Senior Strategies Final Review
Which of the following is an example of the time value of money? A-$1 today is worth more than $1 received in the future B-Depositing a check on the same day, it was issues C-Having a paycheck directly deposited into a checking account D-$1 received today is worth the same as it is in the future
A- $1 today is worth more than $1 received in the future
Marc purchased 100 shares of LXM stock for $25 per share. He sold the stock two years later for $28 per share. What is the gain after the sale of the investment? A-$300 B-$280 C-$530 D-$250
A- $300
Jill's gross wages for one week totals $562. With social security tax rate of 6.2% and a medicare tax rate of 1.45%, what are the total FICA taxes? A-$42.99 B-$49.29 C-$9.15 D-$34.84
A- $42.99
January-$465.60 February-$394.60 March-$516.75 April-$495.60 May-$506.34 June-$439.15 Based on the number provided, what was Stella's average monthly expense for food? A-$469.67 B-$939.21 C-$2,718.46 D-$2,818.04
A- $469.67
What is the NET wage of someone who works 40 hours a week at $15 an hour and has $70 of federal withholdings and $15 of state withholdings? A-$515 B-$685 C-$530 D-$600
A- $515
Using the SIMPLE INTEREST FORMULA, calculate the interest earned for one year on a savings account that begins with a deposit of $1,500 and pays 5% interest. A-$75 B-$15 C-$50 D-$150
A- $75
Maria set a goal to buy a used car in the next few months. She will need $2,000 to buy the car and has already saved $200. If she can save $150 each month, how long will it take her to save the entire $2,000? A-12 months B-6 months C-9 months D-15 months
A- 12 months
Where does the money come from when using a debit card? A-Bank or credit union B-Credit card issuer C-Personal money market account D-ACD
A- Bank or credit union
Which of the following are potential consequences of problem gambling (choose 3) A-Depression and Suicide B-Corporate Downsizing C-Financial Debt D-Increased Income E-Identify Theft F-Loss of Employment
A- Depression and Suicide C- Financial Debt F- Loss of Employment
Susan has $100,000 to invest in the stock market. She chooses to spread her investments over 25 companies to reduce risk. Which term best describes what Susan has done with her money? A-Diversification B-Liquidity C-Leverage D-Hedging
A- Diversification
What is the organization that controls the money supply of the United States? A-Federal Reserve B-Federal Deposit Insurance Corporation C-Securities and Exchange Commission D-Attorney General's Office
A- Federal Reserve
Which FOUR characteristics affect the cost of automobile insurance? (choose 4) A-Grades B-Home Size C-Religion D-Age E-Marital Status F-Gender G-Personality
A- Grades D- Age E- Marital Status F- Gender
How would you classify earned interest, wages and tips? A-Income B-Benefits C-Insurance D-Investments
A- Income
What result is expected when seeking a high-skill/high-demand career? A-Increase in wages B-Decrease in return on investment C-Decrease in wages D-Increase in opportunity costs
A- Increase in wages
Which of the following is an example of wise credit card use? A-Pay the balance in full each month B-Gradually expand the amount borrowed to the card's credit limit C-Make only the minimum payment each month D-Pay only the interest on any outstanding balance
A- Pay the balance in full each month
Which of the following is the best place to set funds aside for "rainy day" expenditures? A-Savings Account B-Checking Account C-Real Estate D-Stock Market
A- Savings Account
What was Stephanie doing when she co-signed on a car loan for her son Jaxon? A-Taking responsibility for re-paying the loan if Jaxon fails to pay B-Taking responsibility for re-paying 60% of the loan if Jaxon fails to pay C-Taking less responsibility than Jaxon for repayment of the loan D-Taking responsibility for the repayment of the interest on her loan
A- Taking responsibility for repaying the loan if Jaxon fails to pay
What is the purpose of form W-2? A-To document the amount of wages earned and taxes withheld B-To allow the employee to participate in a tax-deferred savings plan C-To allow the employer to withhold federal income taxes from an employee's wages D-To document a refund or figure a balance due to the IRS each year
A- To document the amount of wages earned and taxes withheld
Match each term to its definition A-Free Application for Federal Student Aid B-Money your relatives give you to pay for school C-Financial aid money you do not have to repay D-Financial Aid money you must repay Family Contribution FAFSA Loan Grant
