LUOA Personal Finance

If you borrow $15,000.00 for 5 years at 5% interest, the principle is...

$15,000.00

If this person is paying $140 a month for a car loan, based on the budget how much is allocated for maintenance?

$20

The present limit for insuring any account at participating banks through the FDIC is...

$250,000.00

Online financial services associated with a bank, credit union or thrift may include which of the following services? select all that apply

- IRA (Individual Retirement Account) - checking account - debit cards - savings account - bill paying options - Certificate of Deposit (CD) - credit lines - loans

A bank may need what three items or information from you in order to verify your identity? choose the three best answers

- Individual Taxpayer Identification Number - your Social Security Number - a photo identification (like a driver's license)

Pays for routine eye exams, discounts on laser surgery, and partial payments on eyeglasses.

Vision Insurance

Do you know anyone who receives Social Security Benefits?

Yes

Can a financial institution decide to close your account once it is open?

Yes,if you do not follow the rules and procedures of the institution.

What three things should you avoid doing so your credit score won't be affected?

-transferring a credit balance from one credit card to another -closing credit accounts -not using credit cards

Electronic banking or electronic funds transfer can include which of the following? choose all that apply

-use your personal computer to transfer money from your checking account to your savings account -direct deposit of your payroll to your bank account -automatic insurance bill draft off your account monthly -electronic check conversion at a store for payment for merchandise -ATM withdrawals -phone activated transfer from one account to another

Allows people that have a steady income to keep some property such as a car and home. The court approves a repayment plan that allows the use of future income to pay off debts.

Chapter 13 Bankruptcy

Known as straight bankruptcy and involves liquidating all assets that are not exempt. Anyone filing fo rthis kind of bankruptcy must satisfy a "means test" that investigates your income closely.

Chapter 7 Bankruptcy

Tenants are protected against discrimination by the...

Fair Housing Act

Retirement is no big deal. Most people have planned for their retirement years, and they will be ready to take it easy once they are retired.

False

FDIC is a banking acronym for which the letters stand for...

Federal Deposit Insurance Corporation

The Banking Act of 1933 established the FDIC. The FDIC is the...

Federal Deposit Insurance Corporation

Some financial institutions especially banks are members of the...

Federal Reserve System

What federal department is responsible for enforcing laws related to consumer credit?

Federal Trade Commission

Some financial institutions especially banks are members of the...

Federal reserve System

Savings accounts set up to be deducted from salaries and are used to pay for medical treatment and supplies.

Flexible Spending Account

Who or what provides for everything you need (not necessarily everything you want)?

God

Features low premiums and high deductibles. Can be coupled with a health savings account to provide tax advantages.

HDHP

Limits coverage to providers within the network, usually need a referral from the primary care physician to see a specialist.

HMO/EPO

The formula for calculating simple interest is

I = prt

When did Social Security go into effect?

In 1935 with the signing of the Social Security Act

Short term loans with high interest rates and fees that tend to reflect poorly on your credit rating.

Payday or Car Title Loans

Most ATM's that accept debit cards for transactions also require you to enter your PIN as well. What is a PIN?

Personal Identification Number

Pays for personal items that are not covered under your homeowner's policy and is not any form of real estate.

Personal property Insurance

The oldest stock exchange in America was founded in 1790 in the city of...

Philadelphia

Loans offered to college students and their parents. Some are subsidized so no interest accrues until the student graduates. These loans can be federally funded or from private financial institutions.

Student Loan

What company is the leading source for most lenders researching credit information on a person applying for a loan or some type of credit?

The Fair Isaac Corporation

What is the FDIC?

The Federal Deposit Insurance Corporation is an independent federal agency created in 1933 to promote public confidence and stability in the nation's banking system.

What event in American history had a profound affect on modern day banking regulations and policy?

The Great Depression

The Consumer Credit Protection Act established provisions requiring lenders to provide information about credit terms and the cost of credit. These are known as...

The Truth in Lending provisions

Some merchants will match the prices of their competitors to get your business.

True

To make sure some of your more expensive or special personal belongings such as jewelry, a camera, and similar items are covered under your homeowners' insurance you may have to designate or purchase a special "rider" to make sure you will be reimbursed if those items are lost or stolen.

True

hand it to the teller with cash and checks to deposit to your account

deposit slip

listing a check that you are depositing into your account

deposit slip

listing cash that you are depositing into your account

deposit slip

write the date and total of your deposit before handing it to the teller

deposit slip

A direct withdrawal is an electronic transaction similar to direct deposit except a direct deposit...

deposits money into your account while a direct withdrawal takes money out of your account to pay someone else

travel insurance

designed for medical care or life insurance when traveling (especially out of the country)

health insurance

designed to help defray and/or pay for medical bills or sevices

pet health insurance

designed to pay for set vet visits and some medical expenses for pets

personal property insurance

designed to protect personals belongings, antiques, and special items fro theft or loss

homeowners' insurance

designed to protect your home and property in case of fire, theft, and other damage

automobile insurance

designed to protect your vehicle and you from accidents and cover expenses for you and whomever is involved.

life insurance

designed to provide financial income in case of death to loved ones and family

What three basic factors do employers consider when they are hiring a new employee for a position.

education, skills, experience

electric outage due to storms or bad weather

electric utility provider

What type of expenses might go under miscellaneous?

emergency car repairs

Some people are members of an automobile association that helps when you need a flat fixed, a dead battery started, and you are locked out of your car. What coverage could you get from an insurance policy that would help in similar situations?

emergency road service

Based on fees and interest rates, which type of loan is better?

equity line of credit

Building a good relationship with a financial institution can help an individual...

establish a good credit rating

What three basic factors do employers look for when hiring people for their company or organization? Choose the three best answers.

experience skills education

Other than your monthly rental payment, what are some of the other things you may have to pay for while living in a rental property? Choose all that apply.

extra storage Correct! parking spaces Correct! laundry facilities Correct! pets Correct! utilities

Tenants are protected against discrimination by the...

fair housing act

Both budgets have the exact same spending categories.

false

Government budget categories are both less than 2%.

false

If you have to drive a long ways to save a few cents it's still worth it.

false

Life insurance policies are all the same.

false, some build cash value and some just pay death benefits

Banks are the only financial institutions that are available for people to keep their money.

false-there are other financial institutions including credit unions and thrifts

Military spending is generally a ______________ budget item.

federal

You should not buy products when you ___________.

feel pressured or are tempted to buy on impulse

Determine your down payment and monthly mortgage payment.

first

Most homeowner's insurance will not cover flood damage. If you live in a _______________ you can purchase special flood insurance through the federal government.

floodplain or beachfront area

Have the final walk through after any corrections have been made based on the home inspection to make sure any issues have been taken care of before signing the final paperwork.

fourth

If an employee withdraws money from retirement savings early the employee could... (choose the best answer)

lose interest and principal, tax benefits and may have to pay penalties.

Compound interest is interest that is a result of...

making interest on interest

The person the renter deals with represents a corporation that owns ten apartment complexes in town.

managing agent

This person is a designated legal representative who can sign legal paperwork.

managing agent

This person takes appropriate actions for both the landlord and the renter.

managing agent

High School diploma or equivalent

mechanic, electrician, fashion designer, office clerk

Unsecured debts are debts that are not tied to any collateral or major personal property that can be repossessed or processed for foreclosure. Select all that are considered unsecured debt.

medical bills Correct! personal signature loans Correct! store aacounts Correct! credit card debt

Money in a flexible spending account is not taxed, but must be spent on...

medical treatment, prescriptions and supplies

Instead of an annual fee, most credit unions assess a one time__________which is usually accepted as the first deposit and is refunded when closing the account.

membership fee

Choose all the descriptors that tell about the functions and policies related to thrifts.

mutually held corporations with decisions made by depositors and borrowers Correct! also known as a savings and loans association specializes in savings accounts and making money off mortgages and personal loans law limitations govern use of assets that can be used for commercial loans

Based on recent statistics credit card debt has stayed close to the average household income growth.

no, credit card debt is much higher than income growth.

In the business of insuring people and their possessions, insurance companies are planning on _________________________________________________ while the person who is insured is planning on __________________________________________________ when an accident or other action happens to them.

not having to pay for a claim being covered and being reimbursed for expenses

What three things should you avoid doing so your credit score won't be affected?

not using credit cards closing credit accounts Correct! transferring a credit balance from one credit card to another

choose all the descriptors that tell about the functions and policies related to credit unions.

offers financial services similar to banks, but to members only Correct! member owned and governed Correct! provides services to members only Correct! profits and surpluses used to pay administrative costs and member services Correct! not for profit

You can use your debit card to make purchases...(choose all correct responses)

online Correct! at a gas pump that accepts debit cards Correct! in person at a store Correct!

