Quantitative Literacy Exam
Review EXAM QUESTIONS
AND VERIFIED CORRECT
ANSWERS GRADED A+
LATEST 1005 GUARANTEED
PASS
Liquidity - CORRECT ANSWER-an investment in which you can withdraw money easily such as a
normal bank account
Risk - CORRECT ANSWER-an investment in which you may lose part or all or all of your principal
Return - CORRECT ANSWER-how much total or annual you can expect on your investment
face value - CORRECT ANSWER-the price you must pay the issuer to buy the bond at the time
that it is issued
Coupon Rate - CORRECT ANSWER-the simple interest rate that the issuer promises to pay on
the bond
maturity date - CORRECT ANSWER-the date on which the issuer promises to repay the face
value of the bond
current yield - CORRECT ANSWER-the amount of interest a bond pays each year divided by the
bonds current price
, installment loan - CORRECT ANSWER-a loan that you pay off with equal regular payments
mortgage - CORRECT ANSWER-a type of installment loan specifically designed to help you buy a
home
down payment - CORRECT ANSWER-10% to 20% of the purchase price paid upfront
closing costs - CORRECT ANSWER-fees you must pay in order to be given a loan
points - CORRECT ANSWER-each one is 1% of the loan amount
fixed rate mortgage - CORRECT ANSWER-an interest rate that will not change over the lifetime
of a loan
adjustable rate mortgage - CORRECT ANSWER-when interest rates change whenever prevailing
rates change
receipts - CORRECT ANSWER-represents money that has been collected
outlays - CORRECT ANSWER-represents money that has been spent
net income - CORRECT ANSWER-receipts - outlays
mandatory outlays - CORRECT ANSWER-expenses that are paid automatically unless congress
acts to change them
Review EXAM QUESTIONS
AND VERIFIED CORRECT
ANSWERS GRADED A+
LATEST 1005 GUARANTEED
PASS
Liquidity - CORRECT ANSWER-an investment in which you can withdraw money easily such as a
normal bank account
Risk - CORRECT ANSWER-an investment in which you may lose part or all or all of your principal
Return - CORRECT ANSWER-how much total or annual you can expect on your investment
face value - CORRECT ANSWER-the price you must pay the issuer to buy the bond at the time
that it is issued
Coupon Rate - CORRECT ANSWER-the simple interest rate that the issuer promises to pay on
the bond
maturity date - CORRECT ANSWER-the date on which the issuer promises to repay the face
value of the bond
current yield - CORRECT ANSWER-the amount of interest a bond pays each year divided by the
bonds current price
, installment loan - CORRECT ANSWER-a loan that you pay off with equal regular payments
mortgage - CORRECT ANSWER-a type of installment loan specifically designed to help you buy a
home
down payment - CORRECT ANSWER-10% to 20% of the purchase price paid upfront
closing costs - CORRECT ANSWER-fees you must pay in order to be given a loan
points - CORRECT ANSWER-each one is 1% of the loan amount
fixed rate mortgage - CORRECT ANSWER-an interest rate that will not change over the lifetime
of a loan
adjustable rate mortgage - CORRECT ANSWER-when interest rates change whenever prevailing
rates change
receipts - CORRECT ANSWER-represents money that has been collected
outlays - CORRECT ANSWER-represents money that has been spent
net income - CORRECT ANSWER-receipts - outlays
mandatory outlays - CORRECT ANSWER-expenses that are paid automatically unless congress
acts to change them
