Finance Final prep

Also called out-the-door price, what is the total price you pay the dealer that includes the negotiated price of the car, plus any taxes, mandatory fees, and overhead fees (fees that dealer charges its customers)?

"Drive-off" Price

Improper tax preparation is another sign of bad money management. Receiving a large lump sum of money at the end of tax season is allowing the government to borrow your money interest free. Instead of a $1,000 refund at the end of tax season, what would the ending value of that money be if you could have invested it in a money market account gaining 6% growth for one year?

$1,060.00

You've have two retirement accounts. The first was an original deposit of $100,000 that earned 6% annual interest. The second is one that you've been contributing $250 for the last 35 years into your company's retirement account and earned a 6% growth rate. You started both accounts 35 years ago. How much are you retiring with based on your two plans?

$1,124,786.25

At you 21st birthday party, your grandma slides you a card and in it a bank account number. Could you just have inherited millions? The next day you hit the bank and the bank teller reveals your grandma made a one time deposit in a money market account when you were born. This account earned 6% APR and you have a $339.96. How much did your grandma deposit on the day you were born?

$100.00

You buy a car and the dealer says they will let you drive away today for $250 per month for five years at 9%. What exactly are they charging you for the car?

$12,043.34

One advantage of an ETF is being able to limit risk through diversity while enjoying the benefits of full market growth. If you happened to invest during the dot-com industry boom and enjoyed a 10 year 30% average growth rate, what would be the ending value of a $10,000 initial investment at the end of that 10 year ride?

$137,858.49

If you lend your younger brother $500 for a tattoo of "ECU" across the middle of his forehead and he agrees to pay you back in five years at an annually compounded rate of 10%, how much will you collect at the end of year 5?

$1965.60

If you deposit $1 per month in an account that pays 12% interest, compounded monthly, what will be the balance in the account after two years if you make no withdrawals?

$26.97

What is the future value of $200 in annual deposits into an account paying 6% interest over the next 10 years?

$2636.20

What is the present value of $400 in annual deposits into an account paying 8% interest over the next 10 years?

$2684.00

Small claims court is for exactly that: resolution of small claims disputes. The dollar amount is usually what?

$3,000 and $10,000

If I deposit $200 in an account that pays 5% interest, compounded annually, what will be the balance in the account at the end of ten years if I make no withdrawals?

$325.78

What is the present value of $800 received at the end of year six, assuming a 7% interest rate?

$533.36

If you lend your roommate $50 to go out on Friday night and ask him to pay you back with simple interest in 4 years at 10%, how much will he pay you back?

$70

If I invest $100 today in an account that earns 10% per year, compounded semi-annually, how much will I have in this account at the end of twenty years if I make no withdrawals?

$704

Your mom needs to borrow grocery money from you to feed you and your eight brothers and sisters. You agree to lend her the money at 12% interest compounded annually. She agrees and tells you she can pay you $300 in one year, $400 in two years, and $200 in three years. How much are you going to lend her?

$729.10

If you lend your younger brother $500 for a tattoo of "ECU" across the middle of his forehead and he agrees to pay you back in five years at an annually compounded rate of 10%, how much will you collect at the end of year 5?

$805.50

What is future value of $500 deposited today at 10% interest compounded semi-annually for 5 years?

$814.50

What is the FV of $100 deposited each month at 12% interest for 5 years?

$8200

You found a bank that will pay you 10% interest compounded semiannually. Your current bank pays interest compounded annually. You know from your finance class at ECU that this is a better deal than what you currently have and open a new account with $500. What is the difference earned between the two accounts at the end of 5 years?

$9

Your 25-year old younger sister started smoking. She is currently paying $24.00 per carton per week. You explain to her that this is $1248 per year ($24 x 52). She says big deal. You then tell her that if she were to save that same amount and invest it in the stock market, she would have a significant amount of money to retire when she turns 65. Your sister wants to know how much she would have. You know that over the long-term, the stock market has returned 12% interest compounded annually. You tell your sister that if she stops smoking she will have_________ when she retires.

$957,328

When evaluating your credit score, what percentage weight does new credit represent?

0.1

If your grandmother left you an account with $96,462.93 in it. She originally put $10,000 in it 20 years ago. What interest rate did Grandma earn?

0.12

When evaluating your credit score, what percentage weight does the length of credit history represent?

0.15

You friend just purchased a new car and you have a feeling he got ripped off. He told you he paid $19,999.99 and his car should be paid off in 5 years. He could squeeze out a $500 car payment, which is a lot, but what interest rate is he paying in order to be in the car of his dreams?

0.1728

When evaluating your credit score, what percentage weight does the amount of money owed represent?

0.3

To find the interest per period, simply divide the interest rate by the number of compounding periods. If it is annual, divide by what?

1

Twenty years ago, your grandmother deposited some money into an account as a gift for you. The money grew at a 12% interest rate to $96,462.93. How much money did Grandma put into the account in the beginning?

10,000.00

What is the present value of 68,824 received in 11 years at a 0.18% rate?

11,143.92

To find the total number of compounding periods, you multiply the number of years by the number of compounding periods. If it is semiannual, multiply by what?

2

Retirement time and you begin to review the two accounts you and your spouse have participated in at work. Your wife's account has $1.3M. You are ashamed to open your account to a measly $800,000. You both made the same $300 monthly payments and have been participating in the retirement accounts for the last 40 years. What was the growth rate difference between the two retirement accounts?

2%

What is the present value of 40,905 received in 26 years at a 0.11% rate?

2,712.56 ± 0

How long does it take an investment to quadruple in value if the investment yields 6% per year?

24 years

Chris refuses to retire until her retirement account has a balance of at least $300,000. Chris also refuses to make any additional deposits into the account. The account currently has a balance of $100,000 and earns 4% per year, compounded quarterly. How long does Chris have before she will retire?

27 years and 9 months

What is the future value of 2,370 invested for 2 years at a 0.14 rate?

3,080.05

Your bonus room needs a big screen TV. You think $50 a month for that 70" big screen TV for $2,500 from a rent-to-own company sounds like a great bargain. And the company is charging you only a 30% annual interest rate. How long will it take you to pay off that TV?

32.84 years

Most experts advise spending no more than how much of your after-tax income on rent?

33%

Your retirement account sends out their annual statement and shows that you initially opened the account with a $5000 deposit. It's grown to $100,000. It also shows an average annual growth rate of 8%. If you're 62 years old now, when was the deposit first made?

38.93 years ago

What is the future value of 9,911 invested for 30 years at a 0.13 rate?

387,677.66

In 1950, Jack-in-the-Box hamburger cost $0.24. In 1994, a Jack-in-the-Box hamburger cost $2.79. What is the effective annual increase in the price of a Jack-in-the-Box hamburger from 1950 to 1994?

5.73%

Your best friend has written you an IOU for last nights bar tab agreeing to pay you $800 at the end of 6 years at the same interest rate you now earn on your savings account. You currently are earning 7% interest compounded annually. What was your friends bar tab?

532.80

What is the future value of 7,284 invested for 22 years at a 0.1 rate?

59,293.76

What is the present value of 13,020 received in 3 years at a 0.19% rate?

7,726.27

The Milken Company is offering you an investment that promises you $1,000 at the end of ten years if you invest $500 today. What is the annual return on this investment?

7.18%

The Cost U Loan Company is willing to lend you $1,000 today. The loan is to be paid off in twenty equal annual installments of $100 each, beginning one year from today. What is the interest rate from Cost U Loan Company?

7.75%

There really is no advantage to raising a credit score above what number as most lenders provide the best loan rates and terms to anyone with this score or above?

720

While standards can adjust at any time, a credit score of what or above has historically been considered the best for most people?

760

What is the future value of $500 deposited today at 10% for 5 years?

805.50

Your 25-year old younger sister started smoking. She is currently paying $24.00 per carton per week. You explain to her that this is $1248 per year ($24 x 52). She says big deal. You then tell her that if she were to save that same amount and invest it in the stock market, she would have a significant amount of money to retire when she turns 65. Your sister wants to know how much she would have. You know that over the long-term, the stock market has returned 12% interest compounded annually. You tell your sister that if she stops smoking she will have_________ when she retires.

957,328

When purchasing a car, most people want to:

A and B are correct

Reduced maintenance, warranty coverage, roadside assistance, and peace of mind refer to what a person can expect with:

A new car

When it comes to financial planning, adult children should:

A, B, and C are correct

When using websites for researching the price of a new car, people should be looking for:

A, B, and C are correct

As the savings account used becomes more restrictive (less liquid), what increases?

