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PERSONAL FINANCIAL PLANNING 13. Your is an example of a liquid asset. A. B. C D. current account house motorcar land 14. A will is
PERSONAL FINANCIAL PLANNING
13. Your is an example of a liquid asset. A. B. C D. current account house motorcar land 14. A will is a legal document outlining the plan for A Your funeral B. Disposition of your assets. C. Management of your assets. D Survivor's goal. Relationship of substantial reward in comparison to the amount of risk taken is referred as A. Retum on Investment B. Investment Reward C. Profitability Ratio D. Risk Return Ratio. 15. 16. The profit that you eamed by selling your investment at higher price compared to when you bought it is known as A capital gain B. investment income C. paper gain D. return on investment. 17. The feature of a fixed rate housing loan that is different from an adjustable rate housing loan is that the fixed rate mortgage has: - A. A down payment on the loan is 30% of the selling price of the home. B. A down payment on the loan is only 5% of the selling price of the home. C. An interest rate that remains the same throughout the length of the loan. Page 4 of 13 MPU 3253/Sept2021 D. An interest rate that changes annually throughout the length of the loan. . 18. Alisya has RM20,000 in liabilities and a net worth of RM5,000. Calculate her debt ratio. A. 0.50 B. 4.00 C. 0.75 D. 0.80 19. What is the difference in close-end credit and open-end credit? amount A. Closed-end credit is a loan with a maximum amount based on the borrower's credit history, whereas open-end credit is a loan with a very high loan B. Closed-end credit is a variable line of credit, and open-end credit is a fixed line of credit. C. Closed-end credit is a loan at a relatively low rate of interest, and open-end credit is a loan for which the interest rate changes monthly D. Closed-end credit is a one-time type of loan that the borrower pays back over a specified period of time in payments of equal amounts. Open-end credit is a line of credit that can be borrowed for a variety of goods and services. One of the reasons lenders review the credit history of individuals applying for credit and loans is to determine: - 20. A. Place of residence. B. The amount of life insurance coverage C. How much is owed. D. Level of responsibility and honesty The assumption in the calculation of future value of money is on an investment's principal. 21. of interest paid A. B present rate withdrawal reinvestment inflation rate UA 22. . The interest rate you eam on your saving less the inflation rate is known as the A discount rate B. compound rate Page 3 of 13 MPU3253/Sept2022 C. real rate of interest. D. nominal rate. . 23. The primary purpose of life insurance is to provide financial security for the in the event of death. A. insurer B. dependents C. bank D. insured. 24. The amount that your original deposit will be worth in the future, based on earning a specific interest rate over a specific period of time, is its A. future value B. cost behavior C. consumer credit D. maturity value. 25. The percentage of the sale that the seller of the goods or service provider pays to the credit card issuer is known as A. merchant's discount fee B. point of sale commission C. transaction fee D. A and B. In the 5C: credit approach, the most important factor to consider in loan evaluation is 26. . A. character B. capacity C. collateral D. condition. 27. Nadiah took a HP financing of RM80,000 at 2.17% for 6 years. What is the effective rate? A. 2.1796 B. 4.11% C. 13.029 D. Need more informationStep by Step Solution
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