A-Free Application for Federal Student Aid- FAFSA B-Money your relatives give you to pay for school- Family Contribution C-Financial Aid money you do not have to repay- Grant D-Financial Aid money you must repay-Loan
Which of the following is an example of an employer-sponsored tax-sheltered retirement plan? A-457(b) account B-401(k) account C-Savings account D-Social Security Account
B- 401(k) account
What is the definition of a major decision? A-Choices that may become a habit B-Choices that have long term effects on a person's life C-Choices that are made on a day to day basis without a lot of thought D-A choice that helps to identify personal interest
B- Choices that have long term effects on a person's life
Select the TWO short-term goals from the list below. A-Save money for a new car B-Complete a homework assignment C-Graduate from college D-Exercise three times a week E- Learn a fluent language fluently
B- Complete a homework assignment D- Exercise three times a week
Identify safe methods for conducting online transactions (choose 4) A-Purchase items from an unknown international website B-Do not save your credit card information to your browser C-Provide your social security number when it is requested D-Shop website addresses with "https" E-Keep records of online transactions F-Use a public computer with free wifi G-Do not use public computers to shop online
B- Do not save your credit card information to your browser D-Shop website addresses with "https" E-Keep records of online transactions G-Do not use public computers to shop online
Which is not included in cost of living? A-Housing B-Education C-Food D-Transportation
B- Education
Which of the following can be included in a mortgage payment (choose 4) A-Landscaping B-Interet C-Income Taxes D-Cable/Internet E-Home Repair Allowance F-Principal Loan Amount G-Property Taxes H-Homeowners Insurance
B- Interest F- Principal Loan Amount G- Property Taxes H- Homeowners Insurance
What is the term used for take-home pay? A-Fixed wages B-Net wages C-Disposable wages D-Gross wages
B- Net wages
Which term refers to the fee charged when you spend more than what is in your bank account? A-Service Fee B-Overdraft Fee C-Deposit Fee D-Late Fee
B- Overdraft Fee
Which one of the following are NOT protected by Federal and State consumer laws? A-Aggressive bill collectors B-Overpaying for products and services C-Deceptive sales D-Deceptive marketing practices
B- Overpaying for products and services
What is a primary way to establish good credit history? A-Cutting up all your credit cards B-Paying all your bills on time C-Making deposits to your savings account once a year D-Writing checks for all your purchases
B- Paying all your bills on time
Which type of fraudulent offer depends upon the new investor recruiting more people to earn commissions? A-Deceptive advertising B-Ponzi Scheme C-Bait and switch D-Chain letters
B- Ponzi Scheme
What is an appropriate description of reachable goals? A-Realistic, meaningful and specific B-Realistic, measurable and specific C-Realistic, meaningful and general D-Realistic, measurable and general
B- Realistic, measurable and specific
What is inflation? A-The projected value of an investment at the end of a specified time frame B-The rise in the general level of prices C-The number of times something happens to money D-The uncertainty the return on an investment will deviate from what is expected
B- The rise in the general level of prices
What two forms are required for every person to complete when they begin a new job? A-FICA and W4 B-W4 and I-9 C-W-2 and FICA D-I-9 and 1040
B- W4 and I-9
What are important considerations when making a purchase (choose 4) A-Peer Purchases B-Location C-Price D-Shipping Cost E-Viral Marketing F-Celebrity Endorsement G-Store Experience H-Return Policy
B-Location C-Price D-Shipping Cost H-Return Policy
Amy has $510 in her checking account. She pays $85 in bills online, which were immediately deducted from her checking account. The following day, she withdrew $30 for lunch, bought pants for $23 and purchased a gift card for $38, all on her debit card. After she returns the pants for a full refund to her checking account, how much does Amy have available in her account? A-$372 B-$425 C-$375 D-$334
C- $375
What will be Rebecca's total annual gross earnings if her gross WEEKLY pay as a website designer is $1,523? A-$18,276 B-$36,552 C-$79,196 D-$62,438
C- $79,196
According to the rule of 72, if you earn 11% interest on a $5,000 investment, how long will it take you to double your money? A-6.94 years B-9 years C-6.5 years D-11.5 years
C- 6.5 years
