Personal Money Management (Final Exam Review)

A bank check is a valid contract.

False

A living wage is high enough to maintain a normal standard of living including paying off school loans and owning a car.

False

A mobile phone application used to TAP for a cup of coffee at Starbucks establishes a legal contract.

False

An Advisor is a person who earns a fee for helping a 3rd party make a sale or contract.

False

Bank fees are always small and should be ignored when deciding on which institution to bank with.

False

Blue Book Value is used when calculating liability insurance coverage.

False

Buying a used car from a private seller has the same disclosure requirements that a used car dealership has.

False

Earning a PhD will lower my salary.

False

GM sold more cars than Toyota or Ford in 2015.

False

I should always hire a lawyer when I am asked to sign a contract.

False

If I borrow my parents car for the weekend I must have my own insurance.

False

If the house I buy is a starter home then I can plan on moving in a year.

False

Most states that have raised the minimum wage have experienced a sharp and sudden drop in job growth.

False

My credit rating has no impact, good or bad, on my ability to secure a low cost mortgage.

False

Once a W4 form is submitted to the federal government there is no need to complete a new one ever again, even upon changing employers.

False

Place-of-work is always understood and is never explicitly specified in an employment contract.

False

Shopping for bank financing to buy a car is best done the day before picking up the car.

False

Since my parents are divorced all three of us will claim me as a dependent on our income tax filing while I am a full-time student.

False

The ABA routing and account information shown on the bottom of your paycheck specifies your personal bank account for funds to be deposited into.

False

The IRS uses the same regressive tax table for every person in the U.S.

False

The courts will not accept a contract written in every-day common language.

False

The house structure is greater portion of the property value.

False

The remaining car loan amount should be shown on my balance sheet as an asset.

False

Unemployment rates for bachelor degree holders is higher than job seekers with an associate degree from a community college.

False

Almost one-fifth of American workers have bad jobs according to Zeynep Ton.

True

Almost one-fifth of American workers have bad jobs according to the HBR author Zeynep Ton.

True

Americans who were middle-aged in 1979 have seen their standard of living rise sharply compared to both their own previous experience and to the previous generation.

True

An Broker is a person who earns a fee for helping a 3rd party make a sale or contract.

True

Apartment insurance policies are cheap and especially useful if they provide coverage in the case of water damages.

True

Behavioral Science's Dual Process Theory originated at Princeton University in 2002

True

Behavioral Science's Rational Choice Theory originated at the University of Chicago in 1980.

True

Breach-of-Contract means when one party fails to perform his part of the agreement.

True

Car insurance Collision is tied to my clunkers blue book value and Liability to the maximum money for people hurt before you must pay.

True

Dates and consideration are two key characteristics of a contract.

True

Dealer car financing rates can be comparable to bank rates depending on the dealership.

True

Depending on the amount of college debt you may take 20 years of working to catch up to your High School only peer in life time earnings.

True

During the past 40 years the steepest downward mobility has been among male high school dropouts earning 66 percent LESS than men their age in 1969 in real wages.

True

Each employee actually costs the employer slightly more than the employee gross pay to help pay for government provided worker benefits.

True

Every U.S. Dollar bill is unique but fungible.

True

Every year thousands of dollars in student grants and scholarships go unused because no student applied.

True

Families with children aged 0 to 17 were more likely than families without children to experience financial burdens of medical care.

True

Federal Insurance Contribution Act (FICA) is also called Social Security.

True

GAP car insurance covers the remaining lease payments until the car is repaired.

True

Groups such as Public Citizen argue that people are forced to waive their legal rights because arbitration clauses are presented in contracts on a take-it-or-leave-it basis.

True

Having your job title specified in your employment contract specifies the scope of your corporate role.

True

If I am self-employed with earning of more than $400 then the IRS states I must file.

True

If I have income and no expenses but can't seem to save then my behavior is that of a spender.

True

If I have nothing of value to lose, then I don't need to worry about insurance.

True

If you are covered by two health benefit plans it is best to drop out of one as you may not submit the same claim to both companies.

True

In 2015 the average new car purchase was $33,000.

True

In 2015 the average subcompact car purchase was $18,000.

