Finance 1907 Final Exam
Most experts advise spending no more than how much of your after-tax income on rent?
33%
Credit report
A credit score is derived from information gathered from a what?
interest
Because the federal government wants taxpayers to own homes, the tax code allows homeowners to deduct what portion of their mortgage payment from their taxable income?
This card uses the same networks as credit cards. You may also find the VISA or MasterCard logo on most of them and you swipe them through the same machine at the store.
Debit Card
Dedictible
Each type of insurance has its own type of __________.
Preparing for a job interview is easy
FALSE
Business only spend money on things that make employees happy
False
Very few people have to take care of an aging parent.
False
What is the NCUA?
National Credit Union Administration
Excise taxes are usually paid on what?
Purchases
credit cards
The length of your older accounts is important. You should use your oldest what once in a while?
false
The less risk presented to the insurance company the higher the premium will be.
poor
The old argument that a tax refund is like having a built-in savings plan is a very __________ argument.
One thing a ____will do is show where the money is spent
budget sheet
Budgeting is a process but it is a very complicated one
false
Generally, anyone planning to replace their car every five years or less may be better off leasing lower-mileage used cars.
false
Money stuffed in a mattress is not subject to the time value of money.
false
your employer will move you along in your career
false
What is a tax from a state or city on the sales of a product or service, generally collected by the retailer?
sales tax
Saving is about how best to accomplish these kinds of goals.
short-term
Savings are used to achieve what?
short-term financial goals
planning
summarized in one word, how do you get the most out of your college education
Compounding is the power of the time value of money.
true
Credit and debt are two of the most crucial means available to achieve personal financial goals.
true
The three W's for career management
what, where, and who
yours
whos responsibility is it to get answers
budget
will show you how money move in and out of the household over a period of time
The average new car depreciates about _______ the very first year.
20%
Your retirement account sends out their annual statement and shows that you initially opened the account with a $5000 deposit. It's grown to $100,000. It also shows an average annual growth rate of 8%. If you're 62 years old now, when was the deposit first made?
38.93 years ago
By understanding taxes, we can begin to understand how much money we have to earn to purchases what we want after taxes have been applied. For example, if we know we are going to earn $100, and our tax rate is 37%, how much do we have left over to purchase what we want?
63
Durable
A __________ power of attorney gives an adult child the same decision making authority for all their parents' financial affairs as a health care proxy does for health care decisions.
cover letter
A good ____ should be brief and concise, and three paragraphs long at most
false
A good way for people to save on insurance is to buy insurance for items they can afford to pay for out of their own pockets.
credit / deduction
A tax _______ is a dollar-for-dollar reduction in tax expense while a tax _________ only reduces the tax expense by the filer's marginal tax bracket.
Joint will
A will that couples can create that stays in place, even after the first person dies, is referred to as what?
To protect children from financial failure parents should do what?
Allow their children to sit with them when they negotiate a car purchase Allow them to know if there is a financial problem in the household and what that will mean to the children Give their child an allowance Establish a will
congress
Although the Internal Revenue Service (IRS) is the federal agency tasked with enforcing the tax code, who is responsible for writing the tax code?
This is a member organization dedicated to helping people aged 50 and older. They focus on all aspects of life for their members, including advocacy in areas, such as Social Security and health care.
American Association of Retired Persons (AARP)
This is the term for fees charged each year that includes management, administrative and 12b-1 costs.
Annual fees
marginal
Any wage earner in the 25% federal marginal tax bracket gets to keep 75 cents of every __________ dollar earned.
True
Anyone can choose not to engage in speculative risk and so it can be avoided.
Interest bearing checking accounts:
Are just like regular checking accounts but they pay interest and may require a minimum balance or they will charge a fee
CareerBuilder.com
As one of the top-visited job search sites in the United States. This website has millions of visitors each month. It powers the career sites of more than 1,000 partners, including 340 newspapers
Expenses
As you become more experienced with your budget, you can begin to set aside money for unanticipated and non monthly
Receiving direct deposit, average daily balance, basic checking, and avoiding ATM fees are all ways to what?
Avoid Checking account fees
This is the legal status granted by a state or federal court when an individual is unable to pay their outstanding dept
Bankruptcy
If you are not yet married, but planning to get married in the near future, when should you begin setting financial goals?
Before the marriage begins
-----
Between your ____ and your network you should not lack for someone to turn for advice of help
loss
Both factors (ability to repay your loan and willingness to use your resources) are important to a lender because money you do not pay back results in a ____ for them.
What is the term for not having enough money in your account to cover the check? It is not only illegal, but it is also costly. Almost all banks and merchants charge a fee when this happens, usually around $35 per occurrence.
Bounced check
shifting
By transferring the financial consequences of risk to another individual or entity, you are managing risk by this method.
as-is
Cars can be sold '__________,' where there is no express or implied warranty.
