5.18.R - Test: Semester Exam

To keep up with your money in the bank, what is the best way to organize your accounts?

Consolidate your accounts with separate allocations going to checking and savings.

God commands us not to _____________________what our neighbor has.

Covet

According to the Five Wise Money Principles, if you want to make a purchase but you don't have enough money on hand you should use a credit card or obtain a personal loan.

False

Everyone who retires is prepared to retire and has no worries or cares once they have left the workforce.

False

What makes a goal a SMART goal?

If it is Specific, Measurable, Actionable, Realistic, and Time-Bound

In economics, ______ is the amount of a resource that producers are willing and able to produce for the marketplace. ______ is a consumer's desire to purchase goods and services and what they are willing to pay for those goods and services.

supply demand

What makes up the two pieces of the "Owe" part of the pie in the diagram for biblical decision making?

taxes and debt

Part of our ________________ journey is taking good care of the blessings God bestows upon us, including caring for our housing.

stewardship

An insurance premium is _____________________________.

the amount paid by the insured or policyholder to the insurance company

Which of the following are the three places where the New Testament tells us to give:

the local church, to fulfill the Great Commission, the needy

What kind of property is usually considered collateral (in other words, real property that is held or owned by the debtor and used to secure a loan)?

-Houses -Vehicles -Real estate or other property

Online financial services associated with a bank, credit union, or thrift may include which of the following services? Select all that apply.

-IRA (Individual Retirement Account) -credit lines -loans -bill paying options -Certificate of Deposit (CD) -checking account -savings account -debit cards

Which of the following are types of taxes? Choose all that apply.

-Income Tax -Social Security Tax -Property Tax -Excise Tax

What are the two key reasons consumers have trouble with financial decisions?

-People are financially illiterate and lack basic understanding of simple economic concepts -Impatience - people often choose immediate gratification instead of more long-term payoffs

Choose all that may be considered disadvantages of renting versus buying a home:

-Rent payments build no equity -You are limited to what changes you can make -Rent payments can change every time the lease is renewed

When choosing the right organization to volunteer for, you should consider the following: (Choose all that apply)

-Reviews found online concerning the organization -The "About" page on their website -The accomplishments and track record of the organization

Unsecured debts are debts that are not tied to any collateral or major personal property that can be repossessed or processed for foreclosure. Select all that are considered unsecured debt.

-Store accounts -Personal Signature loans -medical bills -credit card debt

Why should you keep your money in a financial institution? Select the four best answers.

-The cost is cheaper than using other businesses to cash checks and handle other processes. -Your money will be safe there from fire, theft, and loss -.Financial institutions make it convenient and easy to get to money. -Security-deposits are insured by the FDIC and the NCUA.

Choose all the descriptors that tell about the functions and policies related to banks.

-They lend money to individuals and invest in capital markets to earn interest -They are regulated by the government. -They are for-profit corporations charging fees and interest. -They accept deposits to accounts. -They have to abide by guidelines regarding capital holdings and ratios for lending money.

What are some signs that you may have a cybersecurity concern?

-Your device is grinding or crashes -Your friends tell you that they are receiving emails in your name, but you are not sending them -Browser load times are slow, programs and apps stall

Match the following terms with an example of each. -purchase -income -expense

-buying new shoes -earning a paycheck -cost of rent

Electronic banking or electronic funds transfer can include which of the following? Choose all that apply.

-direct deposit of your payroll to your bank account -using your personal computer to transfer money from your checking account to your savings account -an electronic check conversion at a store for payment for merchandise -ATM withdrawals -phone-activated transfer from one account to another -automatic insurance bill draft off your account monthly

Choose all the factors that can be used to determine how much an insurance company may charge you for vehicle insurance premiums.

-driving history (tickets, accidents) -age -the deductible you choose -the make and model of your car -the age of your car -your residence

According to scripture, money is not a:

-guarantee of contentment -measure of success -measure of self-worth -reward for godly living

If you have comprehensive coverage on a vehicle, then the insurance company will pay for damages in case of _______________________. Choose all that apply.

-hail stones causing dents in your car -you hitting a deer or a deer running into you -a broken windshield when a rock cracks the windshield -theft of wheels off your parked and locked car

Choose all typical insurances that a person or family may decide to purchase to protect themselves against loss.

