Exam 18: Appendix: Personal Finance

In 2010, the _____ issued a ruling that makes it more difficult for profit-seeking firms to offer unpaid or low-wage internships.

Lucy has been constantly overstepping the credit limit on her credit card for the past five months. In this case, Lucy's financial advisor will most likely advise her to:

Sarah uses a card issued by Northend Bank for all her purchases. Her transactions are cashless, and the purchase amount is immediately withdrawn from her bank account. In this case, Sarah uses a _____.

Taking a pay cut from your temporary job to get experience in your career field most often lowers your chances of landing a good job.

To supplement his income, Billy has invested in a financial instrument. Each year, he receives an interest payment on his investment. He will also receive an amount known as the principal on the maturity of the investment. Based on the given information, Billy has most likely invested in a(n) _____.

Which of the following is a result of competition among brokerage firms?

Drew is a common stockholder in a corporation. She paid $7,600 to purchase the stock of the company. However, the price of the stock goes down by $300 in the market soon after she makes the purchase. In this case, Drew will experience _____.

Instead of using cash, Dorothy uses a bank card to pay for most of her purchases. She likes to remain debt-free, so she uses a card in which the purchase amount is immediately deducted from her bank account. In this case, Dorothy is using a _____.

After working for 52 years as an accountant in a government agency in the state of Virginia, Angela retires from her job. On retirement, she receives a sum of $63,000, which had been accumulated over the entire period of her service. In this case, the employee-contribution retirement plan that Angela benefits from is the _____.

Jose's mother, who is 83 years old, has been hospitalized for almost four months because of deteriorating health conditions. Thus, each month, a major portion of Jose's income is spend on paying the hospital and medical bills and expenses incurred during diagnostic tests. In this scenario, Jose's medical expenses are an example of:

Which of the following statements is true of internships?

Nancy holds common stock in Suiznon Inc., an electrical goods manufacturing company. Although Nancy paid only $4,300 for the stock at the time of its purchase, the price of the stock goes up by $400 in the market after six months. In this case, Nancy will earn _____.

One technique for establishing a sizable savings balance is to:

Pablo has purchased several items from a gadget store. As the storekeeper bills the items, Pablo realizes that he does not have enough money in his bank account to make the payment. In these circumstances, Pablo can use his _____, which would allow him to make the purchase now and clear the balance later.

Jayden opened a savings account in a bank, and the bank issued him a card that can be used for various transactions. As Jaden does not prefer carrying cash all the time, he mostly uses the card to pay for all his purchases. His transactions are thus cashless, and the purchase amount is immediately deducted from his bank account. In this case, Jayden is using a _____.

__________sell shares to investors and pool the resulting funds to invest in financial instruments such as corporate stocks, corporate bonds, or other assets.

_____ is a distribution of profits paid out to stockholders by a corporation.

In a credit card agreement,__________is the interest expense charged on a credit card.

Emma runs a salon but does not make much profit from her business. She likes to go on holidays frequently and spends most of her income on vacations. Emma knows that she needs to cut down on her expenses or it would be difficult to bear the daily expenses in the future. In the context of Emma's budget, her expenditures on vacations can be referred to as _____.

Dexter invests in Adderson & Lipton Co., a local bank in Arizona. He makes an investment that will reach maturity after a fixed term of two years. Dexter will regularly receive an interest on his investment, and this interest will be substantially higher than the interest he receives on the savings account he has in the same bank. In the context of financial securities, Dexter has invested in _____.