Earned Interest

The exciting part with long-term investing and their correlated tipping points, is every time you hit a tipping point what is happening to your regular monthly or annual growth?

Accelerating

What do you call a person with a Certified Public Accountancy designation who prepares financial and tax documents, or inspects financial accounts of businesses or individuals?

Accountant

The significance of your AGI is that it is the income number that is used to determine your income eligibility for certain tax deductions and tax credits. What is AGI?

Adjusted Gross Income

Using industry standard ratios, a bank may be willing to approve you for a house that you cannot what?

Afford

How many lenders look at anyone applying for a loan based on the risk presented to the lender?

All

The primary disadvantage to leasing a car is:

All are disadvantages to leasing

Home buyers need to have extensive knowledge about the local housing market because:

All of the above are correct

Couples are likely to overspend, usually by accident, when they do not do this concerning their financial goals and finances.

All of the answers are correct

Edmunds (www.edmunds.com) makes it easy to look up true market __________ of new and used cars.

All of the answers are correct

Electronic Funds Transfers (EFT) is when a company automatically __________ payment from a checking or savings account.

All of the answers are correct

For a person to get their dream job, they must identify:

All of the answers are correct

Once a collection agency proves that a debt is legitimate, it is important to __________ between what is actually owed to the lender and all the fees and payment penalties that were added by the collection agency.

All of the answers are correct

The true cost of debt is what?

All of the answers are correct

The way a person should go about debt elimination is a(n) __________ decision.

All of the answers are correct

To shop around for the best price on insurance you should do what?

All of the answers are correct

Ultimately when fighting about money it is better to fight for the truth than to fight to __________.

All of the answers are correct

When negotiating the price of a car the salesperson will:

All of the answers are correct

Which of the following describe employer retirement plans?

All of the answers are correct

Ira is looking for ways to curb his spending and use any extra money to pay off his credit card debt more quickly. He is tired of making unnecessary purchases and experiencing buyer's remorse. In addition, he no longer cares as much about keeping up with his neighbors' financial appearance. Which of the following is the best way for Ira to find more quarters in the couch?

All of the answers are equally good ways for Ira to live on less.

Lenders want to make sure borrowers are what?

All the answers are correct

It is important to recognize that risk does not go away just because we ignore it or pretend that it isn't there. In fact, how often is risk present even when we don't know about it?

Always

This is a member organization dedicated to helping people aged 50 and older. They focus on all aspects of life for their members, including advocacy in areas, such as Social Security and health care.

American Association of Retired Persons (AARP)

What is the term for a partially refundable tax credit for qualified education expenses with a maximum of $2,500 during the first four years of postsecondary education for an eligible student?

American Opportunity Credit

This credit is a partially refundable tax credit for qualified education expenses with a maximum of $2,500 during the first four years of postsecondary (college) education for an eligible student.

American Opportunity Tax Credit (AOTC)

Who is the most skilled of all tax professionals, but also the most expensive?

An Accountant

In most instances, both mediation and arbitration are less costly and can lead to a quicker resolution than hiring what?

An attorney

What is the term for an interest rate stated on an annual basis which may include fees such as loan origination fees?

Annual Percentage Rate (APR)

What is a contract between an investor and an insurance, or other financial services, company whereas the investor will receive a stream of income payments, which may be fixed or variable?

Annuity

What is a financial term that means equal payments at equal time intervals?

Annuity

__________ is a just a financial term that means equal payments at equal time intervals.

Annuity

When conducting a time value of money calculation using your calculator, you can enter them in what kind of order?

Any

Good debt has three common characteristics; last longer than the term of the loan; provide positive financial leverage, and what?

Appreciate in value

The term for the settling of a dispute by using a neutral third party to make a binding decision on both parties.

Arbitration

Once you have created a list of all your debts and developed an emergency fund, what should you do next based on your personal strategy?

Arrange Debts in Order

What is the term for the collective property you own?

Assets

You have two credit cards each with a $1,000 credit limit. One card is maxed out and the other is not used. Thus, you are using 50% of your what?

Available Credit

It is a good idea for home buyers to __________ dual agency when choosing a real estate agent.

Avoid

Receiving direct deposit, average daily balance, basic checking, and avoiding ATM fees are all ways to what?

Avoid checking account fees

What is the term for a load mutual fund where the investor only pays commission when redeeming or selling the mutual fund, but not upon purchase?

Back-End Load Funds

If all three characteristics of good debt are not present, the debt is then considered what?

Bad debt

What is the process of moving the balance from a high interest rate credit card to a new card that charges a lower interest rate?

Balance Transfer

This term is the person designated to receive the benefits, such as assets, from the will.

Beneficiary

Similar to stock mutual funds, what comes in a variety of flavors, depending on the objectives of the investor?

Bond mutual funds

If you want to save money or spend it on other things other than coffee, you can quickly save by doing what?

Brew your own coffee

Changes on a net worth statement are directly affected by changes on the corresponding ___________ sheet.

Budget

The amount you spend on gourmet coffees, energy drinks, and power smoothies are highlighted on your what?

Budget

is not a dirty word.

Budget

Simply learning where money is spent needlessly and then purposefully directing where money goes in the future will balance almost any __________.

Budget Sheet

What highlights all the little purchases, that when combined, really add up to large dollar amounts over time?

Budgets

__________ only spend money on things that make them money or add value to the company.

Businesses

The term for the general description of the housing market when supply of homes by sellers is greater than demand for homes by buyers.

Buyer's market

Before you seriously consider a particular car, what should you take a look at that shows the number of owners, the states in which the car was registered, and any damage and repairs performed due to accidents that were filed through an insurance company?

CARFAX

Taxes on property are what?

Can be a recurring tax, paid year after year on property someone owns

What are assets owned by the borrower?

Capital

This term is the result of an investor selling shares of a mutual fund, they are taxed at varying rates, depending on how long the investor held the investment.

Capital Gains

What is a short-term loan where borrowers use their car title as collateral? If they do not repay, the lender can take possession of the car and sell it to meet the debt obligation.

Car Title Loan

What gives you the greatest advantage when negotiating a car purchase?

Cash

Fires, robberies, windstorms, and diseases are all examples of what?

Causes of possible loss

What account it not a good idea to keep all of your money for savings?

Checking Accounts

Almost everyone needs to borrow at some time to accomplish their goals and to better their lives. What does debt take away by obligating future income?

Choices

Small amendments to your original will can be made by adding a what, which must meet the same legal requirements as your original will?

Codicil

For many students, what did their last two years of high school revolve around getting into?

College

When choosing a bank, the choice is yours. You should shop wisely and what?

Compare

Interest calculated on the principal as well as any interest accumulated from previous periods is referred to as ________ .

Compounding

When given an annual rate, what should you divide by?

Compounding Frequency

Which of the following is NOT a reason people generally get into debt?

Constant communication

As you start the car buying process, where is it recommend you begin in order to get an unbiased review of the vehicle you are interested in purchasing?

Consumer Reports

In order to pay less in taxes, you need to either earn less or maximize the use of credits and deductions. Follow these steps to reduce the amount of taxes you owe: maximize your contributions to your 401(k), review all possible credits for which you may apply, maximize contributions to a qualified health savings account, deduct moving expense, deduct student loan interest, deduct tuition or claim an eligible education tax credit, and what final step?

Contribute funds to a traditional IRA

Even with all the dangers that come with using credit cards, there are several advantages that make having a credit card worth considering. What is the biggest advantage?

Convenient

How much must you deposit in an account today so that you have a balance of $1,000 at the end of five years if interest on the account is 4%, compounded quarterly?

Correct $819.54

This credit is a non-refundable tax credit for the purchase of a qualified electric vehicle.

Electric Vehicle Credit

This term is the transfer of money from one bank account to another, without the use of cash or the need for a bank employee.

Electronic Funds Transfer (EFT)

Just like your resume , your ________ should be customized for each individual job for which you are applying. You will need to research each potential employer to learn enough about the company to sound very interested and knowledgeable.

Cover letter

Although almost everybody regularly and continually uses the words interchangeably, most people refer to what when they are actually referring to a loan or debt?

Credit

The availability of money that has not yet been earned is called what?

Credit

To avoid the small fees when making purchases with your debit card, what is the other option you can use?

Credit

What is the term that allows people to buy things now instead of having to wait until they have saved enough cash to pay for them?

Credit

_____ is simply an external indicator of how we handle our financial life. It is an attribute or a characteristic about us.

Credit

A tax _______ is a dollar-for-dollar reduction in tax expense while a tax _________ only reduces the tax expense by the filer's marginal tax bracket.

