Copyright

MTTC: Personal Finance Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. How is a bond described?

Question 2 2. What is a creation unit?

Question 3 3. Calculate the effective annual rate for an interest rate of 10 percent with calculations done on a monthly basis:

Question 4 4. What is the definition of customer?

Question 5 5. What is the yield of a bond with a face value of $1000 purchased for $900 with an interest of 8%?

Page 2

Question 6 6. Steve is trying to earn $300 in interest for a new guitar. He puts $2500 in an account that earns 2% interest yearly (simple interest). How long will it take to earn $300?

Question 7 7. What is the loan amount?

Question 8 8. How are preferred stocks different from regular stocks?

Question 9 9. Tom deposits $2,000 into an account with an interest rate of 2.5% that is compounded quarterly. Rounding to the nearest dollar, what is the balance in Tom's account after 5 years?

Question 10 10. Under which of these plans would you end up paying the most over 12 months?

Page 3

Question 11 11. A deferred payment plan wants you to make 12 monthly payments to pay off an item that costs $500. What is the basic monthly payment before interest is included?

Question 12 12. What is a person who uses business products called?

Question 13 13. Which of the following is the correct formula for compound interest?

Question 14 14. If an invoice is dated 8 October, what is the EOM due date?

Question 15 15. How much will Neil spend to buy 30 stocks at $14.31 per stock?

Page 4

Question 16 16. If the annual percentage rate is 9.1% on a particular loan with quarterly payments (4 payments in a year) what does J equal in this formula?

Question 17 17. An invoice is dated March 12. What is the 2/10 due date for this invoice?

Question 18 18. The company Walter Spring just gave out dividends of $2.13 per stock. How much did Jimmy get in dividends for his 25 stocks in the company?

Question 19 19. What are five consumer rights?

Question 20 20. Your beginning balance is $1200. With an APR of 12 percent, what is your balance at the end of the year if calculations are done on a monthly basis?

Page 5

Question 21 21. When will the yield equal the interest?

Question 22 22.

A deferred payment plan for an item that costs $800 has 12 monthly payments with an interest of 15 percent. However, if the item is paid in full within the first 6 months, then there will be no interest.

Which of the following scenarios will cost you the least in the long run?

Question 23 23. What's the best explanation of diversification?

Question 24 24. An IT company introduced several new cellphones. After the public was very dissatisfied with some of these products, they made minor changes to them based on the response they received through social media. Which consumer right is this an example of?

Question 25 25. How many years is this loan calculation for if the number of payments per year is 12?

Page 6

Question 26 26. An electronics item has a price tag of $59. What is the cash price of this item?

Question 27 27. Why would an investor buy investment vehicles other than mutual funds or exchange-traded funds?

Question 28 28. Which of the following is the best explanation of a private placement?

Question 29 29. Adriana bought a bicycle at $300 on a deferred payment plan with an annual interest rate of 20 percent and 12 monthly payments. Calculate her repayment for the first month.

Question 30 30. Lauren turns around for just one moment and finds that her daughter has opened a bottle of pills that could be dangerous. The pills were in a bottle without a safety cap. What act did the pill distributor most likely violate?

MTTC: Personal Finance Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

MTTC Business, Management, Marketing & Technology (098): Practice & Study Guide  /  Business Courses
Support