Consumer Ed final

The average American family has how much credit card debt? $10,000 $20,000 $7,000 $3,000

$10,000

Through tracking, the following people discovered something about their expenses. Which of the following people needs to adjust his or her spending or saving habits the most? $150 car payment with a $250 income $800 income with $200 savings $100 entertainment budget with $0 savings $450 income with a $100 ending balance

$100 entertainment budget with $0 savings

You have a credit card with an 18 percent APR and an ADB excluding new purchases method of calculation. The balance of your last billing cycle was $1,750. What is the finance charge? $31.25 $26.25 $2.63 $269.50

$26.25

You have a credit card with an 18 percent APR. This account uses the ADB including new purchases method of calculation. In the last billing cycle, your balance was $1,750 for the first 11 days in the cycle. Then you charged $500 at an electronics store. There are 31 days in this billing cycle. What is the finance charge for this account? $3.11 $31.09 $33.75 $14.15

$3.11

Which of the following shows all the necessary steps, in their proper order, of accomplishing financial goals? -get, do, see -see, do, get -do, see, get -see, get, do

-see, do, get

What percentage of your income is a good target to aim for when calculating your retirement? 60 percent 50 percent 70 percent 80 percent

80 percent

Which of the following best represents scarcity? Stores have a large supply of Sunshine Barbies and an almost equal number of consumers. Stores have a limited supply of Organic Barbies and a limited number of consumers. Stores have a lot of Stay-at-Home Barbies in stock and not very many consumers. Although stores have very few Professional Barbies in stock, there are many consumers on a Professional Barbie waiting list.

Although stores have very few Professional Barbies in stock, there are many consumers on a Professional Barbie waiting list.

Which of the following is the best to contact if you want to find out information about a local business that you think is unethical? The Federal Trade Commission (FTC) and Federal Citizen Information Center Federal Citizen Information Center Federal Trade Commission (FTC) Better Business Bureau (BBB)

Better Business Bureau (BBB)

How are money and water similar? Both can become stagnate when they are left unused. Both can be channeled to accomplish positive things. Both can flood your life with happiness.

Both can be channeled to accomplish positive things.

Which of the following is true of credit? High-interest credit card debt should be avoided. Once you make a mistake with your credit card debt, it can never be rectified. All types of credit should be avoided—the good, the bad, and the ugly. The more credit you have, the better your credit score.

High-interest credit card debt should be avoided.

Which of the following is true of the Abuse Prevention and Consumer Protection Act of 2005? -Individuals are now required to be involved in some form of government-approved credit counseling before declaring bankruptcy. -Most individuals will be able to retain all their property after declaring bankruptcy. -Bankruptcy is now easier for people to declare. -Bankruptcy now remains on a credit report for longer than previously required.

Individuals are now required to be involved in some form of government-approved credit counseling before declaring bankruptcy.

Which of the following statements is true James and Kathy are survivors. Kathy is a thriver, James is a survivor. James and Kathy are thrivers. Kathy is a survivor, James is a thriver

Kathy is a survivor, James is a thriver.

Karen has worked all through high school. She has earned over $25,000, but has never saved anything. She has an old, inexpensive car and she spends her money as soon as she earns it. Her boss just told her that she'll never be promoted if she doesn't get into college and work on her degree. She's checked out the costs of attending a local university, community college, and business college. She will have to save $1,000 each month for a year to even begin at the community college. What is impacting Karen's choices? She doesn't earn enough money to go to college. She has limited financial resources due to poor money management. She needs to get a better-paying job. She spent too much on her car.

She has limited financial resources due to poor money management

Which of the following is a good example of fraud? Someone steals your wallet in the mall. You lose $1,000. Someone makes copies of your keys while you're at work. Two weeks later they drive off with your car. You get an e-mail from eBay asking you to update your account information. Later, over $500 is charged to the credit card you list on eBay, but you haven't visited eBay in months.

You get an e-mail from eBay asking you to update your account information. Later, over $500 is charged to the credit card you list on eBay, but you haven't visited eBay in months.