Credit / Deduction

If you don't have a ______ you should get one. Just make sure you understand how to use them properly first.

Credit Card

Including banks and other lending institutions, who will take a broad look at your financial situation to make sure you are someone to whom they want to lend money?

Credit Card Companies

The length of your older accounts is important. You should use your oldest what once in a while?

Credit Cards

This company offer relatively new services, such as free credit reports and credit scores. Even though they do not require your credit card number, your personal information (including your Social Security number) is sold to third parties who attempt to use this information for marketing and sales purposes.

Credit Karma

Your credit score is derived from information gathered from your what?

Credit Report

This term is the risk score assigned to an individual that indicates their creditworthiness and likelihood to repay a loan.

Credit score

Financing of or raising capital for a business venture, project, or social cause by collecting small amounts of money from many individuals via the internet is referred to as _________.

Crowdfunding

What should you establish as a good first savings goal?

Emergency Fund

When purchasing a car people want to avoid making a(n) _______ decision.

Emotional

What do you never build up and can be considered a disadvantage when it comes to leasing a vehicle?

Equity

This term describes the act of preparing to transfer one's wealth and assets upon their death.

Estate Planning

This term describes the act of preparing to transfer ones wealth and assets upon their death.

Estate Planning

What is the term for taxes levied on the net value of the estate of a deceased person before distribution to the heirs?

Estate Taxes

What is a tax levied on the net value of the estate of a deceased person before distribution to the heirs?

Estate tax

In order to make sure the grounds are well kept and parking is to your satisfaction, what should you do?

Evaluate the Outside

This term is the person designated by the testator to carry out the terms of the will, such as distributing property.

Executor

When ending a lease on an apartment, if any damage is found and it was there when you moved in, point that out in the lease or the addendum that you signed or show the video you took when you first moved in so you don't have to pay for what?

Existing Damages

Once you graduate, you will have a lot more money to manage. What will you also have a lot more of that will eat up that money?

Expenses

What type of contract is with a company to service or replace a covered item that becomes damaged or inoperable during a specified period of time?

Extended Warranties

When purchasing a vehicle, an insurance policy that the dealer will fix any covered item for an expressed length of time is referred to as what?

Extended Warranty

If you concerned about a possible repair to or replacement of your newly purchased product, what should you then consider at the initial time of purchase?

Extended warranty

Although other companies now have their own proprietary credit scores, what is still the most commonly used credit reporting service?

FICO

When negotiating the price of a car, the invoice price, minus the dealers incentive, and minus the holdback when purchasing a vehicle totals to what?

Dealer's true cost

In any discussion about credit, it is important to draw a distinction between credit and ____. For the purpose of this discussion, they are two very different concepts.

Debt

What is one of the easiest ways to improve your credit score through your credit card accounts?

Debt Utilization Ratio (DUR)

After your savings plan is in place and your emergency fund is fully funded, where can you now turn your attention?

Investing

Saving is what you do for the short-term. What is the term for what you do for the long-term?

Investing

Ira and RuAnn are shopping for a car to replace their aged mini van. The replacement car will be driven primarily by RuAnn and she wants something more fun to drive than a mini van. They have agreed on a small two-door sports car with a standard shift transmission. They reviewed their budget and determined what they could afford. In addition, they shopped around and found the best car loan at a local credit union. Once they owned the car for six months they learned they under budgeted for the car. What is the most like reason they are spending more on the car than they thought they would?

Ira and RuAnn did not account for the increase in their automobile insurance expense

In order to pay less in taxes, you need to either earn less or maximize the use of credits and deductions. Follow these steps to reduce the amount of taxes you owe: maximize your contributions to your 401(k), contribute funds to a traditional IRA, maximize contributions to a qualified health savings account, deduct moving expense, review all possible credits for which you may apply, deduct student loan interest, and what final step?

Deduct tuition or claim an eligible education tax credit

There are many ways to reduce the amount of tax you owe. The two most common methods are using tax credits and tax what?

Deductions

What is the term for the amount by which the taxpayer can reduce their taxable income?

Deductions

After a person analyzes their needs, the next step in the car buying process is:

Determine what they can afford

Ira's daughter leaves at the end of summer to begin her freshman year in college. She has asked Ira to buy her a car to drive while away at school. Her school is in a town two hours away from where they live. Ira's daughter will live in campus housing and freshmen are not allowed to have a car on campus their first year. In addition, the college provides student transportation between the college and all major shopping areas in the town. Ira and his daughter have determined a small compact car is best. In addition, they plan to buy a well maintained used car. They have researched prices and obtained financing, and are now ready to go to the car lot to negotiate with the sales person. RuAnn tells them both that they are making a poor decision. Why?

Ira and his daughter neglected the first step in the car buying process which is to analyze her needs. She may not need a car for the first year on campus

To be paid for a position or work task completed in exchange for pay is what?

Job

A will that couples can create that stays in place, even after the first person dies, is referred to as what?

Joint will

Lawyers need to use the documentation that you keep related to a case, including receipts, names of the employees you spoke with, and names of any witnesses. For this reason and many others, it is important to what?

Keep Good Records

When purchasing a vehicle, you need to be clear on three things: fair price you should pay, true total cost of ownership, and what?

Kind of car you need

These, along with collections, or accounts listed as ÒsettledÓ, Òpaid derogatoryÓ, or Òpaid charge-offÓ can be and should be disputed if they are not accurate.

Late Payments

What will companies do when the employees no longer add value and begin to cost the employer?

Lay Off

Once you settle on a new apartment, its time to read the extremely long and complex document called the what?

Lease

What is the term for a not-for-profit organization of lawyers that provides free legal services for those who cannot afford to pay for counsel?

Legal Aid Societies

Unlike your resume and cover letter, which are very formal documents, this online profile should be written in the first person. This profile should be more personal and speak passionately about the things you want to highlight about your professional life.

LinkedIn

What social media platform can you use to identify exactly who works for what organization, and maybe even in what department? Then, you can see who you know that is connected to someone they know so you can reach out and be introduced.

LinkedIn

In the process of paying down debt, what is it important to list before you create a payment plan?

List all of your debts

What is the term for a written statement in which a person expresses their desires for medical treatment when they are incapacitated and no longer able to express informed consent?

Living Will

CDs are not designed for this kind of investment. If you are trying to build real wealth over a long period of time, then you will want to consider other investment options and not a CD.

Long-Term Investments

For many years, the only way to transfer money was by cash or check. What do we have now which enables you to split a restaurant bill with friends, reimburse your buddy for the concert tickets, or sell your old baseball card collection online.

Digital Cash Transfer App

One of the easiest categories to find extra money in someone's budget that they can control is:

Dining out

When it comes to finding "quarters in the couch", what is one of the deepest and fullest pockets to begin your search?

Dining out

This document makes you marketable, but does not guarantee a job for you when you graduate. It is nothing more than verification from a trusted third-party that you have acquired certain knowledge and mastered certain skills and that you are now trainable.

Diploma

The best way to manage one's investment risk:

Diversification

Fighting about money is the leading cause of:

Divorce

It doesn't take that much more work to be really exceptional. Always make sure to this to your work.

Double check

You will find that you do not possess all the necessary skills and experiences required for your future what? Do not panic. Discovery is all part of the process. Remember, you are still in college and now is the time to acquire those skills.

Dream Job

Originally named Fair Isaac and Company, this company produces the majority of credit scores used in lending and other financial decisions for consumers.

Fair Isaac Corporation (FICO)

What is your ultimate goal when negotiating the trade-in value of your vehicle?

Fair Market Value

A big disadvantage to renting is that the home requires little maintenance costs from the renter.

False

A dual-rate mortgage consists of a fixed time period, such as 5, 7, or 10 years, after which it becomes adjustable from that point forward.

False

A good cover letter should be at least three pages long.

False

A good place to keep an emergency fund is in a Certificate of deposit.

False

A living will is different from an advance medical directive.

False

A net worth statement is used to determine what can be comfortably afforded.

False

A poor financial goal for most people is to establish an emergency fund.

False

A very easy goal to achieve is to balance the use of credit and debt level so ones personal finances are not put at too much risk.

False

A wedding is a very special event and is relatively inexpensive.

False

Although the cover letter is the tool that helps secure an interview, a well written resume provides the incentive for a potential employer to read the cover letter.

False

Annuity is a just a financial term that means equal payments at unequal time intervals.

False

As soon as children high school, they can begin to learn about money.

False

Because they smudge and become unreadable, carbon checks make it more difficult to keep a record of who was paid, how much, and when.

False

Budgeting is the power of the time value of money.

False

Businesses buy things because they like them, not because they can make or save money from them.

