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- 1. Multiple ChoiceSue went to State Farm Insurance Company to determine her retirement options. She chose a type of investment where money is exchanged for a series of equal payments over time. When she retires, her payments will include interest on the original sum plus income from investments. What type of investment is this?Mutual FundsStocksBondsAnnuities
- 2. Multiple ChoiceWhat is a financial institution that protects persons against the risk of financial loss?BankCredit UnionThriftInsurance Company
- 3. Multiple ChoiceAll lenders are pretty much the same, so if you need to borrow money you should get it from whichever one will lend it to you.TrueFalse
- 4. Multiple ChoiceThe science of the management of money and other assets; the management of money, banking,investments, and credit.AccountingFinanceCapitalFinancial Services
- 5. Multiple ChoiceThis is the central bank of the United States.Wall StreetBank of AmericaWells FargoFederal Reserve
- 6. Multiple ChoiceThis is an agency of the United States that promotes public confidence in the US financial system by insuring deposits in banks and thrift institutions for up to $250,000.Federal ReserveFBIInternal Revenue ServiceFederal Deposit Insurance Corporation
- 7. Multiple ChoiceThe declining value of money due to rising prices.InflationDeflationRiskPresent value
- 8. Multiple ChoiceA fee paid for the use of money over time. In other words, it’s the cost of borrowing money.RiskLate feeInterestBorrower's charge
- 9. Multiple Choice__________________________ are financial institutions formed by an organized group of people with a common bond such as the one that exists between teachers, government or industry employees, or even people residing in a particular geographical location.ThriftsPension fundsMutual fundsCredit unions
- 10. Multiple ChoiceA loan an investor makes to a government or corporation for a specified amount of time for the purpose of raising capital for the government or corporation. In return the investor receives the principal plus interest.StockBondMutual fundCapital
- 11. Multiple ChoiceThe financial resources that are used to make money, which can take the form of equity or debt.AssetInvestmentCapitalEquity
- 12. Multiple ChoiceDepository financial institutions that specialize in home mortgage loansStocksThriftsCapitalSavings & loans associations
- 13. Multiple ChoiceInterest earned on both the principal amount and any interest already earned.Interest ratesCompound interestSimple interestStocks
- 14. Multiple ChoiceA professional who provides financial planning and advice on financial mattersFinance managerFinancial analystFinancial advisorChief Financial Officer
- 15. Multiple ChoiceThe act of buying something or borrowing money with the promise to repay the lender at a future date.RiskCreditInvestmentWealth
- 16. Multiple ChoiceAnthony is in the process of starting his own plumbing business. He is worried about some of the risks that he faces in terms of owning a business, having employees, and working on people’s homes. What type of financial intermediary does he need?Insurance companyCommercial bankCredit unionPension fund
- 17. Multiple ChoiceIsabella is a businesswoman who is interested in convenience and having easy access to her money. She likes to check her account balances on her smartphone and would be happy to never step foot inside a financial institution. She prefers to have her credit card, checking account, and savings account all linked to the same account. Where should she go?Mutual fundCommercial bankInsurance companyPension fund
- 18. Multiple ChoiceChang-su is a senior in high school and his mother is a teacher. He is proud of his acceptance at a private college; however, he is worried about how he will pay for tuition and books. In addition to the scholarship that he received from the school, he will need to take out a $15,000 student loan. Where should he go?Commercial bankInsurance companyCredit unionPension fund
- 19. Multiple ChoiceWhich of the following is an alternative financial services provider?Credit unionCommercial bankInsurance companyPayday loan store
- 20. Multiple ChoiceThe financial services industry is critical to the economy's overall health becauseIt decreases individual wealthIt channels resources to its most unproductive usesIt does not promote wealthIt attracts the financial resources that promotes lending
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