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Finance Final

Terms in this set (24)

Anna and Peter both borrowed $15,000 from the same bank to buy the same model of a new car. Anna's credit score is 732 and peters is 588. Who is likely to pay a lower finance charge.

Anna because her credit score is higher, the higher the better

Which of the following typically changes the most the credit score of a person.

The minimum payment of a credit card was not paid for 3 months in a row
The answer is C because not paying your credit card bill results in fees and a buildup of bad credit with not paying on time.

Which of the following is not typically associated with borrowing

Yolanda has three credit cards and she owes $500 on each of them. The interest rates are 7% for a card A 9% card B and 8% for card C. If Yolanda has $1,000 to pay some of her debt, which cards should she pay if she wants to minimize future interest payment?

She should pay with card B and C since they have higher interest.

Which of the following credit cards make sense for a person that pays his balance every month

C would make the most sense for a person who pays their balance each month in full which gains the most credit.

In which of the following questions will you be less likely to be asked your social security number?

You purchase a car with no financing

Which one is the best source of investment advice

The financial section of the NY Times

Which type of brokerage firms will likely provide the lowest cost of buying and selling shares/stocks ?

A discount brokerage firm

If you bought shares in a mutual fund through a full service broker and the mutual fund lost 40% of its value, who will support the loss?

You, the owner of the mutual fund shares

If each of the following people had the same amount to take home pay, who would need the greatest amount of life insurance?

Dan single with one young child

If your car was damaged in a flood which type of automobile insurance would typically cover the damage of your car?

Which of the following families would be affected the most by 10 year period of high inflation?

A couple in their 30's 2 children

The annual interest you would earn on a savings account from a bank.

Is typically less than 8%

Mutual funds pool deposits from investors to purchase securities. What is true of mutual funds.

Mutual funds are less safe than CDs

Martin wants to set up a retirement account with after-tax contributions. Which of the following accounts should be set up ?

John and Anne have college education accounts for all their four children. Which of the following accounts should have the most conservative holdings?

Retirement income paid by the federal government is called

Social Security

Susy financed her house with a fixed rate mortgage. She has money in a savings account shared of the corporation where she works, and CDs. Which of these assets protect her against sudden inflation.

George has a good job, it pays $40,000 before taxes. At the end of the year he receives an increase of $12,000 His next monthly take-home will

If you plan to buy a home in two years and you already saved for the down payment put aside in your checking account. What transfer would benefit you?

Invest in corporate bonds

United states has one of the highest tax rates for corporations in the world. Which of the following could be consequences of a high tax rate?

All of the above

If you move from a town A in Pennsylvania to town B in New Jersey, where you buy a new house. Which of the following taxes will likely change?

Property tax and state tax

If your monthly take home pay of $1,400. If your monthly rent is $700/month, $200/ for food, $100/month for clothing, and $200 for utilities. How much will you save in 6 months?

Federal income tax:

. is subtracted from the total amount the employee earns