Tuesday, March 24, 2020

Ashworth Semester Exam CO7V Personal finance

Which of the following items is not a liability?
The balance due on your credit card
The wages you give up to take a class
Your college loans
An IOU to your roommate

Which of the following would increase your liquid assets?
Putting more of your salary in a 401(k)
Buying a new car
Buying rental property
Making regular deposits to a savings account at your bank

Yogi Berra Jr. has agreed to play for the New York Mets for $4 million per year for the next 10 years. What table would you use to calculate the value of this contract in today's dollars?
Present value of a single amount
Present value of an annuity
Future value of a single amount
Future value of an annuity

Which of the following is a disadvantage of using credit?
Shopping convenience
Capacity to access credit in the future
Ease of returning merchandise
Slowing of progress toward financial goals

Which of the following costs associated with home ownership is hardest to budget?
Mortgage payments
Repairs
Insurance
Taxes

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?
Avoid risk
Reduce risk
Accept risk
Insure against risk

The amount of damage you will be required to cover if your car is involved in an accident that is your fault is your:
co-payment.
premium.
deductible.
fair share

A company's earnings are $3.00 per share, its dividend is $2.00 per share, and its stock price is $30.00 per share. Its PE ratio is:
33
10
15
1.5


Investing in which of the following funds will typically give you the least diversification?
Capital appreciation funds
Equity income funds
Sector funds
Growth funds



In determining the amount of money you will need for retirement, you should consider all of the following except:
the expected cost of living due to inflation.
inheritance from your children.
the number of years you will live while retired.
your personal needs and who else you will be supporting.





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