A direct withdrawal is an electronic transaction similar to direct deposit except a direct deposit...

orrect! deposits money into your account while a direct withdrawal takes money out of your account to pay someone else

When using your personal computer to carry out banking transactions it is important that no one else knows your...

passwords

Choose all possible sources of income.

pay from a full time job Correct! tips as a waitress or waiter Correct! interest from a savings account Correct! stock dividents Correct! commission from sales

overtime pay

pay received by a person for work done past their required schedule-usually paid at a higher rate

regular earnings

pay received for a person's regular scheduled hours

When you are looking for or considering a job, what are some of the factors you should know about the job?

pay, education, training

Of all the types of credit offered to consumers, which ones are the worst ones to use because of both the fees and interest rates and how they will affect your credit rating. Choose two.

payday and car title loans

Dividends are _________________ to _______________ from the company's earnings.

payments...shareholders

rental and travel expenses coverage

pays for a rental car and travel expenses when your car is in the shop

gap insurance

pays for the cost of a vehicle that is totaled and has to be replaced at a higher cost than its worth

Gap insurance is good to have when you lease a car because if a car is determined to be a total loss, gap insurance...

pays for the replacement cost for a new vehicle, not the depreciated value

comprehensive coverage

pays for unexpected hazards like weather vandalism, theft

medical payments coverage

pays for your medical expenses or death benefits when someone else hurts you in an accident.

Even if you don't own a home you should have renter's insurance to cover...

personal property damage or loss

To make sure a building contractor can be expected to do a good job for you, be sure to check...

personal references and the Better Business Bureau

The person the renter deals with is the owner of the house.

single owner

This person is personally responsible for any repairs and actions to take care of the rental property.

single owner

Tenant rights, laws and any protection afforded both tenants and renters are determined at what government level?

state

Stephanie wanted to work as a lifeguard at the community pool during the summer. What are some things she might be required to do or have before being approved for the job?

take classes in water safety have a background check to make sure she can work with young children be certified in CPR be a certified lifeguard through the Red Cross

401(k) plan

tax deferred

403(b) plan

tax deferred

457 plan

tax deferred

IRA account

tax deferred

What kind of items should be filed and organized in a central location at your home in a special drawer or file cabinet? Choose all that apply.

tax information and forms wills and health directives statements of bills paid and to be paid financial records bank statements

bond dividends or payments

taxed

certificates of deposit

taxed

money market accounts

taxed

regular savings account

taxed

stock dividends or stock splits

taxed

Real return is the return on stocks over a given period of time after subtracting ________ and adjusting for ___________.

taxes...inflation

The least expensive kind of life insurance is...

term life insurance

To help with getting the United States economy to improve after the stock market crash of 1929, President Franklin Roosevelt supported a plan referred to as...

the "New Deal"

To help with getting the United States economy to improve after the stock market crash of 1929, President Franklin Roosevelt supported a plan referred to as...

the NEw deal

To help with getting the United States economy to improve after the stock market crash of 1929, President Franklin Roosevelt supported a plan referred to as...

the New Deal

An insurance premium is...

the amount paid by the insured or policyholder to the insurance company

The P/E ratio is a proportion between...

the cost of a share and the earnings of the stock over a year

Although Medicaid is administered by the state, who sets the guidelines and partially funds the program?

the federal government

The costs of life insurance premiums whether term or whole life are dependent on both...

the longer the time insured and the higher the death benefits paid

What do you think the Bible says about money?

the love of money is the root of all evil

Once someone opens an account at a financial institution, who is responsible for keeping up with the account balance, any fees deducted from the account, and any deposits or withdrawals?

the person who opens/owns the account

When you pay for your purchases at a store and you use a check, why do they sometimes give you your check back instead of keeping it?

the store used an EFT system to automatically withdraw the money from your account

Before buying an item you might not need or you are not sure the size is right for someone else, make sure you know...

the store's return policy

While in a financial institution that is federally insured deposited money is safe from...

theft, loss, and fire

liability insurance

this covers your liability for damages to some other vehicle or people involved n the accident with you

How many exemptions does this person claim for federal withholding?

three

In order to be healthy financially, everyone should have enough in savings to cover expenses for ____________ in case of job loss or another emergency.

three months

bad tread wear on some new tires

tire store or manufacturer

Something very important is missing from this budget based on biblical standards. What would that line item be? What kind of adjustments could be made to the budget in order to fit that category back into the budget?

tithe or charitable giving adjust the percentages to allow for giving

Where does the tax revenue collected from Social Security deductions from payrolls go?

to pay for Social Security benefits people are receiving currently

YTD (year to date)

totals for earnings and deductions for the year

Social security and health services is a big part of both budgets.

true

Whereas long term disability can last a lifetime, short term disability usually lasts for a maximum of...

two years

If you state does require all vehicles that are registered in the state to be insured, what kind of insurance would protect you even if the person hits you does not have insurance?

uninsured motor vehicle coverage

What information is typically on a personal check?

unique check number for each check the account and routing numbers the account holder(s) name(s) the institution name and address

It is illegal for debt collectors to...

use abusive or deceptive practices to collect debt you owe

When you require a wire transfer of money from your account to another person, your bank may charge you a...

wire transfer fee

A transaction fee can be assessed against an account for the following transactions: choose all possible answers

withdrawals over the maximum allowed checks cashed off other bank accounts Correct! copies of bank statements Correct! deposits over the maximum number allowed Correct! transfers to other accounts

In general women pay lower life insurance premiums because [ans1] live longer.

women

Sam moved to another city with his parents. Sam is in high school and wanted to volunteer at some organization. Which of the following would be his best opportunity since he is NOT 18 years old?

yard work for neighbors and his church

Can a financial institution decide to close your account once it is open?

yes, if you do not follow the rules presented to you upon opening your account

Borrowing money and giving credit are big business. What do you think about borrowing money or things? Choose all statements you agree with.

you should never borrow unless you can pay back what you owe

When you buy a new home, whose responsibility is it to make sure you have homeowners' insurance that will replace the costs of building or repairing your home if it is damaged by fire?

you, the homeowner

poor cell phone reception

your cell phone service provider

When you are facing a credit problem or become behind in your payments, it is best to...

your creditors in order to work out payments or change terms

errors in your bank statement

your local bank customer service

Direct deposit is one way to keep your personal finances in order. Direct deposit means...

your payroll check is deposited into your bank account on your regularly scheduled payday

people smoking in the break room at work

your supervisor or human resources

Doctoral or professional degree

biochemist, judge, orthodontist, veterinarian

Modifications and any mechanical changes are possible.

buying

Vehicle belongs to you when the payments are paid in full.

buying

You are responsible for repairs.

buying

Even though we should be careful with our money and valuables, what does the Bible say about the things of this world and wealth?

- Lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. - For where your treasure is, there your heart will be also. - Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal. - Jesus said to the rich young ruler, "You lack one thing: go, sell all that you have and give to the poor, and you will have treasure in heaven; and come, follow me."

Because a bank is federally regulated, what are some of the guidelines used to make sure banks comply to the regulations? Choose all that apply.

- a bank is insured by the FDIC and must follow its guidelines in order for its depositors to be covered against loss - a bank has to maintain certain ratios related to how much it lends compared to its capital assets - a bank has to abide by guidelines set up by the Federal Reserve System - a bank has to have a minimum amount of capital holdings to do business - a bank is regulated to make sure it does not lend more money than it can safely cover with assets and depositors' monies

Choose all statements that describe a "credit union."

- accepts deposits to accounts like a bank - member owned - not for profit - a financial institution - provides service to only its members

Choose all the descriptors that tell about the functions and policies related to thrifts.

- also known as a savings and loans association -mutually held corporations with decisions made by depositors and borrowers - law limitations govern use of assets that can be used for commercial loans -specializes in savings accounts and making money off mortgages and personal loans

Before considering a house to buy, you should make sure you are in sound financial shape. Choose from the list below some things you should do in order to be prepared to pursue a purchase.

- be aware of your credit rating and take steps to improve your rating -look into special financing for first time home buyers and federally subsidized loans -be aware of your credit rating and take steps to improve your rating -shop for interest rates that are available and any pre-qualifying needed

The FDIC insures different kinds of accounts at participating financial institutions. Choose all of the accounts or investing programs that are covered by the FDIC.

