Question 1. 1. (TCO C) Janice Sanders plans on saving $12,000 for 3 years until

Question

Question 1.1. (TCO C) Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning. She would like to receive a fixed rate of return over that period. Which of the following would you recommend? (Points : 4)        Money market deposit account
       1-year certificate of deposit
       3-year certificate of deposit
       Series EE U.S. savings bond
       B or C Question 2.2. (TCO C) The more frequently a bank compounds interest, (Points : 4)        the higher the stated interest rate.
       the lower the stated interest rate.
       the higher the APY.
       the lower the APY.
       A and C Question 3.3. (TCO C) At the end of your car lease period, you intend to turn in the car, and you will not pay extra at that time based on the residual value of the car. You have _____ lease. (Points : 4)        a residual
       an open-end
       a purchase option
       a closed-end
       None of these Question 4.4. (TCO C) In which of the following situations would you have to pay additional money when returning a vehicle using a closed-end lease? (Points : 4)        Residual value is less than expected
       Residual value is more than expected
       Mileage limits were exceeded
       A and C
       B and C Question 5.5. (TCO C) A lender will usually require a loan-to-value ratio of _____ or less for you to avoid having to pay private mortgage insurance (PMI). (Points : 4)        75%
       80%
       85%
       90%
       95%

Explanation / Answer

Question 1.1. (TCO C) Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning. She would like to receive a fixed rate of return over that period. Which of the following would you recommend? (Points : 4)

       Money market deposit account
       1-year certificate of deposit
       3-year certificate of deposit
       Series EE U.S. savings bond
       B or C

Answer:

The period of investment is 3 years and we are given that She would like to receive a fixed rate of return over that period, hence Money market deposit account shall not be a good idea and Series EE U.S. savings bond takes more than 3 years to mature. Hence we can say she can select any of the certificate of deposit as they will given fixed rate of return over the period with the predefined liquidity.

Hence answer shall be :

1-year certificate of deposit
or 3-year certificate of deposit

That is B or C
       

Question 1.1. (TCO C) Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning. She would like to receive a fixed rate of return over that period. Which of the following would you recommend? (Points : 4)

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