Personal Money Management

Which of the following is a deposit institution?

A credit union

Which of the following would be considered a long-term liability

A mortgage

The main goal of personal financial planning is

Achieving personal economic satisfaction

Efficient work habits are an example of

An employee's initiative

The first step of the financial planning process is to

Analyze your current personal and financial situation

The purpose of a cover letter is to

Apply for a job

The problem of bankruptcy is associated with poor decisions in the ____ component of financial planning

Borrowing

A commitment to a profession that requires continued training and offers a clear path for occupational growth is a ____

Career

Savings compounded _____ would have the highest effective yield.

Daily

Money received by an individual for personal effort is ___ income

Earned

The main purpose of taxes is to

Generate revenue for funding government programs

A ____ is an employment position that is obtained mainly to earn money

Job

The ability to convert financial resources into usable cash with ease is referred to as

Liquidity

Jennifer Rodrick uses a computer to help her record her spending each month. She updates her records each week. This would be an example of

Money management

The final step of the career planning process is to

Plan for career development

An expense that would be included in the itemized deductions of a taxpayer is

Real estate property taxes

Special class projects can be preented on a resume as _____ experience.

Research

A ____ endorsement is especially useful when you are depositing checks

Restrictive

The uncertainty associated with decision making is referred to as

Risk

The storage of funds for future use is a purpose of _______ services

Savings

An interview designed to reduce the nimber of candidates for a position to a workable size is a _____ interview

Screening

Opportunity costs refers to

Trade-offs associated with financial decisions

A taxpayer with a taxable income of $47,856 and a total tax bill of $5,889 would have an average tax rate of _____ percent

12.3%

A pawnshop with a monthly interest rate of 2.75 percent would have an annual interest rate of ___ percent

33

Which of the following institutions is organized primarily to provide loans to purchase homes?

A Mortgage company

The Hernandez family budgets $420 a month for food. Last month they spent $413, which creates

A budget surplus of $7

Which of the following presents a summary of income and outflows for a period of time?

A cash flow statement

What type of account would be considered the most liquid?

A checking account

Which of the following would qualify a person for an exemption when computing taxable income?

A dependent

Which of the following is not a deposit instiution?

A life insurance company

What type of account would you expect to provide the poorest yield?

A passport savings account

Which of the following institutions makes loans based on the value of tangible possessions?

A pawnshop

In a recent month, Ken Grossman has cash inflows of $3,100 and cash outflows of $2,950, resulting

A surplus of $150

The stages that an individual goes through based on age, financial needs, and family situation is called the

Adult life cycle

Creative resumes or those with a gimmick are most appropriate for careers in

Advertising

Which of the following would be a competency commonly associated with successful people?

All the above

Which type of tax expert would be of most value when you have a difference of opinion with the IRS?

An attorney

The first step of the career planning process is to

Assess your interestsl abilities, and goals

Items that you own with a monetary worth are referred to as

Assets

The use of legitimate methods to reduce one's taxes is tax ____

Avoidance

A saver will usually earn the highest rate with which of the following types of savings plans?

Certificate of deposit

A _____ resume presents a person's education, work experience, and other information in a reverse time sequence

Chronological

Traditionally, the greatest variety of financial services have been offered by a

Commercial bank

The Federal Deposit Insurance Corporation provides deposit insurance for

Commercial banks and savings and loan associations

Warranties are commonly associated with _____ purchases

Consumer

Which type of organization does not provide home mortgages?

Consumer Finance Companies

In recent years, membership in credit unions has

Continued to increase

The business hours and location of a financial insitution refer to the ____ factor of selecting a financial institution

Convenience

A question associated with the saving component of financial planning is

Do you have an adequate emergency fund?

John Garic 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 John?

Durable-products goal

The study of how wealth is created and distributed is

Economics

Changes in income, values, and family situation make it necessary to

Evaluate and revise your actions

A home file should be used for

Financial records for current needs

When it comes to savings, most Americans

Find saving difficult

Payments that do not vary from month to month are _____ expenses.

Fixed

A lack of willingness to accept a variety of employment positions is a common career planning mistake associated with weak

Flexibility

Most people pay federal income tax by

Having amounts withheld from income

Drew Davis earns $4,500 per month from his job at Cisco Systems; $900 is withheld from this amount each month for taxes. What type of tax is this most likely to be?

Income tax

Money received in the form of dividends or interest is _____ income

Investment

As Jean Taylor plans to set aside funds for her young children's college education, she is setting a _____ goal

Long-term

A common criticism of including a career objective on a resume is that it

May be too vague

A financial institution organized for the main purpose of providing loans to purchase homes is a

Mortgage company

Attempts to increase are part of the ______ component of financial planning

Obtaining

Tom Husson 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

For an entry-level position, a person's resume is likely to be

One page

To avoid high fees for loans, a person should not borrow from a

Pawnshop

Which of the following would likely lead to the most added income over an individual's working career?

Professional or doctorate degree

A taxpayer whose spouse recently died is most likely to use the ___ filing status

Qualifying widow or widower

The purpose of a selection interview is to

Question candidates for a job in detail

The financial planning process concludes with efforts to

Review and revise your actions

Which of the following financial documents would most likely be stored in a safe-deposit box?

Savings certificates

The education section of a resume should include

Schools attended

An example of a personal and employment document is a

Social security card

When an individual makes a purchase without considering the financial consequences of that purchase, they are ignoring the aspect of financial planning

Spending

Total earnings of a person minus the deductions for taxes and other items is called

Take-home pay

A ______ resume is designed to obtain a specific job

Targeted

A common deduction from a person's paycheck is for

Taxes

A chronological resume presents personal data based on

Time

The purpose of a debit card is to

Transfer money electronically