Which of the following are consumer responsibilities when using credit? shopping for the best APR reading the terms of agreement making on-time, monthly payments all of these

all of these

Which of the following best describes an impulse buy?

buying those little Tic Tacs (not on your shopping list) right by the check-out counter

Jill is a freshman in high school and is serious about saving money for college. She has already saved $300 and is ready to open an account. She plans on using a checking account attached to modest monthly deposits in order to manage her daily transactions. However, she's unsure where to place her college savings. Which of the following options would be best for her to enjoy the highest interest rate on her college savings? money market account interest-bearing checking account savings account certificate of deposit

certificate of deposit

Which of the following savings methods would earn you the highest interest? money market account certificate of deposit none of these interest-bearing checking account savings account

certificate of deposit

Which of the following values would best help Teressa accomplish her priority target of establishing a shelter for needy women in Africa? charity self-sufficiency education independence

charity

Which of the following is the term for "assets used to secure a loan"? interest cosigner principal collateral

collateral

Which group of people do credit card companies most aggressively target? -baby boomers -college students -newlyweds -the elderly

college students

Which of the following is an example of a lending investment? corporate bond mutual fund stock hard asset

corporate bond

Which of the following payment methods might actually end up costing you more than what you originally paid for your purchase? credit card check traveler's check debit card

credit card

What is tracking? anticipating future expenses and preparing for them in your budget gathering and recording your transactions in a way that you can recognize spending patterns recording all your check and cash transactions gathering all your receipts

gathering and recording your transactions in a way that you can recognize spending patterns

Which of the following is a result of credit abuse? higher APRs higher credit rating lower APRs lower minimum payments

higher aprs

How long will a bankruptcy remain on your credit report? two years five years seven years ten years

ten years

How long does it take to own a habit? three weeks three days After three days, the hardest part of working a new habit into your behavior is over--but the habit isn't yours yet. three years

three weeks

Which of the following items is unnecessary to track? time type date amount

time

The four Ts, in order, are: trail, track, target, train track, track, track, track train, trim, track, target track, target, trim, train

track, target, trim, train

Pick the scenario that best represents the most severe consequence of excessive debt. -Carolyn got one credit card in college to be used for emergencies and to establish good credit. Every time she charged it, she paid off the balance that same month. -Jim and Betty were newlyweds and new to money management. After their first year of marriage, they were $5,000 in debt. Recognizing the path they were on, the couple developed a plan to get out of debt in one year, and save enough money for a down payment on a house. -Bobby got two credit cards when he first went to college. He maxed them both out by his sophomore year and talked his parents into paying them off. -The Smith family had five children and over $50,000 of debt. Jack, the father, felt hopeless, and his wife, Jane, was frustrated that he wasn't doing more to resolve their financial problems. They were barely making the minimum payments on their credit cards. The family had stopped going on family vacations because of money worries, and the children could feel the tension between their parents.

-The Smith family had five children and over $50,000 of debt. Jack, the father, felt hopeless, and his wife, Jane, was frustrated that he wasn't doing more to resolve their financial problems. They were barely making the minimum payments on their credit cards. The family had stopped going on family vacations because of money worries, and the children could feel the tension between their parents.

Ben declared bankruptcy after racking up $21,000 of credit card debt during college. He is relieved to not have creditors calling him anymore. He feels like his troubles are over. 1. What is the best thing Ben could do now? -make a spending plan and stick to it -never get another credit card -get a better paying job so he won't have money problems in the future -apply for a low-rate credit card so he can reestablish credit

-make a spending plan and stick to it

Which of the following is a significant difference between a credit card and a loan? A credit card charges interest. A loan is required to be paid off within a certain time period. A loan charges interest. A credit card is required to be paid off within a certain time period.

A loan is required to be paid off within a certain time period.

The federal Truth in Lending Act requires that creditors include what information to credit card applicants? APR and periodic rate privacy policies APR and finance charge payment penalties and grace period

APR and finance charge

Which of the following people is a thriver? -Cathy likes to collect DVDs, but when she realized just how much money she was spending each month on movies, she decided that money would do better in a savings account for college. As hard as it was to break the habit, she gave it up and is excited to make more financial goals for herself. -Cindy has enjoyed her first year of college, but she learned a tough lesson her first semester. She thought that as long as she had checks in her checkbook, she had enough money in her account to keep buying things. Apparently she wasn't paying attention when her dad explained just how her checking account worked. -Jim knows exactly how much money he makes and keeps his receipts for his parents, who want to track his finances. They have created a budget for him three times now, but Jim doesn't think there's any need for him to have a budget now. He's only seventeen years-old, for heaven's sake. -After Bobby's parents paid off his credit card debt, Bobby made a plan to only use his credit cards for emergencies. But when his roommate suggested a trip to Mexico over spring break, that was enough of an "emergency" for Bobby to max out another card in a two-week interim.

