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BUSN 380 Final Exam Guide (New) Click Here to Buy the Tutorial For more course tutorials visit

The Final Exam consists of 45 multiple choice questions worth 4 points each and 6 short answer questions worth 10 points each.

Question 1.1 After a lengthy job search, Judy Smith has found a place of employment; however, it is demanding and she is required to work long hours during the week and even on weekends, leaving little time for outside interests. Her decision to work at this job is an example of (Points :

Question 2.2. (TCO 1) Marinda Smart is interested in purchasing new appliances for her kitchen that collectively will cost her approximately $5,000. She knows that she could obtain financing for her purchase, but recently heard rumors that there may be layoffs where she works and is concerned about her employment. What type of risk is Marinda concerned about? (Points : 4)

Question 3.3. (TCO 1) Which step in the financial planning process is demonstrated by a situation in which Royanne decides to stop traveling through Europe and return back to the States to seek a part-time job and take smaller, less costly trips? (Points : 4)

Question 4.4. (TCO 1) When retirement contributions made on your behalf where you work fully belong to you even if you leave the company, this is called the point of (Points : 4)

Question 5.5. (TCO 1) Tracey has been unemployed for almost a year. However, after extensive research, she has found that the industry in which she would like to work will begin to experience job growth in California. This is an example of _____ influencing jobs in the future. (Points : 4)

Question 6.6. (TCO 1) This month, Ken Grossman has cash inflows of $3,500 and cash outflows of $2,350, resulting in a (Points : 4)

Question 7.7. (TCO 1) Sherry O'Neal is interested in opening a savings account and her bank offers several types. Her main concern is that she wants to have the ability to withdraw her money whenever she wants. She has an interest in opening an account that is best categorized as (Points : 4)

Question 8.8. (TCO 1) An example of _____ is a situation in which you would use a software program to help track your spending each week. (Points : 4)

Question 9.9. (TCO 2) An example of _____ would involve a situation in which Judy Smith and Tom Smith each write their daughter a check for $12,500 for graduation, instead of giving her one $25,000 check, so they will not have to pay a gift tax. (Points : 4)

Question 10.10. (TCO 2) A _____ is an employer-sponsored program that allows a taxpayer to cover medical and child care costs. (Points : 4)

Question 11.11. (TCO 2) The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Joyce has $198,000 in an individual account and $404,000 in a joint account with her husband, Dan. How much of Joyce's money is not covered by FDIC insurance? (Points : 4)

Question 12.12. (TCO 2) The most liquid type of account would be a (Points : 4)

Question 13.13. (TCO 3) All of the following are examples of closed-end credit except a(n) (Points : 4)

Question 14.14. (TCO 3) If a bank is attempting to evaluate the trade-in value of a 2006 SUV when Anna McFarland is applying for a used car loan, the bank is examining which of the five Cs? (Points : 4)

Question 15.15. (TCO 3) An example of a credit bureau would be (Points : 4)

Question 16.16. (TCO 3) A _____ would require that Jessica writes a check for $125 in order to obtain a loan for $100. (Points : 4)

Question 17.17. (TCO 3) If Anthony Fontain makes a decision to accept a variable-rate loan instead of a fixed-rate loan, he is _____ with the lender and reducing the lender's risk. (Points : 4)

Question 18.18. (TCO 3) _____ is/are the primary reason(s) why consumers default on their debts. (Points : 4)

Question 19.19. (TCO 5) All of the following statements are true except which? (Points : 4)

Question 20.20. (TCO 5) If Chris is considering an investment in a pool that is managed by professional managers, most likely he is interested in investing in (Points : 4)

Question 21.21. (TCO 5) All of the following statements are false except (Points : 4)

Question 22.22. (TCO 5) _____ involves the analysis of charts and historical data in order to make stock purchasing decisions. (Points : 4)

Question 23.23. (TCO 5) A(n) _____ market is one in which previously issued financial securities are traded among investors. (Points : 4)

Question 24.24. (TCO 5) Last year, High-Tech Electronics earned $1.50 per share. If the current market value for a share of stock is $60, what is the firm's P/E ratio? (Points : 4)

Question 25.25. (TCO 5) Scott Turner has a bond with 10 years to maturity, a face value of $1,000, an 8% interest rate, and a market price of $800. What is the yield to maturity on this bond? (Points : 4)

Question 26.26. (TCO 5) An example of a junk bond is a(n) (Points : 4)

Question 27.27. (TCO 5) What is the current yield for a $1,000 corporate bond that pays 9% and has a current market value of $825? (Points : 4)

