Midterm exam

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

. Adult life cycle

Which of the following is an example of a financial opportunity cost?

Forgoing wages to attend school

Robert Brown is interested in attending a concert next weekend. Unfortunately, he is scheduled to work. If he finds a substitute for his shift so he can attend the concert, what kind of cost is he incurring?

Personal opportunity cost relating to time

a. Personal balance sheet.

The statement that includes liquid assets, real estate, personal possessions, and investment assets is known as a

Which of the following is a form of housing in which the owners pay a monthly fee for maintenance of the common areas?

a. Condominium

This type of promotion immediately reduces the amount a family spends on groceries each week

a. Coupons

Present value computations are also referred to as

a. Discounting.

Which of the following provides the tenant protection from rent increases?

a. Lease

Which of the following would increase the interest rate for a loan?

a. Poor credit rating

Changes in the cost of money is referred to as ____________ risk.

a. interest-rate

Using the following table, calculate the taxes for an individual with taxable income of $45,000.

b. $7,375

If you want $1,000 three years from now and you earn 4 percent on your savings, how much do you need to deposit now?

b. $889

Timothy Carter has net monthly income of $3,800. He has a monthly auto loan payment of $350, a student loan payment of $150, a mortgage payment of $1,200, and a credit card minimum payment of $45. What is his debt-payments-to-income ratio?

b. 14.3%

Which of the following is the best way to state a problem?

b. I need transportation

Justin needs to have access to his money in five months. The best option for his savings is a

b. Money market account.

This shopping label is used primarily on perishable products to help the consumer judge freshness or shelf life.

b. Open dating

Which of the following is NOT a main purpose of a budget?

b. Spend your money without financial worry

Joseph needs to complete his income taxes for the year. He has already calculated his adjusted gross income. What does he need to do next?

b. Subtract his itemized deductions.

Given the information here, what is the total cost of renting per year?

c. $14,710

Harvey needed some cash quickly, so he received a short-term loan based on the value of an old ring. Where did he go?

c. A pawnshop

What step can you take if your credit application is denied?

c. Ask the reasons why you were denied credit.

The document that would be most useful to plan spending and saving to achieve financial goals is the

c. Budget.

While Paul was shopping for a new chainsaw, he found a great deal on a new drill and bought it. This is an example of

c. Impulse shopping.

Lauren owns her business and is thinking about saving for retirement. She wants to invest up to 25% of her annual income. Which plan should she use?

c. Keogh plan

An advantage of investing in a 401(k) plan is the

c. Possibility of receiving an employer match on your contributions

Taxes on earnings that fund old age, survivor, and disability insurance benefits are called

c. Social Security taxes.

If Vince charged $200 on his credit card with 18% APR and he paid his balance in full within the grace period, how much was he required to pay?

d. $200.00

Evan had three accounts as listed below. In 2017, how much was his total insurance coverage by the FDIC?

d. $450,000

Place the following steps for a personal financial plan in the proper order

d. 4, 6, 2, 5, 3, 1

The goal of purchasing a long-term care insurance policy would be most appropriate for

d. An older single person with children.

The actual cost of living increase for a household will be:

d. Either greater than or less than the inflation rate as reported by the CPI depending on the household's cost of necessities purchased

Bob was married to Sandy, and they have a 12-year-old son. Sandy passed away last year. Bob needs to complete his federal income taxes for the year. What filing status could he use for 2 years after the death of his spouse?

d. Qualifying widow or widower

Which of the following goals would be the easiest to implement and measure? Select one:

d. Save $100 a month to create a $2,400 emergency fund in 2 years.

All of the following are consumer credit protection laws except Select one:

d. The Credit Lawsuit Act

Who is responsible for a loan repayment?

d. The cosigner and/or the borrower

Susan Smith has a goal of "saving $25 per month for a TV". Considering the SMART approach, Susan's goal lacks

e. A time frame

When household budgets must be cut, which of the following categories would be most difficult to cut?

e. Auto insurance

Connie thinks that her salary and tax rate for next year will be lower than for this year. What step should she take to minimize her taxes in the current year?

e. None of these will allow her to minimize her taxes.

Which of the following is the best scoring technique used in credit applications for consumers with limited credit histories?

e. VantageScore

The tangible and intangible factors that create a less than desirable situation is referred to as ____________ risk.

e. personal