Cathy likes to collect DVDs, but when she realized just how much money she was spending each month on movies, she decided that money would do better in a savings account for college. As hard as it was to break the habit, she gave it up and is excited to make more financial goals for herself.

Which of the following statements about excessive debt is most correct? -Excessive debt is more of a problem in developing, third-world countries because people are so poor they have to borrow just to eat. -Excessive debt affects everyone in this country because it affects our national economy -Excessive debt is not a serious problem if you take responsibility for your choices and make a plan to get out of debt. -Excessive debt affects a large number of Americans, but if you manage your money well and never max out your charge cards, it won't affect you.

Excessive debt affects everyone in this country because it affects our national economy

Which of the following is a true statement? -Financial success or failure has little to do with how much money you make. -The more money you make, the more stable you are financially. -The less money you make, the more difficult it is to channel money effectively.

Financial success or failure has little to do with how much money you make.

Which of the following is least likely to happen as a result of Ben's bankruptcy?

He won't be able to get credit cards.

Which of the following is true of your credit score? It can be changed by calling a credit bureau and explaining your situation. The lower the score, the better. It influences how high or low your interest rates will be. It can be changed with more attentive tracking.

It influences how high or low your interest rates will be.

What is the "Stockdale factor"? It's Admiral Stockdale's opinion that pessimism is the most necessary thing in surviving difficult events. It's Admiral Stockdale's opinion that optimism is the most necessary thing in surviving difficult events. It's Admiral Stockdale's opinion that finances shouldn't influence state of mind. It's Admiral Stockdale's observation that it takes recognition of reality and hope for the future to survive difficult events.

It's Admiral Stockdale's observation that it takes recognition of reality and hope for the future to survive difficult events.

Choose the best definition of Annual Percentage Rate. -It's a percentage of the total credit card bill that companies charge for loaning cardholders the money. -It's a flat fee that credit card companies charge for giving cardholders access to their credit card. -It's the tax credit card companies charge cardholders for their services. -It's the minimum balance of a monthly bill.

It's a percentage of the total credit card bill that companies charge for loaning cardholders the money.

Who of the following shows an awareness of opportunity costs? Jackson packs a lunch everyday instead of buying school lunches. He discovered that he was spending $45 per month just for his lunches. He decided to use that money to buy his own computer instead. Carol has worked two summers and hasn't saved any of the money she's earned. She should have used some of it to install a new closet, because all the clothes she's bought with her earnings hardly fit into the one she has. Jason decides to use 50 percent of his earnings for a car. His parents tell him he should drive the old Buick in their garage and save his money for college instead. Jason doesn't want to listen; he wants a red, relatively new pickup.

Jackson packs a lunch everyday instead of buying school lunches. He discovered that he was spending $45 per month just for his lunches. He decided to use that money to buy his own computer instead.

Which of the following is a good example of dollar-cost averaging? Kimber has been swept away on the investment wave. She's extremely interested in watching market trends, and her experience as a business major has helped her anticipate when the value of a stock might rise or fall. Jason is busy, but wants to invest regularly in the stock market. He's been studying one particular company that he would like to buy stock in, but he doesn't want to be a slave to market trends. He decides to invest $200 every month in this company, regardless of how much the shares cost. Fred is addicted to high-risk investing. He regularly participates in day trading, where he buys and sells stock for hours at a time in anticipation of catching his short-lived investments on the upswing. Stephanie has been working at her new job for two years and has saved $10,000 in her savings account. She's decided with that much money she can begin investing for a higher return. Her father is an investment broker and has suggested that she invest in diverse investments of varying risk.

Jason is busy, but wants to invest regularly in the stock market. He's been studying one particular company that he would like to buy stock in, but he doesn't want to be a slave to market trends. He decides to invest $200 every month in this company, regardless of how much the shares cost.

