Chapter 02 Money Management Skills True / False Questions 1

Secondary markets are important because they provide liquidity to individuals who have purchased issues in the primary market. Liquidity needs, time horizon, tax concerns and risk tolerance are all investment constraints.

  • The information that the Federal awarding agency must submit to GSA for approval by OMB is listed in paragraph of this section.
  • The non-Federal entity may copyright any work that is subject to copyright and was developed, or for which ownership was acquired, under a Federal award.
  • The annual rate of interest on treasuries is 4.8% (0.4% per month).
  • At the end of the three years, they repaid the loan with one payment of $176,590.
  • A discretionary award may be selected on a non-competitive basis, as appropriate.

Because individuals may serve in a variety of roles in the budget development process, the division of duties may differ among districts. It is important, however, to clearly define the staff assignments and parameters Chapter 02 Money Management Skills True / False Questions 1 if the budget development process is to operate efficiently. With the advent of site-based decisionmaking, individuals lacking previous budget experience need clear direction in order to provide effective input.

A short seller can only trade on an uptick and must pay any dividends to the lender of the stock. The third market describes direct trading of securities between parties with no broker intermediary. In a call market, trades occur at any time while the market is open.

The Firm Financial Management Process

Moreover, a bankruptcy discharge does not extinguish a lien on property. Debtors should also be aware that out-of-court agreements with creditors or debt counseling services may provide an alternative to a bankruptcy filing. This chapter of the Bankruptcy Code provides for “liquidation” – the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors. They are easily converted into comprehension checks using signaled responses for quick formative assessments. Signaled responses are physical motions that are used to answer questions, such as thumbs up or thumbs down.

Chapter 02 Money Management Skills True / False Questions 1

Blythe is an insurance agent and her new client, Xavier, wants to purchase a deferred annuity within his registered retirement savings plan . The principal amount deposited to the annuity is $75… Malena meets with you to discuss her insurance and estate plans. She has been married to Alberto for 10 years, but is considering divorce. Both Malena and Alberto had their wills drawn up 5 years ago,…

Availability Of Data And Materials

USE THE FOLLOWING INFORMATION FOR THE NEXT THREE PROBLEMS You expect the risk-free rate to be 5 percent and the market return to be 9 percent. You also have the following information about three stocks. The covariance is a measure of the degree to which two variables (e.g., rates of return) move together over time relative to their means. USE THE FOLLOWING INFORMATION FOR THE NEXT FIVE PROBLEMS You decide to sell short 200 shares of XCorp stock at a price of $75.

Assume that the current annual costs for your client’s choice of college for this son are $29,000. Your client’s son is now 4 years old and assuming he will be age 18 when beginning college. Assume an individual makes a lump sum investment at the beginning of year one of $19,760, the present value of which is $19,760. The investor’s discount rate, for an alternative safe investment, is 5…. Assume an individual makes a lump sum investment at the beginning of year one of $35,763, the present value of which is $35,763. The investor’s discount rate, for an alternative safe investment, is 12… 4.Consider a 10-year $1000 bond that was issued 4-years ago.

The income statement reports revenues and expenses and the resulting net income. The balance sheet reports assets, liabilities, and stockholders’ equity.

Examination Questions And Answers Chapter 1 The Progression To Professional Supply Management True

She is just now learning about credit scores and has recently found out that lenders commonly assess the credit paymen… Call options and put options are written on Qantas.

Risk and return on a diversified portfolio of assets. Unsystematic risk and required return on an asset Systematic risk and required return on a diversified portfolio of assets. As the number of stocks in a portfolio increases a) The expected return of the portfolio increases because systematic decreases. B) The expected return of the portfolio increases because unsystematic decreases. C) The standard deviation of the portfolio increases because systematic increases.

The plan will include all programs administered by the state public assistance agency. Where a letter of approval or disapproval is transmitted to a state public assistance agency in accordance with Subpart E, the letter will apply to all Federal agencies and programs. The remaining sections of this Appendix summarize the provisions of Subpart E of 45 CFR Part 95.

