Personal Finance. 700142RR (Penn
foster exam answers)
All insurance is based on a principle called
A. cash value coverage .
B. division of risk.
C. investment premiums .
D. premium earnings. - answerB. division of risk.
David is buying a new car for $21,349.00. He plans to make a down payment of
$3,000.00. If he's to make monthly payments of $352 for the next five years, what APR
has he paid?
A. .05%
B. 59%
C. 5%
D. 5.9% - answerD. 5.9%
A. _______ is a group of people who agree to save their money together and to make
loans to each other at a relatively low rate of interest.
A. commercial bank
B. mutual fund
C. investment firm
D. credit union - answerD. credit union
With _____ insurance, the insured agrees to pay a specific premium each year until
death.
A. half life
B. whole-life
C. endowment life
D. limited -payment - answerB. whole-life
A share of stock in the Bree Medical Supply Company is quoted at 35 1/4 . Suppose
you hold 20 shares of that stock, which you bought at 31 1/2 . If you sold your stock at
351/4 , which of the following would be true? A. You suffered a loss of $75.00.
B. You made a profit of $75.00.
C. You suffered a loss of $630.00.
D. You made a profit of $705.00. - answerB. You made a profit of $75.00.
If a company has 150 shares of common stock and $ 15,000.00 to be distributed to its
holders, how much would each share receive?
A. $150
B. $100