- certificate of deposits (CD's) - statement savings accounts - checking accounts - Money Market Deposit Accounts - passbook savings accounts

Why should you keep your money in a financial institution? select the 4 best answers

- convenient and easy to get to money - cost-cheaper than using other businesses to cash checks and other processes - security-deposits insured by the FDIC and the NCUA - safety from fire, theft, and loss

A transaction fee can be assessed against an account for the following transactions: choose all possible answers

- deposits over the maximum number allowed - copies of bank statements - transfers to other accounts - withdrawals over the maximum allowed - checks cashed off other bank accounts

When you want to know the interest income you will receive on an investment, you can calculate the simple interest by using the formula, i = prt, where i is the _______________________ , p is the ______________ , r is the __________________ and t is the _________________ . The rate is always expressed as a ________________ and the time is always expressed in _________________

- interest you earn -principle -interest rate -time -decimal fraction -years

Choose all the descriptors that tell about the functions and policies related to credit unions.

- member owned and governed - provides services to members only - offers financial services similar to banks, but to members only - not for profit - profits and surpluses used to pay administrative costs and member services

Financial institutions may charge certain operational fees to help defray the costs of doing business. Choose the fees listed below that are common to financial institutions.

- minimum balance fees - transaction fees -overdraft fees - returned check fees - nonsufficient funds fees

Financial institutions do not offer their services for free. You may have a free checking account, and you may receive interest on the money you have in a savings account, CD or money market account; however, the institution will enforce fees for a variety of reasons. Choose all charges that can be levied against an account owner that are discussed in the lesson.

- minimun balance fee - ATM transaction fee - overdraft fee - membership fees at credit unions - monthly or annual account fees - non-sufficient funds fee

You can use your debit card to make purchases...(choose all correct responses)

- over the phone - online - at a gas pump that accepts debit cards - in person at a store

Choose all the descriptors that tell about the functions and policies related to credit unions.

- profits and surpluses used to pay administrative costs and member services -offers financial services similar to banks, but to members only -member owned and governed -not for profit -provides services to members only

As a person applying for a new account what should you do to make sure you are ready to approach a financial institution to open an account?

- proper identification - a good knowledge of the responsibilities of an account holder - know how to balance a passbook or checkbook - money or a check to make an initial deposit

There are several reasons why people should use a financial institution to help them with managing their money. Choose all valid reasons to have an account with a financial institution.

- provides a safe place for money - insured against losses up to federal maximum amount - helps with establishing credit and getting loans - possibility of renting a safe deposit box to store valuable documents and other items - allows quick access to your money - cheaper than other possible alternatives

Choose all statements that describe a "bank."

- regulated by the government - a financial institution - charges fees and interest to pay administrators and stock holders - accepts deposits to accounts - invests in capital markets to make money for the institution as well as its customers

Choose all legal and valid ways to make interest and investment income.

- retirement accounts - savings accounts - money market accounts - CD's - stocks and bonds - mutual funds

Why should you keep your money in a financial institution? select the 4 best answers

- safety from fire, theft, and loss - cost-cheaper than using other businesses to cash checks and other processes - convenient and easy to get to money - security-deposits insured by the FDIC and the NCUA

Choose all statements that describe a "thrift."

- specializes in making money off mortgages and personal loans to its members - a financial institution - also known as a savings and loans association - limited by law as to the amount of assets that can be used for commercial loans - mutually held corporations with decisions made by depositors and borrowers

What are the three main types of accepted financial institutions that are used extensively in today's financial market?

- thrifts or savings and loans associations - banks - credit unions

What are some steps a bank may take or do before allowing someone to open an account with the bank? choose all appropriate answers

- verify your identity - run a credit report on you - see your passport if you a citizen of another country - review your use or history of previous checking accounts

-firemen: either paid staff OR volunteer workers -police officers: salaries paid for by tax money -disaster relief: either paid staff OR volunteer workers -library workers: either paid staff OR volunteer workers -trash collectors: salaries paid for by tax money -teachers: salaries paid for by tax money -prison warders: salaries paid for by tax money -emergency medical services: either paid staff OR volunteer workers -local transit or school bus drivers: salaries paid for by tax money -church leaders other than pastors: volunteers do the work

--

401(k) plan - tax deferred money market account - taxed regular savings account - taxed stock dividends or stock splits - taxed bond dividends or payments - taxed 403(b) plan - tax deferred IRA account - tax deferred 457 plan - tax deferred certificates of deposit - taxed

--

The Federal Reserve System was established in ____________ and was the ___________ attempt by the United States government to establish a central banking system. Unlike its two other predecessors, the Federal Reserve System was not limited to a _______________ by the passing of the McFadden Act of 1927. The Banking Act of 1933 established the ________________________________________ to protect the deposits of consumers against bank failure. ________________ financial institutions are members of the Federal Reserve System today.

-1913 -third -20 year charter -Federal Deposit Insurance Corporation -Some

Online financial services associated with a bank, credit union or thrift may include which of the following services? select all that apply

-Certificate of Deposit (CD) -checking account -loans -savings account -IRA (Individual Retirement Account) -bill paying options -credit lines -debit cards

Online financial services associated with a bank, credit union or thrift may include which of the following services? select all that apply

-Certificate of Deposit (CD) - credit lines -loans - IRA (Individual Retirement Account) -checking account - savings account -debit cards - bill paying options

To help you make sure reoccurring bills are paid on time what kind of bills can usually be set up to draft off of your bank account so they will be paid every month on time? Choose all that apply.

-Credit card bills -Cable services monthly charges -car loan -cell phone bills -utility bills like electricity -Insurance premiums -loans and mortgages

Match professions or jobs to the necessary training or education needed to be proficient in the particular area. You may check the Bureau of Labor Statistics if you need help. Use the following website: (please contact your teacher if the website has an error or doesn't load) <Link>

-Diesel Mechanic: trade or technical school specialiazing in diesel engines -Doctor: undergraduate degree and medical school -Teacher: undergraduate degree in the area of educational specialization -Pastor: undergraduate degree plus seminary or graduate degree in religious studies -Electrician: trade or techncal school and apprenticeship under master electrician -Lawyer: undergraduate degree and law school -Truck driver: trade school and/or CDL certification

From the list below, choose the three leading credit reporting bureaus that lenders access to check credit scores.

-Experian -TransUnion -Equifax

What are some of the things to consider when purchasing disability insurance? Chose all appropriate answers.

-For how long do the benefits last? -What dollar amount or percentage is promised? How are amounts affected by Social Security and other factors? -When do benefits begin being paid? -How does the policy define disabilities?

In considering purchasing products, what are some good guidelines to follow. Choose all that apply.

-Get opinions from friends and relatives who have bought similar products. -Carefully read and make sure you understand any contract you sign. -Don't travel far to save a few cents on the exact same product. -Shop around comparing different deals for the same item. -Make sure you know the policies for returns and refunds. -Make sure you know what the final price will be including any extended warranty plans and fees.

Many people are always going after material things and monetary gain. Most people would agree that things should not be all that important. Choose from the list anything you think is more important than either material things or money.

-God -family -friends -neighborhood -country -education -values

Choose all possible reasons for shopping online.

-If you are using the same product model number, it will be the same item as in retail stores. -Many online merchants give free shipping on orders. -You don't have to fight the crowds on busy shopping days -It is easy to compare the same item on different websites. -You can check inventory to see if the item is in stock

A bank may need what three items or information from you in order to verify your identity? choose the three best answers

-Individual Taxpayer Identification Number -your Social Security number -a photo identification (like a driver's license)

Even though we should be careful with our money and valuables, what does the Bible say about the things of this world and wealth?

-Jesus said to the rich young ruler, "You lack one thing: go, sell all that you have and give to the poor, and you will have treasure in heaven; and come, follow me." -Lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. -Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal. -For where your treasure is, there your heart will be also.

Consumers have a right to a healthy environment. As a result there have been new laws and regulations enforced that strive to make this a safer and healthier environment for all consumers. Choose any of the statements below that support this effort.

-No smoking in restaurants. -Strict emissions laws on coal burning manufacturing plants. -Stricter pollutant emissions ratings on automobiles. -No smoking in public areas such as hotel lobbies and businesses. -No smoking on airplane -exercise rooms and equipment at businesses for employee use

Choose all rules, guidelines and regulations that apply to defined benefit plans.

-Promised benefits are based on a formula in the plan based on age, years of service, et cetera. -Retirees generally receive a monthly benefit payment upon retirement. -The Federal Government guarantees a portion of the benefits due through the Pension Benefit Guaranty Corp. -Employers can face penalties for not meeting federal standards and rules for managing pension accounts. -Employer funded plans must meet federal rules that set amounts that employers must contribute.

Choose all items that are possible deductions from a payroll check.

