BUSI 101 Connect Assignment 8 Quiz solutions complete answers

BUSI 101 Connect Assignment 8 Quiz solutions complete answers 

 

A debit card serves the same function as

 

The technical name for a savings account is a

 

While searching for the best interest rate on a certificate of deposit, Kyle noted that two online banks had better rates than traditional banks that had physical presence in his town. A logical reason why these banks were offering higher interest for depositors is

 

If the government or its representative agency were to take money out of the economy, which of the following might occur?

 

Funds in savings and loan institutions are protected by

 

In order to accumulate capital, young adults are likely to have to

 

Which of the following deductible levels would result in the lowest premium for automobile insurance?

 

Recent college graduates, Jason and Elizabeth, are newlyweds. Although they acquired a significant amount of debt during college, both recently got good-paying jobs and appear to have promising careers. Given their situation, down the road Jason and Elizabeth

 

About _______ of all U.S. households own stock in corporations.

 

A Keogh retirement plan would be used by a(n)

 

Today, many people have found that bartering?

 

Which of the following would NOT be included in a list of characteristics of money?

 

In referring to the money supply, which of the following is money that can be accessed quickly and easily, and includes coins and paper money as well as checks?

 

If the Fed were to increase the reserve requirement, which of the following would occur?

 

When the Fed buys and sells U.S. government bonds in an effort to regulate the money supply, it is engaged in?

 

If the economy of a nation such as Greece is faltering, the value of its associated currency, the euro, is likely to?

 

The open-market committee of the Federal Reserve announced that it plans to sell more government bonds to the public. This action will likely?

 

Too much money chasing too few goods is characterized by the term?

 

An increase in the discount rate would have the effect of?

 

All federally chartered banks are required to join the Federal Reserve System, as mandated by the?

 

The bank failures of 1907 and the resulting cash shortage problems led to the creation of?

 

The bank failures that were occurring in 1930s due to the effects of the Great Depression led to the creation of?

 

Competition between banks and nonbanks, such as insurance companies and pension funds, has?

 

Which of the following organizations would be considered a nonbank institution?

 

The goal of the commercial bank is to?

 

Most commercial banks offer their depositors protection. At this time, bank deposits are insured by the FDIC (Federal Deposit Insurance Corporation) up to?

 

One of the newest electronic conveniences is the __________________, which can serve as a credit card, a debt card, phone card, driver's license, and more

 

A ________________ is a way of conducting business in global markets that promises a bank will pay some specified amount at a particular time, with no specific conditions imposed

 

The _____________ focuses on economic development throughout the world, with emphasis on emerging economies

 

Cooperative monetary policies designed to stabilize currency exchanges among 188 countries are coordinated through which of the following organizations?

 

Financial planning begins with:

 

Throughout history an investment in ________ has yielded an excellent return, regardless of the state of the economy or political changes.

 

On average, a person with a college education earns _________ over the course of his or her career.

 

Approximately what percent of the population is successful in saving enough money for retirement to live comfortably?

 

The only way to accumulate enough money to do all of the things you want to do late in life is to:

 

Which of the following would be included as an asset in the preparation of a personal balance sheet?

 

In preparing an income statement for yourself, the wages from your job would be shown as:

 

When you prepare your personal balance sheet, remember that your ________ is equal to your total assets minus any liabilities you have.

 

The first step you would take to get control of your personal finances is to:

 

Personal financial planners often encourage their clients to write down every single penny they spend each day. The main purpose of this is to:

 

A(n) _______ is a personal financial plan that allows you to take control of future spending.

 

Budgets are:

 

Preparing and living with a personal budget is:

 

A financial planner would encourage you to borrow money:

 

Many financial experts advise that you set up a contingency fund equal to about ________ of your earnings and keep these funds in highly liquid accounts.

 

Once you have set up a budget and handled your ordinary expenses, the first thing to do with any extra money you have is to:

 

Which of the following accounting statements would assist an individual in taking inventory of personal assets and liabilities?

