GEB 3006 Financial Literacy Exam
questions n answers passed
Which of the following is NOT an example of an economic recovery "curve"? - correct answer
✔✔ N shaped.
Which type of economic recovery curve would be the WORST in terms of the impact on the
economy? - correct answer ✔✔ L shaped.
Congress passing a trillion dollar stimulus package to combat the COVID 19 virus would be an
example of ______ policy. - correct answer ✔✔ Fiscal.
The Federal Reserve actions to decrease the federal funds target rate and to provide liquidity to
the credit markets during the COVID 19 crisis is an example of ______ policy. - correct answer
✔✔ Monetary.
The COVID 19 economic crisis DIFFERS from the global financial crisis of 2008 because: - correct
answer ✔✔ It was caused by actions taken by government to shut down the economy to
protect public health.
Actions taken by the Congress and Federal Reserve to combat the COVID 19 crisis were
accomplished: - correct answer ✔✔ Much more quickly than compared to the Global Financial
Crisis.
Which of the following is correct with respect to the most severe economic crisis (listed first) to
the least severe economic crisis (listed last)? - correct answer ✔✔ Great Depression of 1930s
worst, followed by Covid 19 Crisis of 2020, followed by Global Financial Crisis of 2008.
,Dr. Sean Snaith is predicting: - correct answer ✔✔ A recovery that is much faster than the
recovery we saw with the Global Financial Crisis of 2008.
During the Global Financial Crisis of 2008, the State of Florida's recovery was: - correct answer
✔✔ Much slower than the national average.
The increase in unemployment rates caused by the COVID 19 crisis was: - correct answer ✔✔
Much faster than we saw in the Global Financial Crisis of 2008.
See the UCF Florida Metro Forecast PDF file in the modules.
The unemployment rate in Florida is expected to rise over _____ by the fourth quarter of 2020
and should fall back to a normal 3.9% by ____. - correct answer ✔✔ 10%, 2022.
See the UCF Florida Metro Forecast PDF file in the modules.
Florida payroll job losses will approximate __________ in Q1 and Q4 of 2020. - correct answer
✔✔ 767,000.
See the UCF Florida Metro Forecast PDF file in the modules.
The Florida sector that is expected to have the largest job losses in 2020 is ____________. -
correct answer ✔✔ Professional and business services.
See the UCF Florida Metro Forecast PDF file in the modules.
With respect to the Orlando, Kissimmee, and Sanford MSA, which employer is the SECOND
largest employer in the region? - correct answer ✔✔ Advent Health.
If it cost $50,000 to attend a public university today, what would it cost to attend that same
university 18 years from now assuming that the cost escalated at a rate of 6% per year (annual
compounding)? - correct answer ✔✔ $142,716.96
, What is the present value of $6,700 received 14 years from now using a 11% interest or
discount rate, with interest compounded quarterly? - correct answer ✔✔ $1,466.53
What is the future value of $10.00 (ten dollars) deposited at the end of each week for 4 years
earning 6% interest? - correct answer ✔✔ $2,349.30
What is the present value of $125 deposited at the end of each month for 20 years earning 4%
interest? - correct answer ✔✔ $20,627.73
What is the monthly house payment on a 30 year $150,000 mortgage at 5.25% annual interest?
- correct answer ✔✔ $828.31
If you have $10,000 today, and save $2,200 per month at the end of the month while earning an
annual interest rate of 5%, how many months would it take to accumulate $250,000? - correct
answer ✔✔ 89
Assume the following information for a home mortgage:
Original loan amount = $250,000 Annual interest rate = 7.35% Term of loan = 10 years
For year two, how much interest and principal was paid, and what is the balance due at the end
of year two? - correct answer ✔✔ $18,922.69 of principal; $16,453.43 of interest; balance due
$213,491.61
What is the Net Present Value (NPV) and internal rate of return (IRR) of spending $10,000 today
on graduate school when you earn $40,000/year today and will earn $42,000/year for the next
35 years after grad school. Assuming you could invest this money elsewhere and earn 10%? -
correct answer ✔✔ NPV= $9,288.32; IRR= 20%
What is the effective interest rate assuming the following:
Annual rate = 11.0%
Pmt/yr = 52 - correct answer ✔✔ 11.61%
questions n answers passed
Which of the following is NOT an example of an economic recovery "curve"? - correct answer
✔✔ N shaped.