False

Capacity is one of the five C's of credit and refers to the willingness to pay the debt.

False

Capital is one of the five C's of credit and refers to the item pledged to secure the loan.

False

Credit does not help the economy grow.

False

Credit reports from the different credit reporting agencies all look the same.

False

Debt allows an economy to appear very large and also reduces risk in an economy.

False

Debt comes in only one form, bad.

False

Even if a person knows what kinds of job they want to do and they know the geographic areas that have lots of those kinds of jobs, they can have great difficulty identifying specific employers for which they would like to work.

False

Few experts agree that a home buyer should employ a buyer?s real estate agent.

False

For most people, living on less is easy and is usually done the right way.

False

Fortunately, many people recognize all the different characteristics of debt.

False

Home owners are viewed by the financial industry as being less stable.

False

If trying to build real wealth over a long period of time a long term certificate of deposit (CD) is a good option.

False

In very few personal financial decisions does it matter that you remember your money personality.

False

Insurance policies that have multiple restrictions and few opportunities to redeem the policy or only cover very specific circumstances should be purchased as they are the most inexpensive.

False

Investing regularly is the power behind the time value of money.

False

It is impossible to avoid an April surprise as everyone ends up either owing a large tax liability because not enough taxes were withheld or receiving a large tax refund because too much tax money was withheld.

False

It is inconsequential to continually plan for a career.

False

It is more important to get what you want than to get value while spending money.

False

It is not a good idea to be the first person the boss thinks about when they have a critical project as it usually means unpaid overtime.

False

It is not substantially important to be prepared for the next job along the way in a good career path plan.

False

It is not that important to take steps to keep a career balanced and in line with personal goals and objectives as they are constantly changing and evolving.

False

Just as it is a good idea to receive the best price for large infrequently purchased items, it is a good idea to receive the best price for everyday purchases.

False

Many people rarely overbuy and overpay for vehicles that are more car than what they need or more car than they can afford.

False

Money affects very few relationships.

False

Money that is not needed next week, next month, or next year should be kept in accounts that are safe from large swings in value.

False

Most people do a very good job of making a wise car purchase.

False

Most people easily separate their financial life from their professional life.

False

New credit represents 20% of a credit score.

False

No parent needs a will.

False

No understanding of time value of money or a financial calculator is necessary to improve financial capability.

False

Once a collection agency proves that a debt is legitimate, it is not important to distinguish between what is actually owed to the lender and all the fees and payment penalties that were added by the collection agency as those are legitimate charges you now owe.

False

One of the hardest ways to begin saving is to set aside a small amount of each paycheck into some type of savings account each pay period or month.

False

Only a few real estate contracts ever have contingency clauses.

False

People cannot gain control of their spending simply by creating a budget and choosing where to spend their money.

False

Quite simply, a car is what gains us respect from family and friends.

False

Regardless of the debt elimination approach selected, it is usually wise to pay off any federal student loans or any mortgage first, even if they have the lowest rate.

False

Risk can be managed in only one of three ways.

False

Savvy investors seek out unnecessary risk.

False

Sending just a resume without a cover letter when applying for a job is always appreciated by recruiters.

False

Silence is an interview tactic designed to get the interviewer to reveal much more about the company than they ever intended.

False

Since all credit cards work the same there is no need to shop around for a credit card.

False

Since they both carry the Mastercard or Visa logo, there is no difference between a debit card and a credit card.

False

Since you can't choose not to engage in speculative risk it can never be avoided.

False

Some debt is not risky.

False

Talking about money is always the best area of communication in a relationship.

False

Taxes on purchases do not include sales taxes and excise taxes.

False

The concept of time value of money (TVM) leads to poor financial decisions all the time.

False

The federal government does not tax gifts

False

The federal government does not tax gifts.

False

The future value of a lump sum is used to calculate what a future dollar amount is worth today.

False

The future value of an annuity allows easy calculation of what a series of regular payments to be received in the future is worth today.

False

The last step in the home-buying process is to consult the net worth statement.

False

The last step to getting out of debt is to stop getting deeper into debt.

False

The length of credit history is 5% of a credit score.

False

The opportunity to earn interest is not lost by waiting to start investing.

False

The option of overdraft protection to protect from having payments rejected or bouncing checks due to lack of funds is no longer available.

False

The primary disadvantage of buying a new car is lower maintenance costs and peace of mind.

False

The three 'W's of career management are what, where, and why

False

The three W s of career management are wham, whoosh, and whatever.

False

The worst way to negotiate the trade-in value of a car is simply to bring the printouts from several online automotive sites like Consumer Reportsª to the automobile dealership and to argue the case for why the car is in excellent or good condition.

False

There are always lots of chances to impress a potential employer or hiring manager so the resume is not that important.

False

There are three types of mortgages: stop-rate, low-rate, and dual-rate mortgages.

False

Understanding time value of money is not necessary to making good financial decisions.

False

Very few people have to take care of an aging parent.

False

Very few states have lemon laws that apply to new cars.

False

Waiting to start investing does not significantly reduce the amount of money available later on.

False

Wealth is taxed at both the state and federal levels primarily through income taxes.

False

When buying a car it typically is better to make an emotional decision rather than a financial one.

False

When fighting about money it is a good idea to fight about anything other than money.

False

When it comes to non-perishable items, you really can't save money by buying in bulk.

False

When saving, money should be kept in a checking account so that it can be easily accessed for its intended purpose.

False

With one-to-one employer matching contributions to a retirement plan, an employee gets an automatic 50% return on their money.

False

You always have to pay the full asking price of an extended warranty when purchasing a car as these prices are not negotiable.

False

You should only worry about your taxes once a year, when you file them

False

Your employer will move you along in your career.

False

Bottom line is that organizations are looking for people that can show them how to use the latest technology to increase value. Do that and you will have ________ your career.

Fast-Tracked

What is a mortgage that is guaranteed by the Federal Housing Administration mortgage insurance program that allows low income individuals to borrow money to buy a home for which they would otherwise not qualify?

Federal Housing Administration Loan (FHA) Loan

The primary mission of this agency is to reduce crashes and injuries involving large trucks and buses.

Federal Motor Carrier Safety Administration

Not knowing the details of how your debit card works can cost you a lot in ____ over the long run.

Fees

When it come to taxes; single, head household, married filing jointly, married filing separately, and qualifying widow(er) with dependent child are all a type of what?

Filing Status

Bottom line is that cars are expensive. They are expensive to buy, maintain, insure and what?

Finance

For most people, how they manage their career is one of the biggest personal __________ decisions they will ever make.

Financial

There are five time value of money buttons that set this apart from other calculators. What type of calculator is being referred to?

Financial Calculator

The real difference between saving and investing is that we save to spend and we invest to grow wealth. And the real key to successful saving and investing is to match what to the right type of saving or investment instrument?

Financial Goal

What is the continuous process of making informed money decisions based on achieving an individual's stated goals?

Financial Planning

After you agree on a fair price for the car you wish to buy and on the fair value for your trade-in, it is time to negotiate what?

Financing

Once you have negotiated the best price for a new car purchase and the highest amount for your trade-in, you can negotiate what?

Financing Options

What term is short for financial technology? It is considered disruptive technology, meaning that it significantly changes the way you bank.

Fintech

The perfect apartment or rented home is the one that suits your lifestyle, permits you to save toward your goals, and what?

Fits your budget

If you check your credit report and find accounts that were handled in bankruptcy but still show up as unpaid, you should get them _____.

Fixed

What should you include on your check as a restrictive endorsement to ensure not just anyone can cash your check?

For Deposit Only

What is a non-refundable federal tax credit for income taxes paid to a foreign country as part of foreign income taxes withheld?

Foreign Tax Credit

What do you want to do, where do you want to do it, who do you want to do it for, and where do you want to be in five years, provide the bases for your college career plan. We call them what?

Four "W"s

When ending your lease on your apartment, you should vacuum, wipe the floors, clean the refrigerator and the oven, and scrub the bathrooms. These are all recommendations to get what back?

Full Security Deposit

When solving for how much some amount today is worth tomorrow in a time value of money problem, you are solving for what value?

Future

Practicing time value of money in Excel and on the calculator will help you to better understand these key time value of money concepts: present value of a lump sum, interest rate of a lump sum, investment time period of a lump sum, and what?

Future Value of a Lump Sum

Solving for what in an annuity problem or question determines how much an investment will be worth at some point in the future?

Future value

Both factors (ability to repay your loan and willingness to use your resources) are important to a lender because money you do not pay back results in a ____ for them.