Which of the following describes an act of identity theft? A-Having the same name as another person B-Receiving permission to use a parent's credit card for clothes C-Acquiring and using someone's personal identification D-Taking an exam as another person
C- Acquiring and using someone's personal identification
Which of the following breaks payments down into principal and interest? A-Loan Default B-Adjustable Rate C-Amortization D-FICO Score
C- Amortization
Select THREE of the following that directly affect credit worthiness. A-Customer B-Cash C-Capacity D-Collateral E-Co-Signer F-Character
C- Capacity D- Collateral F- Character
Why should you use the FAFSA4caster? A-Understand Federal tax credits available to you B-Identify how much tax you will owe based on your salary C-Determine how much Federal financial aid you are eligible to receive D-Determine the best college or university for you to attend
C- Determine how much Federal financial aid you are eligible to receive
Which two agencies insure the deposits at banks and credit unions? A-FSLIC and FDIC B-FDIC and FCUIC C-FDIC and NCUA D-CUDIC and SLDIC
C- FDIC and NCUA
Jan is trying to decide which school to attend and is making a list of all the possibilities. What decision-making step is being described? A-Making the decision B-Evaluating the results C-Identifying the options D-Define the problem
C- Identifying the options
What is true about a credit score? A-It determines the length of the loan B-It shows how many credit cards you qualify for C-It influences the interest rate of loans D-It shows personal income
C- It influences the interest rate of loans
What is a possible risk of owning your own business? A-Paying your taxes B-Being your own boss C-Losing your investment D-Controlling your own salary
C- Losing your investment
What is the likely outcome of dropping out of high school? A-Higher future income B-Lower interest rates C-Lower future income D-Wider choice of jobs
C- Lower future income
Which three of the following does a career plan include? A-Parent Education B- Educational Credentials C-Occupational Goal D-Skill Development E-Human Capital F-Tax Bracket
C- Occupational Goal D- Skill Development E- Human Capital
Which type of lending institution will issue you a 2-week loan for $100 then automatically withdraw $140 or more from your checking account when the loan is due? A-Commercial Bank B-Investment Company C-Payday Loan Company D-Credit Union
C- Payday Loan Company
Which of the following is true about values? A-Forced on us by our parents B-Only important when attending school C-Personal and based on our own beliefs D-Not very important to identify
C- Personal and based on our own beliefs
Which of the following refers to the payment to the insurance company for an insurance policy? A-Co-Payment B-Deductible C-Premium D-Disbursement
C- Premium
Which term refers to the original amount of a loan on which interest is paid? A-Premium Payment B-Equity C-Principal D-Down Payment
C- Principal
What does auto insurance liability cover? A-Financial loss due to illness accident B-Disability when a person is ill or unable to work C-Property damage and injuries to other as a result of an accident D-Repair of replacement of the policy holder's car if damaged in an accident.
C- Property damage and injuries to other as a result of an accident.
What does the phrase "pay yourself first" mean? A-Donate money to a charity before paying bills B-Put all your money in your checking account before paying bills C-Put money in your savings account before paying bills D-Buy something for yourself before paying bills
C- Put money in your savings account before paying bills
What are characteristics of a functioning budget/spending plan? A-Requires an investment account B-Set it aside and refer to it as needed C-Review and revise as financial situations change D-Stick with the budget, no matter what happens
C- Review and revise as financial situations change
The lottery jackpot if up to $600 million. You are a student on a tight budget. What should you do? A-Keep playing the lottery because you'll eventually win B-Purchase only $20 in tickets. It's a minor cost to win so big C-Save and invest your money. Your chance of winning is small D-Wait, it will be $900 million next time
C- Save and Invest your money. Your chance of winning is small
Saving money for a trip that is 2 months away is an example of which type of financial goal? A-Intermediate goal B-Long-term goal C-Short-term goal D-Investment goal
C- Short-term goal
Which of the following activities will help safeguard your privacy? A-Exchanging financial information on a public computer B-Carrying your social security card with you C-Shredding bank and credit card statements D-Keeping a written list of your passwords
