2. Which of the following would increase your liquid assets?

a. Putting more of your salary in a 401(k)

b. Buying a new car

c. Buying rental property

d. Making regular deposits to a savings account at your bank

3. Yogi Berra Jr. agreed to play for the New York mets for $4 million per year for the next 10 years. What table would you use to calculate the value of this contract in today's dollars?

a. Presnt value of a single amount

b. Present value of an annuity

c.. Future value of a single amount

d. Future value of an annuity

4. Which of the following is a disadvantage of using credit?

a. Shopping convenience

b. Capacity to access credit in the future

c. Ease of returning merchandise

d. Slowing of progress toward financial goals

5. Which of the following costs associated with home ownership is hardest to budget?

a. Mortgage payments

b. Repairs

c. Insurance

d. Taxes

6. Which risk mangaement alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?

a. Avoid risk

b. Reduce risk

c. Accept risk

d. Insure against risk

7. The amount of damage you will be required to cover if your car is invovled in an accident that is your fault is your:

a. co-payment

b. premium

c. deductible

d. fair share

8. a company's earnings are $3.00 per share, its diviend is $2.00 per share, and its stock price is $30.00 per share. Its PE ratio is:

a. 33

b. 10

c. 15

d. 1.5

9. Investing in which of the following funds will typically give you the least diversification?

a. Capital appreciation funds

b. Equity income funds

c. Sector funds

d. Growth funds

10. Indeterming the amount of money you will need for retirement, you should consider all of the following except:

a. the expected cost of living due to inflation

b. inheritance from your children

c. the number of years you will live while retired

d. your personal needs and who else you will be supporting