well

Not seek medical care

(TCO 4) Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $145,000, $75,000, and $80,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance? (Points : 1)




None. The total amount would be covered by insurance


Which of the following statements is true? (Points : 1)

Physician expense insurance coverage normally includes visits to the doctor’s office, x-rays, and lab tests

Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance

A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin

A good health insurance plan should impose no unreasonable exclusions

All of the above

BUSN 380 All Quizzes

Quiz Week 7


(TCOs 6 and 7) Net asset value is typically calculated _____ for most mutual funds. (Points : 1)





Whenever an investor calls and requests a price quote

(TCOs 6 and 7) A(n) _____ fund is a mutual fund that invests in stocks issued by companies with a long history of paying dividends. (Points : 1)


Equity income



Money market

 (TCOs 6 and 7) The two real estate investment classifications consist of (Points : 1)

Participating or nonparticipating.

Common or preferred

Cumulative or noncumulative.
Direct or indirect.

None of the above

(TCOs 6 and 7) Single-family houses are typically expected to observe the following pattern. (Points : 1)

Values tend to rise, providing a possible hedge against inflation.
Values rise less than the Consumer Price Index.

Values remain stable in the northern parts of the United States.

Values tend to rise in New England states, but decline in the South.

Values remain unchanged in the United States.
(TCOs 6 and 7) A mutual fund that invests in the common stocks of companies in the same industry is called a(n) _____ fund. (Points : 1)





Money market

(TCOs 6 and 7) An investor holds legal title to a piece of property if he or she participates in what type of real estate investment? (Points : 1)

Ginnie Mae

Participation certificates (PCs)


Direct investment

Indirect investment

(TCOs 6 and 7) Owen Cartwright has joined a real estate syndicate that purchased a commercial office building in downtown Seattle, WA. What type of investment does he hold? (Points : 1)

Direct investment in real estate

Investment in gems

Investment in precious metals

Investment in collectibles

Indirect investment in real estate
(TCOs 6 and 7) Typically, what is the expected range (in years) for someone to be in retirement? (Points : 1)

1–5 years

25 years or more

10–12 years

12–16 years

6–10 years
(TCOs 6 and 7) Which REIT invests directly in properties? (Points : 1)

Compound REIT

Hybrid REIT

Mortgage REIT

Equity REIT

Simple REIT

(TCOs 6 and 7) Which statement is correct regarding retirement living expenses? (Points : 1)

It is impossible to estimate your spending needs.

Your spending patterns will probably not change.

You’ll use a smaller amount of money for food, housing, and medical care.

The exact amount of money you’ll need is impossible to predict.

Work-related expenses, such as driving back and forth to work, tend to be lower during retirement.

(TCOs 6 and 7) As an individual approaches retirement age, he or she may consider (Points : 1)

Increasing the face value of his or her life insurance.

Increasing his or her property insurance coverage.

Keeping his or her life insurance intact.

Decreasing the face value of his or her life insurance.

Exchanging his or her old life insurance policy with a new one.

 (TCOs 6 and 7) Estate planning involves _____ if a person is married. (Points : 1)

The interest of at least two people

Fewer legal requirements

Fewer financial responsibilities

Seeking the services of a securities broker

None of the above

(TCOs 6 and 7) A(n) _____ fund is a mutual fund in which new shares are issued and redeemed by the investment company at the request of investors.(Points : 1)






BUSN 380 All Quizzes

(TCOs 6 and 7) The _____ refers to the value of a mutual fund’s portfolio minus the mutual fund’s liabilities divided by the number of shares outstanding.(Points : 1)

Net asset value

Outstanding balance

Per share value

Book value

Accounting value

(TCOs 6 and 7) Financial planning for retirement is vitally important for all of the following reasons except (Points : 1)

You can expect to live in retirement for many years.

Social Security and private pensions may be insufficient to cover the cost of living.

Inflation may diminish the purchasing power of your retirement savings.

You can expect that Social Security will be sufficient to live on.

(TCOs 6 and 7) Under a(n) _____, everything will pass to your spouse when you die, with the exception of an amount equal to the exemption, which passes into trust. (Points : 1)

Simple will

Traditional marital share will

Exception will

Stated dollar amount will

Exemption trust will
(TCOs 6 and 7) If Gerry Legere dies without writing a will, legally this is referred to as the following situation. (Points : 1)





None of the above

(TCOs 6 and 7) All of the following statements are correct about wills except the following. (Points : 1)

(TCOs 6 and 7) When you retire, which one of the following expenditures is likely to decrease? (Points : 1)

(TCOs 6 and 7) Which is a will that leaves everything to your spouse when you die? (Points : 1)

BUSN 380 All Quizzes