-Social Security taxes -Medicare taxes -federal income taxes -state income taxes -health insurance

According to the percentages of spending by the United States federal government what on what three areas does the federal government spend the most money?

-Social Security, unemployment and labor -Medicare and health -military and related expenses

Tom interviewed several of his neighbors and asked them to fill out an anonymous survey about their jobs. He found out that while one person's salary was $24,000 a year, another person's salary was $98,000. What are some factors that would make such a difference? Choose all that could apply.

-The person who had a lower salary was working part time. -One person owns his own business and the other works at a convenience store. -One person is a highly skilled technician and the other performs manual labor. -One person was in management, while the other was an entry level position. -One person has more years of experience than the other. -The person with a higher salary had a higher level of responsibility

Consumers have rights related to the products they buy and the services they receive. Select all rights that are recognized as rights that consumers have in the marketplace.

-The right to an explanation of all guarantees and warranty information about a product before purchasing. -The right to choose and not forced to accept just one company's product. -The right to be informed about products and any potential hazards involved with the use of the product if there are any. -The right to be heard and voice opinions about products and services. -The right to be safe, and for all products and services to be safe.

Because a bank is federally regulated, what are some of the guidelines used to make sure banks comply to the regulations? Choose all that apply.

-a bank is insured by the FDIC and must follow its guidelines in order for its depositors to be covered against loss -a bank has to abide by guidelines set up by the Federal Reserve System -a bank is regulated to make sure it does not lend more money than it can safely cover with assets and depositors' monies -a bank has to maintain certain ratios related to how much it lends compared to its capital assets -a bank has to have a minimum amount of capital holdings to do business

If you have comprehension coverage on a vehicle, then the insurance company will pay for damages in case of...(choose all that apply)

-a broken windshield when a rock cracks the windshield -theft of wheels off your parked and locked car -hitting a deer or a deer running into you -hail stones causing dents in your car

Choose all people that could receive benefits from Social Security.

-a child whose father died before retirement -a spouse of someone who receives Social Security benefits -a retired worker -a dependent parent of a worker who died -a person with a disability who cannot work

Choose all statements that describe a "thrift."

-a financial institution -mutually held corporations with decisions made by depositors and borrowers -limited by law as to the amount of assets that can be used for commercial loans -also known as a savings and loans association -specializes in making money off mortgages and personal loans to its members

As a person applying for a new account what should you do to make sure you are ready to approach a financial institution to open an account?

-a good knowledge of the responsibilities of an account holder -know how to balance a passbook or checkbook -proper identification -money or a check to make an initial deposit

A bank may need what three items or information from you in order to verify your identity? choose the three best answers

-a photo identification (driver's license, job ID, state voter card, or any similar ID) -Individual Taxpayer Identification Number - social security number

Choose all possible actions or events that could lead to a market "crash."

-a severe downturn in equity prices -investing public's lack of confidence -a time of economic panic or mania -speculation in stocks that have no real equity or value

Online financial institutions offer all services a "brick and mortar" institutions offer EXCEPT:

-a teller working at a walk-up office -branch manager offices to sit down and discuss your account

Choose all the valid reasons why a product may be recalled.

-airbags in certain car models fail to work properly in accidents -small parts of a game break easily and become a choking hazard for children playing the game -a toy has sharp plastic edges that can cut toddlers when they play with it -a child's car seat breaks lose from the latch that holds it in place -a riding lawn mower has been reported to slip into a higher gear without the owner moving the shift lever

There are several reasons why people should use a financial institution to help them with managing their money. Choose all valid reasons to have an account with a financial institution.

-allows quick access to your money -insured against losses up to federal maximum amount -cheaper than other possible alternatives -possibility of renting a safe deposit box to store valuable documents and other items -provides a safe place for money -helps with establishing credit and getting loans

What information should you record in your check register? Choose all applicable answers.

-amount of all written checks -check numbers of written checks -account balance -dates that go with any transactions -amount of any deposits

What information should you record in your check register? Choose all applicable answers.

-amount of all written checks -account balance -amount of any deposits -check numbers of written checks -dates that go with any transactions

Choose all jobs that do not require a college education

-baker -cashier -plumber -pet groomer -taxi driver

Why is it a good idea that consumers know what is in the food and products they buy? Choose all correct answers.

-because some people are on special diets and need to know specific percentages of certain items -because some people cannot have foods produced in plants that use peanuts in processing food -because some people are allergic to some foods such as peanuts -because some people need low salt products -because calorie intake for some people is important

Choose all financial products that are considered investments.

-bonds -commodities -mutual funds -real estate -stocks

Creditors that need to collect on debts have certain rights, but they cannot harass you or violate your rights. Select all actions that creditors cannot do in collecting debt.

-call you before 8:00 a.m. -call you at work if your employer doesn't approve -harass you -use any unfair practices such as lying -call you after 9:00 p.m.

Of all the types of credit offered to consumers, which ones are the worst ones to use because of both the fees and interest rates and how they will affect your credit rating. Choose two.

-car title loans -payday loans

The FDIC insures different kinds of accounts at participating financial institutions. Choose all of the accounts or investing programs that are covered by the FDIC. Check the FDIC website https://www.fdic.gov/edie/ (Links to an external site.) if you need help.

-certificate of deposits (CD's) -statement savings accounts -checking accounts -Money Market Deposit Acounts -passbook savings accounts

Choose all procedures and steps related to buying an automobile.

-check out the reputation and reliability of the dealer and car manufacturer -make sure you read and understand any documents before you sign -choose a vehicle that best suits your needs and budget - choose insurance coverage thatis correct for your car -research options for financing and don't always depend on the dealer for the best offer -take a test drive

What forms or account records are associated with a checking account?

-check register -account statements -deposit slips -checks

Choose all accounts that are considered savings accounts.

-checking account -passbook savings account -certificates of deposit

Online financial services associated with a bank, credit union or thrift may include which of the following services?

-checking account -savings account -debit cards -credit lines -IRA (Individual Retirement Account) -loans -Certificate of Deposit (CD) -bill paying options

When shopping for a house, there are tips you can use to help your effort be more successful. Choose all of the tips below that are effective in making your search for a new home an easier process.

-choose a good real estate agent -decide on areas where you would like to live and visit at different times of day to see traffic patterns and other factors -think about the future and both the needs of your family and possible income increases -use online mortgage calculators and amortization schedules to help you with working out possible payments -give the real estate agent a detailed list of what you want (number of bedrooms, baths, levels, yard, and other specifics) -look for houses in your price range and budget

For keeping up with your money in your bank, what is the best way to organize your accounts?

-consolidate your accounts with separate allocations going to checking and savings

Why should you keep your money in a financial institution?

-convenient and easy to get to money -cost: cheaper than using other businesses to cash checks and other processes -security: deposits insured by the FDIC and the NCUA -safety from fire, theft, and loss

Choose all statements that are true about term life insurance.

-coverage is for a certain time amount or certain age of insured -have no cash value -pay death benefits only -least expensive kind of life insurance

Unsecured debts are debts that are not tied to any collateral or major personal property that can be repossessed or processed for foreclosure.

-credit card debt -personal signature loans -medical bills -store credit accounts

There are two basic kinds of credit card. The typical credit card is based on a ______________ that is set by a ________________________ and it is linked to your _________________ or personal request. The second kind of credit card is a ____________ and it is more like a _________________ because it is directly tied to a checking or savings account, and all limits are based on your ______________ instead of an approved limit.

-credit limit -the sponsering financial institution -credit rating -secured card -debit card -account balance

What are the three main types of accepted financial institutions that are used extensively in today's financial market?

-credit unions -banks -thrifts or saving and loans associations

Choose all professions that require a college education.

-dentist -lawyer -medical doctor -school teacher

What forms or account records are associated with a checking account?

-deposit slips - check register -checks -account statements

Choose the typical benefits that a vision insurance plan provides coverage.

-discounts on contact lenses and eyeglasses -partial payment for laser surgery -routine eye exams

Choose all of the conditions or factors that can affect the cost of a life insurance policy premium.

-drinking alcohol or smoking regularly -your health -your occupation -your gender -your age

Choose all the factors that can be used to determine how much an insurance company may charge you for vehicle insurance premiums.

-driving history (tickets, accidents) -age -the deductible your choose -your residence -the make and model of your car -the age of your car

Based on the budget spending for a city, What are the three top categories for funding?

-education -human services -safety

Choose the budget item categories that are less than 5% of the budget allocation.

-education -transportation -food and agriculture -government -science

In order to get on a good plan to manage your debt, it is important that you start with a doable budget. What are the things most financial advisors consider essential for daily living? Choose all applicable answers.

