13. If your retirement is relatively near, one should ____________________.

1. move money from stock to fixed income assets
2. invest more in shares to get higher returns
3. invest in aggressive growth unit trust fund
4. All of the above.

12. The _________ ratio of a household is measured by its ability to satisfy its short-term obligations as they become due.

1. debt service
2. cash
3. liquidity
4. savings

15. Which of the following service is NOT offered in a non-commercial bank?

1. Saving account.
2. Current account.
3. Fixed deposit account.
4. None of the above.

16. Which is the official rate of inflation?

1. Consumer prices less borrowing.
2. The wholesale price index.
3. Producer price index.
4. Consumer price index.

17. What does a negative net worth indicate?

1. Your assets exceed liabilities.
2. Your liabilities exceed your assets.
3. Your assets equal liabilities.
4. You have only assets and no liability.

18. Which of the following increases liabilities but not assets?

1. Taking a loan to buy a new car.
2. Using a credit card to buy computer.
3. Taking a loan to go on vacation.
4. Paying off a student loan.

19. The time value of money means that money to be received sometime in the future will __________________.

1. be less than today
2. buy more than today
3. exactly be the same as today
4. be half its worth.

20. The saving habits of Selma and Patty best illustrate what principle of savings?

1. Rate of return matters.
2. The amount of the initial investment is key.
3. The length of time money is invested matters.
4. Rate of return and the length of time money is invested matters.

21. How much will Ali and Fatimah need to put in the bank today at 4% interest rate to have RM20,000 in five years for a down-payment on a house?

1. RM20,000.
2. RM16,000.
3. RM17,439.
4. RM16,438.

22. Which of the followings is recorded as an asset in the personal financial statements?

1. Assets for which market value fluctuates.
2. Assets purchased by cash.
3. Assets financed through debt.
4. All of the above.

23. The ____________ provides a loan limit that can be utilised for multiple purchases over a period of time.
    1. closed-end retail credit
    2. open-end credit
    3. add-on credit
    4. multiple credit