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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions:

1. If $500 were placed in a savings account that pays 2.5% simple interest each year, how much interest would be earned in five years?

A) $625
B) $62.50
C) $12.50
D) $6,250

2. Which of the following government practices is most likely to result in a budget surplus?

A) Revenue exceeds spending.
B) Spending exceeds revenue.
C) Social welfare programs are expanding.
D) Revenue and spending are equal.

3. The interest rate on short-term loans that large banks charge their commercial borrowers who have excellent credit ratings is called the

A) funds rate
B) prime rate
C) market rate
D) discount rate

4. Which of the following is a line of credit for which a customer pays a commitment fee and is then allowed to use the funds when they are needed?

A) Installment credit
B) Trade credit
C) Service credit
D) Revolving credit

5. Which of the following doctrines entitles a teacher to use portions of copyrighted material?

A) Fair use
B) Professional use
C) Common use
D) Acceptable use

Solutions: