15.(TCO 3) Which bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time? (Points: 5) Chapter 7 Chapter 11 Chapter 13 Chapter 15 16.(TCO 3) Gary Simpson notices that his neighbor has a brand new Ford F150 truck parked in the driveway. Gary decides that he needs a new car and goes out and purchases a Hummer with a six year loan on it. Which reason for indebtedness is this an example of? (Points: 5) misunderstanding or lack of communication the use of money to punish the expectation of instant comfort keeping up with the Joneses overindulgence of children 17.(TCO 3) Which of the following would likely be the least expensive place to borrow? (Points: 5) Car dealer. Appliance store. Relative. Department store. Finance company. 18.(TCO 5) An intermediate-term investment objective is defined as one that will be accomplished within a period of? (Points: 5) Less than two years. Two to five years. More than five years. None of the choices. 19.(TCO 5) Which of the following is a true statement? (Points: 5) When choosing an investment, it is not necessary to consider the risk factor. During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation. The interest rate risk associated with investments in bonds is the result of changes in business conditions faced by companies. The risk of business failure deals with changes in the value of stocks and bonds due to changes in interest rates in the market.
The price of stocks, bonds, and other investments never fluctuates in the market. 20.(TCO 5) Matt Dannon just bought the stock of a company. He knows that with this stock comes the responsibility to approve major actions taken by the company. What gives Matt this responsibility? (Points: 5) Equity Proxy Voting rights Dividends None of the choices 21.(TCO 5) Nancy Groom owns one $1,000 corporate bond issued by Chevron. The bond pays 8.5 percent. If interest is paid semiannually, what is the amount of the check that Ms. Groom will receive at the end of each six-month period? (Points: 5) $4.25 $42.50 $85 $850 $1,000 22.(TCO 5) A corporate bond that is secured by various assets of the issuing firm is called a(n) ____________ bond. (Points: 5) debenture mortgage indenture preemptive treasury 23.(TCO 5) Today bond ownership records are maintained using a process called: (Points: 5) certified registration. book entry. revenue recognition process. coupon registration. general obligation process. 24.(TCO 4) A personal opportunity cost associated with a consumer purchase refers to: (Points: 5) buying on credit. selecting a commonly known brand. the influence of advertising on consumers. time used to compare prices.