Which type of economic recovery curve would be the WORST in terms of the impact on the
economy? - correct answer ✔✔ L shaped.
Congress passing a trillion dollar stimulus package to combat the COVID 19 virus would be an
example of ______ policy. - correct answer ✔✔ Fiscal.
The Federal Reserve actions to decrease the federal funds target rate and to provide liquidity to
the credit markets during the COVID 19 crisis is an example of ______ policy. - correct answer
✔✔ Monetary.
The COVID 19 economic crisis DIFFERS from the global financial crisis of 2008 because: - correct
answer ✔✔ It was caused by actions taken by government to shut down the economy to
protect public health.
Actions taken by the Congress and Federal Reserve to combat the COVID 19 crisis were
accomplished: - correct answer ✔✔ Much more quickly than compared to the Global Financial
Crisis.
Which of the following is correct with respect to the most severe economic crisis (listed first) to
the least severe economic crisis (listed last)? - correct answer ✔✔ Great Depression of 1930s
worst, followed by Covid 19 Crisis of 2020, followed by Global Financial Crisis of 2008.
,Dr. Sean Snaith is predicting: - correct answer ✔✔ A recovery that is much faster than the
recovery we saw with the Global Financial Crisis of 2008.
During the Global Financial Crisis of 2008, the State of Florida's recovery was: - correct answer
✔✔ Much slower than the national average.
The increase in unemployment rates caused by the COVID 19 crisis was: - correct answer ✔✔
Much faster than we saw in the Global Financial Crisis of 2008.
See the UCF Florida Metro Forecast PDF file in the modules.
The unemployment rate in Florida is expected to rise over _____ by the fourth quarter of 2020
and should fall back to a normal 3.9% by ____. - correct answer ✔✔ 10%, 2022.
See the UCF Florida Metro Forecast PDF file in the modules.
Florida payroll job losses will approximate __________ in Q1 and Q4 of 2020. - correct answer
✔✔ 767,000.
See the UCF Florida Metro Forecast PDF file in the modules.
The Florida sector that is expected to have the largest job losses in 2020 is ____________. -
correct answer ✔✔ Professional and business services.
See the UCF Florida Metro Forecast PDF file in the modules.
With respect to the Orlando, Kissimmee, and Sanford MSA, which employer is the SECOND
largest employer in the region? - correct answer ✔✔ Advent Health.
If it cost $50,000 to attend a public university today, what would it cost to attend that same
university 18 years from now assuming that the cost escalated at a rate of 6% per year (annual
compounding)? - correct answer ✔✔ $142,716.96
, What is the present value of $6,700 received 14 years from now using a 11% interest or
discount rate, with interest compounded quarterly? - correct answer ✔✔ $1,466.53
What is the future value of $10.00 (ten dollars) deposited at the end of each week for 4 years
earning 6% interest? - correct answer ✔✔ $2,349.30
What is the present value of $125 deposited at the end of each month for 20 years earning 4%
interest? - correct answer ✔✔ $20,627.73
What is the monthly house payment on a 30 year $150,000 mortgage at 5.25% annual interest?
- correct answer ✔✔ $828.31
If you have $10,000 today, and save $2,200 per month at the end of the month while earning an
annual interest rate of 5%, how many months would it take to accumulate $250,000? - correct
answer ✔✔ 89
Assume the following information for a home mortgage:
Original loan amount = $250,000 Annual interest rate = 7.35% Term of loan = 10 years
For year two, how much interest and principal was paid, and what is the balance due at the end
of year two? - correct answer ✔✔ $18,922.69 of principal; $16,453.43 of interest; balance due
$213,491.61
What is the Net Present Value (NPV) and internal rate of return (IRR) of spending $10,000 today
on graduate school when you earn $40,000/year today and will earn $42,000/year for the next
35 years after grad school. Assuming you could invest this money elsewhere and earn 10%? -
correct answer ✔✔ NPV= $9,288.32; IRR= 20%
What is the effective interest rate assuming the following:
Annual rate = 11.0%
Pmt/yr = 52 - correct answer ✔✔ 11.61%