-education -housing -health care -insurance -food

What three basic factors do employers look for when hiring people for their company or organization? Choose the three best answers.

-experience -education -skills

Some options add to the value of a car like air conditioning and an automatic transmission. Choose from below items that add costs, but are not really worth the extra dollars.

-extended warranties by third party sellers -rustproofing (most cars have a 5 to 10 year warranty against rust) -upholstery finishes -auto club memberships

What kind of items should be filed and organized in a central location at your home in a special drawer or file cabinet? Choose all that apply.

-financial records -bank statements -statements of bills paid and to be paid -wills and health directives -tax information and forms

Your insurance carrier may lower your premiums if you have safety features installed or as part of your home. select all that could possibly lower your premium

-fire retardant roofing -fire extinguisher -deadbolt locks -smoke detectors -burglar alarm

You may think that homeowners' insurance would cover any damage to your house no matter what. However, unless you have special riders or federally sponsored insurance coverage, which of the following would NOT be covered by homeowners' insurance? select all that apply

-floodwater damage -earthquake damage -termite damage to wood framing -roof leak caused by you installing a new skylight improperly -mudslide caused by new construction next door

Choose all the descriptors that tell about the functions and policies related to banks.

-have to abide by guidelines regarding capital holdings and ratios for lending money -regulated by the government -accepts deposits to accounts -lends money to individuals and invests in capital markets to earn interest -for profit corporations charging fees and interest

When you have towing and emergency road service coverage on your automobile insurance policy what are some of the typical expenses your insurance company will pay for or reimburse you for? (choose all possible answers)

-having a flat tire changed -the cost for a locksmith to retrieve your keys when locked in your car -towing your car that breaks down while you are traveling -emergency road service provider who comes to start your car when you have a dead battery

What four responsibilities does the Federal Reserve System have that were also the responsibilities of its predecessors, the First and Second Bank of the United States? Choose all correct answers.

-hold deposits for the federal government -receive revenues for the federal government -act as the federal government's fiscal agent -making payments for the federal government

The Affordable Care Act set certain essential benefits that all health insurance plans must offer. Choose those benefits from the list below.

-hospitalization -maternity and newborn care -doctor visits -prescription drugs -preventative care

Leasing a car could be a good option for you...(choose all applicable answers)

-if you prefer to trade cars often -if you want to drive a better car for less money -if you want to drive a car that is under the warranty of the manufacturer -if you need a lower payment-lesing is a lower monthly payment than buying -if your yearly mileage is less than 10,000 miles

The federal government will often give a tax credit for what kind of consumer action? Choose all that apply.

-installing solar panels to heat your home and hot water -installing energy efficient replacement windows -buying a vehicle that uses alternate sources of fuels/fuel efficient vehicles

Besides Social Security, most financial advisors would tell you that you also need what three other means for living comfortably in retirement?

-investments -personal savings -private pensions

Choose all statements that describe a "bank."

-invests in capital markets to make money for the institution as well as its customers -accepts deposits to accounts -regulated by the government -a financial institution -charges fees and interest to pay administrators and stock holders

What about lending money or things to others? What do you believe? Choose all that apply.

-it is better just to give instead of lending -it is better to lend help instead of money

What are some steps a renter should take in order to make sure the best choices are made when considering a place to live?

-keep communications open between you and the landlord or managing agent -make sure all forms are complete and references available if asked -get everything from monthly payments to renter/landlord responsibilities in writing -purchase renter's insurance to cover any personal property against damage, loss and theft -know your privacy rights and any curfews in effect

Other than your monthly rental payment, what are some of the other things you may have to pay for while living in a rental property? Choose all that apply.

-laundry facilities -pets -extra storage -utilities -parking spaces

Choose all typical insurances that a person or family may decide to have to protect themselves against loss.

-life insurance -health insurance -personal property insurance -homeowners' insurance -automobile insurance

Bankruptcy is an option for those deep in debt. Consequences can be _____________________ . The court grants a _________________ that exempts those filing for bankruptcy from paying certain debts. Bankruptcy filing can stay on your credit report for ________________ and can hurt when __________________________________________ .

-long lasting and far reaching -discharge -ten years -applying for other credit or getting a job

If you are buying a used car, what are some actions you might want to take before purchasing a vehicle.

-look for pricing for similar models on the internet or other dealerships -ask about any warranties or dealer sponsored guaranty -have a mechanic inspect the vehicle for any possible mechanical problems -research any records related to recalls or accidents related to the specific vehicle

Before buying an expensive item, what are some things you could do to make an informed decision?

-make sure it is something you need or want -decide in advance what you are willing to spend -ask those you trust to make wise financial decisions -research online -review available product tests and performance records

Choose all the descriptors that tell about the functions and policies related to credit unions.

-member owned and governed -profits and surpluses used to pay administrative costs and member service -offers financial services similar to banks, but to members only -not for profit -provides services to members only

When you have a credit card, it comes with certain stated policies and privileges. Select all that pertain to being a credit card customer.

-minimum payment due based on your account balance and percentages -some credit cards come with rewards points or cash back programs -annual fees are assessed yearly by some credit card companies, especially for premier accounts -APR interest rates tend to be between 8-24% -most cards have a grace period of 25-30 days where no interest is charged on purchases -late fees can/will be assessed if your payment is past due

Match the profession to either education needed or geographic location.

-neurosurgeon: "correct answer bachelor's degree, medical degree, residency at hospital" -taxi driver: "correct answer city with many people needing transportation" -teacher: "correct answer bachelor's degree, student teaching" -coal miner: "correct answer mountain areas in West Virginia" -park ranger: "correct answer yellowstone or yosemite national park"

Choose all statements that describe a "credit union."

-not for profit -a financial institution -profits and surpluses go to pay administrators and for services for members -member owned -provides services only to its members -accepts deposits to accounts like a bank

You can use your debit card to make purchases...(choose all correct responses)

-over the phone -in person at a store -online -at a gas pump that accepts debit cards

You can use your debit card to make purchases...(choose all correct responses)

-over the phone -online -at a gas pump that accepts debit cards -in person at a store

Financial institutions do not offer their services for free. You may have a free checking account, and you may receive interest on the money you have in a savings account, CD or money market account; however, the institution will enforce fees for a variety of reasons. Choose all charges that can be levied against an account owner that are discussed in the lesson.

-overdraft fee -check cashing fee when cashing a check from a different bank -ATM transaction fee -non-sufficient funds fee -minimum balance fee -monthly or annual account fees -membership fees at credit unions

Financial institutions may charge certain operational fees to help defray the costs of doing business. Choose the fees listed below that are common to financial institutions.

-overdraft fees -transaction fees -minimum balance fees -nonsufficient funds fees -returned check fees

Choose all possible sources of income.

-pay from a full time job -interest from a savings account -stock dividents -tips as a waitress or waiter -commission from sales

What two reasons cause consumers to have trouble with investing and saving?

-people want immediate gratification instead of long term gains -people are financially illiterate

Choose all the descriptors that tell about the functions and policies related to banks.

-regulated by the government -lends money to individuals and invests in capital markets to earn interest -have to abide by guidelines regarding capital holdings and ratios for lending money -for profit corporations charging fees and interest -accepts deposits to accounts

The Equal Credit Opportunity Act prohibits credit discrimination based on...(choose all that apply).

-religion -age -gender -race or color

Which of the following items are typical expenses that someone would have on a regular basis?

-rent or mortgage payment -groceries -car maintenance -utilities such as electricity or water -cell phone bill

Choose all legitimate consumer rights that are generally accepted by most people.

-right to fair compensation -right to choose -right to be informed -right to be heard -right to safety -right to a healthy environment

What are some steps a bank may take or do before allowing someone to open an account with the bank? choose all appropriate answers

-run a credit report on you -see your passport if you a citizen of another country -verify your identity -review your use or history of previous checking accounts

One way to manage debt that is out of control is by considering a debt consolidation loan. These type loans can be a ________________ or a ________________ . Although these may help with high debt, they also require some sort of ____________________ that could be _____________ if you are unable to make your payments. In addition to interest, you may be required to pay ___________________ which is based on the amount you borrow and is added to the cost of your loan. Unlike other loans, these type of loans usually provide some ______________________ .

-second mortgage -home equity line of credit -collateral -repossessed -points -tax advantages

Why should you keep your money in a financial institution? select the 4 best answers

-security-deposits insured by the FDIC and the NCUA -safety from fire, theft, and loss - cost-cheaper than using other businesses to cash checks and other processes - convenient and easy to get to money

This is the amount you pay on most collision claims before the insurance pays the rest of the repair bill.

deductible

What are some typical things not covered in most people's homeowner's policies?

