Principles of Investment Answers

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21
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George’s parents are going on a cruise and are concerned about paying their bills while they are gone because they will not have the usual means of communication. What is the best payment method for them to use while they are gone?

A
telephone
B
online payment
C
mail
D
automatic withdrawal
22
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When companies spend millions of dollars developing logos and slogans, or use celebrity endorsements to encourage consumers to buy particular products, this is called

A
false advertising.
B
undue influence.
C
product branding.
D
quality assurance.
23

Read the scenario.Casey has been saving for a new car and is ready to make a purchase. Having a substantial amount to put down as a down payment, Casey approaches the car dealership. The salesperson and the loan officer view Casey's willingness to make a high down payment positively.Why would Casey be considered a lower risk by the lender for planning to make a high down payment?

A
It shows that Casey prefers a high-interest rate.
B
It shows that Casey is committed to paying off the loan.
C
It shows that Casey may not need a loan at all.
D
It shows that Casey might refinance the loan soon.
24

Which is a short-term consequence of making a late payment on your bill?

A
It will be harder to buy a house because it affects your credit history.
B
There will be a late fee added to the bill.
C
It will be harder to secure a new loan at a low rate.
D
The bank will charge a fee for having a negative balance.

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