WISE
If a person earns an annual interest rate of 4% on a savings account, how many years will it take for the person's money to double? 1. 18 years. 2. 20.4 years. 3. 24 years. 4. 28 years.
1. 18 years.
A person should have an emergency savings account with deposits of at LEAST 1. 6 months of living expenses. 2. 18 months of living expenses. 3. double the amount of the person's annual salary. 4 triple the amount of the person's annual salary.
1. 6 months of living expenses.
Which statement is true about a whole life insurance policy? 1. It accumulates cash value for the policy holder. 2. The annual premium needs to be paid in full in one payment. 3. The policyholder needs to own a home. 4. It can only be bought by people under the age of 50.
1. It accumulates cash value for the policy holder.
Why does a corporation issue bonds to the public? 1. It wants to borrow money. 2. It wants to lend money. 3. It wants to decrease the price of its stock. 4. It wants to increase the price of its stock.
1. It wants to borrow money.
A person owes $200 on credit card A with an APR of 20%, and owes $400 on credit card B with an APR of 10%. After paying the minimum balance due, the person has $100 to use toward paying money owed. Which of the following is recommended? 1. Pay $100 to credit card A. 2. Pay $100 to credit card B. 3. Pay $50 to credit card A and $50 to credit card B. 4. Put $100 in a savings account.
1. Pay $100 to credit card A.
A person, without checking account overdraft protection, writes a check for $152 when the checking account balance is $125. The bank will generally take which of these actions? 1. Return the check because of insufficient funds and charge a fee. 2. Keep the check and require that the person makes an additional deposit. 3. Charge the difference to the person's debit card. 4.Notify credit reporting agencies of the overdraft.
1. Return the check because of insufficient funds and charge a fee.
Which of the following choices lists assets from MOST liquid to LEAST liquid? 1. Savings account, certificate of deposit (CD), real estate. 2. Money market account, bonds, checking account. 3. Stocks, savings account, money market account. 4. Bonds, real estate, certificate of deposit (CD).
1. Savings account, certificate of deposit (CD), real estate.
What happens to the interest rate during the life of a 10 year bond that a person purchased paying 6% interest? 1. The interest rate changes when the bond is sold to another investor. 2. The interest rate decreases each year. 3. The interest rate increases each year. 4. The interest rate remains the same for the life of the bond.
1. The interest rate changes when the bond is sold to another investor.
By raising the deductible on car insurance coverage for collision from $200 to $400, the premium will be 1. a lower amount. 2. the same amount. 3. a different amount each month. 4. billed monthly instead of annually.
1. a lower amount.
When a person increases his number of payroll exemptions, he will have 1. an increase in his net income. 2. a decrease in his net income. 3. no change in his net income. 4. a reduction in his Social Security payment.
1. an increase in his net income.
Financial planning allows individuals to 1. develop strategies for saving and investing. 2. guarantee income for retirement. 3. avoid credit scams and identity theft. 4. eliminate risk on investments.
1. develop strategies for saving and investing.
Insurance is frequently described as a method of "sharing the risk" because the insured person shares the risk with the 1. insurance company. 2. federal government. 3. person's family. 4. other policyholders.
1. insurance company.
A benefit of using a debit card, linked to a checking account without overdraft protection, is that a person can 1. make purchases without going into debt. 2. improve his credit rating. 3. earn interest on the cost of his purchases. 4. earn additional income.
1. make purchases without going into debt.
Buying insurance is a way to 1. protect against the risk associated with potential losses. 2. postpone income tax payments until retirement. 3. avoid losses associated with an investment in stocks. 4. protect one's purchasing power
1. protect against the risk associated with potential losses.
When the Federal Reserve System (Fed) lowers the interest rate, it is trying to 1. stimulate the economy by encouraging spending or borrowing. 2. control inflation by restricting the supply of money. 3. encourage spending on education or the military. 4. support tariffs on imports.
1. stimulate the economy by encouraging spending or borrowing.
One way to establish credit is to 1. take a small loan using a savings account as collateral and pay it back on time. 2. obtain a reference letter from an employer. 3. directly deposit a paycheck in a savings account. 4. make major purchases with cash rather than using credit cards.
1. take a small loan using a savings account as collateral and pay it back on time.
