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Which of the following devices imparts ownership in a corporation

08/11/2021 Client: muhammad11 Deadline: 2 Day

Consumer Math Part 3

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Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.

1. 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. $11,591.28

B. $11,541.28

C. $10,938.00

D. $11,547.00

2. Which of the following best describes term life insurance?

A. The insured can borrow or collect the cash value of the policy.

B. The insured pays the premium until his or her death.

C. The insured pays a premium for a specified number of years.

D. The insured is covered during his or her entire lifetime.

3. 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. Shop around for a car loan.

B. Obtain car insurance.

C. Test-drive the car.

D. Study the car market.

4. 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. $14,247.00

B. $10,000.00

C. $9,138.44

D. $9,141.44

5. 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.

6. A is invested by managers in a diversity of stocks, bonds, and other securities.

A. preferred stock B. promissory note C. series EE bond D. mutual fund

7. Which one of the following items is an example of software?

A. Printer

B. Mouse

C. Keyboard

D. Word-processing program

8. Your should furnish enough money to live on, in an emergency, for six months.

A. savings

B. interest

C. investments

D. IRA

9. The coverage included in an automobile insurance policy that covers property damage is

insurance.

A. major medical B. supplemental C. liability

D. term

10. All insurance is based on a principle called

A. cash value coverage. B. investment premiums. C. division of risk.

D. premium earnings.

11. Which of the following devices imparts ownership in a corporation?

A. Bond

B. U.S. Treasury Bill C. Savings account D. Stock

12. 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. $5,928.00

C. $4,788.00

D. $3,800.00

13. What type of stock receives an equal part of the profits on each share to be distributed after all other obligations of a company have been satisfied?

A. No-par

B. Cumulative preferred

C. Preferred

D. Common

14. 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. $400

B. $500

C. $50

D. $40

15. 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 made a profit of $75.00.

D. You suffered a loss of $630.00.

16. Car insurance that pays for your injuries when you're in an accident in your car is .

A. comprehensive

B. liability C. collision D. medical

17. 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 $150.

B. You'll suffer a loss of $15.

C. You'll make a profit of $150.

D. You'll make a profit of $15.

18. A master plan is devised for

A. emergencies.

B. long-range goals.

C. short-term goals.

D. investments.

19. Jane has a checkbook balance of $68.00. She then writes two checks, one for $5.00 and one for

$62.50. She also deposits $75.00. She then uses her calculator to determine her new balance. Which of the following is the correct series of keys she should press?

A. ON/C 6 8 + 7 5 = 5 = 6 2 . 5 0

B. 6 8 + 7 5 – 5 – 6 2 . 5 0

C. ON/C 6 8 – 5 – 6 2 . 5 0 + 7 5 =

D. 6 8 + 7 5 – 6 2 5 0 – 5 =

20. 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. liability B. collision C. medical D. no-fault

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