Gain

Bad debt has one of three common characteristics; depreciates in value, does not last as long as the term of the debt, and what?

Generates negative financial leverage

When looking to buy a home, to be in a much stronger position to negotiate with potential home sellers the home buyer should:

Get pre-approved for a mortgage

One way to minimize probate and taxes is to do what with your assets, to your heirs, during your lifetime?

Gift

Your credit score will go ______, if you cancel an old credit card, which will make your credit utilization go up.

Go down

Charles paid off the balance on his credit card. He now puts an extra $125 each month into his savings account. He adjusted his budget by eliminating the $125 credit card payment expense and adding the $125 to savings. Charles's net worth will do which of the following each month?

Go up to $125

Other than expanding your wallet and improving your personal relationships, what should good financial planning ultimately help you achieve?

Goals

These are essential to good financial planning.

Goals

___________ financial goals must be realistic and achievable.

Good

What kind of debt is it when the purchased asset appreciates in value, provides positive financial leverage, and lasts longer than the debt?

Good Debt

What is a home loan that is subsidized by the federal government and protects lenders against default?

Government-backed mortgage

A basic concept of investing is to start investing early; you want to give your investments as much time as possible to what?

Grow

This term refers to a change (increase) in an assetÕs value.

Growth

A will is a necessity for parents with young children (or those with pets), because it is the best way to assign what?

Guardianship

When it comes to taxes, the five filing statuses identified by the IRS are single, qualifying widow(er) with dependent child, married filing jointly, married filing separately, and what final filing status?

Head of Household

What is the term for a legal document where a patient has appointed another individual to make healthcare decisions on his or her behalf if the patient becomes incapacitated?

Health Care Proxy

What expenses include any portion of your insurance premiums that you pay out of your pocket, as well as deductibles, copayments for doctor office visits, and prescription costs?

Health and Medical

You can specifically designate a durable power of attorney for health care, which is also referred to as a what?

Healthcare Proxy

The costs of owning a car are extremely __________ and most students only need the car to get to their job.

High

If your situation cannot be handled by Small Claims Court, or you are not part of some class action settlement, or you are the one being sued or charged, you may find that you need to what?

Hire an Attorney

What term describes a process, usually for adults suffering from mobility or disability issues, that includes installing ramps, railing, and other equipment to assist mobility?

Home Modification

When deciding if you should pay someone else to do something for you, you should consider the following: can I do this myself, how many hours would I have to work at my job to pay someone else, can a friend or someone else assist me instead of a professional, and what?

How difficult would it be to learn this myself

Ultimately, when it comes to the income portion of your budget, you want to know what?

How much one will earn

There are many places you can go online to search for jobs, which can be effective. However, you are also likely competing with what for a job?

Hundreds

We face many risks. Not fully inclusive, the list includes: disability, illness, death, financial, property, liability, and what other form of risk?

Identity Theft

What is a type of mutual fund with a portfolio consisting of a particular index, or a weighted investment mix design to mimic such an index?

Index fund

Consumer Reports has had an unwavering commitment to helping consumers make informed decisions, and is currently the gold standard for consumer what?

Information and Advocacy

What is the term for a tax imposed on an individual who inherits assets, such as money or property?

Inheritance Taxes

Because the federal government wants taxpayers to own homes, the tax code allows homeowners to deduct what portion of their mortgage payment from their taxable income?

Interest

What is the fee charged by a lender of money to the borrower? It is also the rental fee to use someone elses money.

Interest

What is an account at a bank that you can write checks against that also pays interest on your balance?

Interest Bearing Checking Accounts

Since your mortgage will likely last several years, you will see your most significant savings by getting the lowest what for your loan?

Interest Rate

The better care that is taken to minimize debts, spend responsibly, and pay bills on time, the better the chance of you getting a loan at favorable what?

Interest Rates

The term for a person who died without having a will.

Intestate

When making a vehicle purchase, never increase your offer by more than $100 at a time until you reach the most you are willing to pay for the car. Once you reach your maximum, what should you stop?

Making offers

What is the amount for which the vehicle can be sold to another individual?

Market Value

Any time a major life event occurs, a review of your tax situation is in order to avoid the April 15th surprise. A major life event includes: graduation, significantly reducing or increasing your income, divorce, having a baby, adopting a child, receiving an inheritance, changing jobs, and what other major life event?

Marriage

When it comes to taxes, the five filing statuses identified by the IRS are single, head household, married filing jointly, qualifying widow(er) with dependent child, and what final filing status?

Married Filing Separately

This is the term for the optional portion of Medicare that covers only prescriptions at an extra premium.

Medicare Part D

As you are beginning to payoff your first debt with everything you can, what should you be paying on the remaining others?

Minimum Payment

What is the term for the lowest amount of money that can be paid on a credit card balance each month to prevent the credit card account from going into default?

Minimum Payment

The more house you buy, or the bigger apartment you rent, means the industry makes more of what from you?

Money

What do some couples use to punish each other?

Money

These funds invest only in cash equivalents, such as certificates of deposit, government securities, and other liquid investments, such as commercial paper.

Money Market Funds

What are a group of mortgages held in an investment trust and used as collateral for the sale of a mortgage-backed security?

Mortgage Pool

If you have homeowners insurance and car insurance with the same company, you should consider requesting a what?

Multiple-Policy Discount

What should you dispute on your credit report if it is older than three years?

Negative Information

When it comes time to file taxes a person's goal should be to what?

Neither owe money nor receive a large refund

What is the term for a mutual fund's per share market value, derived by deducting the funds liabilities from the market value and dividing by the number of issued shares?

Net Asset Value (NAV)

There is absolutely no connection between your what and your worth as a person?

Net Worth

The first step in the home-buying process is to consult the __________ statement.

Net worth

Engaging with individuals and professionals providing a mutually beneficial relationship, especially as it relates to careers and business and professional opportunities is referred to as ___________.

Networking

Now that you know what type of car you can afford, it is time to decide if you should buy what kind of car?

New or used

What is a mutual fund in which there are no commission charges to buy or sell and are generally sold directly by the investment company without using a third party such as a brokerage firm?

No-load Funds

When it comes to cover letters, how many people want to read a page filled with small font text that is boring and not relevant?

Nobody

What is the primary reason the people who sell cars, the people who sell car loans, and the people who sell car insurance want a person to buy a car?

Nobody gets paid unless the customer purchases a car

A borrower's credit worthiness is based on what?

None of the answers are correct

The key to finding ways to successfully live on less is to:

None of the answers are correct

You should make sure to pay your bills how, since payment history is 35% of your credit score?

On Time

The first, and easiest, way to keep a good credit score, is to pay your bills how?

On time

Where should you begin reviewing car inventories first before physically visiting any dealer's lot?

Online

Where should you begin reviewing car inventories first before physically visiting any dealers lot?

Online

You can never tell from where lucrative job offers might come. What should you take full advantage of during your college career?

Opportunities

What are couples more likely to do, usually by accident, when they do not communicate about their goals and finances?

Overspend

Almost every __________ needs a will.

Parent

Some of the most dangerous and expensive loans around, with fees and interest totaling over 500% in some cases, are:

Payday loans

The people suing in a class action lawsuit are commonly referred to as what?

Plaintiffs

What is the interest rate cost before adjusting for the marginal tax rate, assuming the expense is tax deductible?

Pre-Tax Interest Rates

What is an agreement that a couple can enter into before getting married, with the purpose to designate ownership of certain assets that will not be divided in the event of a divorce?

Prenuptial Agreement

Activation fees, fees to add money, fees to withdraw money, transaction fees, monthly fees, inactivity fees, and more; are just some fees associate with ________.

Prepaid Debit Cards

This is a debit card that is not linked to a bank account and can only be used to spend the amount of money pre-loaded onto the card in advance. They are generally accepted the same as any major debit card if affiliated with a particular network such as Visa, Discover, MasterCard or Amex.

Prepaid Debit Cards

What of an annuity time value of money question will let you determine what a series of regular payments to be received in the future is worth today. For example, if you know how much a car payment is, you can determine the amount of the original loan.

Present Value

What form gives the information you need, including the minimum investment required, as well as an application and instructions on where to send your check or how to set up an automatic transfer of money into the investment account each month?

Prospectus

Although they are convenient, these digital cash transfer apps provide little or no ________ against fraud.

Protection

This is the term for an option to sell an asset at a specified price during a specific time period.

Put option

When it comes to taxes, the five filing statuses identified by the IRS are single, head household, married filing jointly, married filing separately, and what final filing status?

Qualifying Widow(er) with Dependent Child

In the long run, proving you can handle different types of credit will ultimately do what to your score and will establish you as a less risky consumer?

