Personal Finance Exam Review Questions

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Brett borrowed money to purchase a vehicle without making a down payment and now he owes more on the vehicle than it is worth. This situation is referred to as: A - depreciation B - being upside down on the loan C - leasing D - a hidden cost

Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective? A - carrying all credit cards in her wallet so they don't get lost B - signing the back of her card with her signature and "Please see picture ID" C - giving account numbers over the internet rather than over the phone D - using credit cards for all her purchases so she only needs to pay one bill each month

What is the difference between property and liability insurance? A - Property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people B - Property insurance pays for loss to other people whereas liability insurance pays for loss to the insured person C - The difference between property and liability insurance depends on the specific insurance policy purchased D - The difference between property and liability insurance depends on whether automobile, homeowners, or renters insurance is purchased

When making food decisions, which of the following is most likely to be least expensive? A - convenience foods B - fast food restaurants C - ready‐to‐eat foods D - full‐service restaurants

When may a person view his/her credit report for free? A - Once a year, from each of the three main credit reporting agencies B - At any time and an unlimited number of times C - A person may not review his/her credit report D - If a person has sufficient financial resources

Which of the following is NOT included in an individual's credit report? A - Medical information B - Current and past addresses C - Bankruptcies and foreclosures D - Account balances

13. One element of a financial goal is missing in the example below. Which one is it? "I will save $150 each month to go on a vacation in one year. A - Time Bound B - Specific C - Attainable D - Measurable

Due to unexpected circumstances, Ariel is temporarily receiving income from a government assistance program. The funds she receives through the government program are most likely funded by: A - small fees proportional to income of clients. B - fees that are charged to some, bt not all, clients using the programs. C - taxes at the local, state, and federal levels. D - donations from large corporations.

Shannon is reviewing her pay stub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount? A - Net Income B - Hours and Earnings C - Employer Contributions D - Gross Income

10. If expenses were to exceed income on a spending plan, what would be a financially smart solution? A - Decrease expenses B - Use a credit card more often C - Earn less income D - Increase purchases

12. Kaylee will save her allowance of $25 per month to purchase a $150 mp3 player in six months. This is an example of what type of goal? A - short-term goal B - mid-term goal C - long-term goal D - This is not an example of a goal.

20. Taxes that are charged on USA worker payroll and used to help pay for health care for senior citizens in the U.S.is called _____________ taxes. A - Medicare B - Medicaid taxes C - Excise Taxes D - Acceptable us taxes

Alyssa's childcare provider called to tell her that the provider's young daughter woke up ill and she won't be able to care for Alyssa's son today. Alyssa's friend, who is a stay-at-home mother, agrees to care for Alyssa's son today so Alyssa can go to work. Alyssa has utilized: A - family child care B - Social capital C - a non-profit organization D - neighborhood watch

Which of the following best describes the benefits of having insurance? A - The policyholder may become better off financially if an accident occurs B - Insurance combined with emergency savings provides a sense of financial security and peace of mind C - The policyholder no longer has to worry about paying for financial losses resulting from an accident because all risk of financial loss is transferred to the insurance company D - It is required by law to purchase insurance so the benefits do not matter

An organization that exists to benefit others through human service, conversation, religious, or other charitable purposes. A - community B - family C -non-profit organization D - government

Diana has faced the fact that she and her family need to explore assistance programs they might qualify for during the time she must be off work following an accident. How might she and her family locate an appropriate program? A - Call the Social Security Administration B - Contact her local bank C - Go to www.benefits.gov D - Inquire at the local food pantry

Employment opportunities for Jackie and David are limited, but they both have jobs earning just a bit more than minimum wage. Which federal program will encourage them to file a tax return by offering a financial incentive to them? A - Social Security B - TANF C - SNAP D - Earned income tax credit

In which scenario below should renters insurance be considered? A - Steve and Teri have purchased a home in a rural area. B - Tim and Hanna are living with his parents in the basement of their home for six months while flood damage is being repaired in their home. They are paying his parents rent during the time they are living in their home. C - Zach and Leah have rented an apartment in an urban area. D - Don and Denise are landlords for several rental properties.

James received his first medical bill of the year. It was a total of $1000. His health insurance policy has a $500 deductible and a 20% co‐insurance. How much of the medical bill will James be responsible to pay? A - $0, insurance will cover the entire medical bill B - $500 C - $600 D - $700

What is NOT an example of a durable good? A - Automobile B - Cell phone C - Food D - Clothing

Alisa is looking for an investment that is structured to have tax benefits. She should look for information on: A - Tax rated bonds B - Speculative investments C - Index funds D - Tax-advantaged investments

Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during the school year when she doesn't have a job. Which expense WOULD NOT be considered part of the total transportation expenses. A - automobile payment B - fuel C - parking D - depreciation

The access a person has to social relationships that can provide resources. A - community B - family C - non-profit D - social capital

Patty recently moved into a new apartment with her friend Emma. Who is responsible for purchasing renter's insurance? A - Patty and Emma B - The property manager C - Patty and Emma's parents D - Renters insurance is not necessary

Perry would like to purchase a new car. What should he consider first in the planned buying process? A - Evaluate the opportunity cost and trade‐offs to purchasing the car B - Research different sellers to determine where to purchase the car from C - Rank product features in order of importance D - Calculate the cost of ownership

Rent is defined as: A - the cost of using someone else's property B - the fee charged for performing property management tasks C - an advance payment for costs beyond normal wear and teard D - the purchase price of a housing unit

11. Which statement is TRUE about Payroll Taxes A - Payroll taxes are paid on both earned and unearned income. B - Payroll taxes fund the Social Security and Medicare programs. C - Payroll taxes fund different operations and programs of the federal government. D - The amount of tax paid depends on many different factors but increases as income increases.

12. David made a mistake in his checking account record keeping and spent $10 more than he had deposited in his account. As a result, he can expect to be charged a(n) A - ATM Fee B - Overdraft Fee C - Safe Deposit Fee D - Contact Fee

15. When is your spending plan complete? A - When you have allocated all your income into categories for the month B - Spending plans are always under revision so they are never complete. C - When you have all of your current income and expenses recorded. D - Spending Plans are complete each December 31st as one year ends and another year begins.

4 . Common fees that may be charged by a depository institution include all EXCEPT: A - Overdraft fee B - Late Fee C - Minimum Balance Fee D - ATM fee

2. Sanjay is concerned about the safety of the money in his savings account. Which type of depository institution should he choose? A - A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC) B - A credit union, since his deposits would be insured by the National Credit Union Association (NCUA) C - He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements D - Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or vault.

