1. (TCO 1) Jacob has moved into a home with a large acreage and is now finding that his smaller lawnmower is no longer functional. He needs to purchase a riding mower. How would you categorize Jacob’s goal? (Points : 4)

       Determining her current financial situation
       Developing her financial goals
       Identifying alternative courses of action
       Evaluating her alternatives
       Implementing her financial plan

       networking.
       vesting.
       a tax-deferred benefit.
       a tax-exempt benefit.
       break even.

8. (TCO 1) An example of _____ is a situation in which you would use a software program to help track your spending each week. (Points : 4)

       $357
       $870
       $513
       $508
       $151

       a penalty if money is withdrawn early.
       a lower rate of interest if redeemed within the first 5 years.
       a minimum required holding period.
       a lack of FDIC insurance.
       a higher rate of taxation than other alternative investments.

       looks nothing like typical debit cards.
       has decreased in popularity since the mid-1990s.
       works the same as a credit card.
       may be eroded by fees and eventually expire.
       is currently being used for very limited purposes.

       skip town
       declare personal bankruptcy
       borrow from a loan shark to make the payment
       let the borrower go to a collection agency
       contact your creditors and try to work out a modified payment plan with them

       When establishing an investment program, you should begin by monitoring your investments.
       When you are choosing an investment, you should examine only the interest rate risk factor associated with each investment.
       When establishing an investment program, you should examine the potential return offered by different investment alternatives.
       Leave the financial planning to the professionals.
       There is no need to monitor your investments after you have made your investment decision.

       dividends to common stock owners
       cash to buy shares of stock from shareholders
       cash to buy bonds from current bondholders
       interest to bond owners
       dividends to preferred stock owners

       Fundamental
       Technical
       Efficient market
       Chart
       Plot

28. (TCO 3) Lori Walker purchased a new car 9 months ago, and decides to take it in for servicing under the warranty. Lori is involved in which step of the purchasing process? (Points : 4)

       $3,405
       $2,625
       $2,500
       $3,050
       $3,175

       value used to calculate property taxes
       estimated current market value
       price you paid to purchase the home
       amount of money a buyer has offered to purchase the home
       cost remaining after the down payment

       $2,000
       $1,000
       $1,500
       $500
       $2,500

       building and other structures
       additional living expenses
       personal property
       personal liability
       specialized coverage

       junk bond fund
       intermediate corporate bond fund
       municipal bond fund
       short-term government bond
       world bond fund

       does not have to worry about capital gains tax.
       does not have to pay federal income tax.
       does not have to pay state income tax.
       can invest in a shopping center or large building by investing as little as $5,000.
       faces an investment that is very liquid.