FIN 300 EXAM QUESTIONS WITH
ALL CORRECT ANSWERS
The lowest payment does not necessarily mean the best credit plan. If your car loan is a
long period of time, you may end up owing more than the car is worth, which is called -
Answer- negative equity
If a person deposited $750 a month for 5 years earning 8 percent, this would involve
what type of computation if you were trying to determine the value of the account at the
end of the 5 years? - Answer- future value of a series of deposits
If you put $2,520 in a savings account and make no further deposits, what type of
calculation would provide you with the value of the account in 26 years? - Answer-
future value of single amount
The monthly budget showed that a family planned to spend $440 for food during March
but only spent $380. This difference would be referred to as a: - Answer- budget
variance
Which of the following is the only online source authorized to provide you with a free
copy of your credit report annually? Which of the following is the only online source
authorized to provide you with a free copy of your credit report annually? - Answer-
www.annualcreditreport.com
Information about a personal bankruptcy may be reported in your credit file for -
Answer- 10 years
Nora bought a used car and was told that she needed a personal check with
guaranteed payment. She obtained a - Answer- Certified check
Wanda bought a certificate of deposit and automatically received a free bike. She
purchased a - Answer- Promotional CD
Which of the following ratios indicates that liquid assets are available to pay current
liabilities for a household? - Answer- Current ratio
The primary benefit of a home equity loan is - Answer- The deductibility of the loan
interest on federal taxes.
All of the following can reduce your taxes today except investing in - Answer- A Roth
IRA
, The question "What are your assets and net worth?" relates to - Answer- Capital
Gross income less Adjustments to Income equals - Answer- adjusted gross income
The saving component of financial planning focuses on long-term security and includes
- Answer- A regular savings plan for emergencies
The Equal Credit Opportunity Act (ECOA) prohibits a lender from discriminating based
on - Answer- Race, Nationality , age, and sex
Which of the following is an advantage of a car lease? - Answer- Monthly lease
payments are usually lower than monthly financing payments
The major sections of Form 1040 include all of the following except - Answer- all of
these are major sections (signature, tax credit, adjustments to income, filing status)
f I can invest a dollar today and earn interest on it, then it should be worth _________ in
the future. - Answer- more
Which of the following is NOT one of the three major credit bureaus? - Answer- Fico
Which of the following usually offers money mutual market funds? - Answer- an
investment company
A cash advance - Answer- Requires you to pay interest every day until you repay the
cash advance
How long should you keep your most current will? - Answer- permanently
Cathy needs a full range of financial services, including checking, savings, and lending.
To which of the following should she go? - Answer- A commercial bank
If you are denied credit, you can contact the credit bureau and ask for a copy of your
credit report. The bureau cannot charge a fee for this service as long as you ask to see
your files within of notification that your credit application has been denied. - Answer- 60
days
Which of the following is an example of a financial opportunity cost? - Answer- Forgoing
wages to attend school
An advantage of effective personal financial planning is: - Answer- increased control of
financial affairs
When calculating the debt-to-equity ratio, the following is NOT included: - Answer-
Mortgage balance
ALL CORRECT ANSWERS
The lowest payment does not necessarily mean the best credit plan. If your car loan is a
long period of time, you may end up owing more than the car is worth, which is called -
Answer- negative equity
If a person deposited $750 a month for 5 years earning 8 percent, this would involve
what type of computation if you were trying to determine the value of the account at the
end of the 5 years? - Answer- future value of a series of deposits
If you put $2,520 in a savings account and make no further deposits, what type of
calculation would provide you with the value of the account in 26 years? - Answer-
future value of single amount
The monthly budget showed that a family planned to spend $440 for food during March
but only spent $380. This difference would be referred to as a: - Answer- budget
variance
Which of the following is the only online source authorized to provide you with a free
copy of your credit report annually? Which of the following is the only online source
authorized to provide you with a free copy of your credit report annually? - Answer-
www.annualcreditreport.com
Information about a personal bankruptcy may be reported in your credit file for -
Answer- 10 years
Nora bought a used car and was told that she needed a personal check with
guaranteed payment. She obtained a - Answer- Certified check
Wanda bought a certificate of deposit and automatically received a free bike. She
purchased a - Answer- Promotional CD
Which of the following ratios indicates that liquid assets are available to pay current
liabilities for a household? - Answer- Current ratio
The primary benefit of a home equity loan is - Answer- The deductibility of the loan
interest on federal taxes.
All of the following can reduce your taxes today except investing in - Answer- A Roth
IRA
, The question "What are your assets and net worth?" relates to - Answer- Capital
Gross income less Adjustments to Income equals - Answer- adjusted gross income
The saving component of financial planning focuses on long-term security and includes
- Answer- A regular savings plan for emergencies
The Equal Credit Opportunity Act (ECOA) prohibits a lender from discriminating based
on - Answer- Race, Nationality , age, and sex
Which of the following is an advantage of a car lease? - Answer- Monthly lease
payments are usually lower than monthly financing payments
The major sections of Form 1040 include all of the following except - Answer- all of
these are major sections (signature, tax credit, adjustments to income, filing status)
f I can invest a dollar today and earn interest on it, then it should be worth _________ in
the future. - Answer- more
Which of the following is NOT one of the three major credit bureaus? - Answer- Fico
Which of the following usually offers money mutual market funds? - Answer- an
investment company
A cash advance - Answer- Requires you to pay interest every day until you repay the
cash advance
How long should you keep your most current will? - Answer- permanently
Cathy needs a full range of financial services, including checking, savings, and lending.
To which of the following should she go? - Answer- A commercial bank
If you are denied credit, you can contact the credit bureau and ask for a copy of your
credit report. The bureau cannot charge a fee for this service as long as you ask to see
your files within of notification that your credit application has been denied. - Answer- 60
days
Which of the following is an example of a financial opportunity cost? - Answer- Forgoing
wages to attend school
An advantage of effective personal financial planning is: - Answer- increased control of
financial affairs
When calculating the debt-to-equity ratio, the following is NOT included: - Answer-
Mortgage balance