One's Lifestyle is to their Standard of Living as present is to __________? A - Past B - Recent C - Future D - Gift

2. Carter wants to participate in an activity that will improve his well-being. Which of the following activities would contribute least to his well-being? A - An activity his friends like to participate in. B - An activity that doesn't cost much money. C - An activity that his teacher suggested to him. D - An activity that makes him lose track of time.

18. Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which of his expenses best fit this category? A - Gasoline, food, and entertainment B - Internet bill, entertainment and clothing C - Motorcycle payment, food and cell phone bill D - Cell phone bill, gasoline and car payment

3. Jenna wants to improve her financial well-being. Which of the following would contribute the most to her financial well-being? A - Take a personal finance class to learn how to manage her money. B - Pay her grandma back the money she borrowed to take a school trip last year. C - Talk to her friends about how to manage her money better. D - Open another checking account to help her organize her money.

A bond is: A - A type of debt that a company issues to investors for a specified period of time. B - A share of ownership in a company. C - A type of investment that is only offered by depository institutions. D - A type of investment that has the potential for significant fluctuations over a short period of time.

A rental agreement is often referred to as: A - a lease B - an amenity C - renters nsurance D - mortgage

Advocacy is: A - The act or process of writing or speaking out in favor of or about a cause B - When someone is audited by the Internal Revenue Service (IRS) C - A wish list developed by non‐profit organizations D - A situation in which two people argue against a policy

Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is shopping online? A - Use a credit card B - Shred all sales receipts as soon as the item purchased has been received C - Use a debit card D - out the bank account numbers on the credit card bill before returning it with payment.

Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could do with the credit card? A - Close the account by phone and in writing, then destroy the card. B - File the credit card away for use at a later time. C - Let a family member take over the credit account so her credit score will not be affected. D - Keep the credit card in her wallet in case she needs proof of identification.

Caitlyn's parents were rushing off to a meeting to get some help planning their estate. When Caitlyn asked who they were meeting with, her parents likely told her they were going to the office of: A - Any of the above B - a Certified Financial Planner C - An Accountant D - An Attorney

Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction? A - A brokerage firm B - The New York Stock Exchange C - A real estate agent D - Conner should complete this transaction on his own

David earns $5000 per month at his accounting job. He has a student loan payment of $120, a car loan of $300. Which statement is true? A - David's credit payments are within the safe range for someone with his income. B - David's total credit payments are higher than the recommended amount for someone earning his income. C - David's student loan payment must be subtracted from his car loan payment to determine whether his overall credit payments are within the safe range. D - David's student loan payment is within the safe range but his car loan is not.

Jenny is 18‐years‐old and has applied for credit for the first time. Her credit application was declined because she has no credit history. What would you recommend Jenny do to begin to build a positive credit history? A - Jenny should obtain a secured credit card. B - Jenny should acquire several credit cards to establish that she can manage them responsibly. C - Jenny should re‐apply for the same credit but include a letter of recommendation from someone who knows her well and can vouch for her character. D - Jenny should apply for a different type of credit. Since she was applying for a bank loan, she should apply for a credit card.

Leah is trying to explain the difference between open‐end and closed‐end credit to her roommate. Which statement should she include in her description of closed‐end credit? A - Equal payments are required on a regular basis until the loan is repaid. B - It is a continuous loan the borrower must repay with a revolving balance. C - Credit limits vary depending on the loan balance. D - Interest rates vary depending on the repayment history.

Social capital is a benefit of being a part of a community. A - True B - False

The financial counselor that Ariel consulted about her use of credit recommended that she keep her use of credit within safe boundaries. Ariel's financial counselor most likely told her to: A - Keep the total amount of money she has borrowed, not including her house, under 20% of her net income. B - Keep the total amount of money she has borrowed, including her mortgage and her car loan, under 20% of her net income. C - Keep the total amount of money she has borrowed, including her mortgage and her car loan, under 40% of her net income. D - Keep the total amount of money she has borrowed, not including her house, under 40% of her net income.

If a person drives an automobile, they are required by law to have Automobile Liability Insurance. In which situation would this type of policy protect the policyholder? A - James hit a deer while driving to work on a foggy morning, killing the deer and causing $2000 in damage to his car. B - James backed into a vehicle in the grocery store parking lot and caused $2000 in damages to his own car and $3000 in damages to the other vehicle. C - An uninsured driver ran a stoplight, hit James' car, and caused $2000 in damages to James' car and $3000 in damage to his own vehicle. D - James car was in the parking lot at work during a severe hailstorm where $2000 damage was done to his vehicle.

Insurance can be purchased to protect one from which of the following losses? A - Stock market loss B - Health care expenses C - Maintaining the price of your home D - Car maintenance

Lora is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her: A - salary B - human capital C - family D - interest inventory

Melissa needs to have a vehicle and is considering leasing one. This means: A - She would be purchasing the vehicle by making payments over time. B - She would be renting the vehicle by making payments over time, although the vehicle title would remain with the lease grantor. C - Her depreciation costs will likely be higher. D - She will need to pay a larger down payment to offset the lease agreement fees.

The most common relationship between risk and return in investing can be stated as: A - higher risk indicates lower return B - higher risk indicates higher return C - lower risk indicates higher return D - No relationship exists between risk and return

Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurance company is requiring her to pay the first $500 of the repair bill because: A - she did not call her agent and report the accident quickly enough B - her policy's deductible is $500 C - she will be reimbursed by the insurance company later D - the cost of the repairs is higher than her policy covers

Which of the following is an act of identity theft? A - Receiving permission to use a parents' credit card for school clothes B - Wrongfully acquiring and using someone's personal identification C - Taking the identity of another individual as inspiration for a costume D - Having the same name as another person

Which of the following statements is true in regards to paying taxes on investments? A - Since investments are considered unearned income, taxes do not have to be paid on earnings. B - Taxes are often owed on profits generated from investments. C - Taxes only have to be paid on employer-sponsored investment accounts. D - Taxes are always paid on investments either when the money is placed in the investment or removed from the investment.

Which statement is TRUE of mutual funds? A - Mutual Funds are speculative investments B - Mutual Funds are diversified investments C - Mutual Funds are a form of real estate investment D - Mutual funds are superior purchasing to a single stock

Which statement is true of government assistance programs? A - Government programs were designed to provide permanent assistance to those in need. B- The ultimate goal of government programs is for individuals to become self-sufficient and independent. C - Government programs were developed to help one specific socio-economic group. D - All government programs vary from state to state.