 

Young married couples that find themselves running out of money at the end of the month, might be well advised to:

 

The best way to save money is to:

 

Bob's credit card charges him 14% interest on his unpaid balance. His bank is offering him 5% interest on a savings account. The first thing Bob should do with any extra money he may have is to:

 

Luke and Beth were recently married soon after graduating from college. Although they incurred a significant amount of debt to finance their education, both recently got good paying jobs and appear to have promising careers. Given their situation, down the road Luke and Beth:

 

Ima Safer, who recently graduated from college and got a full time job, has prepared her first personal budget and found a pleasant surprise. After taking into account her expected monthly income and all of her ordinary expenses, including the monthly payment on her credit card, she should have some money left over. If Ima is like most young people who are just starting out, the best thing for her to do with the extra money would be to:

 

Romeo and Juliet are experiencing marriage difficulties regarding money. One technique to help them control and forecast their future financial situation, as well as allow them to achieve their financial goals, would be to prepare a(n):

 

Lucy has prepared her personal balance sheet and found that her total assets are $54,000 and her total liabilities (largely college loans) are $48,000. This indicates that Lucy's:

 

John is considering starting his degree in business this semester at State University. John will likely find that:

 

The path to success in a capitalist system is to:

 

In order to accumulate capital, young adults are likely to have to:

 

The key to generating enough capital for investment for many individuals is to:

 

Investing in a home is generally considered a:

 

Which of the following is a benefit of buying a home rather than renting?

 

Buying a _______ is often an attractive strategy for young couples, since they can live in one unit and rent the other half to supplement their income, while taking tax deductions on interest and real estate taxes.

 

The goal of accumulating capital is to allow an individual to:

 

Real estate people agree that the key to getting the optimum return on the purchase of a home is:

 

Over the long-run, investing in __________ has proven to be a good strategy for obtaining a high rate of return.

 

About _______ of all U.S. households own stock in corporations.

 

According to contrarians, the big decline in the stock market during the early 2000s was:

 

Real estate taxes and mortgage interest payments are both:

 

The total cost of purchasing a stereo or television with cash is ________ the cost when using credit cards to finance the same assets.

 

A benefit of using credit cards is that they:

 

When purchasing with a credit card, it's important to remember that ________ if you do not pay the balance in full within a stated time period.

 

One disadvantage of having credit cards for personal use is that:

 

Which of the following is a benefit unique to buying a duplex, as opposed to the purchase of a single-family home?

 

The factor likely to have the greatest impact on how fast the value of a home appreciates over time is the:

 

Mortgage interest payments and property taxes are:

 

The greatest return over a period of several years is likely to be earned by investing in a:

 

For a young person, one of the worst places to invest money for the long-term is:

 

From a financial viewpoint, it is best to buy a:

 

Which of the following is true of credit cards?

 

Slobo is an immigrant to the United States from a formerly communist country. He is searching for advice to help him succeed in a capitalist system. He would be well advised to:

 

Bonnie and Clyde are newly married college graduates. Both have jobs with bright futures. One strategy that they could use to accumulate capital for investment purposes, would be to:

 

Which of the following is an advantage of home ownership?

 

During her sophomore year in college Melody received a letter indicating she was eligible for a credit card along with a free gift from Metro State Bank. Melody was really excited until she remembered that any cash she has usually "burns a hole" in her pocket. Melody would likely not be successful with a credit card because:

 

Given a 25% tax bracket, the after-tax cost of a house mortgage interest payment of $1,000 would be:

 

Joseph and Mack are good friends who have similar jobs that pay them well. Both have established budgets that allow them to invest several hundred dollars each month. Mack has a strategy of putting most of his money in bank CDs and a savings account. Joseph has opted for a strategy of investing in the stock market. According to the evidence of the past 50 years, it is likely that over the long-run:

 

Petulia has been following the stock market, and has noticed that it has generally been declining for the last several weeks. Many of her friends have sold stock, but Petulia looks at this situation as a good opportunity to buy. Petulia's views are consistent with the ___________ approach to investing in the stock market.