Being charged for a __________ account is like having a wallet that charges every time it is opened.
Checking
Some banks offer this basic kind of account that pays no interest but requires no minimum balance.
Checking
What account it not a good idea to keep all of your money for savings?
Checking Accounts
To avoid paying a 10% penalty from a retirement plan people should:
Choose a Roth IRA and only withdraw what they have invested
The steps to resolution of product defects or poor service include:
Contacting the company Reporting lack of satisfactory company response to one of the consumer protection agencies Utilizing mediation or arbitration if available Filing a lawsuit
These financial institutions tend to be less expensive, pay higher interest rates on deposits, and charge lower interest rates on loans. These are three reasons for selecting what type of financial entity?
Credit Unions
Goals
Credit and debt are two of the most crucial means available to achieve personal financial __________.
When using websites for researching the price of a new car, people should be looking for:
Dealer incentives Destination charges Holdbacks
What is the electronic use of money between individuals or between an individual and business that functions like cash without the physical use of the money?
Digital Cash
Most credit unions and many banks offer free checking, especially if you use ________. Being charged for a checking account is like paying rent for your wallet.
Direct deposit
pre-tax
Disability insurance purchased through an employer may allow the premium to be paid in __________ dollars.
To avoid spending more than necessary, while maintaining safety with paper checks, you should do what?
Do not purchase checks from the bank Use carbon checks Avoid custom checks Use a register
What investment option is a managed group of stocks that tracks a particular index, industry, or sector?
ETFs
What should you establish as a good first savings goal?
Emergency Fund
Underwriting
Evaluating how risky you are as a borrower, deciding if, and how much, they will lend the borrower, and determine the interest rate; this is the process lending institutions go through when they are doing what?
risk
Eventually some potential borrowers can get to the point that they present so much ____ that no lender will loan them anything at all.
true
Everybody from advice columnists to counseling experts offer advice on how not to argue about money.
This term is the person designated by the testator to carry out the terms of the will, such as distributing property.
Executor
A will cannot be changed once it is written.
False
All laws, rules, and regulations vary from state to state, but marriage never affords "next-of-kin" status to each spouse.
False
Although it is important to talk about money with your children, it is not important to talk to your parents about money.
False
Banks generally don't charge a fee if the account balance falls below a certain minimum amount any time during the month.
False
Fortunately, money never escalates a conversation into a shouting and yelling match.
False
How to protect loved ones at retirement and death should never be addressed in wills and personal contracts.
False
Long time horizons eliminate the luxury of high investment returns.
False
Parents may pay an unlimited amount for medical or educational expenses for their adult children whether paid to the child or the provider so long as there are receipts.
False
The bottom 10% of U.S. wage earners carries almost 70% of the U.S. tax burden.
False
The old argument that a tax refund is like having a built-in savings plan is a very good argument as there is no better ways to save.
False
The type of investment selected does not need to be linked to time horizon of the financial goal.
False
To decide whether to be saving or investing, simply look at whether it is a bank or a credit union.
False
When saving, money should be kept in a checking account so that it can be easily accessed for its intended purpose.
False
What is the FDIC?
Federal Deposit Insurance Corporation
When it come to taxes; single, head household, married filing jointly, married filing separately, and qualifying widow(er) with dependent child are all a type of what?
Filling Status
spend
Financial success is not about how much people make but how much you spend
invitable
Fires, robberies, windstorms, and diseases are all examples of what?
Financial Services
For many people, traditional banks, such as Citibank or Bank of America, and smaller community banks offer all the __________ that they will need.
To accelerate debt elimination a person could:
Get a part-time job Clip coupons Use tax refunds and pay raises or bonuses towards their first debt Sell their personal belongings they no longer need on Craigslist or eBay
Robert is down on his luck and asks Mae for a $20,000 loan. Mae is quite wealthy and decides to give Robert the $20,000 as a gift rather than a loan. Unfortunately, the amount of the gift is more than the allowable deduction and Mae will be taxed on a portion of the $20,000 that she gives to Robert. On what is Mae being taxed?
Her wealth
When it comes to your spending you need to know two things:
How to live within your means The 'true' cost of your purchases
sellers market
If the average time for a house on the market is less than six months you are probably in what type of market?
Double check Attachment
If you are submitting documents via e-mail, after you confirm attaching the correct file, what should be your final step
Credit card
If you don't have a ______ you should get one. Just make sure you understand how to use them properly first.
answers
If you dont know how something works on campus what should you go find
Multiple-Policy Discount
If you have homeowner's insurance and car insurance with the same company, you should consider requesting a what?
bottom line
If you really want to impress your boss, try acting more like an owner than an employee. One way is to look for any other way you can help increase the
raise
In the long run, proving you can handle different types of credit will ultimately do what to your score and will establish you as a less risky consumer?