-health insurance -homeowners insurance -personal property insurance -automobile insurance -life insurance

Which of the following are services paid for with tax money? (Choose all that apply)

-law enforcement -Disaster Relief -Fire and Rescue -Education -Libraries

Bankruptcy is an option for those deep in debt. Consequences can be ________ . The court grants a(n) _______ that exempts those filing for bankruptcy from paying certain debts. A bankruptcy filing can stay on your credit report for_________ and can have a negative impact ______

-long-lasting and far-reaching -discharge -ten years -when you apply for other credit or get a job

God's word teaches us to:

-maintain margin -give generously -spend less than we earn -avoid debt

You can use your debit card to make purchases ________________. Choose all correct responses.

-over the phone -online -in person at a store -at a gas pump that accepts debit cards

Tom wants to ensure his new house is landscaped well. What are some things he may need to consider when planning for landscaping costs for his home?

-planting and caring for trees and flowers -purchasing a lawn mower -maintaining tools -irrigation

When you have towing and emergency road service coverage on your automobile insurance policy, what are some of the typical expenses your insurance company will pay or reimburse you for? Choose all possible answers. You Answered

-sending an emergency road service provider who comes to start your car when you have a dead battery -towing your car if it breaks down while you are traveling -having a flat tire changed -covering the cost for a locksmith to retrieve your keys if they get locked in your car

What information is typically on a personal check?

-the account and routing numbers -the name(s) of the account holder(s) -unique check number for each check -the institution name and address

Consumers have rights related to the products they buy and the services they receive. Select all valid consumer rights listed below:

-the right to an explanation of all guarantees and warranty information about a product before purchasing -the right to be heard and to voice opinions about products and services -the right to be safe, and for all products and services to be safe -the right to choose (and not be forced) to accept a certain company's product -the right to be informed about products and any potential hazards involved with the use of a product

Social Security benefits replace about ___ of an average wage earner's income after retiring.

40%

Which is a type of account used for educational expenses?

529 savings account

Most financial advisors say retirees need about ___ of their pre-retirement earnings in order to live at a comfortable level.

70%

Mr. and Mrs. Happycouple have decided to buy their first house. Who should they contact to receive professional advice and guidance concerning this purchase?

A real estate agent

The Second Bank of the United States was established after the War of 1812. It was opposed by what president?

Andrew Jackson

Where are the safest places to keep your money until you need it

Banks, Credit Unions, Thrifts

You can use the ___________________________'s website to help research data on the labor market including educational requirements for jobs, pay ranges, and employment.

Bureau of Labor Statistics (BLS)

Sarah transfers her credit card balance from one credit card to another. She does this several times to avoid paying interest and in hopes that she can earn reward points. This is a great plan for Sarah to improve her credit score.

False

One of the very last steps to buying a house is to take a close look at your financial health.

False - Taking a look at your financial health should be the very first step in purchasing a house.

The Banking Act of 1933 established the FDIC. The FDIC is the ___________________________.

Federal Deposit Insurance Corporation

Which of the following is not one of the reasons to give that was covered in this module?

Giving is a way that we can help overcome social problems

Whether we are learning about spiritual gifts or building on our natural talents, we are working with precious gifts from __________________________.

God

In Matthew 25:14-30, Jesus teaches the Parable of the Talents. In this story, the first two servants invest the master's money and increase what they were given. What did the third servant do with the money he was given?

He hid it away and did nothing.

Tony gets a credit card, and immediately buys a new TV and video gaming system. He cannot pay off the balance on his credit card during the first month after his purchases and is therefore charged interest at 23% APR. Tony continues to pay the minimum payment on his credit card each month until the balance is paid off. What will be the outcome for Tony when his credit card is paid off?

He will have paid for the TV, the video gaming system, and a large amount of interest due to the fact that he only paid the minimum payment each month.

Which of the following would be a good answer to the question, "How much is enough?"

Purchasing items to meet my needs and then splurging occasionally to buy something special.

When discussing how much we ought to give, what are the three words that were used to describe the three progressive areas:

should, could, would

What is FICA?

Social Security taxes that provide benefits for retired or disabled workers

These types of loans are offered to students and their parents. They can originate either with the federal government or a private financial institution.

Student loan

Of the groups of people that receive Social Security benefits, what group receives the most in payments?

retirees

Which is a guideline that can be used to determine if debt is ever a wise decision?

There is a guaranteed way to repay

God gave men and women the wisdom to use math formulas, chemical formulas, and to put the car parts together in the manufacturing plant.

True

Tax-deferred means you pay the owed taxes at a later time, not when the money is earned.

True

What type of form will show the amount of taxes withheld from your paycheck for the year, and is used to file your state and federal taxes?