Raise

While you're still in college, if you don't understand something, do what and ask a question?

Raise Your Hand

What in S.M.A.R.T. goal setting means related specifically to you.

Relevant

This is a critical document for anyone seeking a new job.

Resume

The term for a loan that is usually attached to a specific item purchased, but is offered by either a retail store or a third-party finance company where you simply borrow a fixed amount that you repay over a specified period of time.

Retail loan

Before purchasing a vehicle, it's important to do this to make sure that financial history is listed correctly.

Review your credit report

Eventually some potential borrowers can get to the point that they present so much ____ that no lender will loan them anything at all.

Risk

To earn greater returns on your investments, you have to be willing to take greater what?

Risks

Not all debt is bad. However, because economic conditions can change and there is potential for default, all debt is what?

Risky

Robert wants to buy his first home. He spent two weeks working with a real estate agent looking at homes in the $150,000 price range and made an offer to purchase a cute three bedroom home on a half-acre lot. Unfortunately, Robert was denied a mortgage from a local bank, a local credit union, and a national mortgage lender. Robert had saved $15,000 for a down payment and is surprise that he cannot obtain a mortgage. In addition to the down payment, he has a balance on his car loan of $18,000, a consolidate student loan balance of $22,000, and a balance on his credit card of $6,000. His car is worth $16,500. What is the most likely reason Robert does not qualify for a mortgage?

Robert does not qualify for a mortgage because he has a negative net worth

Term for a retirement investment account where contributions to an account are taxed (made with after-tax dollars), qualified withdrawals during retirement are tax free, and available to employees of for-profit entities.

Roth 401(k)

To take your goals to the next level and make them most effective you will want to make sure your goals are considered what kind of goals?

S.M.A.R.T

What goals should your 12-month budget allow you to save towards?

S.M.A.R.T.

Safety or low risk, convenience or easy access, and minimizing fees are all main objectives of what?

Saving

When someone is setting aside or retaining money specifically to meet short-term financial goals, they are what?

Saving

What is very important to do with your landlord to make sure everything still works and your apartment is in good condition when you end the lease?

Schedule a Walk-Through

Where can you find summarized credit card information and key points of the contract, including the annual fee, interest rate, grace period, and other fees?

Schumer Box

Unless a buyer hires his or her own real estate agent, the agent works for and is compensated by the __________.

Seller

In TVM, typically you find the following compounding periods (compounding frequency) per year. What does twice per year mean?

Semiannual

What is an account at a credit union that you can write checks (shares) against? Similar to a bank checking account. It may or may not pay interest.

Share Draft Accounts

When shopping for home mortgages:

Shop around for mortgage companies that have the best rates and service

Anyone can save money while shopping by:

Shopping by price per quantity

Most legally acceptable wills are typewritten (not hand-written), signed by the person designating their wishes, and what final criteria?

Signed by a witness

Most legally acceptable wills are typewritten (not hand-written), signed by a witness, and what final criteria?

Signed by the person designating their wishes

Charles makes a good income as a teller for a local bank. He has a car loan and one credit card with a balance of $3,800. He often makes his car payment and credit card payment one or two months late. How does this affect Charles's credit or FICO score?

Significantly, as payment history counts the most in calculating a credit score

What is interest payable only on the principal and not compounded?

Simple interest

Unlike with a tangible product, what can you not do with a purchased service such as a bad haircut or a sloppy roof repair?

Simple return

Developing what first while you are in college will help you with your personal finances after graduation?

Smart Spending Habits

S.M.A.R.T. goals are goals that are what?

Specific, Measurable, Attainable, Relevant, and Time-framed

What state agencies are independent and operate differently in each state usually offering a toll-free hotline or web-based reporting tool for consumer complaints and concerns?

State Consumer Protection offices

When developing a plan to pay off debt, begin by listing all your loans, the minimum monthly payments, the amounts owed, the interest rates, and the due dates. This is what step on your journey to reducing debt?

Step one

Before making any extra payments on any loan, establish an emergency fund. Which step is this on your journey to reducing debt?

Step three

When developing a plan to pay off debt, you must choose in which order you would like to pay off your debt. Which step is this on your journey to reducing debt?

Step two

What is the term for money granted by the federal government in order to lower specific cost and make a charge more competitive?

Subsidies

You are often measured by how you look to others. If you drive a nicer car or have a bigger house or more toys then you are "perceived" to be more what?

Successful

The perfect apartment or rented home is the one that fits your budget, permits you to save toward your goals, and what?

Suits your lifestyle

Answers to such questions as how much you pay for your car, how much you pay for your house, how much your monthly student loan payments will be, how much it will take you to pay off a credit card, and how much you need to invest to retire comfortably are more easily determined by using which financial concept?

TVM

Everything related to federal taxes in one way or another goes through the IRS. They are a powerful agency, since they have the power to audit any individual or business, shut down businesses that owe taxes, and what additional power?

Take a taxpayer to court for fraud or failure to pay taxes owed

Spending tomorrow's income today is what?

Takes away one's future choices

This term is an incentive that subtracts a set amount from your local, state, or federal tax liability.

Tax Credit

Any time a major life event occurs, what should you review in order to avoid the April 15th surprise?

Tax Situation

What term describes the illegal underpayment or nonpayment of taxes?

Tax evasion

What is the independent organization provided by the IRS to help tax payers and protect taxpayer rights?

Taxpayer Advocate Service (TAS)

This type of life insurance simply provides death benefit protection for a specified period of time:

Term insurance

This term is the person who is writing the will and who is leaving their items, or their wishes, to survivors.

Testator

Developing and overseeing regulations aimed at maintaining a fair marketplace is just one responsibility of what agency?

The Federal Trade Commission (FTC)

Character,capacity,capital,collateral, and conditions: what are these considered?

The Five Cs of Credit

Mobility, no maintenance, and very low carrying costs refer to:

The advantage of renting versus owning a home

Before you step onto a car lot, it's important to determine the real value of the car and what else?

The cost for you to finance and insure the vehicle

Although there are multiple entities performing needed services in educating consumers or advocating for consumer rights, who is ultimately responsible for making wise purchasing decisions?

The individual consumer

To make a great impression, where should you visit your professor?

Their Office

How many components are there to your budget?

Three

How many pieces must you have in order to answer any time value of money question?

Three

Risk and return when investing are tied together by what?

Time

What of an annuity time value of money question determines how long the investment will last and the number of payments? This factor is very important; the longer an annuity lasts, the more payments that are made, thus the more money that is contributed to the account.

Time

The type of investment you choose should be linked to your what?

Time Horizon

Few people really grasp the concept, but even if you stuffed your money in a mattress, what are you still subject to?

Time value of money

This is a simple concept with complex results. It illustrates why investments grow over time. It illustrates why credit card debt keeps you poor for such a long time, and it illustrates why your car payment is different based on the amount of interest the lender charges or how long you borrow the money.

Time value of money

The only money you have available is your discretionary income, so think about expenses in terms of percentage of monthly discretionary income, not the percentage of what?

Total income

The thinking is that you will be in a lower tax bracket after you retire. This form of retirement account saves you taxes overall.

Traditional IRA

A budget sheet allows easy comparison of income and what is spent.

True

A car loan is just like any other purchase.

True

A durable power of attorney gives an adult child the same decision making authority for all their parents financial affairs as a health care proxy does for health care decisions.

True

A good apartment or rented home is one that fits in the budget, permits saving toward other financial goals (such as homeownership), and suits individual lifestyles.

True

A hybrid mortgage consists of a fixed time period, such as 5, 7, or 10 years, after which it becomes adjustable from that point forward.

True

A large tax bill can be very damaging to the budget.

True

A living will is also known as an advance medical directive.

True

A lot of different financial calculators are available to use in time value of money calculations.

True

A renter should make sure all relevant information is clearly represented on a lease, such as costs, dates, and penalties.

True

A resume is a critical document for anyone seeking a new job.

True

A traditional individual retirement account (IRA) is similar to a 401(k) retirement account, without any company match.

True

A will can be changed at any time.

True

A will is a necessity for most parents with young children because it is the best way to assign guardianship.

True

According to experts about half of adult children know nothing about their parents? finances, but expect they will have to help their parents financially in the future.

True

According to studies more than 75% of respondents know that their savings, specifically for retirement, are inadequate.

True

Although a resume is the tool that helps secure an interview, a well written cover letter provides the incentive for a potential employer to read the resume.

True

Although renters may believe they can escape real estate taxes, the truth is that the landowner pays the property tax and then builds that expense into the cost of the rent.