A person has a ten-year term life insurance policy. The policy will pay 1. the death benefit if the insured dies within the ten years. 2. the death benefit if the insured dies after the ten-year term. 3. a cash value of $250,000 at the end of ten years. 4. a cash value equal to the premiums paid over the ten years
1. the death benefit if the insured dies within the ten years.
An individual, who earns $36,000 a year has total assets of $156,000 and liabilities of $85,000. The net worth of the individual is 1. $49.000. 2. $71,000. 3.$192.000. 4.$234,000.
2. $71,000.
Which checking account term is correctly matched with its explanation? I. Bank Statement: a letter from the bank that informs a depositor of a change in checking account interest. 2. Endorsement: signature required on the back of a check in order for the check to be cashed or deposited. 3. Reconcile: changing the amount a person deposits in a savings account to match the balance in a checking account. 4. Overdraft: the difference between the amount due on a bill and the amount of the check sent to pay the bill.
2. Endorsement: signature required on the back of a check in order for the check to be cashed or deposited.
Which factor would most likely help someone obtain a favorable interest rate on a bank loan? 1. Having several major credit cards. 2. Having a good credit rating. 3. Earning a high income. 4. Obtaining a college degree.
2. Having a good credit rating.
A person's credit report shows late payments made two years ago on a credit card. Which of these statements is correct? 1. For a fee, the credit reporting agency can remove the information from the person's credit report. 2. If this information is accurate, it can stay on the person's credit report for up to seven years. 3. Negative information will always remain on the person's credit report. 4/ The person can remove information that is more than one year old from his credit report.
2. If this information is accurate, it can stay on the person's credit report for up to seven years.
When opening a savings account at a bank, which method of computing interest would a person prefer for the bank to use because it results in the money earning the most interest? 1. Simple interest. 2. Interest compounded daily. 3. Interest compounded monthly. 4.Interest compounded annually.
2. Interest compounded daily.
What is an advantage for a person to have his paycheck directly deposited into his bank account? I. Check-cashing stores only cash personal checks, not paychecks. 2. Paycheck funds are available faster than if the person brought the paycheck to the bank. 3. Taxes deducted from gross pay are lower if the paycheck is sent directly to the bank. 4. Paycheck funds will only be spent on budgeted items.
2. Paycheck funds are available faster than if the person brought the paycheck to the bank.
What might cause the price of a stock to change on a particular day? 1. The corporation's finance committee changes the stock price quarterly. 2. The company announces that it will release a new product. 3. The president of the company declares an increase or decrease in the price of the stock. 4. Nothing: prices are fixed at the time the stock is issued for sale to the public.
2. The company announces that it will release a new product.
What should an employee know when deciding whether or not to contribute to his company's 401 (k) retirement plan? 1. The more money an employee contributes to the retirement account, the less money the employee will collect from Social Security. 2. The earlier an employee contributes to the retirement account, the greater the amount of money available for use during retirement. 3. Employee contributions to the retirement account are matched 100 percent by the federal government. 4. Money in the retirement account can be withdrawn by the employee for any purpose, at any age, without penalty.
2. The earlier an employee contributes to the retirement account, the greater the amount of money available for use during retirement.
The highest interest rate loans generally 1. must be repaid in 12 months. 2. are given to people who have low credit scores. 3. take the longest time to process. A. have no penalties for late payment.
2. are given to people who have low credit scores.
If a person has a 20-year variable interest-rate mortgage, the monthly mortgage payment is likely to 1. remain the same for the entire period of the loan. 2. change several times during the period of the loan. 3. increase 1% each year for the life of the loan. 4. decrease I% each year for the life of the loan.
2. change several times during the period of the loan.
A credit union is a l. division of the federal government that makes loans to consumers. 2. non-profit business that operates like a bank and is owned by its members. 3. business that provides financial and investment services for a monthly fee. 4. bank that only serves consumers who were born in a foreign country.
2. non-profit business that operates like a bank and is owned by its members.
When considering purchasing renter's insurance, a person should know that the I. premium is based on the tenant's income. 2. purpose is to cover monetary losses related to fire, theft, and personal injury. 3. landlord's insurance pays the tenant for any personal property losses. 4. landlord must approve any insurance policy the renter intends to buy.
2. purpose is to cover monetary losses related to fire, theft, and personal injury.
Which of the following is true about mutual funds? 1. Investors do not have to pay taxes on gains from mutual funds. 2. Investors must keep mutual funds for more than three years. 3. Mutual funds are typically not as safe as certificates of deposit (CD). 4. Retirement accounts do not include mutual funds.
