339 Final

A tax due on the purchase of gasoline is called a(n)

Excise tax.

Which of the following long-term goals is stated most clearly using the SMART approach?

Invest $50 per month for the next 12 years for my nephew's college fund

Which of the following is NOT correct?

Using credit cards typically provides a "float" of up to 10 days.

Information about a personal bankruptcy may be reported in your credit file for

10 years.

At the end of the year, Walter received a form that showed his payments from independent contracting. That form is called a

1099.

FICO scores generally range from

350-850.

If you want to buy a relatively large quantity of U.S. savings bonds, you may purchase them through

A TreasuryDirect account.

A demand deposit is also known as

A checking account.

A time deposit is also known as

A savings account.

Jennifer purchased a prepaid card for transit fares and highway tolls. What kind of card did she purchase?

A stored-value card.

Which of the following is a valid reason for using credit?

A) Paying for a medical emergency B) Purchasing an item that costs less now than it will later C) Borrowing for a college education D) Purchasing a car so a homemaker can return ~~~E) All of these are valid reasons for borrowing~~~

The tax designed to ensure that those who receive tax breaks also pay their fair share of taxes is called the

AMT.

The major function of personal financial planning is to

Achieve financial goals.

The stages in the family situation and financial needs of an adult is called the

Adult life cycle

The main purposes of personal financial statements are to

All of these choices are correct

The first step of the financial planning process is to

Analyze your current financial situation.

Which of the following is a disadvantage of a car lease?

At the end of the lease, you have no ownership interest in the vehicle.

The current financial position of an individual or family is best presented in the form of a:

Balance sheet.

A vehicle lease has several costs. Which of the following is the price of the vehicle?

Capitalized cost

The document that would tell you what you received and spent over the past month is the

Cash flow statement.

Earning interest on previously earned interest is called

Compounding.

All of the following are fixed expenses except a(n)

Electric bill. (Utilities)

A tax imposed on the value of a person's property at the time of death is called a(n)

Estate tax.

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities is a(n)

Financial Plan

Frank bought some mini blinds. Although he did not receive a written warranty, the blinds should be expected to open and close properly. What kind of warranty does Frank have?

Implied warranty

An advantage of effective personal financial planning is:

Increased control of financial affairs

The difficulty of converting savings and investments to cash is referred to as ____________ risk.

Liquidity

Which of the following refers to the opportunity to withdraw your money on short notice without incurring a loss in value?

Liquidity

Home equity loans should be used for

Major expenses such as home improvements or education.

When creating a personal balance sheet, which of the following is a current liability?

Medical bill

A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost?

Money factor

The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth, which is called

Negative equity.

The amount you would have left if all assets were sold and all debts were paid in full is called your

Net Worth.

Problem identification is part of the ____ phase of the research-based buying process.

Pre-shopping activities

When Jack picked up a personal computer from the _____, he was really leasing it.

Rent-to-own center

A vehicle lease has several costs. Which of the following is the expected value at the end of the lease?

Residual value

The expected value of a vehicle at the end of a lease is called the

Residual value.

At the end of the year, Xavier received a form from his employer that reported annual earnings and the amounts deducted for taxes. That form is called a

W-2.

All of the following are warning signs of debt problems except

You pay your credit card bills in full each period.

A credit card holder who pays off his balances in full each month is known as

a convenience user.

An all-in-one account that provides a complete financial services program for a single fee is known as

an asset management account.

The APR is the percentage cost of credit on a(n) ______________ basis.

annual

Molly purchased a $1,500 dishwasher from Best Appliances. She will make 12 equal payments over the next year to pay for it. She is using

closed-end credit.

The dealer's cost is also known as the

invoice price.

A personal balance sheet reports

items owned and amounts owed.

While evaluating alternatives, comparison shopping will be beneficial for buying

items that can be researched easily with advertisements.

A credit card is a type of

loan/borrowing.

The rate used to calculate the tax due on the next dollar of income is referred to as the

marginal tax rate.

The minimum monthly payment on a credit card is

the smallest amount you can pay and remain a borrower in good standing.

You may be required to make estimated tax payments if

you are an independent contractor.