Economics End of Semester Test 2023 with complete
solution
Being debt-free within the next 15 years is an example of which goal?
Being debt-free within 15 years is an example of a long-term goal.
Yohann lost his job due to the recession. He is still financially secure due to investments
he made several years ago. What kind of example is Yohann setting?
A. that he has more money than other people
B. in a recession, people will definitely lose their jobs
C. that he is very lucky
D. the importance of financial planning
E. the art of predicting the future
the importance of financial planning
What is the source of Mary's portfolio income?
Mary trades in ______ that involves buying and selling of stocks and mutual funds. She
is a major shareholder and the CEO of a large corporation. She needs capital to expand
the company. Mary can raise capital by issuing _________. This will assure lenders that
Mary's company will repay the loan.
Mary trades in real paper assets that involves buying and selling of stocks and mutual
funds. She is a major shareholder and the CEO of a large corporation. She needs
capital to expand the company. Mary can raise capital by issuing bonds . This will
assure lenders that Mary's company will repay the loan.
Match each activity that generates portfolio income to the context in which it is
generated.
It is a contract whose value derives from other financial assets. = derivative
It represents ownership in a corporation. = stocks
It involves buying and selling of stocks, bonds, mutual funds, derivatives, and
currencies. = trading paper assets
It is a financial investment that pools money from investors to invest in securities. =
mutual funds
What is the major disadvantage associated with both online and mobile banking?
A. bank errors
B. device theft
C. computer malware
D. paperless statements
E. check register errors
computer malware
Match the correct EFTA and PCI Standards.
EFTA standards = report a stolen debit card, place a stop payment on recurring
payments
, PCI Standards = protect credit card data, maintain a secure network
What is the purpose of NCUA Lending Regulations?
A. to educate consumers on their rights for fair credit reporting
B. to educate the public on the compliance rules
C. to educate credit unions on how to follow federal guidelines
D. to educate credit card companies on keeping records
E. to educate corporations on making disclosures avaialable
to educate credit unions on how to follow federal guidelines
Understand Federal legislation
requires standardized disclosures regarding terms and how fees are calculated = Truth
in Lending Act
prohibits unfair mortgage lending practices = Closed-end Credit Operations and
Procedures
allows consumers to exercise their rights regarding disputes and billing errors = Fair
Credit Billing Act
prohibits unfair and abusive credit practices and ensures fees are transparent = Credit
CARD Act
Choose the best words to complete each sentence and form a true statement.
William had taken a student loan to pursue a degree in electrical engineering. However,
after completing his degree, William missed several payments. Due to this problem, he
went into _______. Although William's loan servicer is helping him manage the
situation, William's failure to _______ the loan will hurt his ______ food rating.
William had taken a student loan to pursue a degree in electrical engineering. However,
after completing his degree, William missed several payments. Due to this problem, he
went into default. Although William's loan servicer is helping him manage the situation,
William's failure to repay the loan will hurt his credit food rating.
Which two types of jobs are provided in the work-study program?
jobs that are related to students' course of study
jobs that employ students for unpaid positions
jobs that are available on the school campus
jobs that involve public or community service
jobs that allow the student to make easy money
jobs that are related to students' course of study, jobs that involve public or community
service
A renter decides to leave a rental property and break their rental agreement. What will
happen?
A. The renter can be arrested for breaking the contract.
B. The landlord can sue the renter.
C. The renter loses the security deposit.
D. The renter is liable for damages that occur until the rental agreement ends.
E. The renter can never rent another property.
The renter loses the security deposit.
solution
Being debt-free within the next 15 years is an example of which goal?
Being debt-free within 15 years is an example of a long-term goal.
Yohann lost his job due to the recession. He is still financially secure due to investments
he made several years ago. What kind of example is Yohann setting?
A. that he has more money than other people
B. in a recession, people will definitely lose their jobs
C. that he is very lucky
D. the importance of financial planning
E. the art of predicting the future
the importance of financial planning
What is the source of Mary's portfolio income?
Mary trades in ______ that involves buying and selling of stocks and mutual funds. She
is a major shareholder and the CEO of a large corporation. She needs capital to expand
the company. Mary can raise capital by issuing _________. This will assure lenders that
Mary's company will repay the loan.
Mary trades in real paper assets that involves buying and selling of stocks and mutual
funds. She is a major shareholder and the CEO of a large corporation. She needs
capital to expand the company. Mary can raise capital by issuing bonds . This will
assure lenders that Mary's company will repay the loan.
Match each activity that generates portfolio income to the context in which it is
generated.
It is a contract whose value derives from other financial assets. = derivative
It represents ownership in a corporation. = stocks
It involves buying and selling of stocks, bonds, mutual funds, derivatives, and
currencies. = trading paper assets
It is a financial investment that pools money from investors to invest in securities. =
mutual funds
What is the major disadvantage associated with both online and mobile banking?
A. bank errors
B. device theft
C. computer malware
D. paperless statements
E. check register errors
computer malware
Match the correct EFTA and PCI Standards.
EFTA standards = report a stolen debit card, place a stop payment on recurring
payments
, PCI Standards = protect credit card data, maintain a secure network
What is the purpose of NCUA Lending Regulations?
A. to educate consumers on their rights for fair credit reporting
B. to educate the public on the compliance rules
C. to educate credit unions on how to follow federal guidelines
D. to educate credit card companies on keeping records
E. to educate corporations on making disclosures avaialable
to educate credit unions on how to follow federal guidelines
Understand Federal legislation
requires standardized disclosures regarding terms and how fees are calculated = Truth
in Lending Act
prohibits unfair mortgage lending practices = Closed-end Credit Operations and
Procedures
allows consumers to exercise their rights regarding disputes and billing errors = Fair
Credit Billing Act
prohibits unfair and abusive credit practices and ensures fees are transparent = Credit
CARD Act
Choose the best words to complete each sentence and form a true statement.
William had taken a student loan to pursue a degree in electrical engineering. However,
after completing his degree, William missed several payments. Due to this problem, he
went into _______. Although William's loan servicer is helping him manage the
situation, William's failure to _______ the loan will hurt his ______ food rating.
William had taken a student loan to pursue a degree in electrical engineering. However,
after completing his degree, William missed several payments. Due to this problem, he
went into default. Although William's loan servicer is helping him manage the situation,
William's failure to repay the loan will hurt his credit food rating.
Which two types of jobs are provided in the work-study program?
jobs that are related to students' course of study
jobs that employ students for unpaid positions
jobs that are available on the school campus
jobs that involve public or community service
jobs that allow the student to make easy money
jobs that are related to students' course of study, jobs that involve public or community
service
A renter decides to leave a rental property and break their rental agreement. What will
happen?
A. The renter can be arrested for breaking the contract.
B. The landlord can sue the renter.
C. The renter loses the security deposit.
D. The renter is liable for damages that occur until the rental agreement ends.
E. The renter can never rent another property.
The renter loses the security deposit.