3. Mutual funds are typically not as safe as certificates of deposit (CD).
A 20-year-old man started depositing $1,000 a year into a savings account at 3% interest. His cousin started saving $2,000 per year in a savings account in the same bank when she was 40 years old. Both accounts earned the same rate of interest. Today, the cousins are 60 years old. Assuming neither one made any withdrawals from their accounts, which account has the most money? I. Both accounts have the same amount of money. 2. The cousin's account has more money because she deposited more money. 3. The man's account has more money because his money earned interest for a longer period of time. 4. The man's account has more money because the deposited more money.
3. The man's account has more money because his money earned interest for a longer period of time.
Which of the following is an example of the "time value of money"? 1. A program of benefits for employees. 2.The risk associated with the purchase of speculative stocks. 3.The result of interest compounding on savings. 4. A plan to diversify investments.
3. The result of interest compounding on savings.
Why are mutual funds considered a wise investment? 1. They pay a fixed rate of interest over a set period of time. 2. They are insured by the federal government. 3. They diversify a person's portfolio among a number of stocks and bonds. 4. They only invest in preferred stocks and municipal bonds.
3. They diversify a person's portfolio among a number of stocks and bonds.
All effective financial goals should I. be solely based on current needs. 2. be achieved in less than five years. 3. have target dates for achievement. 4. have the approval of a financial advisor.
3. have target dates for achievement.
One DISADVANTAGE of giving someone a gift card is that the person I. is required to make purchases for the exact value that is on the card. 2.has to pay a fee when using the card. 3. may forget to use the card often resulting in a monthly inactivity fee after 12 months. 4.has to pay to renew the card each year.
3. may forget to use the card often resulting in a monthly inactivity fee after 12 months.
A form of payment that is guaranteed to be as good as cash is a 1. personal check. 2. Social Security card. 3. money order. 4. certificate of deposit (CD).
3. money order.
Why do investors diversify their investments? 1. To decrease liquidity. 2. To reduce capital gains. 3. to lower portfolio risk. 4. To protect savings
3. to lower portfolio risk.
A personal monthly budget contains both fixed and variable expenses. Which is considered a variable expense? 1. Life insurance premiums. 2. Rent. 3. Car loan payments. 4. Food.
4. Food.
Which is an example of "pay yourself first"? I. Paying at least the minimum amount due each month on a credit card bill. 2 Putting aside money for a weekly movie and dinner at a restaurant. 3. Having utility bills paid automatically from a checking account. 4. Having 10% of each paycheck directly deposited into a savings account.
4. Having 10% of each paycheck directly deposited into a savings account.
What is the advantage of investing in stocks over a twenty-year period? I. After twenty years, stocks are protected against loss in value by the Federal Reserve Bank (FED). 2. Over a long time, money invested in stocks is insured by the Federal Deposit Insurance Corporation (FDIC) unlike money in savings. 3. The longer the investor owns a stock, the lower the investment risk. 4. When stocks are held for a long time, the money invested generally makes more than money in a savings account earning interest.
4. When stocks are held for a long time, the money invested generally makes more than money in a savings account earning interest.
Credit card companies have the legal right to 1. harass the credit card holder in order to collect payment on credit card bills. 2. call neighbors for references before giving a credit card. 3. change the interest rate on a person's credit card without notification. 4. charge a higher interest rate on credit card cash advances than for credit card purchases.
4. charge a higher interest rate on credit card cash advances than for credit card purchases.
When a credit card company increases a person's line of credit, it may I. help the person to pay his outstanding debt on that credit card. 2. discourage the person from using that credit card to make small purchases. 3. prevent the person from paying more than the monthly minimum balance due on that credit card. 4. encourage the person to use that credit card to buy more than he can afford.
4. encourage the person to use that credit card to buy more than he can afford.
A person pawns his watch and receives $100 from the pawnshop. A month later, the person pays $120 to get his watch back. The additional $20 paid is considered 1. a dividend. 2. a fee. 3. a premium. 4. interest on the loan.
4. interest on the loan.
The DISADVANTAGE of taking a loan for the maximum number of years allowed is that the longer the period of time of the loan, the greater the 1. the amount of collateral required. 2. risk of interest rates going up. 3. equity after five years. 4. total cost of the loan.
