Finance 101 exam 2
- ANS-using the income multiplier estimation technique, how lots life coverage could you need if
your modern-day earnings is $41500
a- $228250
b- $415000
c- $830000
d- $456500
a - ANS-all the following statements regarding federal student loans are actual, except:
a- private pupil loans commonly have lower hobbies prices in comparison to federal student
loans
b- there may be no credit record/ score check when applying for federal scholar loans
c- Those with federal scholar loans who work inside the public region and feature paid their bills
on time for ten years are eligible for mortgage forgiveness programs. D- federal pupil loans
provide more bendy compensation alternatives in comparison to private pupil loans
ANS-Aman is a pupil and had a financial emergency. He asked the financial useful resource
workplace at his faculty about a sponsored pupil loan. The faculty enables these loans and
determined that he qualifies for a $170 mortgage, which he can pay off over the next year whilst
he's a student. How plenty interest will he pay on this mortgage? A- $zero due to the fact hobby
on backed loans does no longer accrue until aman stops attending faculty
b- $8.50 due to the five% hobby price c- $four.25 because the man or woman has been paying
lower back the loan. D: None of the alternatives are proper. A bank line of credit has the
subsequent benefits over an installment loan: a- If the borrowed finances are repaid, then the
credit score line continues to be available for future use while not having to use for another
mortgage
b- it is usually an unsecured mortgage
c- the interest price is aggressive with other low-fee kinds of credit
d-all of the alternatives are accurate
a - ANS-bart has been a a success monetary advisor for more than 10 years. Throughout that
point, he has generated returns which have by no means been much less than 5% yearly. He
does not put it on the market however that not stopped buyers from openings new accounts
along with his organization. It turns out that bart has been taking the deposits of recent
investors, keeping a portion for himself and seined the rest to in advance investors. Bart is going
for walks a:
a- ponzi scheme
b- identification theft fraud
c- telemarketing scheme
d- pyramid scheme
a ANS: Which kind of order could you use as an investor to guarantee buying a inventory at a
certain charge or better? A- a restriction order
b- a buy forestall order
, c- a sell limit order
d- a market order
a - ANS-In what ways are 401k plans, 403b plans and 457 plans similar
a) They all provide personnel tax-unfastened financial savings opportunities for retirement. B-
they are each primary funded by means of agency contributions
c- they may be all considered pension plans
d - they're the equal, the handiest distinction is the sort of business enterprise that could
sponsor them. A ANS-Laura works with a commissioned-based financial planner. The planner
recommends that Laura make investments $12,000 in a mutual fund that takes a five% fee.
How much will the advisor be paid if Laura invests $12,000? A- $600
b- $540
c- $60
d- $6000
a - ANS-maribelle is looking to buy a car. She is considering all of her alternatives. She is a
college student running 30 hours in keeping with week. She has been riding the bus to work and
faculty, however it requires 2 hours per day to transit time to get to work (approximately 25 miles
spherical trio) if she has her personal vehicle, she ought to cut this time right down to 40 mins in
step with day. Based on this records, which automobile choice will be the nice for Maribelle?