-sewer backup or damage due to frozen pipes during severe cold -flood damage, especially if you don't live in a flood plain -damage from insects and vermin -earthquake and landslide damage -fraudulent claims or criminal acts -normal wear and tear of paint, siding, and other similar items.

Choose all products listed that are known for causing hazardous conditions or accidents if used improperly.

-skateboards -three wheeled ATV's (All Terrain Vehicles) -electric or propane space heaters -flammable aerosol sprays -toys with sharp edges or small parts

Why is it important for everyone who has monetary and other assets to have a will? Choose all that apply.

-so others won't have to decide what is best for your possesions and money to be used for -to make sure all possessions and assets will go to those who have been specifically chosen to receive them -so loved ones and family will know what you want to do with any of your possessions and money once you have died -it relieves loved ones of added responsibility at your death -it benefits those who you wish to bless after you are no longer able to help them after your death -so the state won't be in control of your estate

Choose all practical ways a person can plan and prepare for retirement.

-start saving for retirement when you are younger -know what Social Security may provide in retirement -evaluate how much income you will need to support you in retirement -participate in your employer's pension or savings plan to save on taxes -if self employed invest in IRA's or other diversified investments

Unsecured debts are debts that are not tied to any collateral or major personal property that can be repossessed or processed for foreclosure. Select all that are considered unsecured debt.

-store aacounts -credit card debt -personal signature loans -medical bills

Stephanie wanted to work as a lifeguard at the community pool during the summer. What are some things she might be required to do or have before being approved for the job?

-take classes in water safety -be certified in CPR -have a background check to make sure she can work with young children -be a certified lifeguard through the Red Cross

Alexander Hamilton was the first Secretary of ________________________ . He believed in a strong federal government with a centralized ________________________ . His critics attacked Hamilton by stating that a central government run bank would be ______________________________ . The first Bank of the United States was a ____________________ institution and was owned by a majority (70%) of __________________ investors.

-the Treasury -banking system -a monopoly and unconstitutional -private -foreign

What information is typically on a personal check?

-the account and routing numbers -the institution name and address -unique check number for each check -the account holder(s) name(s)

If an employee participates in a defined contribution plan and leaves his/her present employer for another job, what options does that employee have related to the money he invested in the plan? Choose all that apply.

-the employee can transfer the account balance to an IRA -the employee can take a cash settlement, but may have to pay fines and taxes -the employee can transfer the account balance to another employer plan if available at his new job -the employee may lose some of the value of the plan if taken in a lump sum cash payment

What are the three main types of accepted financial institutions that are used extensively in today's financial market?

-thrifts or savings and loans associations -credit unions -banks

Electronic banking or electronic funds transfer can include which of the following? choose all that apply

-use your personal computer to transfer money from your checking account to your savings account - electronic check conversion at a store for payment for merchandise - phone activated transfer from one account to another -automatic insurance bill draft off your account monthly -ATM withdrawals -direct deposit of your payroll to your bank account

Choose all items listed that can be a cost associated with the cost of owning a home.

-utilities such as electricity, gas, water, cable and others -property taxes-either payed yearly or assessed through escrow payments. -HOA fees, garbage collection fees, and landscaping fees -maintenance and repairs not covered in the closing settlement -Hazard insurance and/or PMI (Private Mortgage Insurance)

Both kinds of bankruptcy may help stop procedures related to...

-utility shut-offs -garnishments -repossessions -foreclosures

What kind of property is usually considered collateral (real property that is held or owned by the debtor used to secure a loan)?

-vehicles -real estate or other property -houses

Choose all of the listed ideas that are helpful for making a large purchase.

-wait for sales or rebates -ignore peer pressure to overspend or buy something you don't need -save ahead so lack of money will not be a pressure to buy on impulse and incur debt -make a spending plan outlining purchasing options -use the best alternative to pay without adding any fees or high interest

A transaction fee can be assessed against an account for the following transactions: choose all possible answers

-withdrawals over the maximum allowed - transfers to other accounts -copies of bank statements - checks cashed off other bank accounts - deposits over the maximum number allowed

A transaction fee can be assessed against an account for the following transactions: choose all possible answers

-withdrawals over the maximum allowed -checks cashed off other bank accounts -transfers to other accounts -copies of bank statements -deposits over the maximum number allowed

What do you believe about giving? Choose all that apply.

-you should give freely to those in need -it is a privilege to give to others

Federal health insurance for people who are 65 years of age and older. Also covers younger people that are permanently disabled.

Medicare

1. 401(k) plan 2.money market account 3.regular savings account 4.stock dividends or stock splits 5. bond dividends or payments 6.403(b) plan 7.IRA account 8.457 plan 9. certificates of deposit

1. tax deferred 2. taxed 3. taxed 4. taxed 5. taxed 6. tax deferred 7. tax deferred 8.tax deferred 9. taxed

What is a typical down payment on a house?

10-20%

What is a typical down payment on a house?

10-20% of the appraised value of the house

The Great Depression began with the stock market crash of...

1929

How many did this person choose to claim on this form? (Line 5)

2

How many total number of allowances did this person list? (Line H)

4

Social Security benefits replaces about _____ of an average wage earner's income after retiring. Most financial advisors say retires need about ______ of their pre-retirement earnings in order to live at a comfortable level.

40% 70%

Which of the following lists of investment accounts are considered tax deferred plans of some kind

401(k), 403(b), 457, IRA

Which of the following lists of investment accounts are considered tax deferred plans of some kind?

401(k), 403(b), 457, IRA

Every Social Security dollar collected in taxes goes to a trust fund that pays monthly benefits to retirees and their families and to the disabled and their families. What are the percentages for each group?

85% for retiree benefits and 15% for disability benefits

HVAC (Heating and air conditioning)- $3000-$15000 Hot water heater- $250-$1,500 Dishwasher- $300-$700 Garbage disposal- $100-$400 Refrigerator- $600-$2,500 Washer or dryer- $400-$1,200

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When you have a credit card, it comes with certain stated policies and privileges. Select all that pertain to being a credit card customer.

APR interest rates tend to be between 8-24% Correct! some credit cards come with rewards points or cash back programs Correct! late fees can/will be assessed if your payment is past due Correct! minimum payment due based on your account balance and percentages Correct! most cards have a grace period of 25-30 days where no interest is charged on purchases Correct! annual fees are assessed yearly by some credit card companies, especially for premier accounts

In the past few years, health care has been a topic of discussion and the news. The Supreme Court even has made rulings related to health care. Congress passed a bill commonly referred to as Obamacare, named after President Obama who promoted the bill's passage. The actual health care bill is the...

Affordable Care Act

The first Secretary of the Treasury of the United States was

Alexander Hamilton

As technology changes, job opportunities change. In the 1960's and 1970's there were television repair shops in every town and city. Nowadays, there are few or none of these shops around now. Which of the following factors could have led to this present situation?

All other answers are valid reasons.

An online bank may charge you a fee when you request the bank to review all the transactions and changes to your account for the last month. This is called...

An account research fee

What is a lease?

An agreement between an owner and a tenant that outlines the obligations of both parties regarding renting an apartment or house.

The Second Bank of the United States was established after the War of 1812, but opposed by what president?

Andrew Jackson

Bankruptcy is an option for those deep in debt. Consequences can be . The court grants a that exempts those filing for bankruptcy from paying certain debts. Bankruptcy filing can stay on your credit report for and can hurt when .

Answer 1: Correct! long lasting and far reaching Answer 2: Correct! disharge Answer 3: Correct! ten years Answer 4: Correct! applying for other credit or get a job

Part of owning a home is making sure you purchase ____________ insurance. This type of insurance can provide coverage for _____________, _____________, and _______________. Most lenders won't approve you for a ________ if you don't have [ans1] insurance. It is also part of being a good _________ of what God has blessed you with.

Answer 1: homeowners' Answer 2: liability for personal injury Answer 3: fire and smoke damage Answer 4: theft of personal property Answer 5: a mortgage or loan Answer 6: steward and witness

What line item is the most expensive category? What type of expenses might go under miscellaneous? Since the home mortgage and car loan are separate line items, what kinds of expenses might go under "Debt"? If this person is paying $140 a month for a car loan, based on the budget how much is allocated for maintenance? Something very important is missing from this budget based on biblical standards. What would that line item be? What kind of adjustments could be made to the budget in order to fit that category back into the budget?

