Ch. 15

Question 1

The financial planner needs to understand the current economy and economic indicators because of the economy’s impact on the…4

Answer 1

1 cost of borrowing
2 rate of taxation
3 price of goods and services
4 impact on investment returns

Question 2

The Maximum liability when a stolen credit card is charged is…

Answer 2

$50 per stolen card

Question 3

If the federal reserve wants to increase interest rates, which of the following actions might it take?

Answer 3

Sell government securities

Question 4

3 goals of monetary policy

Answer 4

1 maintain price levels
2 maintain long term economic growth
3 maintain full employment

Question 5

Chapter 7 bankruptcy is for…

Answer 5

Individuals or businesses to use for protection from creditors

Question 6

Chapter 11 bankruptcy is known as…

Answer 6

Reorganization bankruptcy for corporations, sole proprietorships and partnerships

Question 7

Chapter 13 bankruptcy known as the wage earners plan is for…

Answer 7

Individuals or self employed who keep a portion of their assets and pay their debt overtime

Question 8

The Fair Trade Commission enforces…

Answer 8

Consumer protection laws to prevent fraudulent, deceptive and unfair business practices that may adversely affect consumers