14. Mark and Susan, a recently married couple with full-time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set? A - Short-term B - Intermediate C - Long-term D - Unrealistic

A key difference between commercial banks and credit unions is that A - Commercial banks do not offer savings accounts. B - Commercial banks typically pay higher interest rates than credit unions. C - Commercial banks are 'for‐profit' and credit unions are 'not‐for‐profit' D - Commercial banks offer more services, such debit cards, and online banking, than credit Unions.

Erica is an active member of the Silver Cord program at her school. Through this program she commits to completing at least 25 hours of community service each year of high school. Her advisor has encouraged her to explore volunteering with non-profit organizations. Which of the following would qualify as a non-profit? A - An extra-curricular activity in her school B - The local private day care center C - Big Brothers/Big Sisters D - Her elderly neighbor who needs yard work done

Julie is a single mother who recently lost her job. She would like to obtain training in the medical field in order to increase her future income and support her two children. In order to do this, she will need help paying some of her expenses while she is going back to school. Which government program might offer her assistance to help with living expenses and job training? A - Earned Income tax credit B - Unemployment insurance C - TANF D - Medicare

Maggie will need to pay $120 per month in order to purchase a health insurance policy. This monthly payment is known as the: A - Deductible B - Co-insurance C - Premium D - moral hazard

Paxten is purchasing a new phone online. What is the best tip to ensure online safety and to maximize his satisfaction? A - Use a debit card B - Always use the seller offering the lowest price C - Review shipping and return policies in advance D - Purchase a warranty

1 . Which of the following statements about our interactions with money is NOT considered to be true? A - You are responsible for your present self and your future self. B - Your present self impacts your future self. C - You are better off in a community than by yourself. D - Investment increases risk and reduces your ability to cope with risk and uncertainty.

Carson's wallet with his driver's license, a debit card and his credit card has been stolen. Which of the following is NOT something an identity thief might realistically do with this information? A - Rent an apartment under Carson's name B - Use Carson's name during an arrest C - Make purchases with Carson's credit card D - Take a college admissions exam in Carson's name

Chad has decided to rent an apartment and is gathering information to be sure he has enough money saved for all the expenses when his moves in. His landlord explained to him that he would need to pay a fee to cover any potential damages that might occur while Chad is living in the apartment. This fee is called the: A - rental agreement B - down payment C- amenity D - security deposit

Elliot's stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it? A - increases the risk/return ratio B - limits investors choices to only one or two investment tools C - Indicates an investor is a good predictor of the return an investment will have D - decreases risk by investing money in a variety of investment tools

It is recommended that life insurance be purchased when the: A - individual reaches the age of 50 B - individual flies in an airplane C - individual gets their first job D - individual has dependents

Medicare is provided by the Federal Government for individuals in specified circumstances. In which of the situations below would the individual most likely be receiving Medicare funds? A - Jim is a 37 year old man who lost his job and is unable to afford health insurance for himself or his children. B - Ivan is 60 years old and was injured at work. His employer needs to provide temporary income for him. C - Rachel is a seventeen year old high school student who is pregnant and needs assistance with her medical expenses. D - Rosie is 67 years old and in need of a health insurance program.

Shelby is working on her spending plan and would like to spend less on her food for 6 months as she saves toward purchasing a more reliable vehicle. As she makes her plan, which factor would be least important to consider: A - How much time she has available to prepare food. B - The skills she has acquired for preparing meals. C - The nutritional value of the foods she purchases. D - Her personal preferences

Steven is moving into his first apartment in a few weeks and has been busy packing. In addition to the things he has purchased with money earned from his full-time job, his parents have told him that he can take the furniture in his bedroom and his bedding when he moves out. His parents are providing for him with which type of income: A - earned income B - in-home income C - gift income D - in-kind income

When a goal has been set to save $100.00 a month for an emergency fund of $2000.00, giving up food from the vending machine to achieve that goal is the: A - opportunity cost. B - interest C - specific part of the SMART goal. D - trade-off.

Which of the following is not true in regards to investing in stock? A - A stockholder owns a part of a company. B - Depending upon the current market price, stockholders may pay different prices for the same stock. C - A stockholder may or may not receive a dividend. D - A stockholder will always receive a profit when the stock is sold.

Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan? A - He could be denied credit cards, car or home loans, or apartment leases. B - The bank could refuse to allow him to open a checking account. C - He may not be able to obtain a marriage license. D - His wages may be garnished.

2. Savings tools offered by depository institutions may earn interest. Which of the following statements is NOT TRUE about interest? A - Interest is the price paid for using someone else's money. B - The lower the interest earned, the better C - The higher the interest earned, the better. D - The amount of interest earned or paid is determined by the interest rate set by the bank.

When taking advantage of the time value of money, which of the following is most likely to result in the largest return? A - Invest a large principal amount of money and then make no additional investments. B - Invest as long as possible and at the highest interest rate possible. C - Invest a small amount of money for a short period of time at the highest interest rate possible D - Invest at a high interest rate because interest is the only factor that affects return.

Which of the following statements correctly describes the security level of savings tools? A - Savings tools are not secure because they have a high risk of losing money. B - Savings tools are secure because they are protected by the U.S. government against loss. C - Savings tools are very secure because there are not risks involved with saving or investing. D - None of the above is true. It would be safer to keep the money at home in a shoe box.

The average cost of basic necessities, such as housing and food for a particular city is called the: A Standard of Living B - Lifestyle C - Cost of Living D - Economy of Living

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob's gross pay on his paycheck? A - $501.66 B - $320.00 C - $576.92 D - $640.00

Planned giving can occur through: A - Estate planning activities B - Buying Girl Scout Cookies on your way out of the grocery store C - Paycheck deductions for retirement accounts D - Pulling over to help someone with car trouble

Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true? A - Sarah can only obtain a credit card if she has a co‐signer or proof of sufficient income to make the required payments. B - Sarah cannot obtain a credit card until she turns 21. C - Sarah will need to use a special application since she is under 25. D - Sarah can obtain a credit card by filling out an application as long as she waits until after her 18th birthday.

The equity that you build by making mortgage payments is: A - the home net worth portion of the home owners after the mortgage debt is subtracted B - purchasing a housing unit as rental property C - a home loan where the real estate is collateral D - the amount of money paid on the home at the time of purchase

To answer the essay test question about the meaning of open‐end credit, Ryan should include which statement? A - Credit is extended in advance so the borrower does not have to apply for credit each time credit is desired. B - A down payment must be made before receiving a loan. C - Individuals are allowed to borrow an unlimited amount of money as long as they pay it back D - The borrower must re-apply for credit each time credit is desired.