W-2 form

When it comes to tax time, planning is essential. Proverbs 21:5 says "The plans of the diligent lead surely to ____________, but everyone who is hasty comes only to poverty."

abundance

A charge for specific actions taken on a bank account for various services

account services fees

Proverbs 12:10 states that we should care for _____________________.

animals

A page or pages the bank sends out each month with information about your account transactions and balances

bank statement

The "right to rescission" entitles the signer of a loan a certain amount of days to rescind, or ___________ the contract.

cancel

A legal paper document that can be used to pay for purchases and bills

check

Most financial institutions offer ATM or debit cards that allow you to withdraw funds from your account at places other than your institution. A debit card looks like a credit card but it works more like a ______________.

check

The initial amount you have to pay when you go to the doctor or receive other health care is called the ______________.

co-pay

This kind of coverage will pay for repairs to your vehicle when you hit a tree or a parked car.

collision

When you are facing a credit problem or become behind in your payments, it is best to ___________________.

contact your creditors in order to work out payments or change terms

A stock market ________ is often defined as a sharp dip in share prices of stocks listed on the stock exchanges.

crash

A credit score is a "snapshot" of your ____________________ at one point in time.

creditworthiness

This is the amount you pay on most collision claims before the insurance pays the rest of the repair bill.

deductible

How does good advertising affect the demand for a product?

demand will increase

A form that is used for making a deposit to your bank account

deposit slip

travel insurance

designed for medical care or life insurance when traveling (especially out of the country)

health insurance

designed to help defray and/or pay for medical bills and services

personal property insurance

designed to protect personal belongings, antiques, and special items from theft and damage

Automobile insurance

designed to protect you and your vehicle from accidents, and cover expenses for you and others who may be involved

homeowners insurance

designed to protect your home and property in case of fire, theft, and other damage

life insurance

designed to provide financial income in cases of death to loved ones and family

Building a good relationship with a financial institution can help an individual __________________.

establish a good credit rating

1 Corinthians 4:2 says this about stewards: "Moreover, it is required of stewards that they be found ____________."

faithful

The Bible clearly teaches us to consider our ________ needs and to prepare for these needs carefully and thoughtfully.

future

The Bible tells us that debt may violate two biblical principles: Don't presume upon the _________ , and God is our _____ .

future provider

Financial issues are often symptomatic of ___________ issues, not really money issues.

heart

Matthew 6:19-21 says, "Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your ____________________ will be also."

heart

The pie diagram reveals that there is no such thing as an _____________________ financial decision.

independent

The kind of vehicle coverage that pays for damages to others or their vehicle is __________________.

liability insurance

If an employee withdraws money from retirement savings early, the employee could _________________. (Choose the best answer.)

lose interest and principal, tax benefits, and may have to pay penalties

If you never seem to be satisfied with what you have, then your treasure may be in ______________________ possessions.

material

Seeking first the kingdom of God, investing in God's work, and making sure our treasure is in Christ will keep us from being swayed by __________________________ and wrong attitudes toward money.

materialism

Giving breaks the power of _______________________.

money

A _______________ is a loan from a financial institution to purchase a house.

mortgage

Ephesians 6:2 states that you should honor your _______________________.

parents

Gap insurance is good to have when you lease a car because if a car is determined to be a total loss, gap insurance ______________________.

pays for the replacement cost for a new vehicle, not the depreciated value

Jeremiah 29:11-12 states, "For I know the _____ I have for you, declares the Lord, plans for welfare and not for evil, to give you a ______ and a hope. Then you will call upon me and come and ____ to me, and I will hear you."

plans future pray

When you match all payments, deposits, and other transactions listed in your bank statement to your personal checkbook register, that process is called ______________ a bank statement.

reconciling

A ledger-like page or booklet used to help one keep accurate records of transactions on a checking or savings account

register

If you are content to pray and to wait for God's provision, then your treasure is in your ________________________ with the Lord.

relationship

Once someone opens an account at a financial institution, who is responsible for keeping up with the account balance, any fees deducted from the account, and any deposits or withdrawals?

the person who opens/owns the account

Where does the tax revenue collected from Social Security deductions from payrolls go?

to people currently receiving Social Security benefits

Which one of the following is not a place where the Old Testament tells us to give:

to rebuild the temple

In our lives, God uses money as a:

tool, test, and testimony

James 1:27 states that we should care for _____________________ and orphans.

widows

According to Proverbs 11:15, whoever cosigns for a stranger will_______________.

will be hurt

When you require a wire transfer of money from your account to another person's account, your bank may charge you a _________________.

wire transfer fee