economics exam

which of the following financial institutions typically have the highest fees?

check cashing and payday loan companies

Which type of bank account typically offers the least (if any) interest?

checking account

when looking for pre-approval on a car loan you should

compare pre-approval offers and select the one that is best for you

when you are deciding what to buy you should

compare the unit price of items similar to the one you want

which payment option could have interest charged to you?

credit card

when filing an insurance claim, the policyholder must pay a _____, which is the amount you owe before insurance will cover the rest of the bill

deductible

this helps you prepare for unexpected expenses

emergency fund

what type of federal funding is free money, but is based on financial need only?

federal grants

which of the following is possible tax or deduction that they may show up on your paycheck?

federal income tax, contributions to retirement savings, and FICA

when setting a budget you should consider

financial goals, current expenses, and income

which of the following is NOT considered part of your benefits package available from your employer?

free technology equipment

The___ is a flexible market that allows you to work short-term, independent jobs.

gig economy

which of the following is a benefit of using a budget?

helps keep track of the money you receive, helps to prioritize your spending, and helps reach short and long term financial goals

which of the following answers lists 4 year colleges from generally the least expensive to most expensive?

in state public university, out-of-state public university, private university

which of the following is NOT a good way to track your spending?

in your head

something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...

insurance

if you get into a car accident, your ______ may increase because you will be considered a riskier for insurance companies to cover

insurance premium

which of the following statements about investing is FALSE?

investing is a guaranteed way to grow your money

which of the following statements about investing is TRUE?

investing is riskier than putting money in a savings account

why is figuring out the unit price (individual item within a group) of something useful when shopping?

it helps you determine the best deal

what are the benefits of attending a local community college?

it is cheaper to earn an Associates degree at a community college and then transfer to a four-year college to finish, you can live at home and save dorm fees while earning an Associates degree, choosing a local community college within closer driving range saves on transportation (all of the above)

why is it important to have insurance?

its important to have insurance so people can protect themselves from losing a lot of money in the event and so individuals can defend against the possibility of financial loss due to unpredictable event (A and B)

insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called..

liability insurance

what should be considered when setting a budget?

needs, wants, and savings

which example shows the advantages of owning a car over leasing one?

no restrictions on the number of miles to drive and the ability to customize, or make changes to the car

which examples shows the advantages of owning a car over leasing one?

no restrictions on the number of miles to drive and the ability to customize, or make changes to the car

going directly to a car dealer for a loan to keep things simple is a..

not a great idea because they typically offer higher interest rates

which savings account will earn you the most money?

one that compounds interest daily

which savings account will earn you the least money?

one that earns simple interest monthly

which of the following is NOT a possible tax or deduction that could come out of your paycheck?

overtime

paying only the minimum balance on your credit card can lead to..

paying more interest

which choice or choices best describes the purpose of an emergency fund?

prepares you for unexpected expenses, keeps you from borrowing money from friends and family, and removes the worry about expenses not in the budget

in addition to needs, what should you plan for first when creating a budget?

recurring expenses

buying a home security system is an example of protecting your home against__

risk

which of these additional costs will most likely be the most expensive?

room and board

living at home while enrolled in post secondary school or training can save money on..

room and board but it raises costs for transportation

how can you ensure you don't go over your budget?

round up your expense estimates to add a buffer

which of the following is NOT a possible tax or deduction that could show up on your paycheck?

sales tax

what is one of the best ways to get reliable information about a product?

search online reviews

which of the following statements is true about taxes?

taxes pay for schools/government departments, taxes pay for roads/emergency services, and taxes are often used at the federal,state, and local ,levels

how is an advertisement different from a comment from a regular consumer?

the advertisement is likely one-sided

an insurance premium is...

the amount of money you pay for an insurance policy

what is net pay?

the amount of money you´re paid after all taxes and deductions are taken out of your paycheck

which of the following is true about the Free Application for Federal Student Aid (FAFSA)

the earliest you can submit your FAFSA is October 1st of each year, the form is available online or on paper, states may have different deadlines for applying for state aid (all of the above)

how is a post from a social media influencer different from a comment from a regular consumer?

the influencer is paid to post the product

a pack of 24 pencils is more expensive than 12 pencils, but why could buying the 24 pack be the better deal?

the price of each pencil, or the unit price, is actually cheaper in the 24 pack

making the choice to spend money on post secondary education pays off in the long run because:

the salary you will earn with a degree will pay back the cost of college over your career

how is having a security system for your home a risk management strategy?

the security system will alert authorities and deter criminals, protecting your valuables and property

when are loans a good option to use?

when paying for higher education

what is a benefit of having a good credit score?

when you need a loan, you'll have more loan offers to pick from

what is a consequence of not having health insurance?

you must pay all costs for health care and medical emergencies

choose the statement that is true about health insurance

you should always have health insurance, regardless of your circumstances

all of the following are benefits to paying the full balance on your credit card each month EXCEPT:

your credit score can decrease

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?

your financial insitution

your employer sends you a ___ form that tells you how much you´ve made and how much you've paid in taxes in the last year?

W-2

which of the following is NOT a benefit of using a budget?

a budget can help you purchase anything you want

not managing your debt wisely can result in___

a decrease in your credit score

which of the following statements about stocks is TRUE?

a stock is a share of ownership in a company

a mutual fund is..

a type of investment that invests in a mix of different types of investments

textbooks, transportation and room and board are all..

additional costs for attending a college or university

when you are deciding what to buy, you should not...

assume that buying the cheapest item is the smartest choice

healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of____available from your employer.

benefits

which item is important to consider when selecting a credit card?

both APR and fees

credit cards can help____ when paid off on time regularly

build credit history