Answer 1: housing Answer 2: emergency car repairs Answer 3: all of the other answers Answer 4: $20 Answer 5: tithe or charitable giving Answer 6: adjust the percentages to allow for giving

How many exemptions does this person claim for federal withholding? Based on the regular pay rate, what would be her gross pay for 20 hours? If she worked 3 hours overtime one week, how much pay would that be? Based on vacation pay, how many hours of vacation has she been paid for, year to date? To determine net pay, take the ________ and subtract the_________ .

Answer 1: three Answer 2: a little over $300 Answer 3: about $68 Answer 4: about 62 hours Answer 5: gross pay Answer 6: total deductions

Cash value policies such as ___________________________ have two purposes. Those kinds of policies combine ____________ with _____________________ to provide both ___________ and future cash payout options.

Answer 1: whole life or universal life Answer 2: life insurance Answer 3: an investment product Answer 4: death benefits

Most financial institutions offer ATM or debit cards that allow you to withdraw funds from your account at places other than your institution. What is an ATM?

Automated Teller Machine

Where are the safest places to keep your money until you need it for a purchase or other reasons?

Banks, credit unions, and thrifts

If you are not satisfied with the service you receive from the same merchant over and over again, you can always report them to the...

Better Business Bureau

Has a high deductible, covers only essential health benefits, and simply provides a safety net for emergencies.

Catastrophic plan

The Securities Exchange Act of 1934 created the...

securities and Exchange Comission

Stephen wanted to buy a used car when he started his new job. Which of the following ideas would NOT help him make the best decision?

Consider only cars that were his favorite color.

Loans that are either personal loans or second mortgages issued to borrowers to help pay off several other credit accounts and combine into one loan.

Consolidation Loans

Insurance that is usually coupled with an existing homeowner's or similar policy and protects against special circumstances such as natural disasters and property rights.

Contingency Insurance

The Banking Act of 1933 established the FDIC. The FDIC is the...

Correct! Federal Deposit Insurance Corporation

A _______________ is a stock, bond, or another investment.

security

Different geographic locations offer different employment opportunities. Match each job to a suitable geographic location.

Deep sea fisherman: gulf of mexico or atlantic ocean Coal miner: mountains of Virginia or West Virginia Park Ranger: Yellowstone or Yosemite National Park Taxi Driver: metropolitan or urban area White water rafting guide: Nolichicky river or colorado river Large scale wheat/corn farmer: the great plains of the United States Teacher: any populated area: rural, urban, or suburban

Insurance that provides income in the case that you are temporarily or permanently disabled.

Disability Insurance

When health insurance pays a claim for a patient, the amount covered is documented in a type of correspondence known as the...

EOB (Explanation of Benefits)

Loans based on borrowed money from an existing account such as a retirement or investment plan that has to be paid back before using the account for retirement.

Insurance/Retirement Account Loans

Why is using a credit card a good idea when making a purchase? Chose the best answer.

It makes it easy to return the product and it is easy to dispute a sale that is questionable.

An insurance plan that is paid for while a person is working to help with costs when the person is in need of rehabilitation care or nursing home services.

Long Term Care Insurance

What does the Bible say about work and retirement?

Man will have to work until his time of death.

What withholding status did this person choose?

Married, but withhold at a higher single rate.

State-administered health insurance programs for low income families and others who can't afford medical care.

Medicaid

Loans offered by financial institutions at lower interest rates that are issued for the purchase of a house or real estate property.

Mortgages

Since being created in 1933, how much money have depositors that have accounts with FDIC member banks lost because of banks failing?

No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.

Based on recent statistics credit card debt has stayed close to the average household income growth.

No, credit card debt is much higher than income growth.

Do creditors always report activity on your account and all new accounts to the three credit reporting bureaus?

No, so some of your credit history may be missing from one or all three

Do creditors always report activity on your account and all new accounts to the three credit reporting bureaus?

No, so some of your credit history may be missing from one or all three.

All states require the same kind of insurance coverage on a vehicle before it can be registered in that state.

No, some states have provisions such as an uninsured motorist fee.

Do the number of allowances a person claims on the W-4 form have to match the number of exemptions that are claimed on their 1040 tax return form?

No, this is simply information your employer needs for withholding purposes.

Not all community or local jobs can be filled by volunteers because...

Not all people are qualified for all service opportunities such as police work.

For each type of investment or savings options listed choose either taxed or tax deferred depending on typical government and IRS regulations.

ONLINE (2.8.1)

Match up the tax deferred plan to the people who are able to participate in the different plans.

ONLINE (2.8.1)

These plans give you a choice of what provider you would like to use. The cost is more for out of network providers, and generally do not need a referral for a specialist

PPO/POS

The Securities Exchange Act of 1934 created the...

Securities and Exchange Comission

What is the purpose of the W-4 form?

So the employer can withhold the correct income tax from the employee's salary.

Why does an employee fill out a W-4 IRS tax form?

So the employer will know hoe much to deduct from an employee's earnings to pay taxes to the IRS.

Based on this pie chart of budget expenditures, what is the largest category that tax money and other revenues be used to pay?

Social Security, Unemployment and Labor

According to the percentages of spending by the United States federal government what on what three areas does the federal government spend the most money?

Social Security, unemployment and labor military and related expenses Medicare and health

Financial institutions are safe places to keep your money because...

They are regulated by federal guidelines and are in business to make money for its depositors, members and/or stock holders.

Insurance that is usually added as a rider to homeowner's and provides specified liability insurance against fraud and civil suits.

Tort Insurance

What is gross pay?

Total amount of earned income before any taxes or other deductions have been taken out.

From the list below, choose the three leading credit reporting bureaus that lenders access to check credit scores.

TransUnion Experian Equifax

What is a credit score?

a "snapshot" of a person's credit worthiness at one point in time

An insurance policy is...

a contractual agreement between an individual or group made with an insurance company

Most financial institutions offer ATM or debit cards that allow you to withdraw funds from your account at places other than your institution. These are similar to credit cards except...

a debit card drafts directly from your checking or savings account

A debit card purchase is much like a credit card purchase except...

a debit card purchase transfers money directly from your checking or savings account

returned check fee

a fee charged when you deposit a check from someone that is returned because the check has insufficient funds

returned check fee

a fee charged when you deposit a check from someone that is returned because the check has insufficient funds to cover the check

transaction fee

a fee charged when you exceed a set number of transactions in a month for deposits or withdrawals

ATM fee

a fee charged when you use an ATM out of your bank's network

ATM fee

a fee charged when you use an ATM out of your banks network

wire transfer fee

a fee charged when you wire money from your account to someone else's account

overdraft fee

a fee charged when you write a check and your account doe snot have enough money to cover the amount

overdraft fee

a fee charged when you write a check and your account does not have the money to cover the check

minimum balance fee

a fee charged when your account balance goes below a certain minimum balance

minimum balance fee

a fee charged when your account goes below a certain minimum balance

membership fee

a fee that a credit union charges its members to open an account

income tax

a government tax based on a person's personal income

social security tax

a government tax used to help fund retirement benefits and disability payments

Based on the regular pay rate, what would be her gross pay for 20 hours?

a little over $300

When you buy stock in a company, it is like being...

a part owner

Instead of a set fee as a co-pay, coinsurance charges...

a percentage of the total cost

If personal debt gets out of hand and something needs to be done, what is one of the better sources that can help you the best?

a reputable credit counseling organization

Simple interest is interest based on...

a yearly rate and calculated once a year

If she worked 3 hours overtime one week, how much pay would that be?

about $68

Based on vacation pay, how many hours of vacation has she been paid for, year to date?

about 62 hours

Insurance companies stay in business because even though they have to pay _________ to people filing claims, they still receive ___________ money from the ________________ people pay than they have to pay out in [ans1].

benefits more premiums

Choose all the descriptors that tell about the functions and policies related to banks.

accepts deposits to accounts Correct! lends money to individuals and invests in capital markets to earn interest Correct! have to abide by guidelines regarding capital holdings and ratios for lending money Correct! regulated by the government Correct! for profit corporations charging fees and interest

What forms or account records are associated with a checking account?

account statements checks deposit slips check register

The first thing you need to do to open a new financial account is to go through a process called...

account verification

Bachelor's degree

accountant, computer programmer, teacher, personal financial adviser

Master's Degree

achaeologist, librarian, physicians assistant, sociologist

Some college, no degree

actor, computer support specialist, private investigator, resident advisor

The Equal Credit Opportunity Act prohibits credit discrimination based on...(choose all that apply).

age race gender religion

Associate's degree

air traffic controller, dental hygienist, nuclear technician, paralegal

Since the home mortgage and car loan are separate line items, what kinds of expenses might go under "Debt"?