4. total cost of the loan.
A person budgeted $150 to pay her credit card bill. When the bill arrived, it was for $200. A financially literate person would pay 1. only the extra $50 this month. 2.only the budgeted $150 this month. 3.only $100 now and the $100 balance next month. 4.$200 and reduce budgeted variable expenses by $50 this month.
4.$200 and reduce budgeted variable expenses by $50 this month.
A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent? A "I think I need a personal property floater." B "I think I should get speculative risk insurance." C "I will deduct the cost of the jewelry from my premium." D "I realize that if this jewelry is stolen it will be considered vicarious liability."
A "I think I need a personal property floater."
The denominations of coins in the United States are: A $.01, $.05, $.10, $.25, $.50, and $1.00 B $.01, $.30, $.50, and $5.00 C $.05, $.10, $.50, $.75, and $10.00 D Coins can be in any denomination a consumer desires
A $.01, $.05, $.10, $.25, $.50, and $1.00
A creditor determines your creditworthiness based on: A Character, collateral, and capacity B Address C Gender DEducation
A Character, collateral, and capacity
The purpose of Insurance is NOT to: A Diversify an investment portfolio B Share risk with other policy holders and the insurance company C Protect assets D Protect against potential losses
A Diversify an investment portfolio
The time value of money refers to the concept that money: A Received today is worth more than the same amount of money received in the future B Changes in value along with interest rates C Money will double in value over seven years D Is the foundation for developing a financial plan
A Received today is worth more than the same amount of money received in the future
44 The annual percentage rate (APR) is: A The true cost of credit that must be disclosed on a loan agreement B Always expressed in dollars C Required by the Securities Exchange Commission D Required by the Comptroller of the Currency
A The true cost of credit that must be disclosed on a loan agreement
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the A US Treasury Department. B Federal Deposit Insurance Corporation. (FDIC). C State Banking Commission. D Federal Reserve Board.
A US Treasury Department.
When a person brings an item to a pawnshop to obtain cash, the transaction is considered A a collateralized loan. B a custodial payment. C an unsecured loan. Da sales agreement.
A a collateralized loan.
A person's debt ratio shows the relationship between debt and net worth. The lower the ratio the A better off financially the person is. B worse off financially the person is. C more liquid assets the person has. Dless liquid assets the person has.
A better off financially the person is.
One of the benefits of holding an investment for over a year rather than selling it in less than a year is that the A capital gains on the investment will be taxed at a lower rate. B fees will not be charged by brokers for selling the investment. C money earned on the investment will be considered tax-free. D profits on the investment can be averaged over the length of time the investment is held.
A capital gains on the investment will be taxed at a lower rate.
The interest earned on United States Series EE Savings Bonds is A exempt from state and local taxes. B paid in a lump sum at the time the face value on the bond is reached. C equal to the money paid to purchase it. Ddeducted at the time of the bond's purchase.
A exempt from state and local taxes.
A person owns a stock that pays a $2.00 a share dividend. If the person chooses to reinvest that dividend, this means that the $2.00 will go toward buying A more of the same stock. B stocks that are similar to those already owned. C preferred stock in the corporation. Dbonds in the corporation.
A more of the same stock.
After five years of owning a Roth Individual Retirement Account (IRA), a person wants to buy his first home, the person can withdraw money from the Roth IRA A tax and penalty free. B but must pay a set penalty at the time of withdrawal. C and have penalties deferred until retirement. D and owed taxes are deferred until retirement.
A tax and penalty free.
Electricity and food expenditures are: A variable expenses that change from one period to another B discreet expenses that do not have to be paid monthly C fixed expenses that remain the same from one period to another D personal expenses for an individual or family
A variable expenses that change from one period to another
What is meant by an uncollateralized loan? A A loan not backed by a co-signer who agrees to cover the amount of the loan. B A personal loan without assets to cover the loan amount. C A home equity loan. D A loan taken on a life insurance policy.
B A personal loan without assets to cover the loan amount.
Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of: A An installment payment B A savings plan C An ATM transaction DA debit card transaction
B A savings plan
Money in the United States includes: A Gold B Checking account balances on which checks can be drawn C Barter (trade with services or goods) DDiamonds
B Checking account balances on which checks can be drawn
49 Gwen receives a bill from her auto insurance company, and she sends a check to the company to make sure her policy is not cancelled. The cost of her policy is called the: A Co-insurance clause B Premium C Deductible D Exclusion
B Premium
When deciding between two job offers with a similar salary offer, a person should first consider: A Travel time to the work location and the size of the organization B Retirement and health plans C Tuition reimbursement and bonus potential DReputation of the organization
B Retirement and health plans
Which of the following is a disadvantage of using phone cards, debit cards, electronic transfers, and ATM cards? A Consumers can make purchases without of writing check B They expose consumers to greater likelihood of identity theft C They slow down the economy's recovery D They decrease availability of currency in the economy
B They expose consumers to greater likelihood of identity theft
You can set up an Individual Retirement Account at: A an insurance agency B a bank C a small loan company D a real estate agency
B a bank
Buying a treasury bill (T-bill) is best for investors who are looking for A a place to invest between $100-$500. B a secure, low risk investment. C a higher yield on their investment than corporate bonds offer. D an investment that matures in 10-30 years.
B a secure, low risk investment.
Financial plans need to: A include income but not expenses B be changed during different stages in life C include income and eliminate risk D to be approved by an accountant
B be changed during different stages in life
When a person declares bankruptcy that fact will appear on the person?s credit report A for a 3 year period. B for a 10 year period. C until the person repays all debts owed. Duntil the person is able to receive a new credit card.
B for a 10 year period.
To determine the time value of depositing $100 in a savings account, a person needs to know the interest rate and A her total income. B the rate of inflation. C whether the account is FDIC protected. D whether the bank offers overdraft protection.
B the rate of inflation.
A company offers a defined-contribution pension plan which means that upon retirement the employee will receive A one-half of the employee?s last year?s salary. B the total amount of money contributed plus investment earnings. C an amount of money based only on the length of time the employee worked for the company. D a specified amount of money based totally on the profit earned by the company while the employee worked there.
B the total amount of money contributed plus investment earnings.
Which financial product has the most predictable income? A Stock B Real estate C Certificate of deposit D Option/future contract
C Certificate of deposit
Interest earned on interest is known as: A Simple interest B True interest C Compounded interest D Variable interest
C Compounded interest
Which of the following is considered to be open-end credit? A A mortgage. B A car loan. C Department store charge cards. D Installment loans.
C Department store charge cards.
Which of the following careers would be possible choices for someone interested in money and finance? A Psychologist B Social worker C Insurance actuary D Musician
C Insurance actuary
Which of the following does the Federal Reserve use to regulate the nation's money supply? A Fiscal policy B Proposing legislation C Monetary policy D Regulations
C Monetary policy
Another term for the dollar amount of your paycheck after taxes and other withholdings is: A Discretionary income B Adjusted gross income C Net income D Gross income
C Net income
What is the largest equities market in the world? A American Stock Exchange (AMEX) B NASDAQ market C New York Stock Exchange (NYSE) DOver-the-counter (OTC) market
C New York Stock Exchange (NYSE)
Jane owns common stock, a corporate bond, shares in two mutual funds, and a U.S. Treasury note. All of these together are called her: A Retirement holdings B Net worth C Portfolio D Investment package
C Portfolio
A pharmacy is to drugs as the American Stock Exchange is to: A Interest B Stock advisors C Securities D Mutual funds
C Securities
Which investment would you choose today if you believe interest rates will go up? A Long-term bonds B Variable-rate loans C Short-term savings instruments D Stocks
C Short-term savings instruments
A man budgeted $200 a month for clothing. This month the man spent $150 on clothing therefore that budget item is considered to have A an outflow deficit. B an income overage. C a budget variance. D a budget deficit.
C a budget variance.
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive A one-fifth of the $20,000 face value. B $20,000 less the premiums paid. C a calculated amount of money which includes the premiums paid as well as the interest on that money. D a calculated amount of money that must be converted to a term life insurance policy.
C a calculated amount of money which includes the premiums paid as well as the interest on that money.
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This means that the A investor will pay only $5000 for the shares. B investor is buying 2000 shares. C brokerage firm is lending the investor 50% of the money. D brokerage firm will own 50% of the 1000 shares of stock that were purchased.
C brokerage firm is lending the investor 50% of the money.
To qualify for a Federal Housing Administration (FHA) loan, a person must generally A have at least a high school diploma. B have one-quarter of the cost of the home for a down-payment. C fulfill income guidelines. D provide two individuals to co-sign the loan.