Question 28.28. (TCO 3) Lori Walker purchased a new car 9 months ago, and decides to take it in for servicing under the warranty. Lori is involved in which step of the purchasing process? (Points : 4)

Question 29.29. (TCO 1) If Bradley Smith gives a cashier a document at a point of purchase with the expectation of obtaining a discount, he is using a (Points : 4)

Question 30.30. (TCO 3) A credit purchase with 24 monthly payments of $80 and a down payment of $125 would have a total cost of (Points : 4)

Question 31.31. (TCO 3) The _____ is considered to be the assessed value of your home. (Points : 4)

Question 32.32. (TCO 4) Your home insurance policy has a $250 deductible. If hail causes $1,500 damage to your home, what amount of the claim would the insurance company pay? (Points : 4)

Question 33.33. (TCO 4) John Brown owns a home in Oakland, California and because of the risk of earthquakes, he decides to purchase _____ to cover potential losses. (Points : 4)

Question 34.34. (TCO 4) Martina has a policy that includes a $500 deductible and a coinsurance provision requiring her to pay 10% thereafter. Her medical bills total $5,500. What amount is she required to pay personally? (Points : 4)

Question 35.35. (TCO 4) _____ is a healthcare institution that directly contracts with specific medical care specialists in order to provide healthcare services in exchange for a fixed, prepaid monthly premium. (Points : 4)

Question 36.36. (TCO 4) If Mary Lou applies for a life insurance policy and lies about her age, a _____ provision will state that her benefits will be what her premium would have bought if she had been truthful about her age. (Points : 4) Question 37.37. (TCO 4) If Frank has a term life insurance policy that is _____, this means that he can obtain additional years of protection at the end of the initial term without the need for a medical examination. (Points : 4)

Question 38.38. (TCO 6) The Capitalist Mutual Fund's net asset value is $27.25. The fund has liabilities of $1.4 million and 1,600,000 shares have been issued. What is the value of the fund's portfolio? (Points : 4)

Question 39.39. (TCO 6) Tracey Patterson would need to purchase a(n) _____ if she desires federally tax-exempt income. (Points : 4)

Question 40.40. (TCO 6) A benefit associated with an investment in a real estate limited partnership is that the investor (Points : 4)

Question 41.41. (TCO 6) Judith recently inherited several pieces of diamond jewelry from her aunt. This jewelry is an example of (Points : 4) Question 42.42. (TCO 6) If Jeremiah's employer makes nontaxable contributions to a plan in his name and his salary is reduced by the same amount, Jeremiah has a (Points : 4)

Question 43.43. (TCO 6) Chuck owns a home worth $140,000, a car valued at $30,000, and miscellaneous assets worth $7,500. He owes $75,000 on the home and $12,000 on the car, and has no other debts. His retirement account, in which he is fully vested, contains $17,500 in mutual funds. He is insured with a $250,000 term life insurance policy. What is his net worth? (Points : 4)

Question 44.44. (TCO 7) The benefits of establishing a trust include the fact that (Points : 4)

Question 45.45. (TCO 7) If Barry has been named by Anderson to distribute his assets as outlined in his will and pay outstanding obligations, Barry will serve as a(n) (Points : 4)

1. (TCO 1) Suppose Debra Betts has presented you with the following information: She currently possesses a checking account with a balance of $850, a savings account with a balance of $3,000, a credit card balance of $300, jewelry worth $600, real estate valued at $75,000, and a mortgage on the real estate of $66,000. What is the total of Debra's assets and how could she increase her net worth? (Points : 10)

2. (TCO 2) What is the difference between a short-term capital gain and a long-term capital gain? (Points : 10)

3. (TCO 3) Carla Brown wants to know what price home she can afford. Her annual gross income is $45,000. She owes $1,050 per month on other debts and expects her property taxes and homeowners insurance to cost $250 per month. She knows she can get a 5.0%, 30-year mortgage, so her mortgage payment factor is 5.37. She expects to make a 20% down payment. What is Michelle's affordable home purchase price? Assume a lender will use a 38% monthly gross income guideline. Round your answer to the nearest $100. (Points : 10)

4. (TCO 3) Identify two or three sources of consumer credit and discuss the advantages and disadvantages of each type selected. (Points : 10) 5. (TCO 5) Select two or three investment alternatives and describe how the influential factors of safety, risk, income, growth, and liquidity affect each investment alternative. (Points : 10)

6. (TCO 7) What is a will? Identify the primary types of wills. What are the ramifications of not having a will? (Points : 10)

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