Tyler is trying to be responsible in using his new credit card and has heard there is a way to avoid paying interest on the things he charges. How can he LEGALLY avoid paying interest when using his credit card? A - Tyler needs to pay the credit card balance in full every month before the due date listed on the credit card statement. B - Tyler needs to make sure he pays the minimum balance every month before the due date on the credit card statement. C - Tyler needs to limit the use of his credit cards to balance transfers only. D - Tyler needs to understand that the use of a credit card requires paying interest. There is not legal way for him to avoid paying interest if he uses his card during the billing cycle.

What is the most appropriate type of giving at the following life cycle stages? A - All of these qualify as appropriate types of giving during the life cycle stages B - School children host a book fair and donate sales to the March of Dimes C - A CEO of a company suggests that his employees "go paperless" and not print out quarterly reports D - A grandparent "gifts" a plot of land to a hospital in the name of their grandchild

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which statement best describes what this is likely to mean for Bryce? A - The interest rates on his loan will be higher, since his credit score is low. B - The interest rates on his loan will be lower, since his credit score is low. C - The purchase price of the item he needs the loan for will be higher due to his low credit score. D - The monthly loan payments will be lower due to his lower credit score.

Which is a general rule when dealing with credit reports to minimize identity theft? A - Check each credit reports at least once per year. B - Wait 60 days before disputing any wrong information found in a credit report or on a credit card statement. C - Keep credit reports in an easily accessible location, so information can be accessed if fraud occurs D - Report mistakes to only one credit reporting agency and they will inform the others

Which of the following is NOT considered part of the steps of Estate Planning? A - Selling off assets B - Goal setting C - Family information D - Legal and tax analysis

Which of the following is a feature of a certificate of deposit (CD)? A - Funds deposited in a cD are held for a certain length of time. B - Funds deposited in a CD have tiered interest rates. C - Funds deposited in a CD are very liquid. D - Funds deposited in a CD can be accessed via check or debit card.

Which of the following is not considered a form of giving? A - Reading about the storm victims of Hurricane Katrina B - A monetary donation to a charitable cause C - Spending an afternoon cleaning up an abandoned park in your hometown D - Donating material goods to a campaign

Which of the following questions does NOT represent a topic teens should ask parents and guardians about Estate Planning? A - How much money do you have in your checking account? B - Do you have a life insurance policy? C - Who would take care of me if something happened to you? D - Have you written a will? Is it recorded?

Which of the following statements would be true in most states: A - Teens under the age of 18 may not write their own will B - Teens under the age of 18 may write their own will but it may not be a legal document C - Teens under the age of 18 may be named an executor of a will D - Teens under the age of 18 may not accompany their parent/guardian to an attorney's office

Which would not be an example of a non-profit A - Dance Studio B - Girl Scouts C - Salvation Army D - YMCA

Why is investing in product research an important part of the planned buying process? A - Research enhances satisfaction B - Research decreases satisfaction C - Research is too time consuming D - Research is only necessary for big purchases

ward wants to develop a positive credit history. How should he do this? A - Maintain reasonable amounts of available credit B - Have one type of credit account C - Pay cash for the majority of purchases D - Open credit accounts in his parents' names

9. Brett is creating a Statement of Financial Position and needs to list his assets. Which of the following should he NOT list as an asset? A - Money in his checking account B - Money in the paycheck he will receive next week C - His hockey equipment D - The market value of his car

Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for Amanda? A - Amanda must pay the insurance premiums to keep the policy in effect. B - Amanda will receive any proceeds if the Eric dies C - Amanda will receive a commission for selling Eric his life insurance policy. D - Amanda is required to serve as the executor of Eric's estate.

Paying the minimum payment on a credit card every month will: A - pay a large percentage of the total balance owed every month B - make the final amount paid substantially higher than the amount initially charged to the card C - help the cardholder create a plan for paying of a credit card in a decent amount of time D - allow the cardholder to avoid paying any interest charges

6. Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be A - The market value of his car B - The value of his retirement account C - The combined total of his savings and checking accounts D - The balance on his credit card

As part of Nicholas' new job, his employers will provide health, life, and disability insurance. Access to this insurance is provided in addition to his regular salary. This is known as: A - government programs B - household production C - coverage D - employee benefits

Career assessments help to identify: A - possible career areas related to one's interests B - the job an individual should have if he/she wants high well-being C - positions available in a particular occupation D - fastest and slowest growing careers in a particular occupation

Hannah needs a savings tool to help her manage her everyday purchases. The savings tool needs to be very liquid and accessible. Which of the following savings tools should Hannah choose? A - Certificate of deposit B - Checking account. C - Money market deposit account. D - Any of the above savings tools would help Hannah.

Sarah learned in her Financial Education class that she needs to consider the Cost of Living when comparing job offers. Which statement is most accurate? A - How much she will spend in moving expenses to re‐locate to the city where her new job is. B - The average cost of basic necessities, such as housing and food in the city where her new job is. C - The total value of the benefits package she will be offered in her new job. D - The total amount of her college costs compared to the salary she is being offered in her new job.

Which statement is TRUE regarding college level expectations for studying and completing projects? A - It is best to study alone in a quiet environment. B - Plan backwards from major deadlines. C - Multi-tasking during study time develops the important skill of working while being distracted, so it is okay to message with friends or watch TV while studying. D - The busier your schedule gets, the more important it is to write down only the most critical tasks to be done. Wasting time writing down smaller details is not recommended.

14. Andy is developing an Income and Expense Statement. He has gathered all his receipts, bank statements, paycheck stubs, and spending records. He needs to categorize them into income and expenses. Which should be recorded as expenses? A - Money saved from his paycheck for emergencies, interest paid on his car loan, his tax refund from filing last year's tax return. B - The scholarship he receives for studying Chinese at the local community college, his car insurance payment, and stock dividends he received from his grandmother. C - Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car insurance. D - Clothing he purchased for a job interview, tuition for a class he is taking at the local community college, and interest from this savings account.

24. Which of the following scenarios does not represent tax benefits provided by the Government? A - John earned his Medical degree by taking out loans, getting a paid internship, and earning academic scholarships. On weekends, he goes to the workout club with his family and attends his children's ball games. B - Carlos is a local fireman who volunteers for habitat for humanity, walks his dog at the city park daily, and enjoys riding his road bike on weekends using the rails to trails pathway. C - Rob and Michelle's first date was at the NC Museum of Art. In their 22 year marriage they have often visited the Hanging Rock State Park and Blue Ridge Parkway for family outings with their four children.