An owner
Instead of acting like an employer to impress your boss what should you start acting like that will force you to take more initiative
use
Insurance is one of the few things you will buy and hope to never what?
This federal agency is even powerful enough that they can garnish wages and seize the bank accounts, retirement accounts, house, car, or boat of someone who owes taxes, and sell the property to satisfy their tax debt.
Internal Revenue Service (IRS)
The term for a person who died without having a will.
Interstate
False
Investing in a single asset is taking necessary risk and is compensated by the financial markets.
Ira needs to replace his car. It is nine years old with 168,000 miles on it. The maintenance and repair costs are now as much as a monthly car payment. Ira visited several local car dealerships and each has told him he qualifies for $27,500 car. Should Ira shop for cars at this price since more than one dealership told Ira he can afford a car in this price range?
Ira should review his budget first to determine how much car he can afford
This type of trust cannot be changed or canceled. Because of its permanency, it offers additional tax advantages and is often used for the elderly to transfer property before applying for Medicaid benefits.
Irrevocable trust
Double check
It doesn't take that much work to be really exceptional. Always make sure to do this to your work
When financially planning for taxes, one's primary goal should be to what?
Legally minimize their tax liability
Income
Lenders want to make sure you have the ability to pay back your loan. You may be the most honest person on the planet, have every intention of repaying your loan, and can demonstrate your honesty to the lender. However, if you have no ______, then no lender will lend you money.
In finances, _______ refers to the ability to easily access cash or easily convert an asset to cash.
Liquid
What is the term for an insurance coverage that provides for nursing home, in-home care, and personal or adult day care services for individuals, usually above the age of 65, with chronic illness or disability?
Long term care insurance
Which features generally refer to a credit union when compared to a bank?
Lower fees
During this type of warranty coverage, the owner can take the vehicle to any authorized dealer service center and have repairs made without cost.
Manufacturer warranty
What is the rate of tax placed on each additional dollar of income?
Marginal Tax
What is an index that measures the value of a section of the stock market based on the weighted average of the aggregate values of all the stocks tracked by the particular index?
Market index
As soon as children start learning to say please and thank you, they can begin to learn about __________.
Money
This term is a savings account that generally pays higher interest than a standard savings account and has a higher minimum balance requirement.
Money market account
The key when making a vehicle purchase is not to allow a salesperson to talk you into a what?
More expensive car than you can afford
financial
More recently, however, many other industries have discovered that people with messy _______ lives, as indicated by a poor credit score, tend to lead messy lives. Think of it from the employer's standpoint. If you can't take care of your own money, how can you take care of theirs?
When it comes time to file taxes a person's goal should be to what
Neither owe money nor receive a large refund
risky
Not all debt is bad. However, because economic conditions can change and there is potential for default, all debt is what?
This term describes a medical facility that includes skilled health care, rehabilitation services, and person care 24 hours per day.
Nursing home facility
Lease
Once you settle on a new apartment, it's time to read the extremely long and complex document called the what?
What is the key to teaching your children to be comfortable with money?
Open and Honest Communication
What is a financial product that gives the owner the right, but not the obligation, to buy or sell an underlying security at a set price within a certain time period, regardless of the current market price?
Options
Just as it is important to talk about money with children, it is also very important to talk to __________ about money.
Parents
To improve their credit score people should:
Pay their bills on time Pay down their debt Get a credit card if they do not have one Avoid closing unused credit card accounts
Using the envelope system for budgeting means
People can easier control their spending since they can watch the money danish
Illness
People use insurance to help protect themselves, and the people they care about, from financial loss due to disability, legal liability, property loss, and what other scenario?
What is a tax levied on an individual's personal property by the county or state in which they reside?
Personal Property Tax
Lifestyle forces
Personal finance situations are influenced by variables that lead us to have our own individual goals. These variables are referred to what
In all personal financial decisions, it is a good idea for a person to remember his or her money __________.
Personality
What allows you to designate someone to handle your medical, legal, and financial affairs, using their own judgment?
Power of attorney
What is an agreement that a couple can enter into before getting married, with the purpose to designate ownership of certain assets that will not be divided in the event of a divorce?
Prenuptial Agreement
What is the term for a contractual agreement made by a couple before their marriage in regard to ownership of assets should the marriage dissolve?
Prenuptial Agreement
What is an agreement that a couple can enter into before getting married, with the purpose to designate ownership of certain assets that will not be divided in the event of a divorce?
Prenuptial agreement
Downloadable from the mutual fund's website, what is the term for a document or sales booklet that outlines the fund's objectives, investment strategies, and fees?
Prospectus
When it comes to taxes, the five filing statuses identified by the IRS are single, head household, married filing jointly, married filing separately, and what final filing status?