 

Hannah is excited about getting her first credit card. However, she should be aware of the fact that:

 

Leonardo is in the habit of using his credit card for expenditures made on business trips. The most likely reason he does this is to:

 

Which of the following is the best advice about the use of credit cards?

 

________ life insurance offers pure insurance protection for a given period of time.

 

One disadvantage of term life insurance is that:

 

Which of the following is a new form of term insurance that guarantees fixed premiums for the life of the policy?

 

According to Newsweek magazine, a young couple with a new baby should have life insurance coverage equal to:

 

_________ is a form of life insurance that provides both a savings plan and pure insurance coverage.

 

Which of the following is a form of whole life insurance that provides a death benefit that varies with the performance of the investments of the insurance company?

 

A contract that calls for regular payments to an individual for life or for a fixed period of time is called a(n):

 

Your chances of becoming disabled at an early age are ________ than your chance of dying from an accident.

 

Purchasing ________ insurance is a relatively low cost way of protecting yourself from lost income due to an accident or prolonged illness.

 

________ insurance provides protection from the cost of medical care for illnesses and injuries.

 

________ insurance provides protection from losses of furniture, appliances, and clothes.

 

A homeowner's insurance policy that includes a provision for __________ would provide the homeowner with enough cash to replace the items lost.

 

One strategy to lower the cost of automobile insurance is to purchase a policy with a:

 

A(n) ________ can be added to a homeowner's insurance policy that provides for coverage at a reasonable cost for items that the policy otherwise would not cover.

 

Many insurance providers offer __________ policies that give a discount to families who buy several types of insurance coverage from them.

 

Stan and Heidi are married and both have careers in business. If one of the two were to die, there would be a sudden drop in income. To provide protection from this risk the couple should purchase:

 

A comparison of variable life insurance to a standard whole life plan would reveal that:

 

A common purpose of a rider added to a homeowner's policy is to:

 

Which of the following deductible levels would result in the lowest premium for automobile insurance?

 

Hernando and Margarita have decided to take out an umbrella policy from an insurance company. The main reason they would probably want to do this would be to:

 

Hillary and Bill are married and have a young child. Both work, but Hillary earns a higher salary than Bill. Insurance experts suggest that:

 

Although he has a good health insurance policy, Ken is concerned that a serious accident or lengthy illness would still be devastating to his family because of the lost income and other expenses not covered by his policy. Ken would probably be interested in obtaining:

 

Annette and Ron just got married. They received some very expensive wedding gifts including some beautiful silverware and jewelry. Their homeowner's policy:

 

A variable life insurance policy is considered riskier than a traditional whole life policy because it:

 

The Social Security program was established in:

 

The number of workers paying into Social Security for each retiree receiving Social Security benefits is:

 

In the future, the Social Security system is likely to:

 

Trends in the number of workers contributing to the Social Security system and the number of workers drawing benefits from the system suggest that future generations will:

 

The tax-deferred investment plan that allows employees to save part of their income for retirement is called a(n):

 

The earnings on a traditional IRA are:

 

A Roth IRA offers employees an incentive to save for their retirement by:

 

Investments in IRA accounts:

 

One benefit of a simple IRA is that it allows:

 

A retirement plan where employers often match part of an employee's contribution is known as a:

 

The maximum amount that can be invested in a traditional IRA:

 

Withdrawals from a traditional IRA prior to the age of 59½ are:

 

The new simple IRA plans allow employees of ________ companies to contribute larger amounts than the traditional IRA.

 

The tax-sheltered program to encourage self-employed people to accumulate retirement funds is called a(n):

 

The people who assist families in developing a comprehensive program that covers investments, taxes, insurance, and retirement plans are called:

 

For someone with a family that includes young children, the first step in estate planning should be to:

 

A _______ is a document that names a guardian for your children, states how you want your assets distributed, and names an executor to handle your estate when you die.