Which of these individuals is living by the principles of sound financial management? -Jessica makes sure to put money in savings as soon as she gets paid, and she budgets her money. She wants to go to Europe in a year and buy a house in five years. She saves regularly toward her goals and stops spending when she reaches the limits of her spending plan. -Janet tries really hard to conserve money. She saves when she can, and hopes that she will have enough to buy a house someday. -Kelsey sets financial goals for herself, but she's not sure when she will actually achieve them. She knows she should put $100 per month away, but she only saves when she has enoug h money left at the end of the month. -Bridget saves every extra cent she gets for a rainy day She puts all her extra money in her mattress because she doesn't trust banks. She wants to have access to her money when she needs it.

Jessica makes sure to put money in savings as soon as she gets paid, and she budgets her money. She wants to go to Europe in a year and buy a house in five years. She saves regularly toward her goals and stops spending when she reaches the limits of her spending plan.

Which of the following people is a survivor? Sheila is nineteen years-old and has spent her first year out of high school working full time and going to the local community college. She lives with her parents and is saving the majority of her paychecks. She would like to be a French interpreter someday, and hopes to use her money for a European vacation that would expose her to different cultures. Justin is a junior in high school with a part-time job and $3,000 in his savings account. He plans to go to Arizona State University and wants to have enough money to pay for the first two years of his tuition. Ken doesn't make much money. He tracks his expenses and is working toward having more money in his savings account. While he worries about whether or not he could support a family, he doesn't currently feel overwhelmed by his finances and has a plan for his future. Kathy has a high-powered job and is making more money than she ever has before. Her apartment is furnished with the most stylish pieces, but she rarely spends any time there because she's working overtime in attempts to advance in her company. She thinks that if she only made more money, she wouldn't have to worry about all her expenses.

Kathy has a high-powered job and is making more money than she ever has before. Her apartment is furnished with the most stylish pieces, but she rarely spends any time there because she's working overtime in attempts to advance in her company. She thinks that if she only made more money, she wouldn't have to worry about all her expenses.

Which of the following is one way to prevent identity theft? Always use your mother's maiden name as a password. Mail your bills from the post office rather than your home mailbox. Keep your home locked at all times. Keep your vehicle locked at all times.

Mail your bills from the post office rather than your home mailbox.

Which of the following is a good debt-elimination plan? Call a credit counselor to negotiate better APRs with your creditors. Make more than the minimum payment on one credit card and when the balance is paid, roll that payment into another one. Cut up all your credit cards but one, and put that one in the freezer. Cut up your credit cards.

Make more than the minimum payment on one credit card and when the balance is paid, roll that payment into another one.

Which of the following is a good example of limited financial resources affecting decisions? Mark has only been working for one year and won't be able to save enough money for the school of his choice. He'll be attending a community college instead. Kathy's family is wealthy and she will be going to the college of her choice, depending, that is, on whether or not she's accepted. John has saved enough money for the first two years of his dream school so that he doesn't have to stress about tuition if he's accepted. While Max's family doesn't make much money, he has been awarded a scholarship for the first year at the college of his choice.

Mark has only been working for one year and won't be able to save enough money for the school of his choice. He'll be attending a community college instead

Which of the following is a good example of a priority target? Mark plans to buy a used car his senior year of high school. He's now a sophomore. Lindsey is hoping a scholarship will pay for college so that she can spend all the money she's saving on a senior trip with her friends. Someday, Courtney hopes to live in a townhouse in San Francisco. Kathy wants to go on a road trip to Mexico with her friends next week. She'll just use her new credit card to pay for it.

Mark plans to buy a used car his senior year of high school. He's now a sophomore.

Which of the following is true? -Money management principles exist whether or not we use them to our advantage. -Creditors, educators, advertisers, and parents are all responsible for ensuring that you use your money well. -The earlier you start sound money management, the more difficult it will be for you to master. -The later you start sound money management, the more easily it will come to you.

Money management principles exist whether or not we use them to our advantage.

Jack is eighteen years old, works a steady job, tracks his expenses carefully, and is saving for his target goal. He wants to save enough to put a good down payment on a car, and establish good credit, so that he can get a good interest rate when the time comes. Jack is buying a new pair of pants. As he goes to check out, the clerk cheerfully asks "Do you want to open a charge account and save 10 percent today?" Jack says yes. Did Jack make a bad financial decision?

No, because if he pays it off in the same month, he'll build good credit for his car loan and save 10 percent on his pants purchase.