4. Who is Medicare designed to help? A - Elderly - senior citizens B - Income earners of $50,000 year C - Low income families D - Single parents

Individuals with more formal educational training usually have: A - higher estimated lifetime earnings B - lower personal satisfaction C - greater amounts of leisure time D - more comfortable work environments.

Erin has been in college for 2 years and has decided that the major she has been studying isn't for her. Changing her major and/or her college could result in: A - a well rounded college degree. B - the need for backwards planning. C - losing credits for classes she has already taken. D - remediation courses to make up for the change in majors.

Which statement WOULD NOT be true about the value of career research? A - Everyone values different aspects of an occupation. One person might value the flexible schedule a particular job offers and another might care more about the amount of training that career might require. B - Current job availability and the outlook for future employment are as essential to consider as whether you have the skills, interest and abilities to pursue a particular career. C - Opinions from different people working in the occupation should be considered before ruling out a particular career. D - There are many careers that would support your well‐being. Career exploration allows you to find the one that pays the most so your well‐being is enhanced to the highest degree.

Gross income - deductions = _______________ A - Social Security B - Medicare C - net income D - employee benefits

In relation to the other options, how liquid is a savings account? A - More liquid than cash. B - Less liquid than mutual funds. C - More liquid than a Certificate of Deposit D - More liquid than a checking account.

5. Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set? A - When his financial goals have been established. B - When he money management plan has established high well-being. C - When he is 70-years-old. D - Never - it is an ongoing process.

7. Which of the following is likely to have the least influence on an individual's values? A - Media B - Family C - Religious Affiliations D - Grade Average

8. Which of the following would most likely be considered a contractual expense? A - Cell phone B - Food C - Entertainment D - Clothing

Evan is writing a scholarship essay about the importance of responsible money management. He wants to explain the meaning of borrowing. Which statement below would explain the importance of understanding the process of borrowing money? A - When you are borrowing, you are spending future income. B - Borrowing is an important part of a responsible financial plan. C - Borrowing strongly affects the present self but has less impact on the future self. D - Borrowing builds a strong credit history because it requires individuals to file a credit report.

Harris is concerned about the effects of inflation on his investment returns. Which statement best describes inflation? A - The rise in the general level of prices B - The uncertainty about the return on an investment C - The number of times something happens to money D - The projected value of an investment at the end of a specified time frame

Healthy giving occurs when: A - An individual wants to give back and the result is positive emotions for both the giver and receiver B - Someone decides to write a check for another C - Someone with limited resources gives all they have to make another happy D - Occurs when the well‐being of only the receiver is affected

If the resulted emotion of giving includes resentment, guilt or anger the giving would be considered: A - Unhealthy B - Selfish C - Egotistical D - Passive

Jake's credit application has been declined because of his negative credit history. Which statement is most likely to be true? A - Jake has applied for 4 credit cards and a car loan in the past 6‐weeks. B - Jake pays his bills consistently and on time. C - Jake has received 3 traffic tickets in the past 2 months. D - Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage

Matt wants to guard his personal information. Which personal information is LEAST LIKELY to be used by scammers? A - Phone Numbers B - Credit Card Numbers C - Bank Account Numbers D - Driver's License Numbers

Megan's credit card statement indicates that she is now paying a Penalty APR. Which scenario best describes what may have happened? A - When Megan was participating in her college's Study Abroad program, she left a friend in charge of sending in her January and February payments. Her friend forgot to send the payments. B- Megan's credit card payment has been paid in full each of the last 6 months. C - Megan's card had a lower introductory interest rate for the first year and now the interest rate has increased, as stated on her contract. D - The new computer Megan purchased made her account go over the credit limit for 1 week, until the credit card company processed her credit card statement.

Which federal program assists low income families in purchasing nutritious foods? A - SNAP B - TANF C - Social Security D - Medicare

Which of the following actions will not make an individual vulnerable to identity theft? A - Paying cash for a movie ticket B - Using a computer without updated spyware protection C - Responding to an email from your depository institution D - Throwing mail in the garbage

15. Amber's academic adviser has asked her to set 3 academic goals for this semester. These goals are MOST LIKELY to be accomplished if: A - Amber discusses her goals with her parents. B - Amber lets her friends set her goals. C - Amber writes her goals down. D - Amber thinks about her goals weekly.

Which is not an example of a data furnisher? A - Medical provider B - Utility company C - Credit card company D - Landlord

Which of the following is a feature of a money market deposit account? A - No minimum balance requirements B - Unlimited transactions every month C - Tiered interest rates D - The money must remain in the account for a specific period of time

It is best to have the rate of return on an investment _________ than the rate of inflation. A - Lower, in order to minimize taxes B - Lower, in order to minimize risk C - Higher, to maintain purchasing power D - Higher, to minimize risk

C -

Sally is researching a new tablet and conducting research using a variety of sources. What is an example of an unbiased source? A - Product review from a seller B - Product review from an individual making money from the sale C - A product review that is five years old D - A product review from an independent company

3. Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier? A - Maggie, because her net worth is higher than Samantha's B - Maggie, because her income minus her net worth is a smaller amount than Samantha's C - Samantha, because her income minus her net worth is a larger amount than Maggie's. D - Samantha because she has a higher income.

6. Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he EXCLUDE from his presentation because it is not correct? A - Property taxes are assessed at the same rate for all types of property, including homes, land and building, regardless of location or whether they are used for business or personal use. B - Property taxes are usually charged by state and local governments to pay for local schools and other services and expenses incurred by these governments. C - Property taxes are commonly paid on automobiles. This tax usually paid once per year when the automobile is licensed D - Property tax on homes, land and buildings are usually only paid once or twice each year.

8. Which of the following factors is not influenced by values? A - An individual's life cycle position B - An individual's daily decisions. C - An individual's choice of friends. D - an individual's financial decisions.

Kylee's Personal Finance class has been discussing the importance of understanding liquidity and she is trying to explain the term to another student. Which statement is most correct description of liquidity? A - how quickly and easily an asset can be coverted into cash B - The amount of savings available C - a measurement of how much a person or household owns once all debts have been paid. D - the amount of money eeded to pay for the necessities and comforts currently enjoyed.

Mallory has set a career goal of becoming a veterinarian but does not have the money to complete this goal without taking out very large student loans. She decides to attend a 2 year program in to become a veterinary technician, and then work for 3 years in that field while she saves money for her remaining 2 years of college and veterinary school. Mallory's plan is known as a/an: A - Career pathway B - Opportunity Cost C - Debt-to-income ratio D - SMART goal

Steven is considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called: A - employee benefits B - job perks C - work incentives D - competitive hiring practices

The most secure method for an employer to pay employees is to use: A - direct deposit B - payroll card C - printed paycheck D - in‐store credit

Which of the following statements is NOT true? A - Most people have several careers throughout their lifetime B - Jobs are paid positions. C - People can develop human capital in a variety of ways. D - Transferable skills can be applied to many personal and professional roles.

