1. When choosing a bank checking account - a consumer should consider which of the following? I. Interest rate offered II. Services available III. Convenience IV. Whether the bank is a national or a state institution

2. Company X’s stock price is currently $50 per share with an earnings per share (EPS) of $2.50. Company Y’s stock price is currently $18.50 per share with an EPS of $1.30. The earnings of both companies are expected to grow. On the basis of the companies’ price/earnings (p/e) ratios - which company’s stock is more appropriate to buy?

3. The cost of an automobile lease is based on all of the following EXCEPT the

4. Which of the following would NOT be an effective cash management technique?

5. Which type of bond is exempt from federal taxes?

6. Which of the following taxes has a progressive effect instead of a regressive effect?

7. An umbrella insurance policy is a personal catastrophe policy that provides protection for

8. Under an adjustable-rate mortgage - which of the following best describes the interest rate the borrower pays?

9. A taxpayer earned a salary of $25000 and received income from the following sources during the year: $500 of corporate bond interest - $250 of U.S. government bond interest - $22 of municipal bond interest - $12000 of alimony What is this taxpayer’s adjusted gross income for federal income tax purposes?

10. A person who chooses to attend college for four years instead of entering the work force immediately after high school is applying which of the following financial principles?

11. In the purchase of a home in which the mortgagor requires an escrow account - the account usually covers which of the following?

12. As conservative investors - a married couple wants an insured investment with a reasonable return to cover the cost of their daughter’s college tuition - which is due in 12 months. Which of the following investments would be most appropriate for them?

13. Preferred stock has which of the following advantages over common stock?

14. The likelihood that the average taxpayer will be audited by the Internal Revenue Service (IRS) is about

15. A young couple with limited income recently had twins - and is looking for a life insurance policy that will give the greatest coverage for the least cost while the children are young. Which type of policy is most appropriate for this couple?

16. Which of the following is NOT true about automobile lemon laws?

17. Under the Fair Credit Billing Law - consumers are permitted to dispute entries on their revolving credit accounts in which of the following situations? I. A mathematical error appears in a billing statement. II. Fraudulent use occurs. III. The charges were for damaged or poor-quality goods.

18. Which of the following taxes provides the largest source of income for the federal government?

19. According to most state lemon laws - an automobile is considered a "lemon" in which of the following circumstances? I. It has been repaired unsuccessfully four or more times for the same problem. II. Its use - value - or safety has been impaired substantially by a continuing problem. III. It has been in the repair shop for a cumulative total of 30 days during the first year of ownership.

20. Individuals pay taxes on their last dollar of taxable income based on which of the following rates?

21. The regulation of securities is enforced by which of the following authorities?

22. Under the Social Security administration - Medicare and Medicaid were established to provide coverage for which of the following?

23. Medigap supplemental insurance is sold in connection with which of the following?

24. When someone purchases a stock in the over-the-counter market - the price the buyer pays is the

25. Which of the following statements is true about IRAs and Keogh plans?