Qualifying Widow(er) with Dependent Child
What is gain or loss calculated as a percent of original value of an investment beyond the original value of the investment?
Rate of return
The main reason to understand the impact of taxes is to what?
Reach one's financial goals in as short a time as possible
Any time a major life event occurs, a review of your tax situation is in order to avoid the "April 15th surprise." A major life event includes: graduation, marriage, divorce, having a baby, adopting a child, significantly reducing or increasing your income, changing jobs, and what other major life event?
Receiving an Inheritance
Cover letter
Sending just a resume without this when applying for a job makes it likely that the application will be ignored, set aside, or trashed.
Most legally acceptable wills are typewritten (not hand-written), signed by a witness, and what final criteria?
Signed by the person designating their wishes
These funds try to invest in companies that will not cause harm to humans, animals, or the environment.
Socially Responsible Funds
-less/less -more/more
The _______ risk a people present to an insurance company the ______ they will pay for insurance coverage.
Before you step onto a car lot, it's important to determine the real value of the car and what else?
The cost for you to finance and insure the vehicle
Time
The four W's in your job search are relatively easy questions to ask, take this to answer
mortgages
There are three types of __________: fixed-rate, adjustable-rate, and hybrid.
term
There are two basic types of life insurance: __________ and cash value.
Money
There can be a lot of emotional energy in a __________ conversation.
What happens when a person uses a debit card?
They are only using money they have already earned
Level Term Policy
This term describes an insurance premium staying the same amount, not increasing as you get older, throughout the life of the coverage.
probate
This term describes the court process where a will is validated or invalidated.
tax avoidance
This term is certainly legal and is nothing more than utilizing all legitimate and legal methods to reduce your tax obligation to your fair share.
What term describes when an account transfers the assets in the investment account to the designated beneficiary upon your death?
Transfer-on-Death accounts
Any time a major life event occurs a review of one's tax situation is in order to avoid an ÒApril 15th Surprise.Ó
True
Because the value of a new car is higher than its used counterpart, the depreciation is greater in the first few years.
True
Defined benefit retirement plans are virtually extinct in all but some public sector jobs.
True
Excise taxes are very similar to sales taxes but are designated for certain products or industries.
True
Investing in a single asset is taking unnecessary risk; risk that will not be compensated by the financial markets.
True
Just about everything earned, used, spent or done is subject to a tax of some type.
True
One of the easiest ways to begin saving is by setting aside a small amount of each paycheck into some type of savings account each pay period or month.
True
Since taxes are infused into almost everything most people do it is important to understand what effect they have on everyday purchases and decisions.
True
Tax evasion means not paying all taxes that are legally owed, such as not reporting all income or making false claims for ineligible credits or deductions.
True
The first place most people turn to for a loan is a bank or a credit union.
True
There are differences in how each person approaches money.
True
There are so many different types of taxes and so many rules involved that even experienced tax professionals do not know it all.
True
There is not set number of checking accounts that will work for every couple.
True
Understanding the affect taxes have on purchasing decisions is crucial to reaching personal financial goals in as short a time as possible.
True
affect
Understanding the __________ taxes have on purchasing decisions is crucial to reaching personal financial goals in as short a time as possible.
The term for a mortgage loan that is guaranteed by the Department of Veteran's Affairs for active duty military, veterans, and reservists to buy a home.
Veteran's Administration (VA) Loan
Financial
We face many risks. Not fully inclusive, the list includes: disability, illness, death, identity theft, property, liability, and what other form of risk?
Estate planning
What concept is about properly managing your assets while you are alive and transferring them upon your death?
accountant
What do you call a person with a Certified Public Accountancy designation who prepares financial and tax documents, or inspects financial accounts of businesses or individuals?
insurance
What form of protection can help someone, and the people they care about, from financial loss due to disability, illness, legal liability, and property loss?
debt
What helps an economy grow as consumers can spend money on large purchases that keep businesses running and that allows businesses to expand operations to build more items that consumers will buy?
A trust
What is a legal entity where you (the grantor) can transfer ownership of your assets to your beneficiaries?
"Closed-end" credit
What is a loan that is usually attached to a specific item purchased, but is offered by either a retail store or a third-party finance company where you simply borrow a fixed amount that you repay over a specified period of time?
Estate Tax
What is a tax levied on the net value of the estate of a deceased person before distribution to the heirs?
risk
What is it that almost all lenders evaluate of anyone applying for a loan?
Pre-appoval
What is the name of the process potential borrowers go through which includes a mortgage application, a credit check, and a detailed financial check by the lender?
1-2 pages
What is the recommended length of your resume
income tax
What is the tax levied by a government directly on income, especially an annual tax on personal income?
