Exam 18: Appendix: Personal Finance

A disadvantage of using a credit card is that:

Christopher is a music teacher at St. Lucius School, an educational institution run by a charitable trust. Based on the nature of his organization, Christopher is eligible for the _____ employee-contribution retirement plan.

__________are expenditures for which the spender has significant control in terms of the amount and timing.

Benedict applies for a credit card with a credit limit of $30,000. However, the issuing bank rejects his application because of his low credit score. While rejecting his application, the bank provides him with a free copy of his credit score. In this scenario, the bank is following the mandate of the _____.

The length of time you've held various credit accounts makes an impact on your individual Fair, Isaac and Company (FICO) score.

_____ are offered by banks and other institutions like credit unions.

Gracie has retired after serving 40 years as a teacher. She wants to supplement her retirement savings by investing in some form of low-risk financial instrument. She, however, is particular about investing in bonds where the interest income earned would be exempted from federal income taxes. In this scenario, Gracie should invest in _____.

Robin is a bondholder in Nacron Corporation, a software company. He receives an interest payment on the bond every year. When the bond reaches maturity, Robin will also receive an additional amount of money. In this case, the money that will be received by Robin when the bond matures is known as the _____.

Which of the following statements is true of an annual percentage rate (APR)?

Kimberly has opened an account in Northwater City Bank. She receives a 3.5 percent interest rate on the money she deposits in her account. She does not use the funds from the account to meet her minor expenditures but only uses them when there is any major expenditure. In the context of this scenario, which of the following kinds of bank accounts does Kimberly hold?

The Credit Card Accountability, Responsibility and Disclosure Act created the Consumer Financial Protection Bureau.

A budget starts with a forecast of your investments.

Jamie is 19 years old and wants to apply for a credit card in the same bank where he is an account holder. In the context of the Credit Card Accountability, Responsibility and Disclosure Act of 2009, Jamie must:

Patricia, a senior employee working in a state museum, retires from her job. She, however, does not receive the full benefits of her retirement plan as she did not fulfill the requirement laid down by the government. The government policies state that an employee of any government organization has to work in the same organization for at least 30 years for him or her to receive the retirement benefits. In this case, Patricia has failed to receive the benefits because she did not complete the _____.

Joseph has been contributing to the 457 retirement plan ever since he started working. In the context of employee-contribution retirement plans, Joseph most likely works as a:

Clara holds common stock in a telecommunications company. The board of directors of the company declares that each stockholder will receive 2 percent of the company's profits relative to the proportion of shares he or she holds. Thus, as a stockholder, Clara receives a sum of $4,800 out of the company's profits. In this scenario, the money that Clara has received is called _____.

Hans has an account in Grancore Bank and uses a credit card issued by the bank. He uses the credit card for various forms of transactions. In the context of credit card usage, when Hans has unpaid balances, Grancore Bank will charge him a(n) _____ on the due amount.

Leena and Rebecca both have accounts in the same bank. They also hold credit cards issued by their bank. Leena, however, can buy more goods on credit than Rebecca as she falls in the below average to fair category of creditworthiness. In the context of the Fair, Isaac and Company (FICO) scale, which of the following scores is Rebecca most likely to have?

Which of the following statements is true of common stockholders?

Quinton is a wine connoisseur. Every month, he spends a substantial amount of his income to purchase wine from a boutique that sells a variety of imported wines. In this scenario, Quinton's expenditure on wines is an example of a(n):