Can you please check my answers:)
1. John Gray bought a basic car for $8,250.00, with options that cost $324.00. There's a 6% sales tax in
his state and a combined $50.00 license and registration fee. What was John's total cost?
A. $9,138.44
B. $10,000.00
C. $9,141.44
D. $14,247.00
2. Which of the following is intended primarily to enhance a person's tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA
3. 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. investment firm
B. credit union
C. commercial bank
D. Christmas club
4. A share of stock in the Lofty Cheese Company is quoted at 25 1/4. Suppose you hold 30 shares of that
stock, which you bought at 20 1/4. If you sell your stock at 25 1/4, which one of the following statements
would be true?
A. You'll suffer a loss of $15.
B. You'll make a profit of $150.
C. You'll make a profit of $15.
D. You'll suffer a loss of $150.
5. The Waverly Brush Company issued 4,000 shares of common stock worth $200,000.00 total. What is
the par value of each share?
A. $500
B. $40
C. $50
D. $400
6. In a health insurance policy, a statement that an applicant won't be covered for a certain pre-existing
condition is called a/an
A. major medical coverage.
B. exclusion.
C. supplement.
D. waiting period.
7. _______ health insurance coverage pays for at least part of hospital costs and fees.
A. Basic
B. Major medical
C. HMO
D. PPO
8. The Hamilton Brush Company issued 2,500 shares of common stock worth $100,000.00 total. What is
the par value of each share?
A. $400.00
B. $250.00
C. $25.00
D. $40.00
9. If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Social security (FICA)
B. Pension plan
C. Vesting plan
D. IRA
10. What is the first step that a smart new-car buyer should take before talking to salespersons and putting
a deposit on a car?
A. Test-drive the car.
B. Study the car market.
C. Shop around for a car loan.
D. Obtain car insurance.
11. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. mutual fund
B. preferred stock
C. promissory note
D. series EE bond
12. 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 35 1/4, which of the following
would be true?
A. You made a profit of $705.00.
B. You suffered a loss of $75.00.
C. You suffered a loss of $630.00.
D. You made a profit of $75.00.
13. Jane Marko buys a car for $11,400.00. In three years, the car depreciates 48% in value. How much is
the car worth in three years?
A. $5,472.00
B. $4,788.00
C. $3,800.00
D. $5,928.00
14. A master plan is devised for
A. short-term goals.
B. long-range goals.
C. investments.
D. emergencies.
15. Ray Cupple bought a basic car costing $10,150.00, with options costing $738.00. There is a 6% sales
tax in his state and a combined $50.00 license and registration fee. What was Ray's total cost?
A. $11,547.00
B. $10,938.00
C. $11,541.28
D. $11,591.28
16. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will
probably state that you must carry _______ insurance.
A. medical
B. no-fault
C. liability
D. collision
17. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. savings
B. investments
C. IRA
D. interest
18. With _______ insurance, the insured agrees to pay a specific premium each year until death.
End of exam
A. limited-payment
B. whole-life
C. half life
D. endowment life
19. Which of the following devices imparts ownership in a corporation?
A. U.S. Treasury Bill
B. Bond
C. Stock
D. Savings account
20. The major difference between a calculator and a computer, when performing calculations, is that a
A. computer is slower but needs less human assistance.
B. calculator is faster but needs more human assistance.
C. computer is faster but needs more human assistance.
D. calculator is slower and needs more human assistance.
Here's my answers
1. A 11. A
2. D 12. D
3. B 13. D
4. B 14. B
5. C 15. D
6. B 16. D
7. D 17. A
8. D 18. B
9. A 19. C
10. B 20. C
Sure! Let's go through each question to check your answers:
1. To find the total cost, we need to add the cost of the car, options, sales tax, and license and registration fee.
Car cost: $8,250.00
Options cost: $324.00
Sales tax (6% of car cost + options cost): 0.06 * ($8,250.00 + $324.00) = $515.04
License and registration fee: $50.00
Total cost: $8,250.00 + $324.00 + $515.04 + $50.00 = $9,139.04
So, the correct answer is A.
2. The device primarily intended to enhance tax advantage and retirement income is an Individual Retirement Account (IRA). So, the correct answer is D.
3. A group of people who agree to save money together and make loans to each other at a low interest rate is called a credit union. So, the correct answer is B.
4. To find the profit or loss from selling stock, we need to calculate the difference between the selling price and the buying price per share, and then multiply by the number of shares.
Difference in price per share = $25 1/4 - $20 1/4 = $5
Profit or loss = $5 * 30 shares = $150
Since the price increased, it is a profit. So, the correct answer is B.
5. The par value per share can be found by dividing the total value of the shares by the number of shares.
Par value per share = $200,000.00 / 4,000 shares = $50
So, the correct answer is C.
6. A statement in a health insurance policy that excludes coverage for a certain pre-existing condition is called an exclusion. So, the correct answer is B.
7. Health insurance coverage that pays for part of hospital costs and fees is known as major medical insurance. So, the correct answer is B.
8. The par value per share can be found by dividing the total value of the shares by the number of shares.
Par value per share = $100,000.00 / 2,500 shares = $40
So, the correct answer is D.
9. By law, if you have earned income, you must contribute to Social Security (FICA) for retirement. So, the correct answer is A.
10. The first step a smart new-car buyer should take before talking to salespersons and putting a deposit on a car is to study the car market. So, the correct answer is B.
11. An investment managed by professionals and invested in a variety of stocks, bonds, and other securities is known as a mutual fund. So, the correct answer is A.
12. To find the profit or loss from selling stock, we need to calculate the difference between the selling price and the buying price per share, and then multiply by the number of shares.
Difference in price per share = $35 1/4 - $31 1/2 = $3 3/4
Profit or loss = $3 3/4 * 20 shares = $75
Since the price increased, it is a profit. So, the correct answer is D.
13. To find the value of the car after depreciation, we need to multiply the original value by the depreciation rate and subtract it from the original value.
Depreciation amount = 0.48 * $11,400.00 = $5,472.00
Car worth in three years = $11,400.00 - $5,472.00 = $5,928.00
So, the correct answer is D.
14. A master plan is primarily devised for long-range goals. So, the correct answer is B.
15. Similar to question 1, we need to add the cost of the car, options, sales tax, and license and registration fee.
Car cost: $10,150.00
Options cost: $738.00
Sales tax (6% of car cost + options cost): 0.06 * ($10,150.00 + $738.00) = $650.88
License and registration fee: $50.00
Total cost: $10,150.00 + $738.00 + $650.88 + $50.00 = $11,588.88
So, the correct answer is not among the options given.
16. When borrowing money from a bank to buy a new car, the loan agreement will typically require collision insurance. So, the correct answer is D.
17. It is recommended to have enough money in savings to cover living expenses for at least six months in case of emergencies. So, the correct answer is A.
18. Insurance where the insured agrees to pay a specific premium each year until death is called whole-life insurance. So, the correct answer is B.
19. Ownership in a corporation is represented by stock. So, the correct answer is C.
20. The major difference between a calculator and a computer is that a computer is faster but needs more human assistance when performing calculations. So, the correct answer is C.
After evaluating your answers, the corrected answers are:
1. A
2. D
3. B
4. B
5. C
6. B
7. B
8. D
9. A
10. B
11. A
12. D
13. D
14. B
15. Not among the options given
16. D
17. A
18. B
19. C
20. C
Great job on your answers!