PF Exam 3 Review

Debt revolves around which of the following?

• Open-ended credit

• Close-ended credit

• Both open- and close-ended credit

• Neither open- nor close-ended credit

Grace is considering different types of credit options. Which of the following is an example of open-ended credit?

• Car loan

• House

• Department cards

• Debt consolidation

Elijah decided to sell his old car to get some cash. This process is known as _________.

• Debt Consolidation

• Liquidate

• Investing

• Saving

Harper is studying bankruptcy law and wants to know under which chapter straight bankruptcy is allowed in the bankruptcy code.

• Chapter 4

• Chapter 7

• Chapter 13

• Chapter 19

Oliver's business is facing financial difficulties. He is considering a type of bankruptcy that allows his business to reorganize and pay off its debts. Which chapter of bankruptcy should Oliver consider?

• Chapter 11

• Chapter 7

• Chapter 13

• Chapter 19

Mia is considering filing for bankruptcy due to several financial challenges. Which of the following is NOT a typical reason for bankruptcy?

• Failed Business

• Job Loss

• Bonuses at work

• Medical Expenses

Anika is considering taking a loan. Which of the following is NOT a good debt product?

• Real Estate Loan

• Student Loan

• Car Loan

• Business Loan

Aiden is considering buying an asset to generate returns from it over a period of time while also taking care of risk and volatility. Which of the following actions is he planning to take?

• Investing

• Saving

• Compounding

• Evaluating

David is considering an investment option where he enters into a contract with an insurance company. Which of the following options involves the company promising to make periodic payments to him?

• High-yield bank account

• Certificate of deposit

• Money market fund

• Annuity

Priya is learning about investments. Which of the following describes a portion of ownership in a corporation?

• Stock

• Bond

• Mutual fund

• Real estate