5 PFL FINAL

The stock price of a corporation is most likely to increase when the corporation announces a

• decrease in the expected profit for this year.

• budget deficit.

•  new product being released for sale.

• serious problem with its product.

Comparison shopping for a car is necessary because

• each dealer sells cars with different colors.

• lenders want to be sure consumers get the best price.

•  the price for the car can vary a great deal.

• it is a requirement to qualify for car insurance.

A person is age 16 and looking for part-time work at a restaurant that is part of a national chain. Which of the following is the employer allowed to ask for on a job application?

• Copy of a major credit card

• Parents’ occupations

• Social Security number

• List of medical problems

An important responsibility for young adults living independently is to

• purchase cell phone product insurance. 

• purchase vacation homes.          

• pay the principal if they have a mortgage.

• monitor credit card expenses and debt.

Impulse shopping usually results in

• an increase in personal debt

• an increase in credit scores.     

• decrease in the buying of goods at department stores. 

• a decrease in the number of items purchased online.

What kind of insurance is extremely important for a single 25-year-old person to buy?

• Renters insurance

• Health insurance

• Long-term care insurance

•  Life insurance

An investor who is interested in diversifying his stock portfolio should buy

•  speculative stocks, such as new companies without a history of profits.

•  stocks in different sectors, such as healthcare, finance and technology.

• stocks offering a fixed rate of return.

• stocks with high dividends.

Which of the following is a correct calculation of simple interest on $1,000 with 3% interest at the end of one year?

•  $30 or $1,030.00

•  $400 or $1,400.00

• $150 or $1,150.00

• $600 or $1,600.00

Late fees, interest charges, and difficulty qualifying for loans are all possible results of

•  using credit poorly.

• dropping out of school.

• going to college.

• paying credit card bills.

In 2010, the U.S. Congress established The Consumer Financial Protection Bureau (CFPB). The purpose of this organization is to

• protect consumers against abusive credit practices, promote financial education, and research financial behavior.

• set annual interest rates to prevent inflation, regulate banks nationally, and protect against identity theft.

• insure stocks against loss, investigate investor complaints, and certify stockbrokers.

• enforce bank regulations, advocate loans for the poor, and audit bank records.