A- inexpensive compact car
b- an electric car
c- compact luxurious automobile
d- tremendous pickup truck
a - ANS-Roger is presently age sixty eight , he's growing a retirement income plan. As such, he
wishes to estimate his destiny required distribution for his retirement plans. Assist Roger with
the aid of telling him whilst he need to start taking distributions from his Roth IRA
a- he never desires to take a distribution
b) He can wait until he turns 70 to begin receiving Social Security blessings. C-he need to start
minimum distributions when he turns age 70 half
d- he have to already be taking distributions due to the fact he is older than age fifty nine half of
a - ANS-the most quantity that may be borrower the use of a credit card is knows as
a- credit score restrict
b- balance and penalty quantity
c- the annual percentage price
d- minimal payment percent
a - ANS-volatility refers to
a- how wildly returns range over time
b - the volume to which inflation reduces purchasing strength c- the most predicted loss
someones can assume over the years
d- how liquid an investment becomes over the years
a - ANS-which of the following is real regarding brokerage accounts
I. Full-carrier brokerage corporations provided traders recommendation. II. Brokerage bills are
prefunded preparations between them
III. Buyers who want to very own shares and bonds achieve this
IV. A self directed brokerage account is appropriate
- ANS-using the income multiplier estimation technique, how lots life coverage could you need if
your modern-day earnings is $41500
a- $228250
b- $415000
c- $830000
d- $456500
a - ANS-all the following statements regarding federal student loans are actual, except:
a- private pupil loans commonly have lower hobbies prices in comparison to federal student
loans
b- there may be no credit record/ score check when applying for federal scholar loans
c- Those with federal scholar loans who work inside the public region and feature paid their bills
on time for ten years are eligible for mortgage forgiveness programs. D- federal pupil loans
provide more bendy compensation alternatives in comparison to private pupil loans
ANS-Aman is a pupil and had a financial emergency. He asked the financial useful resource
workplace at his faculty about a sponsored pupil loan. The faculty enables these loans and
determined that he qualifies for a $170 mortgage, which he can pay off over the next year whilst
he's a student. How plenty interest will he pay on this mortgage? A- $zero due to the fact hobby
on backed loans does no longer accrue until aman stops attending faculty
b- $8.50 due to the five% hobby price c- $four.25 because the man or woman has been paying
lower back the loan. D: None of the alternatives are proper. A bank line of credit has the
subsequent benefits over an installment loan: a- If the borrowed finances are repaid, then the
credit score line continues to be available for future use while not having to use for another
mortgage
b- it is usually an unsecured mortgage
c- the interest price is aggressive with other low-fee kinds of credit
d-all of the alternatives are accurate
a - ANS-bart has been a a success monetary advisor for more than 10 years. Throughout that
point, he has generated returns which have by no means been much less than 5% yearly. He
does not put it on the market however that not stopped buyers from openings new accounts
along with his organization. It turns out that bart has been taking the deposits of recent
investors, keeping a portion for himself and seined the rest to in advance investors. Bart is going
for walks a:
a- ponzi scheme
b- identification theft fraud
c- telemarketing scheme
d- pyramid scheme
a ANS: Which kind of order could you use as an investor to guarantee buying a inventory at a
certain charge or better? A- a restriction order
b- a buy forestall order
, c- a sell limit order
d- a market order
a - ANS-In what ways are 401k plans, 403b plans and 457 plans similar
a) They all provide personnel tax-unfastened financial savings opportunities for retirement. B-
they are each primary funded by means of agency contributions
c- they may be all considered pension plans
d - they're the equal, the handiest distinction is the sort of business enterprise that could
sponsor them. A ANS-Laura works with a commissioned-based financial planner. The planner
recommends that Laura make investments $12,000 in a mutual fund that takes a five% fee.
How much will the advisor be paid if Laura invests $12,000? A- $600
b- $540
c- $60
d- $6000
a - ANS-maribelle is looking to buy a car. She is considering all of her alternatives. She is a
college student running 30 hours in keeping with week. She has been riding the bus to work and
faculty, however it requires 2 hours per day to transit time to get to work (approximately 25 miles
spherical trio) if she has her personal vehicle, she ought to cut this time right down to 40 mins in
step with day. Based on this records, which automobile choice will be the nice for Maribelle?
A- inexpensive compact car
b- an electric car
c- compact luxurious automobile
d- tremendous pickup truck
a - ANS-Roger is presently age sixty eight , he's growing a retirement income plan. As such, he
wishes to estimate his destiny required distribution for his retirement plans. Assist Roger with
the aid of telling him whilst he need to start taking distributions from his Roth IRA
a- he never desires to take a distribution
b) He can wait until he turns 70 to begin receiving Social Security blessings. C-he need to start
minimum distributions when he turns age 70 half
d- he have to already be taking distributions due to the fact he is older than age fifty nine half of
a - ANS-the most quantity that may be borrower the use of a credit card is knows as
a- credit score restrict
b- balance and penalty quantity
c- the annual percentage price
d- minimal payment percent
a - ANS-volatility refers to
a- how wildly returns range over time
b - the volume to which inflation reduces purchasing strength c- the most predicted loss
someones can assume over the years
d- how liquid an investment becomes over the years
a - ANS-which of the following is real regarding brokerage accounts
I. Full-carrier brokerage corporations provided traders recommendation. II. Brokerage bills are
prefunded preparations between them
III. Buyers who want to very own shares and bonds achieve this
IV. A self directed brokerage account is appropriate
