Principles of 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!

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Question 1 1. Short-term investments should mature within this time frame:

Question 2 2. How might Social Security continue to be funded going forward?

Question 3 3. Which is a disadvantage of a loan?

Question 4 4. What is a key feature of a short-term investment?

Question 5 5. What's the best explanation of disposable income?

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Question 6 6. Types of financial investments include _____________.

Question 7 7. Sheeya bought 20 stocks for $4.21 per stock with a brokerage fee of $7 per transaction. How much will she earn by selling them for $15.31 per stock after five years?

Question 8 8. Which of these is a common mortgage component?

Question 9 9. _________ are financial investments that offer ownership in a company.

Question 10 10. Why must a business have customers with disposable income?

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Question 11 11. Select the scenario that produced the largest profit.

Question 12 12. Which of the following statements is true?

Question 13 13. Stocks are _____.

Question 14 14. Which is the best explanation of a demand deposit?

Question 15 15.

Sarah is willing to pay $500 per month for an annuity with an annual interest rate of 6% where the bank pays the interest on a monthly basis. Sarah wants to know how much her annuity will be worth in 5 years.

What is the future value of this annuity after 5 years, to the nearest dollar?

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Question 16 16. Which of the following is not a mandatory expense that is included in a calculation of disposable income?

Question 17 17. In the following formula, what does N equal?

Question 18 18. How many years is this loan calculation for if the number of payments per year is 12?

Question 19 19. Melvin is a healthy 28-year-old who rarely gets sick enough to visit a doctor. He is considering a consumer-driven health plan in order to save money on premiums. What is another advantage of a CDHP?

Question 20 20. What's a COLA?

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Question 21 21. Which one of the following is the best explanation of an unsought product?

Question 22 22. Which of the following statements is true?

Question 23 23. What is the monthly payment for a 10 year loan paid monthly for 10 years where the amount of the loan is $80,000 and the annual percentage rate is 3.5%? Please round your answer to the nearest tens place.

Question 24 24. According to data collected on U.S. median household income from 1990 to 2011, what can we say about the state of consumer income?

Question 25 25. What role does a price index play in cost of living?

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Question 26 26. How much will Neil spend to buy 30 stocks at $14.31 per stock?

Question 27 27. Calculate the effective annual rate for an interest rate of 10 percent calculated quarterly (4 times a year):

Question 28 28. When a bank takes back a home from a borrower for non-payment, it is referred to as _____.

Question 29 29. What is a mortgage?

Question 30 30. What does n equal in the formula for the effective annual rate if the calculations are done on a quarterly basis (4 times a year)?

Principles of 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!

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