Which of the following best describes the "First Supper" of the credit card industry? the meal over which Diners Club Card creator, Frank McNamara, got the idea of the credit card Ozzy and Harriet's first meal paid for with a credit card the first meal ever paid for with a credit card the first meal paid for with a BankAmericard

Ozzy and Harriet's first meal paid for with a credit card

Which of the following statements is false? Payment plans are not intended to be buying incentives. A high-priced item may be more appealing with the option of a payment plan. Payment plans enable consumers to buy now and pay later. Payment plans are usually part of the marketing package

Payment plans are not intended to be buying incentives.

Which of the following is a good example of a monthly spending target? Sam plans to play basketball this fall and will need $200 to pay for new basketball shoes and miscellaneous team supplies. He's working a summer job and will save $75 per month so he has enough money by September. Karen is planning a trip to Disneyland with her friends over spring break her senior year. She's now a junior. Jack had a car accident last month and has taken his car into the shop for repairs. He's borrowing money from his parents so he doesn't have to use any of his savings. Becca wants to buy new school clothes this month and will withdraw money from her savings for a special shopping trip.

Sam plans to play basketball this fall and will need $200 to pay for new basketball shoes and miscellaneous team supplies. He's working a summer job and will save $75 per month so he has enough money by September.

Sandra realizes that the money she is spending on her car is draining a lot of her income. Insurance, taxes, and repairs are all large expenses. She realizes that if she doesn't find a way to decrease this expense, she may not be able to open her store for another five years.

Sandra's dream of opening a store is the opportunity cost of paying for her car. (Opportunity cost is the cost of the thing you gave up in order to have another thing. What is Sandra giving up if she continues to pay for her car?)

Based on what you read in this scenario, what do you think Kathy was like in high school? -She probably didn't have good money habits in high school and when she got married she brought her bad habits with her. -She probably got a lot worse with money after she got married because she had so many more bills as a married person. -She probably didn't have money problems in high school because she wouldn't have had a lot of credit cards and didn't earn that much money then.

She probably didn't have good money habits in high school and when she got married she brought her bad habits with her.

Sandra wants to get control of her finances, so the first thing she should do is: She should check out other funding sources, maybe another job, for example, so she can achieve her $10,000 savings goal. She should create a budget, then monitor her actual expenses so she can adjust her budget realistically. She should set aside $900 per month for her dream. If she doesn't start saving, she'll never get it.

She should create a budget, then monitor her actual expenses so she can adjust her budget realistically.

Read this scenario and then answer the next three questions regarding the scenario: Kathy and James have been married for five years. James plans carefully and watches his spending. He would like to be debt free in ten years, including paying off his home, and retire by the time he is fifty-five years-old. These goals are very important to him. He knows how much money he needs to save and invest to accomplish these goals and if they stick to his plan, they can achieve them. Kathy has a hard time sticking to a spending plan and often spends more than the plan allows on impulse purchases. She sometimes opens charge accounts without telling James. She has added $3,000 in credit card debt in the last year and just obtained another card that James doesn't know about. The bills keeping getting more and more expensive and she's having a hard time juggling the payments. She knows James will be upset when he finds out, but tells herself that she will pay off the cards from her own income and James will never need to know. Which statement best describes the future for this couple? They have excessive debt and are headed for insolvency. They do not have the same financial values and will probably experience conflict in their marriage over financial issues. They will accomplish their goals because James handles money well enough to make up for Karen's deficiencies. They will never achieve their financial goals because Kathy is not committed to achieving them.

They do not have the same financial values and will probably experience conflict in their marriage over financial issues.

Which of the following is true of our values? They do not influence our financial choices. They are unchangeable. They influence our target priorities. We should change our values so they better reflect our transactions.

They influence our target priorities.

How do tracking and targeting work together? Tracking helps us monitor the present, while targeting helps us prepare for our future. Tracking enables us to add up all the expenses for our targets. Tracking encourages pessimism and targeting encourages optimism. Tracking helps us to determine what our targets should be.

Tracking monitors the present, targeting helps us prepare for the future.

Which question(s) is/are important to ask when making goals for your financial future? (Select all that apply) -What kind of financial future am I currently heading for? -How rich do I really want to be? -What kind of financial future do I really want?

What kind of financial future am I currently heading for?,What kind of financial future do I really want?

Which of the following is true about minimum payments? It will lower your credit rating. You will be charged a fee if you pay more than the minimum payment. It won't cost you as much in finance charges as making higher payments would. When only making minimum payments, it will take you longer to pay off the balance, and cost you more in finance charges.