C fulfill income guidelines.
39 An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the investor would own at the moment of the split A 20 shares of the stock and the price of each share is $80. B 40 shares of the stock and the price of each share is $40. C 80 shares of the stock and the price of each share is $40. D80 shares of the stock and the price of each share is $80.
C80 shares of the stock and the price of each share is $40.
Approximately, what is the annual finance charge for each $100 owed on a credit card with a 16% annual interest rate (APR)? A $.84 B $1.60 C $8.40 D $16.00
D $16.00
The most liquid type of investment is: A A corporate bond B A certificate of deposit C Real estate holding D A money market account (statement savings account)
D A money market account (statement savings account)
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with: A Its Board of Directors B The Federal Reserve C The World Bank D The Securities and Exchange Commission (SEC)
D The Securities and Exchange Commission (SEC)
A person buys a flat screen, plasma, theater-like television. The person has homeowners insurance. Why would it be appropriate to add a personal property floater to that insurance? A To reduce the premium on the homeowner?s insurance. B To protect the person who owns the television from liability for damages. C To show the insurance company a good faith investment has been made. D To cover the cost of replacement should the television get damaged or stolen.
D To cover the cost of replacement should the television get damaged or stolen.
A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should A include the reason that both cash and a check are being deposited B indicate what bank issued the check that is being deposited. C indicate the amount of money that is currently in the checking account as well as in a savings account to cover the check. D list the cash deposit separately from the check as well as the total of the deposit.
D list the cash deposit separately from the check as well as the total of the deposit.
As an investment, a person decides to buy a small house that has three rental apartments. The profits from this investment may be lower then expected if the A tenant in an apartment decides to paint the hallways. B mortgage on the house is paid off. C taxes on the house are lowered. D one of the apartments is not rented.
D one of the apartments is not rented.
A person complains about how expensive it is to be a cigarette smoker. One of the reasons cigarettes are so expensive is that A the tobacco supply is controlled by the Federal Trade Commission (FTC). B the tobacco industry imports most of the tobacco. C their cost is controlled by the Food and Drug Administration (FDA). D the government imposes an excise tax/sin tax on them.
D the government imposes an excise tax/sin tax on them.
Which credit card term is correctly matched with its explanation? I. Annual Fee: a fixed fee charged to consumers by credit card companies for using their cards. 2. Minimum Amount Due: the amount a person must pay each month on a credit card bill in order to avoid having a balance owed on the card. 3. Due Date: the date a check is written to pay the minimum amount due on a credit card. A Credit Limit: the interest rate charged once a year based on the unpaid credit card balance.
I. Annual Fee: a fixed fee charged toconsumers by credit card companies forusing their card
A person has $2,000 to save or invest. If the person strongly believes that interest rates will go up within a year, the person should I. buy a six-month certificate of deposit (CD). 2. close her savings account. 3. invest in a 15-year municipal bond. 4. buy antiques.
I. buy a six-month certificate of deposit (CD).
While shopping for a budgeted and needed bathing suit, a person finds that winter leather jackets are on sale for 50% off. The person has two good winter jackets. In this case, which financial guideline should be used to determine whether to purchase the jacket? 1. Impulse buying does not save money. 2.Merchandise bought on sale stretches available money. 3. Buying items in the off season is a smart consumer strategy. 4.Consumers should look for bargains as a way to make purchases.
Impulse buying does not save money.
A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take? A Notify a credit reporting agency in order to avoid a late fee. B File for bankruptcy in order to maintain ones current credit score. C Notify the credit card companies in order to negotiate a new payment plan. D Contact the Internal Revenue Service in order to avoid paying income tax this year.
Notify the credit card companies in order to negotiate a new payment plan.
Jami lost her debit card. She did not report it missing for 3 months. If an unauthorized person used her debit card, her maximum liability is: A $50 B $500 C Unlimited liability DNo liability because she notified the financial institution
Unlimited liability
A rising rate of inflation is most difficult for people who are 1. paying off old fixed-rate loans. 2. working in their jobs for less than 5 years 3. small business owners. 4. living on fixed incomes.
living on fixed incomes.
When a person has a balanced budget the 1. net income = disposable income. 2.total income = total expenses - savings. 3. total expenses = savings. 4. total expenses + savings = total income.
total expenses + savings = total income.
