Money Management Final Review: MC

A property tax is based on the property's a. assessed value b. market value c. original cost d. none of these

a

If a visiting guest is injured inside a tenant's apartment, who is responsible for the injuries? a. the tenant b. the injured guest c. the tenant's landlord d. the guest's landlord

a

Standards against which progress is measured in reaching goals are called a. benchmarks b. timelines c. variances d. assets

a

When consumers act in their own best self-interests when making purchases, they are engaging in a. rational buying b. emotional buying c. impulse buying d. loyalty buying

a

When reconciling a bank statement, the amount of outstanding checks is a. deduced from the bank statement balance b. added to the bank statement balance c. deducted from the checkbook register balance d. added to the checkbook register balance

a

Which of the follow would not be included in a person's listing of assets? a. $13000 car loan b. $300 cash on hand c. $5000 dinette set d. $1000 in savings account

a

Which of the following is a common Internet scam in which e-mail is sent from someone posing as your bank or other legitimate business asking for personal information? a. phishing b. hacking c. Ponzi scheme d. pigeon drop

a

Which of the following is good advice regarding job interviews? a. Before an interview, practice answering open-ended questions where you talk about yourself b. Avoid smiling too much so that the interviewer knows you are serious about the job c. Do not take time to research the company but ask questions about it during the interview d. Talk fast to get in as much information about yourself as possible within the limited interview time

a

Which of the following is the most liquid? a. savings account b. money market account c. certificate of deposit d. savings bonds

a

Which of the following is true of a subsidized student loan? a. Interest is not charged until after you graduate b. If you maintain a high grade-point average, you do not have to repay the loan c. You do not have to repay the loan until after you have earned your first $250,000 following graduation d. The interest rate on a subsidized student loan is higher than on a conventional bank loan

a

Which of the following offers tax advantages if used for education purposes? a. savings bonds b. certificate of deposit (CD) c. money market account d. none of these

a

A utility bill is an example of a. an asset b. a variable expense c. a fixed expense d. a cash inflow

b

An IRA can be set up through all of the following except a. a bank b. the TreasuryDirect website c. am insurance company d. a stockholder

b

Determine the best buy. a. 8 oz. for $3.60 b. 10 oz. for $3.90 c. 16 oz. for $6.50 d. 1 oz. for $0.59

b

On-the-job training is an example of a. self-education b. informal education c. natural talent d. all of these

b

Price increases for a product are most likely to occur when a. supply exceeds demand b. demand exceeds supply c. supply and demand are equal d. non of these are relevant

b

The amount of money a person has to spend after needs are met is called a. net cash flow b. discretionary income c. net worth d. disposable income

b

The following are examples of pay without work except a. vacation pay b. profit sharing c. sick pay d. personal leave

b

The following consumer protection agencies are private organizations except the a. Better Business Bureau (BBB) b. Consumer Product Safety Commission (CPSC) c. Major Appliance Consumer Action Panel (MACAP) d. National Consumers League (NCL)

b

The type of health care coverage that would pat for extended hospital stays is a. basic b. major medical c. catastrophic illness d. long-term care

b

The words "Pay to the order of" are included in which type of endorsement? a. blank endorsement b. special endorsement c. restrictive endorsement d. all of these

b

When a producer sets prices for products based on a desired profit level, the producer is using a. cost-recovery pricing b. cost-plus pricing c. value-based pricing d. market-based pricing

b

When reconciling a bank statement, the amount of deposit in transit is a. deduced from the bank statement balance b. added to the bank statement balance c. deducted from the checkbook register balance d. added to the checkbook register balance

b

Which of the following degrees requires the most time to complete? a. a bachelor's degree b. a doctorate degree c. a master's degree d. an associate's degree

b

Which of the following is not an optional deduction from your pay? a. health insurance b. social security tax c. life insurance d. savings plan

b

Which of the following is not good advice regarding resumes? a. Tailor each resume to the job for which you are applying b. Use a variety of fancy fonts and style elements to ensure the resume stands out from others c. Keep each resume to one page with the most important information on the top third of the page d. Carefully proofread to ensure the resume has no keying, spelling, or grammar mistakes

b

Which of the following will provide more purchasing power to consumers? a. a COLA b. a merit raise c. disinflation d. none of these

b

Which of the following would not be covered by a regular homeowner's insurance policy? a. fire damage b. flood damage c. a guest's injury incurred while visiting d. vandalism