 

A(n) __________ is the person named in a will to assemble and value the assets of the deceased, handle tax matters, and distribute the assets.

 

Which of the following is least likely to result from the problems facing the Social Security system?

 

The earnings of a traditional individual retirement account (IRA) are:

 

The biggest advantage of the new Roth IRA is that:

 

The increase in the number of retirement plans approved by the federal government likely indicates that:

 

For workers who qualify, the earnings from income invested in a traditional IRA are:

 

A Keogh retirement plan would be used by a(n)

 

Financial planners encourage individuals to begin contributing funds into an IRA as early as possible. The major benefit of early and regular contributions is that:

 

Jack is thinking about preparing a durable power of attorney. This indicates that he wants to:

 

As an employee of New Hampshire Industries, Kathleen has an opportunity to invest pre-tax income in an employer-sponsored retirement plan. Her employer will contribute 50 cents for every dollar that Kathleen contributes to this fund. This is an example of a(n):

 

Zach quit his job to open his own Internet consulting business. He now realizes that he no longer has the benefit of a corporate retirement system. He should consider investing in a(n):

 

Bob has decided to contribute $2,800 to a Roth IRA. He is currently in the 25% tax bracket. How will his contribution affect his income tax for the current year?

 

James is in the 30% tax bracket. What is the after-tax cost of a $3,000 contribution to his traditional IRA account?

 

Hilda has contributed to a Roth IRA for the last several years. She is now in her late sixties and has just retired. She plans to withdraw $3,000 this year from her Roth IRA. If she is in the 25 percent tax bracket, how much tax will she have to pay on her withdrawal?

 

Which of the following is an indication that the government has recognized that problems with Social Security funding make it highly unlikely that future Social Security benefits will be sufficient to provide retirees with enough income for a comfortable retirement?

 

Shorty is worried that his health may soon deteriorate to the point where he will no longer be able to take care of his own finances. One way he could ease his mind would be to:

 

One of the first things the financial planner was likely to have them do would be to:

 

By using the financial planner's advice, Penny and Ira were able to find ways to cut back on their spending and began to live more modestly. They began to have a few hundred dollars left over each month after handling their normal expenses. Which of the following is the first thing they should do with their extra money?

 

As their situation began to improve, the financial adviser began discussing investment strategies with Penny and Ira. He suggested that they might want to invest in the stock market. He surprised them by saying that they should try to buy stocks during a major downturn in the market—just when most people were trying to sell. This statement suggests that the financial adviser agreed with the:

 

Once Ira and Penny achieved a more solid financial foundation, they began to consider the purchase of a home. From a financial standpoint, a sound strategy for them to consider would be to:

 

In saving for retirement, Penny could take advantage of the unique tax shelter offered only to small-business owners in a:

 

Nguyen was trying to decide between purchasing the common stock shares of McAlister Manufacturing, or preferred shares of the same company. As a student of business, you provide the following accurate information that

 

Anthony is contemplating selling the bonds he holds prior to their date of maturity. Which of the following may result in Anthony's bonds being worth less than their face value, if he decides to sell prior to the maturity date

 

Unlike the market for shirts at the local department store, the market for securities can experience significant upswings and downswings in values, in the same day. Program trading allows for thousands of trades to occur simultaneously. To prevent large, sudden drops in value of securities markets, electronic systems rely on ______________ to temporarily close program trading.

 

An older person nearing retirement might typically find it better to invest in __________ since they generally seek less risk with their investments.

 

__________ and their members provide value because they buy and sell securities on behalf of the companies and individuals they represent

 

A company that issues _____ has a legal obligation to make regular interest payments and to repay the principal amount at a prescribed time

 

An investment-banking firm underwrites a new issue of stocks and bonds by

 

The most basic form of ownership in a firm consists of

 

The benefit of a mutual fund is that

 

What is the federal regulating body for the securities markets?

 

One of the disadvantages of issuing stock is that