personal finance exam review

Kent Fuller is in the 22 percent tax bracket. A nontaxable employee benefit with a value of $1,300 would have a tax-equivalent value of: (Round your answer to the nearest whole number.)

$1,667.

Economics is the study of using money to achieve financial goals.

False

Lenders benefit more than borrowers in times of high inflation.

False

Service industries that are expected to continue to have the greatest employment potential include:

Information technology

The amount of interest is determined by multiplying the amount in savings by the:

annual interest rate and the time period.

The time value of money refers to:

increases in an amount of money as a result of interest earned.

A functional résumé is suggested for a person who:

has diverse skills and time gaps in their experience.

Which one of the following is a professional association that can assist in career planning for a specific career area?

American Marketing Association

Most important, your résumé and cover letter should have F-O-C-U-S. The "C" means:

Connect - provide examples of accomplishments that will benefit the company

Benjamin Smith has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow. What type of goal would this be for Benjamin?

Durable-product goal

Gross Domestic Product (GDP) measures the total value of goods and services produced within a country's borders, excluding items produced with foreign resources.

False

Which one of the following is not an element of corporate culture?

Government regulations

Higher interest rates can be caused by:

a lower money supply.

A chronological résumé presents your education and experience based on:

a reverse time sequence.

If you desire your savings to double in 6 years, what rate of return would you need to earn?

12 percent

If inflation is increasing at 4 percent per year, and your salary increases at the same rate, how long will it take your salary to double?

18 years

With an inflation rate of 8 percent, prices would double in about ___________ years.

9

The main responsibility of The Fed is to:

maintain an adequate supply of money.

The annual price increase for most goods and services measured by the Bureau of Labor Statistics is called ________.

the consumer price index

Current liabilities differ from long-term liabilities based on:

when the debt is due.

A career is selected in relation to which social influence?

Demographic trends

To determine the difference between two job offers with different salaries and employee benefits, you can use which method?

Market value calculation

Creativity, problem-solving skills, and physical dexterity are examples of:

aptitudes.

When an individual makes a purchase without considering the financial consequences of that purchase, he/she ignores the ______________ aspect of financial planning.

spending

Natural abilities that people possess are called:

aptitudes

The 50/30/20 financial rule of thumb suggests that 20 percent of income be used for:

savings

The education section of a résumé should include:

schools attended.

Which type of computation would a person use to determine the current value of a desired amount in the future?

Present value of a single amount

After identifying specific employment opportunities in the career planning and advancement process, a person should:

develop a résumé and cover letter.

Thomas Hudson recently coordinated a fund-raising project for an organization that assists homeless youth. This would most likely be an example of experience in:

obtaining financial planning and budgeting skills.

Seventy percent of professionals locate employment positions presently available through networking and:

personal contacts.