When only making minimum payments, it will take you longer to pay off the balance, and cost you more in finance charges.

Which of the following is a good example of a pyramid scheme? You get an e-mail saying that you can make a lot of money just by sending a small investment to other people listed in the e-mail. You only need to forward the e-mail on to ten people who will be asked to do the same. You are asked to enroll in a special business that only requires you to enlist new members. You will pay an enrollment fee to someone above you, but the members that you recruit will pay an enrollment fee to you. You get an e-mail from a Nigerian resident who has access to millions of dollars that they need to transfer to the U.S. This individual will pay you $5,000,000 just for providing them with your banking account information so they can transfer the money. Someone calls on the phone and asks for you to donate money to a charity. It only requires a credit card number with an expiration date.

You are asked to enroll in a special business that only requires you to enlist new members. You will pay an enrollment fee to someone above you, but the members that you recruit will pay an enrollment fee to you.

You saw an advertisement for a very cool computer game at more than half off the retail price. When you got to the store to buy the game the salesperson told you they were all out but sold you a game he said was just as good for the same price. When you got home and tried the game, it was nothing like the one you wanted. What should you do first? You should complain about the store and its advertisement to the Better Business Bureau. You should return the game to the store tell them that the salesperson misled you about the game and you'd like a raincheck for the game that was supposed to be on sale. You should tell all your friends to never shop at the store. You should write a letter of complaint to the game company.

You should return the game to the store tell them that the salesperson misled you about the game and you'd like a raincheck for the game that was supposed to be on sale.

Which of the following best describes one of the factors that motivates our wants? peer pressure emotional appeals intellectual appeals all of these

all of these

Which of the following is a good example of a fraudulent scam? an advertisement that uses manipulative emotional appeals an e-mail attempting to get your bank account information under false pretenses a business that sells your personal information to other businesses none of these

an e-mail attempting to get your bank account information under false pretenses

Which of these is cash equivalent? stock an investment with liquidity bond high-risk investment

an investment with liquidity

Which of the following marketing strategies is described in the discussion material as one of the most persuasive? appeal to emotion appeal to authority/celebrity appeal to intellect

appeal to emotions

Which of the following is also called a "no frills" account? savings account basic checking account interest-bearing checking account

basic checking account

Lenders are interested in your: academic record APR credit score student loan

credit score

Which of the following does not belong in your financial plan? daily receipts budget net worth statement insurance plan

daily receipts

What is the term used to describe the monthly rate charged to your credit card? interest rate finance charge service fee APR

finance charge

Which of the following might you rely on for investment trading and estate planning? online broker discount broker full-service broker investment advisor

full-service broker

Which of the following describes the time before you are charged interest for a purchase? grace period ADB excluding new purchases method ADB including new purchases method payment penalty

grace period

What information do you need in order to create an effective budget? income, bills, balance bills, spending allowances, daily transactions income, daily transactions, balance income, bills, spending allowances, balance

income, bills, spending allowances, balance

Which of the following describes the plan that helps you assess potential risk and then prepare for it? savings and investment plan net worth statement insurance plan retirement plan

insurance plan

Carolyn saw an advertisement saying that studies showed that ZitBegone worked on four out of five teenagers with acne. She really wants to buy this product because it sounds like it works. Which type of appeal did advertisers use here? emotional appeal appeal to celebrity or authority intellectual appeal none of these

intellectual appeal

Suzy is always thinking of how to best prepare for her future. She has a money market account dedicated to her college savings, but is still interested in a way to save for other future endeavors. She's looking for a way to better track her daily transactions with the option of saving, when possible (she knows how that interest can work to her advantage). Which of the following options would work well for Suzy? certificate of deposit interest-bearing checking account savings account US government savings bond

interest-bearing checking account

What two things are most crucial to a good financial plan? income and expenses the balance of your assets and liabilities knowledge of your current financial reality and a vision of your financial future tracking and targeting

knowledge of your current financial reality and a vision of your financial future

