Section 4 Study Questions (12.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. What is a money market account? (0.5 points)Is an account that invest your money in low risk investments with predicable interest rates.
What is financial risk? (0.5 points) Financial risk is the possibility of losing money. What is diversification? (0.5 points) Diversification is an investment strategy in which you spread out your investments among many different types. What is risk tolerance?
Section 5 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. What is credit? (0.5 points) Credit is borrowed money that you can use to purchase things you need when you need them and then repay the funds back at an agreed on time 2.
Section 2 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. What is renting? (0.5 points) An agreement where a payment is made for the temporary use of a good, service or property owned by another individual or company.
Section 1 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. Name at least two things financial planning could help you do. (0.5 points) Prepare for my future & help me become more respinsible with money.
Lesson 1 (3.0 points) 1. What is cash? (0.5 points) Money in the form of coins or paper bills 2. What is a bank balance? (0.5 points) amount of money held in a bank account at a given moment.
U.S. Tax Court. 2. (TCO F) A business bad debt is deductible for tax purposes as a(n): (Points : 5) short-term capital loss. long-term capital loss. ordinary business deduction.
But the stated interest payment is $5,000, thus the $784 interest expense is amortization of the bond discount. Question # 3 The interest rate is determined by finding the value in Appendix B equal to $35,000 divided by the annual payments of $13,581 for a period of 3 years. (35,000/13,581 = 2.577). The interest rate is 8%. Amortization
Why do people take speculative risks? (0.5 points) People take speculative risks because you have a possibility of profit or gain. 3. What is meeting the deductible? (0.5 points) Meeting the deductible is when you have paid the deductible amount and the insurance company now has to pay some or all of the costs above the amount.
Why do people take speculative risks? (0.5 points) To take a chance if you do pick right the returns are huge. 3. What is meeting the deductible? (0.5 points) When you have paid the deductible amount and the insurance company must now pay some or all of the rest of the costs above that amount.