American Opportunity Credit
What is the term for a partially refundable tax credit for qualified education expenses with a maximum of $2,500 during the first four years of postsecondary education for an eligible student?
Tax Bracket
What is the term for a range of income taxed at a particular rate?
Living will
What is the term for a written statement in which a person expresses their desires for medical treatment when they are incapacitated and no longer able to express informed consent?
Letter of last instruction
What is the term for an informal letter providing extra instructions on the details of a will or regarding issues outside of the will?
Annual Percentage Rate (APR)
What is the term for an interest rate stated on an annual basis which may include fees such as loan origination fees?
disposable income
What is the term for the amount of income left after paying all income taxes and other mandatory expenses, such as housing expenses, transportation expenses, and insurance expenses?
Credit
What is the term that allows people to buy things now instead of having to wait until they have saved enough cash to pay for them?
StartJobs.net
What job site has jobs posted by state and country to quickly see what is available in a particular geographical area? You can also select by college or university. Which will list jobs in or around the city or town where the college is located.
seek assistance
What should you do immediately if you start to get into trouble with your credit cards?
Leadership
What skills are very important to employer in every field? You have a great opportunity to gain experience building these skills while you are in college.
Communication
What skills include both writing and speaking
Federal Estate Tax
What tax is the tax the government charges for your right to transfer your property upon your death?
Living will
What term gives you the same decision-making authority for all your parents' financial affairs, as a healthcare proxy does for healthcare decisions?
Estate planning
What term refers to your ability to make sure your heirs get the maximum use of your assets throughout your lifetime and upon your death?
Fee
What will a broker charge every time you buy or sell a stock, bond, or mutual fund?
the three "W's" for career planning are
Who, what, and why
speculative
With __________ risk there is a chance of loss, but there is also a chance of significant gain.
In real life, time is usually expressed in something other than years, such as quarters, months, weeks, or even days. However, what are rates typically expressed in?
Years (annually)
credit report
Your credit score is derived from information gathered from your what?
renting
__________ offers several advantages over buying a home.
payday
___________ loans are some of the most dangerous and expensive loans available.
Any time a major life event occurs, a review of your tax situation is in order to avoid the "April 15th surprise." A major life event includes: graduation, marriage, divorce, having a baby, significantly reducing or increasing your income, receiving an inheritance, changing jobs, and what other major life event?
adopting a child
The primary __________ of buying a new car is lower maintenance costs and peace of mind.
advantage
A home is both a place to live and what else?
an investment
The future value of a(n) __________ calculates how much a regular series of payments will be worth at some point in the future.
annunity
The present value of what kind of time value of money problem or question allows easy calculation of what a series of regular payments to be received in the future is worth today?
annunity
This is simply the same amount of money invested or paid on a regular schedule, such as weekly, monthly, or annually.
annunity
How long to finance a car is a(n) __________ between needs and the ability to afford the monthly payments.
balence
What is the key to debt and debt levels so you do not put your personal finances at too much risk?
balence
The ease of __________ provided by credit cards makes it very easy to overspend.
borrowing
A good apartment or rented home is one that fits in the __________ ,permits saving toward other financial goals (such as homeownership), and suits individual lifestyles.
budget
A large tax bill can be very damaging to the
budget
By creating one of these forms, you can begin to enjoy your life and your money
budget
Reviewing and updating this each month helps almost everyone become much more aware of where their money goes`
budget sheet
If your income exceeds you are in a
budget surplus
You will use time value of money to make decision such as to purchase a house, decide where to save or invest your money, and to what?
buy a car
budget
changes on a net worth statement are directly affected by changes on the corresponding what
When you receive one of these, you must endorse it by signing your name on the back so that you can deposit it into your account.
check
What is a tax credit given for each dependent child under 17 years of age at the end of the tax year?
child tax credit
The Bureau of Consumer Protection protects consumers by:
collecting consumer complaints, investigating consumer complaints, and sharing information with law enforcement agencies. B. suing on behalf of consumers any company or individuals that break consumer laws or regulations. C. developing and overseeing regulations aimed at maintaining a fair marketplace. D. educating consumers about their rights and businesses about their responsibilities.