How To Set And Achieve Financial Goals

Class of Federal awards means a group of Federal awards either awarded under a specific program or group of programs or to a specific type of non-Federal entity or group of non-Federal entities to which specific provisions or exceptions may apply. Balancing a budget is a key asset to develop in life. Understand the costs that are involved with college, and have a plan to deal with it. Photo by pina messina on UnsplashIf you’re a new college student you may not yet have money problems or issues—but most college students soon do. It doesn’t matter whether you’re a “traditional” college student enrolled in college just after high school or a “nontraditional” student returning to school. Ask questions before you begin a project to ensure you understand exactly what your role is. You can also ask questions after starting a task to ensure you are completing it correctly or discover if you need to adjust.

Multiple cards make it too easy to misuse them and lose track of your total debt. When possible, use a debit card instead of a credit card. A debit card is taken just like a credit card in most places, so you can use it instead of cash, but remember that a purchase is subtracted immediately from your account. Don’t risk overdraft fees by using a debit card when you don’t have the balance to back it up. Use your budget as a guide for how much cash to carry with you. A good way is to plan how much you’ll need for a week and start the week with that amount from an ATM. Carrying that exact amount helps you stay informed of how you’re doing on your budget and keeps you from “accidentally” spending too much on a whim.

Chapter 02 Money Management Skills True / False Questions 1

What single payment today would replace a payment stream of $50,000 that will be paid today, again at the end of year 1, and again at the end of year 2, if money earns 4% compounded semi-annually? Full Screen Accessibility Bill Sharpe, owner of Sharper Knives Inc., is closing his business at the end of the current fiscal year. His sole asset, the knife- sharpening machine, is four years old.

Chapter 1 What Is Human Relations?

Interest costs must be allocated in the same manner as the depreciation on the buildings, equipment and capital equipment to which the interest relates. Establish a modified total direct cost distribution base, as defined in Section C.2, The distribution basis, that consists of all institution’s direct functions.

  • Be certain you know how the test will be scored.
  • Instead, it might mean figuring out how to monetize a hobby or starting a side business with an underutilized skill.
  • While students are known to employ test-taking strategies (e.g., option length comparisons, option elimination) for MC questions (Ellis & Ryan, 2003; Kim (Yoon & Goetz, 1993; Stenlund, Eklöf, & Lyrén, 2017), less is known about how students approach MTF questions.
  • As a consequence, the MC format failed to detect the large fraction of students who selected the correct answer based on partial mastery or informed reasoning of the various answer options (Fig.4).
  • In the absence of the alternatives provided for in Section A.2.d, the expenses included in this category must be allocated in the same manner as described in subsection 2.b for depreciation.

Please solve in Excel using formula and formula text function Question 5 Estimate the weighted average cost of capital for Caterpillar, Inc. , using the income statem… Angola Superheros, Inc. is considering launching a production of a new superhero toy. The production and sales are expected to last 4 years.

Or it could involve more sophisticated interactions such as raising funds by issuing ownership claims in your firm in the form of shares of stock. Evaluating the firm’s performance must also include a review of its mission statement, goals, objectives, efforts to implement its strategies, and its strengths, weaknesses, opportunities and threats. Since the firm’s mission statement and strategic goals are oriented toward the long term, they change infrequently. However, the firm’s strategies may change as frequently as its internal strengths and weaknesses and external opportunities and threats change. Firm managers must continually evaluate the strategies they implemented to reach the firm’s objectives and goals. They must determine if what the firm has achieved is consistent with its mission statement, goals, and objectives within an environment described by the firm’s strengths, weakness, opportunities, and threats. Firm managers must also be prepared to alter strategies in response to changes in technologies, laws, market conditions, and personnel.