C- Shredding bank and credit card statements
Why is goal setting important in the financial planning process? A-To identify the influence of marketing strategies B-To evaluate components of a credit report C-To establish spending priorities D-To define a person's tax bracket
C- To establish spending priorities
The chart shows the income of a high school student who becomes employed after high school and of a college student who becomes employed after college. The college graduate has tuition costs for 4 years before finally becoming employed in 2010. In what year will the college graduate recover the costs of tuition and surpass the total earnings of the high school graduate? 2006-HS/$12,000, C/$-7,000 2007-HS/$12,000, C/$-7,000 2008-HS/$12,000, C/$-7,000 2009-HS/$12,000, C/$-7,000 2010-HS/$12,000, C/$40,000 2011-HS/$12,000, C/$40,000 2012-HS/$12,000, C/$40,000 2013-HS/$12,000, C/ $40,000 2014-HS/$12,000, C/$40,000 A-2009 B-2014 C-2012 D-2007
C-2012
A women's skirt with a marked price of $250 is being offered at a 20% discount. What is the selling price of the skirt? A-$50 B-$245 C-$230 D-$200
D- $200
Jason's employer pays overtime at 1.5 times the hourly rate for any hours wored beyond the standard 40 hours a work week. Jason's hourly wage is $10 per hour and he worked 47 hours this week. What are Jason's total gross earnings? A-$550 B-$400 C-$470 D-$505
D- $505
How long can a bankruptcy remain on a credit report? A-12-15 years B-4-5 years C-2-3 years D-7-10 years
D- 7-10 years
Which of the following best defines compound interest? A-Earning a higher than market rate of interest B-Earning interest on principal only C-Earning interest on someone else's money D-Earning interest on interest
D- Earning interest on interest
What term refers to an individual who undertakes the creation, organization, and ownership of a business? A-Banker B-Accountant C-Investor D-Entrepreneur
D- Entrepreneur
Bob has a $250,000 loan at 3.4% interest for 30 years. Which type of loan does Bob have? A-Adjustable B-Compounding C-Balloon D-Fixed
D- Fixed
Terri was recently involved in an automobile accident. Why is her insurance company requiring her to pay the first $500 of the repair bill? A-She did not call her agent and report the accident immediately B-She will be reimbursed by the insurance company later C-The cost of the repairs is higher than what her policy covers D-It is the amount of the deductible on her policy
D- It is the amount of the deductible on her policy
How does insurance work? A-Fraud Prevention B-Prevents assets from failure C-Transfers risk for a premium D-Loss prevention
D- Loss prevention
John chose to go to college instead of getting a job after high school. He sacrificed four years of salary while obtaining his degree. What is the cost he chose by going to college instead of employment? A-Experience Cost B-Benefit Cost C-Sunk Cost D-Opportunity Cost
D- Opportunity Cost
What term is used to describe a thief pretending to be a bank using electronic communication to get personal information? A-Skimming B-Malware C-Spyware D-Phishing
D- Phishing
Which two withholdings are designed to compensate retired and disabled individuals? A-Federal and State taxes B-Medicare and State taxes C-Social Security and State taxes D-Social Security and Medicare
D- Social Security and Medicare
Match the insurance term with the correct definition Insurance that covers damages to home and land which may cover damage from fire, flood or earthquake. Insurance that pays benefits in the event the insured becomes incapable of working. Insurance against loss by illness and bodily injury, which may cover doctor visits, medicine or hospitalization. Insurance that pays a beneficiary in the event of the insured's death. A-Disability B-Life C-Health D-Property
Insurance that covers damages to home and land which may cover damage from fire, flood or earthquake. (D) Insurance that pays benefits in the event the insured becomes incapable of working. (A) Insurance against loss by illness and bodily injury, which may cover doctor visits, medicine or hospitalization. (C) Insurance that pays a beneficiary in the event of the insured's death. (B)
Group the following responsibilities and characteristics of owning versus renting a home A-Short-term commitment B-Building equity C-Greater mobility D-Regularly Negotiate contract E-Lower financial requirements F-Property taxes G-Major repairs H-Greater Stability
Owning- F, G, H, B Renting- A, C, D, E
Identify if the item is a want or a need A-Housing B-Shoes C-Car D-Eating Out E-Smart Phone F-Groceries G-Video Games H-Transportation
Want- C,D,E,G Need- A,B,F,H