While there are literally thousands of investment options to choose from, most of them are very __________.
complicated complex convoluted confusin
The power of __________ is how a small amount of money, such as a one-time deposit of $2,500, grows into a million dollars.
compounding
When given an annual rate, what should you divide by?
compounding frequency
As you start the car buying process, where is it recommend you begin in order to get an unbiased review of the vehicle you are interested in purchasing?
consumer product
A tax __________ reduces taxes owed dollar for dollar.
credit
Before beginning to search for car loans it is a good idea for people to review their __________.
credit report
You should have any mistakes on your what fixed before searching for loans, or they could keep you from being qualified for the loan?
credit report
When purchasing a car, who will try to mix the new car price, trade-in value, and financing such that it is difficult to tell what is the actual sales price of the car?
dealer
Normally a __________ card is linked to a checking account, but it can be linked to a savings account or money market account as well.
debit
There is a big difference between this card and a credit card.
debit
What is normally linked to a checking account, but it can also be linked to a savings account or money market account as well?
debit card
Sticking to a budget can be ______ because it does not simply involve numbers
difficult
For many years, the only way to transfer money was by cash or check. What do we have now which enables you to split a restaurant bill with friends, reimburse your buddy for the concert tickets, or sell your old baseball card collection online.
digital cash transfer app
What is the term for the amount of income left after paying all income taxes and other mandatory expenses, such as housing expenses, transportation expenses, and insurance expenses?
disposable income
When purchasing that new vehicle, the dealer will work tirelessly to get you to make a decision based on your what instead of what is in your best interest?
ego
A basic understanding of how insurance companies work is not important in understanding how to successfully reduce insurance costs while maximizing protection.
false
A career elevator speech is a 20-30 minute summary of who someone is and what they are looking to do
false
A defined benefit retirement plan is one where the employee and employer contribute a defined amount of money to a retirement fund.
false
A will cannot be changed once it is written.
false
Almost always there are lots of chances to impress a potential employer or hiring manager
false
Although it is important to talk about money with children, it is not important to talk to parents about money.
false
Annuity is a just a financial term that means unequal payments at unequal time intervals.
false
Banks use borrowers' money in a money market account to invest in government and corporate investments.
false
Budgeting is the power of the time value of money.
false
Buying a new or used car is the only decision faced in the car buying process.
false
Capacity is one of the five C's of credit and refers to the willingness to pay the debt.
false
Cars cannot be sold as-is.
false
Debt often is one of the least stressful elements of personal finance.
false
Home purchasers do not have to pay taxes at the time of closing when purchasing a home, only by April 15th.
false
Homeownership should be more about making money than having a nice, comfortable, safe place to spend time.
false
In a buyer's market, there is less room for negotiation and the buyer may have to make an offer that is very close to the asking price.
false
Individual retirement accounts (IRA) are better because they are not subject to the same 10% penalty and tax issues as are employer retirement plans.
false
Investing regularly is the power behind the time value of money.
false
It is a good idea for home buyers to use dual agency when choosing a real estate agent.
false
It is not substantially important to be prepared for the next job along the way in a good career path plan.
false
It is not sustainable important to be prepared for the next job along the way in a good career path plan
false
Many people that can do so will choose a bank because banks tend to be less expensive, pay higher interest rates on deposits, and charge lower interest rates on loans than do credit unions.
false
Most experts agree that 15% profit on the sale of a car is fair to both the automobile dealer and the buyer.
false
Most people easily separate their financial life from their personal life
false
Neither the buyer's nor the seller's real estate agent ever split the commission when the house sells.
false
Payment history makes up 45% of a credit score, and includes past due items, how long they are past due, and any delinquencies or judgments that are a result of paying late or simply never paying at all.
false
Quite simply, a car is what gains respect from family and friends.
false
Quite simply, a car is what gains us respect from family and friends.
false
Risk can be managed in only one way.
false
Specific financial goals are always in general terms such as "I plan to retire a millionaire"
false
Talking about money is always the best area of communication in a relationship.
false
Talking about money with parents is always easier than talking about money with children.
false
The four WOs of career management provide a lens through which to view a career plan
false
The option of overdraft protection to protect from having payments rejected or bouncing checks due to lack of funds is no longer available.
false
The present value of a lump sum calculation is used to determine what a given amount of money today will be worth at a certain point in the future.
false
There are so few different types of taxes and so few rules involved that even inexperienced people find it easy to complete their tax returns.
false
There are two types of warranties, express and explicit.
false
There is no difference between a financial calculator and any other calculator.
false
There is only one basic type of life insurance.
false
To answer any time value of money question, at least two of the five pieces of information must be known.
false
Waiting to start investing does not significantly reduce the amount of money available later on.
false
When buying a car it typically is better to make an emotional decision rather than a financial one.
false
When shopping for a new home the last thing most people do is to contact a real estate agent and start looking at homes.
false
You do not need to understand the time value of money or a financial calculator to improve your financial capability as much as possible.
false
a resume is an insignificant document for anyone seeking a job
false
for almost everyone it is easy to separate personal life to financial life.
false
sticking to a budget is easy because it only involves numbers
false
What is an electronic calculator that specifically performs financial calculations such as time value of money?
financial calculator
Understanding the time value of money is fundamental to making good what?
financial decisions
Time value of money is what to our financial system that allows us to borrow, lend, and invest, while expecting a fair return of and on our money?
foundation
Practicing time value of money in Excel and on the calculator will help you to better understand these key time value of money concepts: present value of a lump sum, interest rate of a lump sum, investment time period of a lump sum, and what?
future value of a lump sum
Good financial ______ should be realistic and make sense for each individual
goals
This is the term for the time allowed to pay a credit card balance without incurring any finance or interest charges
grace period
decisions
how careers are managed is one of the biggest financial ______ most people make
variable expenses
include utilities and any other expense you are obligated into where the payment amount may change from month to month.