B) Investors minimize one-period expected utility. C) Investors estimate the risk of the portfolio on the basis of their utility functions. D) Investors base decisions solely on expected return and risk. An individual in the accumulation phase of the investment life cycle would a) Have retired and would seek to preserve the real value of their investments. B) Have enough income to cover expenses and excess assets would be used to benefit charities and family. C) Be past the midpoint of their careers and have excess earnings that can be invested in moderately risky investments.

The rental of any property owned by any individuals or entities affiliated with the non-Federal entity, to include commercial or residential real estate, for purposes such as the home office workspace is unallowable. The continuing costs of ownership of the vacant former home after the settlement or lease date of the employee’s new permanent home, such as maintenance of buildings and grounds (exclusive of fixing-up expenses), utilities, taxes, and property insurance. The costs of finding a new home, such as advance trips by employees and spouses to locate living quarters and temporary lodging during the transition period, up to maximum period of 30 calendar days. Costs incurred in the restoration or rehabilitation of the non-Federal entity’s facilities to approximately the same condition existing immediately prior to commencement of Federal awards, less costs related to normal wear and tear, are allowable. Participant support costs as defined in § 200.1 are allowable with the prior approval of the Federal awarding agency. Purchased materials and supplies must be charged at their actual prices, net of applicable credits.

  • This design made our investigation of question format robust to issues of question writing because the same wording appeared across both formats.
  • The non-Federal entity obtains the financing via an arm’s-length transaction ; or claims reimbursement of actual interest cost at a rate available via such a transaction.
  • Such review may be conducted by an officer or employee of the money services business so long as the reviewer is not the person designated in paragraph of this section.
  • Include saving,cutting expenses,earning extra money, or finding additional resources.
  • Matching questions work well for assessing vocabulary and identifying relationships, such as cause and effect.

Once an agreement with the governmental unit has been reached, the agreement will be accepted and used by all Federal agencies, unless prohibited or limited by statute. Where a Federal awarding agency has reason to believe that special operating factors affecting its Federal awards necessitate special consideration, the funding agency will, prior to the time the plans are negotiated, notify the cognizant agency for indirect costs. Indirect cost proposals must be developed within six months after the close of the governmental unit’s fiscal year, unless an exception is approved by the cognizant agency for indirect costs. If the proposed central service cost allocation plan for the same period has not been approved by that time, the indirect cost proposal may be prepared including an amount for central services that is based on the latest federally-approved central service cost allocation plan.

Terms include a monthly principal repayment of 2% of the balance outstanding,… Expected return and standard deviation of a risky portfolio are 11% and 21% respectively. Mr. Yen constructed a complete portfolio with these two assets that maximises his utilit… A hedge fund is currently engaged in a plain vanilla interest rate swap with a company named NeverDown. Under the terms of the swap, the hedge fund receives six-month LIBOR and pay 8 percent per annum… Dan is considering borrowing $375,000 to purchase a new condo.

After age 65, an employee can receive both a pension and earned income from th… You are considering two different payment plans for the lottery you just won. Option 1 pays $10,000 today and Option B pays $20,000 at the end of ten years.

Public Finance

They can be used to test all aspects of students, knowledge and their ability to reason with information that they have learned. If the test is a long one and you are pressed for time, answer the easy ones, guess at the difficult ones. If there is no penalty for guessing, be certain you answer every question even if you must guess.

Known or likely fraud affecting a Federal award, unless such fraud is otherwise reported as an audit finding in the schedule of findings and questioned costs for Federal awards. The summary schedule of prior audit findings must report the status of all audit findings included in the prior audit’s schedule of findings and questioned costs. Costs of housing (e.g., depreciation, maintenance, utilities, furnishings, rent), housing allowances and personal living expenses are only allowable as direct costs regardless of whether reported as taxable income to the employees. In addition, to be allowable direct costs must be approved in advance by a Federal awarding agency. Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit cost of $5,000 or more have the prior written approval of the Federal awarding agency or pass-through entity.

Perform testing of internal control as planned in paragraph of this section. Ensure that audits are completed and reports are received in a timely manner and in accordance with the requirements of this part.

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