Exam 18: Appendix: Personal Finance

Crosmane Growth and Income, a financial institution, sells shares to investors. It accumulates the money received from the sold shares to invest in financial instruments such as corporate stocks, corporate bonds, government securities, and other assets. In this scenario, Crosmane Growth and Income represents a _____.

In the context of investing, individual investors can directly participate in securities markets.

One widely accepted financial principle is that a tradeoff exists between:

Rhonda has been working for 42 years and has reached retirement age. She is eligible for the 401(k) employee-contribution retirement plan. Based on the given information, Rhonda most likely works in:

Jordan paid for his purchases by using a bank card that allowed him to buy goods without having to make immediate payment. He, however, failed to clear the balance on time and was charged with a late fee. In this scenario, Jordan used a _____.

Which of the following statements is true of government securities?

Derrick, a finance graduate, has joined an accounting firm. The firm opens a bank account for him in which his salary gets automatically deposited. He receives a modest but consistent amount of interest on the deposited amount. He does not use the money from the account for his daily expenses but keeps it aside to cover major future expenses. In the context of this scenario, which of the following accounts has the firm opened for Derrick?

__________is a detailed forecast of your expected cash inflows and cash outflows to determine your net inflow or outflow for a given period of time.

Which of the following is a difference between preferred stock and common stock?

The Credit Card Accountability, Responsibility and Disclosure Act of 2009 allows credit card issuers to raise interest rates when a borrower is more than 45 days late in making required payments.

Larkan & Tokodo is a financial institution that sells shares to investors. The funds resulting from the investments are pooled and then invested in large corporate stocks, corporate bonds, government securities, or other assets. Jeremy, a capitalist, invests in Larkan & Tokodo. In this case, Jeremy has invested in a _____.

Identify a true statement about discount brokers.

Which of the following is a condition included in a credit card agreement?

Investors acquire many of their financial assets, including shares of common and preferred stocks, corporate bonds, and certain other financial assets (such as ETFs), by purchasing them in derivatives markets.

Frieda works at Zurisco Corp., a private company. She is eligible for the employee-contribution retirement plan. This plan is implemented through a payroll-deduction process. In this case, which of the following plans is offered to Frieda?

In the context of investing in your career, securing an internship during your college years:

Charles, who is working for Impulsive Motors for the last 34 years, wants to take voluntary retirement from the company. However, he does not want to leave without receiving the full benefits of the company's retirement plan and therefore stalls his retirement for another year. It is stated in the company policies that a person will only receive all the retirement benefits if he or she has worked in the company for at least 35 years. In this case, the period of 35 years is the _____.

One advantage of mutual funds is that they do not charge fees to cover the cost of managing the fund.

Genelia holds shares in a motorcycle manufacturing company. Genelia gets a stated amount of dividend from the company only if the board of directors declares it. In this case, Genelia is a(n) _____.

_____ refers to a process by which you earn interest not only on the money you directly invest but also on the interest you've earned in previous years.