This term is used for receiving money in exchange for work or through investments.
income
you want to compare your network at the same moment each time. Your objective is to track your net worth and see it _____ over time.
increase
What job site is an aggregate site that pulls job listing from thousands of websites including job boards and more
indeed.com
When purchasing a vehicle, at the very least, what should you have done by a trusted mechanic?
inspection
To determine a comfortable car allowance in the your budget, the two pieces of information needed are monthly payment amount and __________ costs.
insurance
When you're evaluating your investment options, the one that has the highest risk probably pays the highest what?
interest rate
discretionary income
is what is left over to spend after you have paid your necessary expenses including taxes, insurance, and other obligations.
What is the term for listed, or itemized, expenses or contributions you are permitted to deduct from your federal taxable income as calculated on Form 1040, Schedule A?
itemized deductions
For most individuals, what is the most expensive way to own a car over your lifetime?
leasing
In finances, _______ refers to the ability to easily access cash or easily convert an asset to cash.
liquid
Waiting until you are 65 years old for retirement seems like a dozen lifetimes away. The good news is that your money grows to large amounts over what kind of time periods?
longer periods
In time value of money, what is the term for a one-time deposit?
lump sum
What of an annuity time value of money question will let you determine what a series of regular payments to be received in the future is worth today. For example, if you know how much a car payment is, you can determine the amount of the original loan.
lump sum
This is a lifestyle force identifying you as a single, married,widowed, or divorce
marital status
What is the amount for which the vehicle can be sold to another individual?
market value
collegeRecruiter.com
match employers with recent college graduates? it is designed specifically for college students and graduates. You can search for entry level jobs based on your college major or search for internships based on your field of this site
What do some institutions require in your account to avoid monthly service fees?
minimum balance
When considering your home or housing options, what is very important if you are looking to move for a new job where timing is important?
mobility
most bills are due monthly, a personal budget sheet should typically span how long
month
Garbage removal, heat, electricity, gas, or unexpected emergencies can add up and may also fluctuate from month to month. These are just a few examples of a homeowners what?
monthly expenses
The present value of an annuity calculates how much a regular series of payments will be worth at some point in the future.
multiply
When investing, __________ funds provide immediate diversification.
mutual
budget sheet
one thing a _____ will do is show where the money is being spent
Where should you begin reviewing car inventories first before physically visiting any dealer's lot?
online
Most people do a __________ job of making a wise car purchase.
poor
What is the amount of money called that is borrowed or lent and does not include interest? It can refer to the original amount or the amount remaining to be paid.
principal
What is the inspection of a home by a certified home inspector to determine the condition of the home prior to its sale?
property inspection
Although they are convenient, these digital cash transfer apps provide little or no ________ against fraud.
protection
total expenses
reducing how often you dine out is one of the easiest ways to reduce your what
When investing for long-term goals, what kind of fund has restrictions, such as a limit on the amount you can invest, and when and how much you can access?
retirement fund
This type of trust can be revoked, which means you can end the trust or change its terms at any point.
revocable trust
The need for instant gratification can easily lead to a personal debt crisis. What are some people unwilling to do until they can afford an item?
save
What financial tool is about the preservation of your money (safety), especially when it comes to avoiding unnecessary fees and other costs?
savings
Customers should be __________ when choosing a bank and a checking account.
selective
Once a collection agency proves that a debt is legitimate, it is important to __________ between what is actually owed to the lender and all the fees and payment penalties that were added by the collection agency.
separate distinguish differentiate discern
Because Lucy is trying to recover just $5,000 from her landlord, who she feels ripped her off, in most jurisdictions, she can sue in __________________, which will keep her fees low and can likely be quick.
small claims court
When developing a plan to pay off debt, begin by listing all your loans, the minimum monthly payments, the amounts owed, the interest rates, and the due dates. This is what step on your journey to reducing debt?
step one
Because the federal government takes a significant portion of earned income, the key to spending wisely is to understand the ________ effect on decision making when spending money.
tax
"Impact of inflation; risk and return relationship; impact of long-term investing; and simple investment options are the best" can be described as:
the four most important investing basics
Legally, who has the upper hand based on what is written on the lease, even if you orally agreed to conditions such as no penalty if your payment was a couple of days late?