25. How do you benefit from the taxes you pay? A - Collect medical insurance from the government B - Pay state and federal taxes out of your paycheck C - Access and use of roads, public schools, libraries, police and fire departments, military for national security, government benefit programs, parks, trails, and recreational centers. D - Pay medicaid out of your paycheck

5. A key difference between commercial banks and credit unions is that: A - Commercial banks typically pay higher interest rates than credit unions. B - Credit unions are more commonly located in rural areas while commercial banks are more commonly located in urban areas. C - Commercial banks are 'for profit' and credit unions are 'not-for-profit'.

6. Erica wants her class project to reflect her values. Which items would be best to include? A - Things that she intends to acquire, do, reach or accomplish in the near or distant future. B - Things that are necessary or essential for life and survival. C - Things that reflect her fundamental beliefs about what is worthwhile and important to her. D - Things that are unnecessary but desired which increase the quality of her life.

7. Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called _____________ taxes. A - Sales Taxes B - Medicaid taxes C - Excise Taxes D - Acceptable use taxes

Jamie has elected to be paid by direct deposit at her new job. This means _____. A - She will receive her paycheck mailed directly to her each pay period. B - She will receive her pay directly into her checking account at her depository institution for each pay period. C - She will receive her pay automatically loaded onto her payroll card at the end of each pay period. D - She will receive her paycheck delivered directly to her at her place of employment at the end of each pay period.

The _________________ of continuing your education is the money you would have earned if you have worked instead. A - Debt-to-income ratio B - Opportunity cost C - Benefit D - Total estimated cost

The regular schedule that employers pay their employees is called the __________. A - worker's compensation B - pay period C - employee benefits D - employer contributions

When Charles received his college placement test results, he is informed that he will need remediation in math. Which situation is NOT TRUE of Charles' situation? A - Charles will need to take at least one course because he is not college ready. B - Since the remedial courses Charles must take will not count toward his degree, he needs to take the courses but tuition is not charged. C - Charles should have taken a placement test earlier in high school so he could strengthen his academic skills before heading for college. D - Remediation courses do not count toward his degree program so he may need to take extra credits and his college degree may take longer to complete

Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be TRUE? A - Federal Income Tax, State Income Tax, Social Security and Medicare deductions are all required deductions. B - Federal Income Tax, State Income Tax, Workers Compensations, and Life Insurance are all required deductions. C - Social Security, Medicare, Life Insurance, and Health Insurance are all required deductions. D - Social Security, Medicare, Federal Income Tax, and Workers Compensation are all required deductions.

4. Jacob is wondering how he can improve his intellectual well-being. Which of the following would contribute the most to his intellectual well-being? A - Go to the gym three times per week. B - Challenge himself by taking on a new project at work. C - Join a local service organization. D - Take a vacation from work.

Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice? A - Completing your college degree is the best way to prepare for a career. B - Education pays in higher earnings and lower unemployment rates C - Human capital and transferable skills result from formal training. D - Investing in yourself too early can lead to a lower standard of living.

Simple interest is best defined as: A - Earning interest on interest B - Any form of interest earned from saving or investing. C - Interest earned on the principal investment D - The effect interest has on the total return on investment.

An example of a transferable skill is a skill: A - used in your job that you acquired through past jobs, volunteering, hobbies, school sports, or other life experiences. B - that can only be used in an individual's job or career. C - that each employer requires you to learn. D - that is learned at one job and is required at other jobs as well.

9. Megan's mother suggested that she was experiencing the consequences of her trade off regarding a decision she made to purchase a dress for prom. Which situation does Megan most likely find herself in for her mother to have made this comment? A - Megan had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she had saved for the prom dress PLUS most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job. B - Megan had shopped at several stores when she found the prom dress of her dreams. She checked online and found a coupon that enabled her to save 30% when she returned to the store to purchase the dress. C - Megan had shopped in several stores and found six prom dresses she liked a lot. She brought 2 friends shopping with her to tell her which one looked best on her. After much deliberation, she chose the dress that was the least expensive of the 3 she liked best. D - Megan had shopped in the store her mother recommended for her prom dress. She found two dresses she liked a lot. Megan purchased the one that was the most comfortable even though it cost $28 more than the other one.

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob's net pay on his paycheck? A - $501.66 B - $363.32 C - $576.92 D - $640.00

Direct Subsidized Stafford Loans offer some features that are different when compared to borrowing money from a bank to pay for college. Which of the following is NOT difference between of a Direct Subsidized Stafford Loan and a typical bank loan? A - Interest rates for Stafford loans tend to be higher because the loans are held for a relatively long period of time. B - Stafford Loans have deferment options. C - Stafford Loans typically have a grace period. D - Student families must complete a FAFSA (Free Application For Federal Student Aid) in order to apply for a Stafford Loan.A -

rett plans to save money toward purchasing a car. His co-worker is telling him about a Money Market Account he has that offers a tiered interest rate. What is Brett's co-worker talking about? A - The amount of money he earns depends on the balance, i.e. the higher the account balance the higher the interest rate he would earn. B - The amount of money he earns depends on the number of accounts he has at the depository institution, i.e. the more accounts he has, the higher interest rate he will earn. C - Brett's co-worker is talking about something that is illegal. A tiered account is promoted by scam artists who trick people into investing money in hopes of earning higher rates over time. D - The rate of interest earned increases over time, i.e. leaving money in the account for 3 months would earn a lower interest rate than leaving money in the account for 12 months.

11. Whitney is shopping with her mom and they are deciding on clothing to purchase. Which scenario BEST represents the purchase of a NEED? A - Whitney is being inducted into the National Honor Society at her high school. Students have been directed to 'dress nice'. Whitney has a dress she wore to a wedding last year that still fits but her mom thinks she needs a new one to celebrate this occasion. B - Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress 'professionally' for one of the tours. She plans to wear her new jeans and a t-shirt that has the logo of the leadership conference on it. Her mother thinks she needs to purchase something more appropriate. C - Whitney has several pairs of jeans in her closet but found some that really fit her well at an excellent price when she and her mom were shopping. Her mom agrees that with these jeans at this price, they need to purchase a pair. D - Whitney will be traveling to Europe with a youth ambassador program this summer. She has been instructed to pack a rain jacket. The rain jacket she already owns does not have a hood since she always uses an umbrella in rainy situations. Her mom believes she needs to purchase a hooded rain jacket because it would be more convenient.

Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City's Cost of Living Index is 100 and Indianapolis' Cost of Living Index is 125, which is true? A - Susan will have more spending power if she moves to Indianapolis. B - Susan will have more spending power if she stays in Kansas City. C - Susan will have the same spending power in Indianapolis as she has in Kansas City. D - There is not enough information to decide.

Dylan is preparing a presentation about saving and the presentation rubric says that he must include an explanation of compounding interest. Which of the following statements would be the best one to include in his presentation to show that he understands compounding interest? A - interest earned on the principal investment. B - any form of interest earned from saving or investing. C - earning interest on interest. D - the effect interest has on the total return on investment.

10 . To increase his net worth, Jackson could: A - Increase his liabilities B - Decrease his assets C - Increase his market value D - Increase his assets

13. To calculate her net worth Jordan should use the following formula: A - assets x liabilities= net worth B - assets / liabilities= net worth C - assets + liabilities= net worth D - assets - liabilities= net worth

Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students' comments were based on fact while others were based on myths. Which aspect of security at a depository institution is NOT TRUE? A - All money stored at a depository institution is kept safe at all times by numerous security measures. B - Depository institutions have insurance protection for up to $250,000 per depositor per account type so if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit. C - Information about depositors and their accounts is kept in secure data storage. D - Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than

10. Ian has been shopping for a different vehicle for the past several months. He needs something reliable and would really like something with a nice sound system. He and his parents have talked about how much he can afford and he plans to stay within the price guidelines he and his family have set. Ian was analyzing the opportunity cost of a trade-off regarding which car to purchase. Which situation best represents what he might be thinking through? A- Ian is comparing new vehicles at two car dealerships. He was able to find nearly identical cars at nearly identical prices. One dealership is 20 miles away and the other dealership is 30 miles away. B - Ian has found two different cars at a local dealership that meet his needs. The first car has a better sound system than the other. The second car has 20,000 fewer miles on it. C - Ian has been shopping for a vehicle online. He finds something that would meet his needs being sold by an individual near him. He would be able to purchase this car for less than he would have paid for a comparable vehicle at a car dealership. D - Ian's older brother is trading vehicles and offers to sell Ian his used vehicle. This vehicle would meet Ian's needs and he knew the service history of the vehicle was excellent.

23. Which of the following scenarios represents tax benefits provided by the Local Government? A - John earned his Medical degree by taking out loans, getting a paid internship, and earning academic scholarships. On weekends, he goes to the workout club with his family and attends his children's ball games. B - Carlos is a local fireman who volunteers for habitat for humanity, walks his dog at the city park daily, and enjoys riding his road bike on weekends using the rails to trails pathway. C - Rob and Michelle's first date was at the NC Museum of Art. In their 22 year marriage they have often visited the Hanging Rock State Park and Blue Ridge Parkway for family outings with their four children. D - Mrs. Winters took a recent trip to Washington, D.C. and took her grandchildren to the Ford's Theater, Lincoln Memorial, and Air and Space Museum.

3. Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do? A - Apply for mobile banking. That way she can access her money with her smartphone to pay for the things she needs. The amount she spends would automatically be deducted from her savings account. B - Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account. C - Apply for a credit card. That way she can use the card to purchase the things she needs and pay for it when the credit card statement comes from her checking account. D - Request a cashier's check from her depository institution. That way she can spend moneyfrom her checking account without risk of an overdraft fee.

When Rob graduated from college he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the US, Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. Answer the following questions about Rob and his job: When Rob compared the Cost of Living Index for the city he currently lives in with the city where the other job was located, the index for his city was 106 and the index for the other city was 78. Which statement is most likely to be TRUE? A - Rob chose his current job because the Cost of Living Index indicated that it would be cheaper to live in his current city that it would have been in the other city. B - Rob chose his current job for reasons other than a lower cost of living. C - The cost of re‐locating to the other city increased the cost of living there so Rob chose to live in his current city. D - Even though the job in the other city offered a higher salary, it wasn't enough to make up the difference for that city's higher cost of living.

Zoe has been assigned by her school counselor to complete a career assessment. Which statement BEST describes why her counselor has suggested she do this? Her counselor wants Zoe to find a career that will provide a high level of income to support Zoe's lifestyle and well being. Her counselor wants Zoe to match her skills, abilities, interests and values with a list of specific occupations. Her counselor wants Zoe to conduct interviews with people in her area of interest to determine if she truly enjoys the career she wants to prepare for Her counselor wants Zoe to search for a career that will allow occupational flexibility and provide for possible career advancement as she gains more experience working in her selected career.

17. Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered they have a net gain. What does this mean and what should they do A - Amanda and Marcus are spending more money than they are earning. They need to find a way to balance their income and expenses by spending less on non-contractual expenses. B - Amanda and Marcus are spending more money than they are earning. One of them should consider getting a second job for a time to help boost their income. C - Amanda and Marcus are earning more money than they are spending. They could place additional money in savings and/or spend it on other expenses. D - Amanda and Marcus are earning more money than they are spending. They should increase spending for non-contractual items to bring their income into balance with the expenses.

21. Which of the following scenarios represents tax benefits provided by the State Government? A - John earned his Medical degree by taking out loans, getting a paid internship, and earning academic scholarships. On weekends, he goes to the workout club with his family and attends his children's ball games. B - Carlos is a local fireman who volunteers for habitat for humanity, walks his dog at the city park daily, and enjoys riding his road bike on weekends using the rails to trails pathway. C - Rob and Michelle's first date was at the NC Museum of Art. In their 22 year marriage they have often visited the Hanging Rock State Park and Blue Ridge Parkway for family outings with their four children. D - Mrs. Winters took a recent trip to Washington, D.C. and took her grandchildren to the Ford's Theater, Lincoln Memorial, and Air and Space Museum

9. Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which of the following statements is NOT TRUE about spending plans? A - Spending plans are used to record planned income. B - Spending plans are used to record planned expenses. C - A spending plan includes items NOT usually included when creating a budget. D - When creating a spending plan, it is recommended that you examine your trade‐offs and opportunity costs.

As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training. Which question is the LEAST IMPORTANT one to consider at this point? A - What kind of training and education do I need and how much will it cost? B - Is there a career pathway available if I continue my education and training? C - Can I get the education and training I need near where I currently live? D - Will a job be available and will I earn enough in my career to pay for the education and training it requires?

Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin's pay is less than he expected it to be? A - Austin calculated the hours he worked without deducting the hours he spent doing on‐the job Training. B - Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job. C - Austin neglected to deduct the amount required to pay income and payroll taxes. D - Austin's employer made a mistake calculating the number of hours Austin worked during his first pay period.

Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer won't be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement below is most likely to be true? A - Hunter will not need to pay taxes on the income from his summer job because the total amount he will earn is under the amount required for federal tax deductions. B - It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so. C - Hunter will need to pay his federal and state taxes on his own since his employer is not paying these required taxes for him. D - Hunter's employer is doing him a favor by offering to pay him in cash. Hunter will potentially earn more by this method of payment.

In order to make an informed career decision, a high school student will want to: A - commit to a profession that requires a college degree B - choose a career that offers the amount of money desired C - develop personal goals, complete a career assessment, and research careers D - choose a training program that will guarantee employment after the course work is completed

Joanna has arranged to complete a job shadow with a physical therapist to decide if this is a career she wants to pursue. Which of her concerns is she MOST LIKELY to have answered as a result of her job shadow? A - The future outlook for physical therapy jobs B - The amount of money physical therapists earn C - Common tasks and typical daily activities D - Opportunities for advancement in the career

Sean plans to attend college in 2 years. He and his family have saved some money to help pay for it but he want to explore ways he can receive money he WON'T need to repay. Which set of options below should he explore? A - Federal Perkins Loans, PLUS and local bank loans B - Federal Student Grants, PLUS Loans, and scholarships C - Pell Grants, Work‐study, and scholarships D - Work‐study, scholarships and PLUS Loans

Which statement best reflects the philosophy of "pay yourself first"? A - An individual should save whatever money is left over after paying monthly bills. B - An individual should pay all fixed expenses before paying flexible expenses. C - An individual should set aside a predetermined amount of money for saving before using any of that money for spending. D - An individual should spend money on the items and activities enjoyed in life before paying any other expenses.

16. To increase his net worth, Jackson could: A - Increase his liabilities B - Decrease his assets C - Increase his market value D - Increase his assets

22. Which of the following scenarios represents tax benefits provided by the Federal Government? A - John earned his Medical degree by taking out loans, getting a paid internship, and earning academic scholarships. On weekends, he goes to the workout club with his family and attends his children's ball games. B - Carlos is a local fireman who volunteers for habitat for humanity, walks his dog at the city park daily, and enjoys riding his road bike on weekends using the rails to trails pathway. C - Rob and Michelle's first date was at the NC Museum of Art. In their 22 year marriage they have often visited the Hanging Rock State Park and Blue Ridge Parkway for family outings with their four children. D - Mrs. Winters took a recent trip to Washington, D.C. and took her grandchildren to the Ford's Theater, Lincoln Memorial, and Air and Space Museum.

5. Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. She has asked you for advice on which type of account would be best for her. What would be the best advice for Ariel? A - Check several depository institutions and choose one with a free, no interest checking account. That way, when Ariel has saved enough for her computer she can simply write a check to pay for it. B - Look for a Credit Union that offers share draft accounts. These secure accounts are designed especially for saving for long term financial goals. C - Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra security for deposits and can be set up to allow her to withdraw her money when she needs it. D - Shop around for the depository institution with the highest interest rates for thier savings accounts. She would be able to make regular savings depostis and earn interest while she is saving up for the computer.

7. Erin and her mother are putting together an Income and Expense Statement for Erin to use as she applies for a college scholarship. Which income source does she NOT need to include for this statement? A - Interest earned on her savings account B - Money she received from her grandparents for her birthday C - Social Security income her mother is receiving for her since her father died of cancer last year. D - Taxes she paid based on her income last year

Carson's family has always struggled financially due to his parents' leaving high school before graduating and working lower paying jobs to support the family. His parents don't want him to make the same mistake and are encouraging him to apply for scholarships and any type of student aid he might qualify for. Which application will determine which typed of need‐based aid he will qualify for? A - Perkins Federal Loan Application B - Direct Subsidized Stafford Loan Application C - Federal Work Study Application D - Free Application for Federal Student Aid (FAFSA)

David plans to apply for college in 2 years. His guidance counselor suggested that he begin adding items to a 'college/training application' folder. Which items WOULD NOT be helpful as additions to this folder? A - copies of awards and achievements he earns B - a list of all the extracurricular activities he gets involved in C - a resume of all community service and volunteer work he is actively involved in D - copies of his elementary and middle school report cards

It is recommended that your educational loan payments require no more than 10 to15% of your estimated starting income. To calculate this amount, students need to calculate the _________ of their education and training. A - Opportunity cost B - Career pathway C - Benefit D - Debt‐to‐income ratio

Miranda is working to develop a broad base of transferable skills. This means that she: A - Needs to maintain at least a part time job during the school year. B - Use her available hours outside of school for paid employment rather than volunteering. C - Will not have as much time to develop her human capital. D - Will have a set a versatile skill that she can apply to many personal and professional roles

To be considered for lifelong employment a person must continually maintain their employability. Three actions below will help to maintain employability. Which one WILL NOT? A - Maintain high standards in honesty, reliability, and punctuality. B - Adjust your actions to be appropriate for different situations you find yourself in, because you realize that what is appropriate in social situations is not necessarily appropriate in the work environment. C - Continue to learn by taking classes and striving for continual improvement on the job. D - Seek ways to blend your personal and professional images online to enable current and future employers to see that you have a varied and interesting life both in and outside of work.

Which of the following is NOT considered a positive outcome of estate planning? A - Ability to increase time, effort and dollar costs incurred by survivors B - Ability to leave a legacy with gifts to others including family, organizations, or institutions Ability to provide for C - loved ones after you are gone D - Ability to decrease time, effort and dollar costs incurred by survivors

19. Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called _____________ taxes. A - Sales Taxes B - Medicaid taxes C - Excise Taxes D - Acceptable us taxes

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Personal Finance Exam Review Questions

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Florida Statutes, Rules, and Regulations Common to All Lines

Chapter 4 Quiz: Navigating the Business Communication Environment

FIN 411 Midterm Practice Exam

AP Lang Midterm Review

business

Week 11 - Wrist and Hand Imaging

A.8 Direct & Inverse Variation

Journalism Chapter 12

Data Science

Econ Midterm 2

CHNOPS meaning/ atomic number, symbol, and mass

AP Euro Atrocities

Chapter 5 - Classical Greece

Accounting Final

Property law

Medical records

Prep U Chapter 34: Assessment and Management of Patients with Inflammatory Rheumatic Disorders