True

Although the bank will certainly tell a borrower how much the bank is willing to lend, usually it is a much higher number than what the borrower can actually afford.

True

Although there are many different kinds of time value of money questions, there are only four types of time value of money problems that are important for most people to understand.

True

As if buying a home was not confusing enough, buying a mortgage has its own set of complications.

True

Automatic withdrawals or Electronic Funds Transfers (EFT) is when a company automatically deducts payment from a checking or savings account.

True

Automobile dealers are more likely to negotiate better prices toward the end of the month because they are reaching their next level of incentives or sales goals.

True

Because the value of a new car is higher than its used counterpart, the depreciation is greater in the first few years.

True

Before beginning to search for car loans it is a good idea for people to review their credit report.

True

Being prepared to take advantage of a new job opportunity is important for good career management.

True

Both the buyers and the sellers real estate agent split the commission when the house sells.

True

Businesses only spend money on things that make them money or add value to the company.

True

Businesses use credit to invest, expand, and hire employees.

True

By buying quality and extending the productÕs lifetime a product's value is increased.

True

By not understanding the basic concept of the time value of money (TVM) people make poor financial decisions all the time.

True

Certificates of deposit (CDs) are designed for short-term savings.

True

Changes on a net worth statement are directly affected by changes on the corresponding budget sheet.

True

Character is one of the five C's of credit and is the willingness to pay bills on time.

True

Charitable donations are a good way for most people to reduce their estate and make sure their favorite charities and foundations are supported after their death.

True

Collateral is one of the five C's of credit and is a specific asset of some value that is pledged to the lender.

True

Collection agencies buy past due accounts from lenders for pennies on the dollar.

True

Consumer Reports (www.consumerreports.org) is an organization dedicated to consumer protection.

True

Credit cards are not evil by themselves.

True

Credit is extremely important to the economy and to individuals.

True

Credit is the availability of borrowed money.

True

Customers should be selective when choosing a bank and a checking account.

True

Debt comes in many different forms.

True

Depending upon the complexity of a parents financial situation, an adult child can use do-it-yourself form kits, download do-it-yourself forms from online websites, or can enlist the help of an attorney to help manage their parents finances.

True

Eating properly, maintaining a healthy weight, exercising regularly, and generally leading a healthy lifestyle, reduces the risk of getting sick.

True

Every credit card application has a box that summarizes most of the key points of the contract, including the annual fee, the interest rate, the grace period, and other fees.

True

Everyone's tolerance for risk is unique to them.

True

Excise taxes are very similar to sales taxes but are designated for certain products or industries.

True

Fair Isaac Corporation (FICO) credit scores are determined from five main pieces of information: payment history, amounts owed, length of credit history, new credit, and types of credit.

True

Fake links, fake emails, and phishing schemes can lure the unsuspecting users into providing confidential information.

True

For almost everyone, it is impossible to separate their financial life from their life.

True

For items that are purchased infrequently and expected to last, it is often worth the extra money to get a better quality product.

True

Good communication means more than the ability to write well or to deliver a good presentation.

True

Good personal status symbols are a fully established emergency fund, the elimination of any credit card debt, a paid-off mortgage, and a retirement account that is growing towards established financial goals.

True

Good reasons for buying a new car include reduced maintenance, warranty coverage, roadside assistance, and peace of mind.

True

How careers are managed is one of the biggest financial decisions most people make.

True

How long to finance a car is a balance between needs and the ability to afford the monthly payments.

True

How to protect loved ones at retirement and death can be addressed in wills and personal contracts.

True

If a person knows what kinds of job they want to do and they know the geographic areas that have lots of those kinds of jobs, they can identify specific employers for which they would like to work.

True

If the price break on buying a larger size of any item is a savings of 40% in the price per quantity, then effectively 40% of the item could be thrown out if it went bad and the purchaser would be no worse off financially.

True

If trying to build real wealth over a long period of time it is better to consider other investment options than a certificate of deposit (CD).

True

In order for debt to be good, the asset or the thing that is purchased should be something that appreciates in value.

True

Insurance should not be used to smooth out all the little bumps of life.

True

Investments may be sheltered from taxes by using an Individual Retirement Account (IRA).

True

It is a good idea for couples to have all discussions in private whether at the automobile dealership or the lender?s office.

True

It is a good idea to get the best possible value while spending money.

True

It is a very good idea to make sure all correspondence with a collection agency is done by certified mail.

True

It is common to hear the words "savings" and "investments" used interchangeably.

True

It is easier than ever for most people to do their own taxes.

True

It is important for taxpayers to understand the difference between tax credits and tax deductions if they want to minimize their tax liability.

True

It is important to be prepared for the next job along the way in a good career path plan.

True

It is never too early to begin teaching children good money habits.

True

It is unnecessary to feel pressured to buy any insurance policy.

True

Just about everything earned, used, spent or done is subject to a tax of some type.

True

Just as it is important to talk about money with your children, it is also very important to talk to your parents about money.

True

Just like any other purchase, it is a good idea for people to shop around for a credit card that best meets their needs.

True

Just like any other purchase, it is a good idea to shop around for mortgage companies that have the best rates and the best service.

True

Leadership skills are very important to almost every employer in almost every field.

True

Liquid is a finance term that simply means cash or easy to convert into cash.

True

Maintaining good physical health is also an investment in good financial health.

True

Make sure to include a reasonable amount of money for car maintenance on the budget sheet when determining how much monthly car payment is affordable.

True

Many financial experts advocate to pay off the loan with the highest interest rate first.

True

Many first time renters with a roommate assume they are only responsible for their portion of the rent.

True

Many more people are involved in a real estate transaction than just the real estate agents.

True

Many people early in their career are usually better served by renting their home so they can remain flexible enough to take a new job in another city or state.

True

Many people purchase a car, usually with payments at least 10% higher than they originally wanted, then try to figure out how to squeeze the payments into their budget.

True

Many people routinely overbuy and overpay for vehicles that are more car than what they need or more car than they can afford.

True

Money that is needed next week, next month, or next year should be kept in accounts that are safe from large swings in value.

True

Most experts agree that 5% profit on the sale of a car is fair to both the automobile dealer and the buyer.

True

Most people have to pay county taxes, and in some instances city taxes as well, at the time of closing when purchasing a home.

True

Most people need to borrow at some time to accomplish their financial goals and to better their lives.

True

Normally a debit card is linked to a checking account, but it can be linked to a savings account or money market account as well.

True

On nearly all real estate contracts there are contingency clauses.

True

One great feature of tax preparation software is they provide the ability to accurately estimate next years tax liability.

True

Other names for retirement plans include defined benefit plans, pension plans, 401(k) plans, 403(b) plans, and Thrift Savings Plans (TSP).

True

Renting offers several advantages over buying a home.

True

Savvy investors avoid unnecessary risk.

True

Silence is an interview tactic designed to get the interviewee to reveal much more about themselves than they ever intended.

True

Taxes on purchases include sales taxes and excise taxes.

True

The amount of money owed represents 30% of a credit score.

True

The future value of a lump sum calculation is used to determine what a given amount of money today will be worth at a certain point in the future.

True

The future value of an annuity calculates how much a regular series of payments will be worth at some point in the future.

True

The length of credit history is 15% of a credit score.

True

The net worth statement is a snapshot of personal finances at a moment in time.

True

The old argument that a tax refund is like having a built-in savings plan is a very poor argument as there are better ways to save.

True

The opportunity to earn interest is lost for every year waited to start investing.

True

The present value of a lump sum is used to calculate what a future dollar amount is worth today.

True

The question, How much money did Grandma put into an account in the beginning? implies a one-time deposit.

True

The real key to successful saving and investing is to match financial goals to the right types of savings and investing accounts.

True

The type of investment selected should be linked to time horizon of the financial goal.

True

There are two types of warranties, express and implied.

True

There can be a lot of emotional energy in a money conversation.

True

There is a big difference between a debit card and a credit card.

True

There is not set number of checking accounts that will work for every couple.

True

To avoid any last-minute surprises, it is a good idea to drive to the place where a job interview will be held at least one day in advance and at the same time as the interview.

True

To determine a comfortable car payment, the two pieces of information needed are monthly principal plus finance costs and insurance costs.

True

Typically it is financially smart to forgo extended warranties when making any small purchase.

True

Understanding time value of money is fundamental to making good financial decisions.

True

When arguing about money, whether it is spending too much or making late payments, it is a good idea to keep the argument about that particular money issue.

True

When beginning to invest it is usually best to start with simple investments.