the landlord
To answer any time value of money question, at least __________ of the five pieces of information must be known.
three
To answer any time value of money question, you must have at least how many of the five pieces of information?
three
Few people really grasp the concept, but even if you stuffed your money in a mattress, what are you still subject to?
time value of money
You can browse your account every few days to see which online payments have cleared and which have not. Most banks post your what in real time, although some still have a one or two day delay?
transactions
A big advantage to renting is that the home requires little maintenance costs from the renter.
true
A credit card is a huge convenience, but for many people makes it extremely easy to overspend.
true
A full understanding of time value of money and a simple financial calculator greatly improve financial capability.
true
A good first savings goal for most people is to establish an emergency fund.
true
A home buyer that is preapproved for a mortgage from one or more lenders is in a much stronger position to negotiate with potential home sellers.
true
A will is nothing more than a legal document that lets everyone know how and to whom money and other possessions are distributed upon death.
true
According to experts about half of adult children know nothing about their parents' finances, but expect they will have to help their parents financially in the future.
true
All laws, rules, and regulations vary from state to state, but marriage generally affords ?next-of-kin? status to each spouse.
true
Almost everyone can choose how quickly they want to get out of debt.
true
Banks may hold a deposit or check a certain number of days before making the money available to the depositor.
true
Businesses use credit to invest, expand, and hire employees.
true
Charitable donations are a good way for most people to reduce their estate and make sure their favorite charities and foundations are supported after their death.
true
Charitable gift funds let parents make a tax deductible donation in their children's' name.
true
Fair Isaac Corporation (FICO) credit scores are determined from five main pieces of information: payment history, amounts owed, length of credit history, new credit, and types of credit.
true
Generally, anyone planning to replace their car every five years or less may be better off purchasing lower-mileage used cars.
true
How careers are managed is one of the biggest financial decisions most people make
true
How to protect loved ones at retirement and death can be addressed in wills and personal contracts.
true
In order to lure more customers to using their credit card, many credit card companies offer zero percent interest for a short time such as the first six months.
true
Individual retirement accounts (IRA) are better because they are not subject to the same 10% penalty and tax issues as are employer retirement plans.
true
It is easy to distinguish a home buyer's market from a seller's market by looking at the average listing time of homes for sale in the market.
true
It is important to budget for 12 months in advance and not just once a month because vacations. holidays, celebrations, birthdays, and some bills do not occur monthly
true
Most homeowners must obtain a mortgage to buy their homes.
true
Most people do a poor job of making a wise car purchase.
true
Networth is the difference between assets and liabilities or the difference between what is owed and what is own
true
Once a marriage license is signed a couple becomes each other?s closest living relative.
true
One type of overdraft protection banks offer is to automatically deposit a set amount into a checking account when the account is overdrawn.
true
Quite simply, a car is a steel box with wheels that contains about 150,000 miles.
true
Renters do not build equity in their home since they do not own it.
true
Savings accounts work well for emergency funds and other very short-term goals.
true
Some banks charge their customers each time they use their automated teller machine (ATM).
true
Some young couples who come from relatively affluent or even middle class homes expect to buy their first home with the same level of amenities as their parents current home.
true
The more specific financial goals are made, the easier it is to track movement toward achieving them
true
The present value of a lump sum is used to calculate what a future dollar amount is worth today.
true
The question, 'How much money did Grandma put into an account in the beginning?' implies a one-time deposit.
true
There are two options to stop a shortage on a budget sheet, increase income or decrease expenses
true
There are two types of warranties, express and implied.
true
When applying for jobs it is important for people to have a good idea of what they want to do. Because they can look for places that have large contractions of the kinds of jobs they want to do
true
business do not buy things because they like them, but because they can make or save money from them
true
businesses do not buy things because they like them, but because they can make or save money from them
true
good communication means more than the ability to write well or to deliver a good presentation
true
most people are surprised by how much money they spend in certain budget categories, especially dinning out
true
preparing for a job is like cramming for an exam
true
the net worth statement is a snapshot of personal finance at a moment in time
true
Let's define our three classes of earners as lower class, middle class, and what final class?
upper class
This term referred to the things you believe are important in the way you work and live. Beyond what you do, they affect the way you wish to do them as well1
values
Before you occupy the apartment, what should you be sure to do with the landlord or their representative present?
walk-throughs
In TVM, typically you find the following compounding periods (compounding frequency) per year. What does 52 times per year mean?
weekly
The real estate agent who listed the house for sale:
works for and is compensated by the seller
fixed expenses
would include rent, car payment, car insurance, student loan payment, and anything else that is obligated or under contract where the payment is the same each month.
Who is responsible for upgrading yourself to the luxury edition while your in school
you
future income
your budget lets you project what, along with expenses, so that you can align your budget sheet to your S.M.A.R.T.
