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Business Exam
Multiple Choice
| Question | Answer |
|---|---|
| An ___________ is a spending and saving plan based on your expected income and expenses, | budget |
| A ___________________ is a person who borrows money from others. | debtor |
| A business that gathers, stores, and sells credit information to other businesses is a | credit bureau |
| All of the following are warning signs that you may be overextending your credit EXCEPT | your credit score s a rising because of your payment history |
| Generally, all of the following are potential advantages of renting versus buying a home EXCEPT | lower cost |
| When you buy a share of stock, you are buying | an ownership interest in the company |
| A professionally managed group of investments bought using a pool of money from many investors is a | mutual fund |
| Safeguarding your personal information, such as credit card numbers or Social Security number, helps | identify theft |
| The main purpose of the ____________ is to protect investors and maintain the integrity of the securities markets? | Security and Exchange Commission (SEC) |
| ____________expenses, such as rent and loan payments, are costs that do not change from month to month. | fixed |
| ____________is a value of property (assets)you possess after deducting your debts | capital |
| Which of the following is NOT one of the three nationwide credit bureaus? | CreditGuard |
| Greg's annual take-home pay is approximately $24,000. Using the 20/10 rule, Greg's borrowing (excluding mortgage loans) should not exceed. | $4,800 |
| Generally, all of the following are potential advantages of renting versus buying a home EXCEPT | more tax deductions |
| Money paid to stockholders from a corporation's earnings (profits) is called | dividends |
| A mutual fund whose investment goal is to buy stocks that will increase in value over time a(n) | growth fund |
| A fraudulent investment operation in which money collected from new investors is used to pay off earlier investors is a | Ponzi scheme |
| Which of the following is NOT a function of the Securities and Exchange Commission (SEC) | prevent trading of risky or speculative securities |
| Which of the following is most likely to be an impulse purchase? | a candy bar |
| Which of the following is NOT an example of a creditors' responsibility to a consumer? | contacting the consumer each month to verify that the bill is correct |
| A scam that uses online pop-up messages or e-mail to deceive you into disclosing personal information is called | phishing |