You've purchased your first semester's worth of textbooks through a used book company in another state. Which of the following payment methods would work best? money order check cash traveler's check

money order

Betsy does a lot of research when it comes to her investments. She just wants a way to easily initiate trades by herself. Which of the following would work best for Betsy? investment advisor An investment advisor would be wonderful if Betsy were looking for investment advice. But what she needs most is a convenient way to initiate trades herself. online broker full-service broker discount broker

online broker

Which of the following is a good definition of opportunity cost? the price you pay for your opportunities the cost of opportunities you've missed opportunities lost at the expense of certain transactions

opportunities lost at the expense of certain transactions

Which of the following strategies enables an investor to enjoy low-risk investing and varying investment types? portfolio diversification aggressive investment strategies ultraconservative investment strategies dollar-cost averaging

portfolio diversification

Which of the following is a filing required by the Securities and Exchange Commission? (Select all that apply) prospectus 10K report stock report

prospectus, 10K report

Which of the following best describes a retirement plan? saving money for your future spending money in anticipation of future goals saving enough money to live comfortably once you stop working 

saving enough money to live comfortably once you stop working 

An earthquake strikes in a small town. Local utilities have been interrupted. The only grocery store sells out of all its bottled water in two hours. Many more people in the town need water and wish to purchase it. A truckload of water comes in and is sold for almost double the normal price. This scenario is an illustration of the economic concept of: scarcity needs opportunity costs want

scarcity

Which of the following describes a thriver? -has never considered better uses for income -uses credit as a way to satisfy immediate wants -feels stressed thinking about money -sees money as an ally

sees money as an ally

Excessive debt does not contribute to which of the following? family instability increased inflation self-sufficiency financial stress

self-sufficiency

Which of the following best describes targeting? cutting back on your spending in order to prepare for your future monitoring your daily transactions training yourself to manage your finances setting short-term and long-term financial goals

setting short-term and long-term financial goals

Use the following example for the next three questions Sandra makes pretty good money working as an assistant manager of a clothing store at the mall. She wants to open her own clothing shop when she graduates and is learning about the business. She makes $1600 every month in wages and commission. She has a car and spends some money on entertainment and clothes. She has researched her dream and knows that she will need $20,000 to start a small scale storefront. Her dad will loan her $10,000 if she can save the rest. She has only saved $600 so far, but she isn't sure what she's spending her money on. Sandra decides to purchase a bus pass and sell her car. She puts the money from her car sale into bus tokens which are cheaper than buying a new pass every day. She saves $375 per month by taking the bus. She now has enough money to deposit in her store savings account each month to ensure that she will reach her target goal of $10,000 by the end of the year. The opportunity cost of acheiving her savings goal was: the car expenses the bus expenses the car and the bus expenses none of these

the car expenses

Which of the following is a method of adhering to your budget? the envelope system budgeting software tracking Microsoft Excel

the envelope system

Which of the following is the best definition of investment return? the length of time it takes to make money from an investment the income from an investment the difference between rate of inflation and interest earned the interest earned from a savings account

the income from an investment

If I save and begin earning interest today, then I am taking advantage of: inflation capitalism the time value of money the cost of savings

the time value of money

Which of the following best describes the purpose of consumer protection laws? to ensure that businesses aren't overcharging for their goods and services to protect consumers from identity theft to provide consumers with a central location to lodge complaints to protect consumers from false advertising, fraudulent businesses, and identity theft

to protect consumers from false advertising, fraudulent businesses, and identity theft

What is the purpose of credit? to allow consumers to purchase anything they need, whether or not they have money to provide consumers with a convenient way to pay for goods to allow consumers to purchase anything they want, whether or not they have money

to provide consumers with a convenient way to pay for goods

For school this year, Jason wants one of those new backpacks all his friends are getting. His parents remind him that the one they got him last year is still in good shape, was "in style" just one year ago and was fairly expensive. Which of the following best describes this potential purchase?

want

Who is most responsible for your financial future?

you

How do you know when you've picked the right targets? you will feel guilty about all past spending mistakes you will get excited about your future you will be overwhelmed by your future none of these

you will get excited about your future

Which of the following is a net worth statement? your assets minus your liabilities the sum of your priority targets the sum of your monthly spending targets the sum of your assets and your budget balance

your assets minus your liabilities

Which of the following will not be found in your credit card's terms of agreement? interest calculation method APR your credit rating payment penalties

your credit rating

Whose responsibility is it to ensure that you are not tricked by false or manipulative advertising? the Better Business Bureau's the Federal Trade Commission's the advertisers' yours

yours