When an investment banking firm “underwrites” an issue of securities, the firm is performing which of the following? A) offering to purchase the securities from the firm, thereby assuming the risk of resale to investors B) agreeing to provide insurance that the firm’s securities will sell for a price that is established by the firm […]
Based on the information in Table 4-1, the current ratio is A) 1.98. B) 2.86. C) 1.92. D) 2.88. ANSWER A
A compound annuity involves depositing or investing a single sum of money and allowing it to compound for a certain number of years. Indicate whether the statement is true or false ANSWER FALSE
Which of the following statements about types of property covered under the Personal Articles Floater is true? A) Golfer’s equipment is covered only in the United States. B) Furs are covered on a blanket basis without the necessity to schedule individual items. C) A higher premium must be paid to insure musical instruments if they […]
All of the following are considered floods under the federal flood insurance program EXCEPT A) the overflow of tidal waters. B) the accumulation of surface water after a heavy rain. C) a mudslide caused by an accumulation of water after a heavy rain. D) the discharge of water from a home appliance, such as a […]
Which of the following statements about various coverages under a Personal Articles Floater is (are) true? I. Each item of jewelry is described and is insured for a specified amount. II. Stamp and coin collections can be insured on a blanket basis. A) I only B) II only C) both I and II D) neither […]
Which of the following is an example of an inflexible expense? A) Mortgage payments B) Entertainment C) Home maintenance D) Newspapers and magazines ANSWER A
Jan showed the following financial items at the ends of 2007 and 2085: 2007 2008 Checking account balance 1,300 1,200 Credit card balances due 700 500 Auto loan ($900 due within one year) 2,700 3,600 Automobile 7,000 8,000 Jewelry 400 300 Stamp collection 1,200 1,000 Jan’s net worth changed in 2008 by A) + $100. […]
Dissavings can A) decrease assets and net worth. B) decrease both assets and liabilities. C) decrease net worth only. D) decrease assets only or liabilities only. ANSWER A
Which of the following statements about federal flood insurance is true? A) It is available even if property has been previously flooded. B) It is unavailable in high-risk flood areas. C) It is available only for residences, not for businesses. D) Waiting periods are not used in the federal flood insurance program. ANSWER […]