b

Which type of health plan requires patients to choose caregivers from an approved list of independent health care providers? a. fee-for-service plan b. preferred provider organization (PPO) plan c. health maintenance organization (HMO) plan d. all of these

b

Which type of insurance coverage protects against damage to your own vehicle when you are at fault in hitting another car? a. liability coverage b. collision coverage c. comprehensive coverage d. personal injury protects (PIP)

b

A business that states small but is designed for unlimited growth is called a. a lifestyle business b. an avocation c. a venture business d. none of these

c

A person suing you and possibly winning a large judgement against you is an example of a. personal risk b. risk of financial loss c. risk of financial resources d. systemic risk

c

All of the following are examples of hard skills except a. installing a furnace b. preparing a powerpoint presentation c. leading a team d. operating a forklift

c

Buying insurance is an example of which risk strategy? a. risk reduction b. risk avoidance c. risk transfer d. risk assumption

c

Goals you which to achieve in the next two to five years are a. temporary goals b. short-term goals c. medium-term goals d. long-term goals

c

Software or hardware device that filters information coming into your computer is called a(n) a. phishing net b. hacker c. firewall d. identity saver

c

The form used to report taxable income a worker received during the calender year is a. Form 1040 b. Form 1040A c. Form W-2 d. Form W-4

c

When a paper check is transformed into a digital image, it is said to be a. canceled b. restricted c. truncated d. transposed

c

When you set aside a fixed amount of savings on a regular basis over time, it is called a. an IRA b. compound savings c. an annuity d. the Rule of 72

c

Which law requires drug manufactures to test drugs for safety and effectiveness before they are sold to consumers? a. Hazardous Substance Act of 1960 b. Patients' Bill of Rights c. Kefauver-Harris drug Amendment of 1962 d. Health Insurance Portability and Accountability Act (HIPAA) of 1996

c

Which of the following is a measure of inflation? a. COLA b. BLS c. CPI d. R&D

c

Which of the following is considered to be a progressive tax? a. FICA b. property tax c. federal income tax d. sales tax

c

Which of the following would not be an adjustment to the checkbook register balance on a bank reconciliation? a. service charge b. interest earned c. deposits in transit d. NSF processing fee

c

Which type of health plan emphasizes preventative care? a. fee-for-service plan b. preferred provider organization (PPO) plan c. health maintenance organization (HMO) plan d. all of these

c

Your net worth can be computed as a. assets plus liabilities b. cash inflows minus cash outflows c. assets minus liabilities d. assets minus cash outflows

c

A job description may include all except a. education and skills required b. tasks to be performed c. work environment d. salary range

d

A married person with five children filing a joint tax return may claim a. two exemptions b. five exemptions c. six exemptions d. seven exemptions

d

An example of a perk is a. a prime parking space b. an office with a view c. use of a company car d. all of these

d

Factors that affect your earnings potential include a. education b. hard skills c. natural talent d. all of these

d

If your health insurance has a $10,000 stop-loss provision, what percentage of medical expenses will it pay once you have incurred $10,000 in deductibles and copays in a year? a. 0% b. 50% c. 80% d. 100%

d

Scholarships are available to students based on a. high grades or test scores b. strong athletic skills c. need d. any of these

d

Self-insuring is an example of which risk strategy? a. risk reduction b. risk avoidance c. risk transfer d. risk assumption

d

The Consumer Technology Bill of Rights gives consumers the right to a. time-shift b. space-shift c. translate content into other formats d. all of these

d

The agency that is the federal clearing house for complaints of identity theft is the a. Securities and Exchange Commission (SEC) b. Consumer Product Safety Commission (CPSC) c. Consumers Union (CU) d. Federal Trade Commission (FTC)

d

The following are examples of unearned income except a. interest b. dividends c. government transfer payments d. public goods

d

What should you do if your budget does not balance? a. adjust savings b. lower expenses c. increase income d. any of these

d

When gasoline prices fall and jump back up again, this is an example of a. disinflation b. hyperinflation c. deflation d. reflation

d

Which of the following is not a demand deposit in a bank? a. checking account b. savings account c. money market account d. certificate of deposit

d

Which of the following is true of public goods? a. Everyone benefits from them b. No one can be excluded from them c. People do not benefit in direct proportion to taxes paid d. All of these are characteristics of public goods

d

Which of the following would be considered a fixed expense? a. gasoline b. clothing c. entertainment d. rent

d