True

In general, university credit unions offer students better and more cost-effective services than commercial banks.

True

Insurance companies make very large profits and assume very large risk.

True

Insurance is the equitable transfer from one entity to another the potential loss risk in exchange for a payment.

True

Insurance riders, just like a horseman riding a horse, require a starting base insurance contract to ride on, or be added to.

True

Justice Ruth Bader Ginsburg, the lone dissent in an 8:1 decision, criticized her peers for not considering the Credit Repair Organizations Act in the way a consumer would.

True

Keeping score of your wealth is done with a balance sheet.

True

Learning how to make smart money management decisions is about mastering your decision making behavior not necessarily knowing more financial facts or terms.

True

Legal advice may be all you need in a dispute which is not the same as hiring a lawyer for representation.

True

Life insurance makes sense if you have debts and dependents.

True

Many bank sponsored personal finance websites lack information on how to shop for lower interest rates for your loans.

True

Many large apartment buildings require renters insurance.

True

More than 50% of all car accidents happen with 5 miles of home.

True

On average from a high school diploma to a doctoral degree the higher the education attained the higher the salary.

True

Pay-Back is a skill representing the ability to manage available credit and cash into and out of debt.

True

Purchasing the extended warranty for my pre-owned car from the dealer is usually a wise option if the car is not certified.

True

Read the fine print is a reference to the small print font of a legal contract where the very small details are written.

True

Some Americans have decided to delay any vacation due to debt levels.

True

Some insurance brokers are employees of an insurance company and sell only that one company's policies.

True

Sometimes the monthly cash flow to maintain a car can break my budget even though the purchase price was a great deal.

True

Sometimes we can guess that things might go wrong and spell out remedies in advance.

True

The Rule of 125 is used to estimate monthly repayment of a $10,000 student loan.

True

The Rule of 72 is used to calculate how long a loan takes to double in size at a stated interest rate.

True

The Weekly Gross Pay amount is the total monies you earned prior to any deductions.

True

The average cost of a visit to the Emergency Room is about an average apartment months' rent.

True

The average length of time a car is kept is 6 years.

True

The company loaning you money owes you a repayment schedule and information about interest rates, fees, and outstanding balance.

True

The courts have held there is no excuse for not reading the contract.

True

The government receives payroll tax payments from you, the employee, and the company that employs you.

True

The median income among families headed by someone under thirty-five was just under $35,500 in 2013, which when adjusted for inflation was 20% less than families earned in 2001.

True

The minimum wage in NJ is now $8.44.

True

The smartest financial analyst you can find on the web, even if you don't know them, make the best financial buddy.

True

There are 6 types of banking institutions but credit unions often have significant advantages for college students and recent graduates.

True

To be able to afford a house you need to be able to pay the monthly mortgage and the initial Down Payment.

True

Traditional finance academic theory is associated with the modern portfolio theory and the efficient market hypothesis first outlined by Harry Markowitz in 1952.

True

Travel Insurance is rarely worth buying, but can be purchased from your existing insurance company for low cost.

True

When buying a car from a private seller it is best to meet and test drive the car during the daytime in a neutral and public place.

True

When the subject is strong, simplicity is the best way to address it.

True

You pay 1.45% out of your pay and your employer pays an additional matching 1.45% to support Medicare.

True

Your NJ state income tax withholding amount is 1.4% for students with less than $20,000 income.

True

A gross pay of $35,000 in Essex County NJ is above the level of a living wage.

True

A judge may decide that a contract is non-binding if the judge finds the intent unfair.

True

A lawyer can help translate your words into the language that a judge expects in a court room.

True

A paycheck is a 3 part record of 3 money transfers between 3 parties.

True

A comprehensive collision car insurance policy includes the state minimum liability when the accident is my fault.

True

A contract needs to identify two parties to be bound to the agreement as written, and record the signature approval.

True

A court may order your paycheck to be garnished and the funds used to pay delinquent child care support.

True

A gentleman s agreement is an agreement which is not an agreement, made between two persons neither of whom is a gentleman, whereby each expects the other to be strictly bound without himself being bound at all.

True

A good estimate for the percentage a typical gross pay amount will be reduced by all typical deductions is 25%.

True