31.
Lower consumer saving and investing is likely to be accompanied by 
 
 

A. 
Lower union wages

B. 
Lower interest rates

C. 
Lower production costs

D. 
Higher interest rates

E. 
Higher exports

32.
An investor should expect to receive a riskpremium for 
 
 

A. 
Expanded exports

B. 
Lower consumer prices

C. 
Higher uncertainty about getting his/her money back

D. 
Reduced availability of investments

E. 
Expected lower inflation

33.
Which of the following would increase the interest rate for a loan? 
 
 

A. 
Poor credit rating

B. 
Higher down payment

C. 
Constant interest rates

D. 
Lower consumer prices

E. 
Short time to maturity

34.
Patrick Guitman recently graduated from college with $20,000 in student loans and $5,000 in credit card debt. He usually makes minimum payments on his debt and he has been late with three payments in the last year. He wants to buy a new car but was told that his interest rate on a loan would be very high. What is the most likely reason this might be so? 
 
 

A. 
General interest rates are very low

B. 
His credit rating is poor because of his late payments

C. 
He already has a student loan outstanding

D. 
Recent graduates are not allowed to have more than $25,000 in debt outstanding

E. 
Interest rates must be tied to the CPI

35.
Attempts to increase income are part of the _____________ component of financial planning. 
 
 

A. 
Obtaining

B. 
Planning

C. 
Saving

D. 
Borrowing

E. 
Spending

36.
The ‘borrowing’ activity in a financial plan relates to 
 
 

A. 
Acquiring adequate insurance coverage

B. 
Investing for long-term growth

C. 
Setting up a budget

D. 
Obtaining financial resources from employment, investments or ownership

E. 
Maintaining control of credit-buying habits

37.
The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning. 
 
 

A. 
Sharing

B. 
Savings

C. 
Obtaining

D. 
Borrowing

E. 
Protecting

38.
A question associated with the saving component of financial planning is: 
 
 

A. 
Do you have an adequate emergency fund?

B. 
Is your will current?

C. 
Is your investment program appropriate to your income and tax situation?

D. 
Do you have a realistic budget for your current financial situation?

E. 
Are your transportation expenses minimized through careful planning?

39.
Which of the following short-term goals is stated most clearly? 
 
 

A. 
Buy a car for less than $17,000 within 6 months

B. 
Retire in 10 years at age 65 with $2,000,000 in my 401(k) account

C. 
Purchase a house with a mortgage no greater than $150,000 within 5 years

D. 
Set up an emergency fund

E. 
Invest $50 per month for the next 18 years for my nephew’s college fund

40.
Which of the following long-term goals is stated most clearly? 
 
 

A. 
Buy a car for less than $17,000 within 6 months

B. 
Retire in 10 years at age 65

C. 
Purchase a house with a mortgage no greater than $150,000 within 3 years

D. 
Set up an emergency fund

E. 
Invest $50 per month for the next 18 years for my nephew’s college fund