(Solved)30 multiple choice questions pretty straight forward,tip will be


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30 multiple choice questions pretty straight forward,tip will be based off of grade . FINC321Spring2016.docx University of Maryland University College FINC 321 6980 Fundamentals of Building Wealth Section 6382 Final Examination Instructor: Dr. Emmanuel Anoruo Spring 2015 INSTRUCTIONS: 1. Answer all questions 2. Use only capital letters 3. Submit only the answer sheet 1. A surplus on your cash-flow statement indicates that you are a. using savings to pay current expenses. b. managing your financial resources successfully. c. borrowing money to pay current expenses. d. both using savings to pay current expenses and borrowing money to pay current expenses. 2. Rent and vehicle insurance payments are examples of a. short-term liabilities. b. variable expenses. c. fixed expenses. d. long-term liabilities. 3. Food, clothing, and entertainment are examples of a. short-term liabilities. b. variable expenses. c. fixed expenses. d. long-term liabilities. 4. Paul is a college student who has the following financial information. He would like your help in figuring his surplus for last year. Income from summer job Support from parents Scholarship Savings account balance Variable expenses Fixed expenses Current liabilities $5,000 $3,500 $1,200 $1,250 $3,500 $4,000 $800 What is Paul’s surplus? a. $2,650 1 b. $2,200 c. $1,250 d. $1,000 5. The Ronselli family has total assets of $460,000 and total liabilities of $186,000. Included in their total assets are monetary assets of $47,000 and investment assets of $253,000. What is the Ronsellis’ investment assets-to-total assets ratio? a. 26 percent b. 55 percent c. 65 percent d. 92 percent 6. Taxable income is determined by subtracting all but which one of the following from gross income. a. exemptions b. Adjustments c. exclusions d. Credits 7. Which of the following taxes is progressive? a. Federal income taxes b. State sales taxes c. Social Security taxes d. All of these 8. Which of the following is not defined as part of gross income? a. Gifts and inheritances b. Capital gains c. Scholarship income spent on room and board d. Illegal income 9. ____ cannot be deducted as an adjustment to income. a. The amount contributed to an individual retirement account (IRA) b. Job-related moving expenses c. Student loan interest for higher education d. State income taxes paid 10. Charge accounts are referred to as open-ended credit because they a. allow repeated borrowing without having to reapply for the credit each time. 2 b. don’t have to be paid off completely each month. c. make use of a plastic card. d. can be used to purchase merchandise or to borrow cash. 11. A personal line of credit acts very much like a. open-ended/revolving credit. b. closed-end credit. c. installment credit. d. single-payment credit.; 12. The outstanding balance owed on a debt is the a. APR. b. principal. c. finance charge. d. equity. 13. A borrower who has failed to make a payment of principal or interest when due or meet any other requirement of a credit agreement is said to be in a. Arrears b. Foreclosure c. Rescission d. Default 14. Credit interest rates that go up and down according to interest rates in the economy as a whole are referred to as a. teaser rates b. variable rates. c. penalty APRs. d. prime rates. 15. Credit card costs can include a. annual fees. b. interest. c. transaction fees. d. All of these. 16. Buying without fully considering priorities and alternatives is called a. impulse buying. b. unplanned purchasing. c. money saving. 3 d. planned buying. 17. A(n) ____ is a refund of part of the purchase price. a. rebate b. MSRP c. sticker price d. dealer holdback 18. The process of comparing products or services to find what you think is the best buy is called a. negotiating. b. preshopping research. c. comparison shopping. d. decision making. 19. A vehicle lease is essentially a. a rental of a vehicle. b. buying a vehicle on credit. c. always a bad deal. d. a way to get a rebate

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