all of the other answers

One strategy for keeping up with important financial and personal information is to store that information on a secure web site on in a safe deposit box. This would be important in case of...

all of the other answers are good reasons

An online bank may charge you a fee when you request the bank to review all the transactions and changes to your account for the last month. This is called...

an account research fee

Interest is money that us earned or paid based on...

an agreed upon interest rate that is expressed as a percent

Tax deferred accounts...

are taxed later when a person has retired and is in a lower tax bracket

Secured debts are usually connected to some sort of...

asset like your car or house

Some options add to the value of a car like air conditioning and an automatic transmission. Choose from below items that add costs, but are not really worth the extra dollars.

auto club memberships Correct! upholstery finishes Correct! rustproofing (most cars have a 5 to 10 year warranty against rust) extended warranties by third party sellers

Electronic banking or electronic funds transfer can include which of the following? choose all that apply

automatic insurance bill draft off your account monthly Correct! use your personal computer to transfer money from your checking account to your savings account Correct! electronic check conversion at a store for payment for merchandise Correct! phone activated transfer from one account to another w Correct! direct deposit of your payroll to your bank account Correct! ATM withdrawals

Rebates are incentives to buy that are often used in connection to what products?

automobiles

Choose all jobs that do not require a college education

baker Correct! pet groomer Correct! cashier Correct! taxi driver Correct! plumber

Less than high school

baker/cook, cashier, manual labor, taxi driver

Where are the safest places to keep your money until you need it for a purchase or other reasons?

banks, credit unions, and thrift

What are the three main types of financial institutions available for helping you manage you finances?

banks, credit unions, and thrifts

Where are the safest places to keep your money until you need it for a purchase or other reasons?

banks, credit unions, and thrifts

What are the three main types of accepted financial institutions that are used extensively in today's financial market?

banks, thrifts, credit unions

A department store sponsored card offers special incentives to shop with the store, but also carry higher interest rates. These cards...

cannot be used anywhere you want since they are sponsored by a specific store

Profits earned when an investment is sold for more than the price the investor paid to buy the investment are called

capital gains

To help you make sure reoccurring bills are paid on time what kind of bills can usually be set up to draft off of your bank account so they will be paid every month on time? Choose all that apply.

car loans cable services monthly charges loans and mortgages insurance premiums credit card bills utility bills like electricity cell phone bills

buying groceries at the market

check

paying a bill

check

signing your name after writing payment information

check

What information should you record in your check register? Choose all applicable answers.

check numbers of written checks Correct! dates that go with any transactions Correct! account balance Correct! amount of all written checks Correct! amount of any deposits

before seriously shopping for a new home, you should...

check your credit rating and get pre-approved with a lender

record fees that were taken out of your account

checkbook register

recording a deposit you just made at the bank yesterday

checkbook register

recording a withdrawal using an ATM card

checkbook register

Diversification in stocks is a principle of investing that recommends that investors should...

choose from several investment options thereby not concentrating all their wealth into just one stock or investment

A home buyer actually takes possession of the new home at...

closing

The initial amount you have to pay when you go to the doctor or receive other health care is called the...

co-pay

This kind of coverage will pay for repairs to your car when you hit a tree or a parked car.

collision

Postsecondary non-degree award

commercial diver, dental assistant, firefighter, insurance appraiser

Another way to make sure you know what is happening with your money and financial obligations is to use...

computer software or intenet services offered by your banking institution to track deposits and payments

For keeping up with your money in your bank, what is the best way to organize your accounts?

consolidate your accounts with separate allocations going to checking and savings

Generally, defined contribution plans require employees to...

contribute in order to establish these kinds of retirement plans.

People enjoy using online banking because it is..

convenient and saves time

People enjoy using online banking because it is...

convenient and saves time

People enjoy using online banking because it is...

convenient and saves times

collision coverage

covers the repairs for your vehicle when you hit another car, tree, or roll over

What kind of credit is the most favorable to have on your credit report?

credit backed by assets or equity such as a house mortgage or car loan

Although average salaries for teachers in Georgia are $3,000 less than the salaries for teachers in Hawaii, based on the cost of living index, teachers in Georgia rank 4th in the nation compared to Hawaii ranking 50th. What might cause this to happen?

geography, tourism, climate

To determine net pay, take the ______________ and subtract the ___________.

gross pay total deductions

In the 1970's under the Carter administration, the United States was plagued with...

high inflation and high unemployment

What kind of property is usually considered collateral (real property that is held or owned by the debtor used to secure a loan)?

houses vehicles Correct! real estate or other property

What line item is the most expensive category?

housing

Leasing a car could be a good option for you...(choose all applicable answers)

if your yearly mileage is less than 10,000 miles Correct! if you need a lower payment-lesing is a lower monthly payment than buying Correct! if you want to drive a better car for less money if you want to drive a car that is under the warranty of the manufacturer Correct! if you prefer to trade cars often

When should you contact your creditors if you are having any problems meeting your debts?

immediately

Don't buy on ____________ or when you are _______________ . Carefully check _______________ for the best deal, and never ____________ to save a few pennies. You can shop ______________ for items when local stores no longer have them in stock.

impuse under stress ads and prices travel far online

Medicare Parts C & D are supplements to Medicare and are sponsored by...

independent insurance companies

The "Rule of 72" is an investment principle that...

is a way of estimating your interest earnings over time

Why is it not a good idea to borrow money from a relative or friend?

it can cause personal conflict and bad feelings

What is the credit utilization ratio?

it is a ratio of the amount of debt you owe to the amount of debt you have been approved for

Why is it important for everyone who has monetary and other assets to have a will? Choose all that apply.

it relieves loved ones of added responsibility at your death so others won't have to decide what is best for your possesions and money to be used for to make sure all possessions and assets will go to those who have been specifically chosen to receive them so loved ones and family will know what you want to do with any of your possessions and money once you have died so the state won't be in control of your estate wills are fun to do it benefits those who you wish to bless after you are no longer able to help them after your death

Close escrow, sign all closing documents, and take possession of your new home.

last

Based on 10-12,000 mile limit per year of operation.

leasing

Lower payments for a newer vehicle.

leasing

When you buy bonds, it is more like you being a...

lender

With education taking up only 2% of federal budget and 29% of local government, you can conclude that education spending would be more of a politically important issue at the ____________ level.

local

milk that is sour with a stamped date that is in the future

local grocery store where you buy groceries

car running rough just after a tune up

local mechanic used for servicing your car

Because consumers have a right to choose among competing services instead of being forced to accept one company's service, what are some services that have been made available from more than one company? Choose the best answer.

phone service, television service, health insurance

A bank may need what three items or information from you in order to verify your identity? choose the three best answers

photo id individual Taxpayer Identification Number Correct! social security number

The amount paid by an insured party to the insurance company on a regular basis to cover the costs of the insurance policy is called the...

premium

What is the source of funding used by the FDIC to pay insured depositors of a failed bank?

premiums already paid by insured banks and interest earnings on its investment portfolio of U.S. Treasury securities

For defined contribution plans the federal government...

provides no guarantee of benefits.

If you look at the expenditures for a local government, the largest recipient of tax dollar funding goes to which area?

public education

Most homeowners' policies do not cover damage you experience to your home because of damage done because of local flooding unless you...

purchase federally sponsored flood insurance

What are some steps a renter should take in order to make sure the best choices are made when considering a place to live?

purchase renter's insurance to cover any personal property against damage, loss and theft Correct! make sure all forms are complete and references available if asked Correct! get everything from monthly payments to renter/landlord responsibilities in writing Correct! know your privacy rights and any curfews in effect

A consumer is anyone who...

purchases products or services for personal use or possession

The stock market is based on companies offering investors the opportunity to make money by...

purchasing and trading stocks

Both kinds of bankruptcy may help stop procedures related to...

repossessions Correct! utility shut-offs Correct! garnishments Correct! foreclosures

Of the groups of people that receive Social Security benefits, what group receives the most in payments?

retirees

Choose all legal and valid ways to make interest and investment income.

retirement accounts Correct! savings accounts Correct! stocks and bonds Correct! mutual funds Correct! CD's (certificates of deposit) Correct! money market account

Most people participate in tax deferred savings and investments accounts for...

retirement and travel

Most people use tax deferred accounts or plans for...

retirement and travel

Contingency insurance that covers things like...

risks associated with hazards due to nature and similar damages not covered under regular policies

Before a bank completes processing your account, they may

run a credit report

Before a bank completes processing your account, they may...

run a credit report

poor satellite television reception

satellite service provider

Have a home energy audit and radon test.

second or third

Have a home inspection, including insect inspection, electrical wiring, and other safety tests.

second or third