True

When deciding to buy a house a net worth statement should be used to determine if there is sufficient cash to cover the costs of a down payment, the costs associated with closing on the home such as attorneys? fees, home inspections, property taxes, and the cost of obtaining a mortgage.

True

While standards can adjust at any time, a credit score of 760 or above has historically been considered the best for most people.

True

With any retirement plan there is the ability to get to the money in the event of an emergency, such as a medical emergency or loss of a job.

True

College will take a lot of your time and add up to a lot of money. The average _________ and board for a public four-year college is more than $80,000 over four years.

Tuition

Consider two investment opportunities, Tweedle Dee and Tweedle Dum. Tweedle Dee pays interest at the rate of 12% per year, compounded monthly. Tweedle Dum pays interest at the rate of 11.5% per year, compounded daily. Which investment is better?

Tweedle Dee

What agency is charged with protecting the infrastructure of the postal system as well as its employees and customers?

U.S. Postal Inspection Service

This term describes a group of people whose income is above 75% of all income earners.

Upper Class

Lenders generally approve loans after what?

Using standard ratios and a person's credit score

One of the best ways to become a smarter consumer is to get the best what on every purchase?

Value

Fixed expenses, discretionary income, and what is vital to building a simple budget?

Variable Expenses

What do many experts see as one of the causes of the housing crisis of 2008, as too many homeowners were barely able to afford their payments during the low teaser rates?

Variable-Rate Mortgages

When looking for a new apartment, once you have a short list of places to visit, it's time to schedule a few what?

Walk-throughs

___________ is taxed at both the state and federal levels primarily through inheritance taxes.

Wealth

When investing, what should you determine first so that you know how much you are willing and able to put towards your investments?

What you can afford

To help reduce spending, stop focusing on what you donÕt have and start focusing on what?

What you do have

Some car repair shops take cars that were flooded or in a hurricane, clean them up (cosmetically), and sell them to who?

Wholesalers

A __________ is nothing more than a legal document that lets everyone know how and to whom money and other possessions are distributed upon death.

Will

The real estate agent who listed the house for sale:

Works for and is compensated by the seller

No one else will move you along in your career like __________ will.

You

When negotiating a car purchase, it is always important to remember that __________ is/are the boss.

You

Several types of wills are available. Which to choose usually depends on the complexity of your financial situation, the total value of your assets, your marital situation, and what?

Your Wishes

With credit cards

Zero percent transfer offers usually have a transfer fee of 4% attached

Insurance is just one piece of __________.

a larger risk management plan

Lenders want to make sure borrowers have what to be able to repay their loans?

ability

This is simply the same amount of money invested or paid on a regular schedule, such as weekly, monthly, or annually.

annuity

Insurance policies that have multiple restrictions and few opportunities to redeem the policy, or only cover very specific circumstances should be __________ in most cases.

avoided

Most homeowners must __________ money (or obtain a mortgage) to buy their homes.

borrow

Make sure to include a reasonable amount of money for car maintenance on the __________ sheet when determining how much monthly car payment is affordable.

budget

When purchasing a used car, make sure to include a reasonable amount of money for car maintenance on the __________ sheet when determining how much monthly car payment is affordable.

budget

A __________ is used to determine what can be comfortably afforded.

budget sheet

The power of __________ is how a small amount of money, such as a one-time deposit of $2,500, grows into a million dollars.

compounding

Because the value of a new car is higher than its used counterpart, the __________ is greater in the first few years.

depreciation

Credit and debt are two of the most crucial means available to achieve personal financial __________.

goals

Most ___________ have a higher minimum balance requirement and are much more restrictive with the number of withdrawals per month, but they pay a higher rate of interest than a savings account

money market accounts

A personal budget statement typically spans a __________ because most bills are due monthly.

month

There are three types of __________: fixed-rate, adjustable-rate, and hybrid.

mortgages

By not understanding the basic concept of the time value of money (TVM) people make __________ financial decisions all the time.

poor

By not understanding the basic concept of the time value of money (TVM) people make these kinds financial decisions all the time.

poor

People work in a __________ world, but live and play in a post-tax world.

pre-tax

The more ________ you make your financial goals, the easier it is to track movement towards achieving them.

specific

Ignoring the effect __________ have on spending choices very often leads to making poor decisions.

taxes

Investments may be sheltered from __________ by using an Individual Retirement Account (IRA).

taxes

Even money stuffed in a mattress is subject to the __________ value of money.

time

What distinguishes a financial calculator from any other calculator?

time value of money keys

Discount warehouses such as Sams Club or Costco can save you a lot of money if you're careful, but not all bulk items are what?

A good deal

To perform a self assessment as an employee people should do what?

All of the answers are correct

An obvious expense included in the transportation category on a budget sheet is a ___________.

Car payment

Being prepared to take advantage of a new job opportunity is important for good __________ management.

Career

This is the term for what you are going to do throughout your lifetime, something that you manage. It is not what you do right now to earn a paycheck.

Career

A truly smart shopper, by buying price per quantity, realizes that sometimes it may still be what to buy the larger size and throw a portion of an item out?

Cheaper

This letter is sent with your r sum for purposes of obtaining a job and/or interview by highlighting their skills, experience and interest.

Cover letter

A cover letter should be what for each individual job application.

Customized

Businesses only spend money on things that make employees happy.

False

Tax preparation software applications, such as TurboTax or TaxAct, should be avoided.

False

What is the process of determining how an individual will achieve their future goals?

Financial Planning

What is the term for expenses that are the same amount and due each month?

Fixed Expenses

Many people forget to take into account bills that do not come due every month, because they do not use a budget. For instance, many automobile insurance policies are due every six months. These are just a few examples of __________.

Forgotten Bills

Health and medical expenses include any portion of __________ premiums that are paid out of pocket, as well as deductibles, copayments for doctor office visits, and prescription costs.

Insurance

Make sure you use any product for the purpose that the manufacturer intended, otherwise you are in danger of voiding what?

Manufacturer's warranty

What word in S.M.A.R.T. goal setting emphasizes how much? For example, not I want to save more money, but I will put $10 each week in the cookie jar.

Measurable

This refers to someone with more experience and/or achievements who often gives guidance to someone with less experience for a specific career or activity.

Mentor

For items that you purchase infrequently and expect to last, it is often worth the extra what to get a better product?

Money

It is possible for a person to have a negative one of these.

Net worth

The best way to find a job is by using your what? You should start building one before you even become a professional.

Network

Who should you pay to do things that you are capable of doing for yourself?

Nobody

Regardless of what you may have been told, according to recent studies, how many of us are special?

None

What must your resume and e-mail be before you hit send?

Perfect

It is important to take proactive steps to keep your career balanced and in line with your __________ goals and objectives

Personal

It is important to continually __________ for a career.

Plan

To keep financial plans from failing you should do what?

Plan one's purchases

So how do you begin to develop a new attitude while you're in college? It's easy. First, begin practicing being this rather than reactive.

Proactive

What is the term for money set aside for a college fund, an emergency fund, a retirement account, or other investments?

Savings

Although there is no exact cutoff point, what kind of goals tend to be less than three years in length?

Short-term

A budget sheet

Should be customized for each user

Applicants with a less than perfect r sum are the first to go. Because of this, what do you remove from your resume to stay in contention?

Silly mistakes

Knowing what a job or company requires early in your college career gives you time to obtain what?

Skills

S.M.A.R.T. goals are goals that are:

Specific, Measurable, Attainable, Relevant, and Time framed

When it comes to your finances, what do you have the most control over?

Spending

The sooner after graduation you pay this off, the sooner you have more money left at the end of the month. You will be surprised how much that extra interest on these adds up while you're in school.

Student loan debt

Almost always the only first chance to impress a potential employer or hiring manager is through a resume.

True

Almost every employer offers professional development courses or workshops on improving communication skills.

True

Almost everyone thinks about their professional development and works towards achieving their goals.

True

It is a good idea to be the first person a boss thinks of when he or she has a critical assignment that must be done right and must be done on time.

True

It is called a career ladder, not a career escalator.

True

Just as it is a good idea to receive the best value for large infrequently purchased items, it is a good idea to receive the best value for everyday purchases.

True

The three 'W's of career management are what, where, and who.

True

Very few people really think about their professional or work lives beyond what they need to do to get to the end of the day.

True

When it comes to non-perishable items, almost everyone can save money by buying in bulk.

True

A business will not hire anyone and pay them a salary unless the business believes the employee can help the business make money. Because of this, what must every employee add to their organization or their job will cease to exist?

Value

Net worth is the difference between one's _________ and one's ________

assets / liabilities

An obvious expense included in the transportation category on a budget sheet is a

car payment