Personal Finance Mid Term

Jeremiah's monthly salary is $3,000. His payroll taxes and optional deductions total $500 each month. Rent and utilities, food, transportation, and other living necessities cost him $2,000 each month. What is Jeremiah's monthly net pay?

$2500

Leo is paid $10 per hour. For any overtime hours Leo works (any hours beyond 40 hours per week), he earns time-and-a-half. If Leo works 50 hours in a week, what would be Leo's gross pay?

$550

Which of the following is the best definition of a goal?

A goal is a target—it is realistic, specific and/or measurable and has only one definition or interpretation.

Which of the following statements best describes why is it important to examine your likes and dislikes and compare them to the requirements of a job you are researching?

A great many hours are spent at work. If the job requires tasks that you strongly dislike or that go against your values, it can negatively influence work performance, health, and relations both on and off the job.

Which provides the best example of an impulse purchase?

A new pair of designer jeans that caught your eye at the store

Which occupations would probably be best suited for an individual who is most interested in working with data?

Accountant or file clerk

In a job interview, which would probably be the best response for an applicant to make to a question regarding the applicant's poor attendance at a former job?

Acknowledging the problem and explaining how he corrected it

In the decision-making model discussed in our text, when do you review your decision?

After acting on the choice

Which set includes the primary factors that influence decisions that young people make?

All of the above

If a pay stub shows an employee's YTD earnings as $5,840, what does that amount reflect?

Amount earned so far in the current year

Which employee would be most likely to receive overtime pay?

An hourly employee who works 45 hours in a week

If a worker is paid entirely on commission, how is her pay determined?

As a percentage of the sales she makes

Which of the following best describes how the principle of economic scarcity applies when researching and choosing a career?

As social and business needs change, careers and jobs can become in short supply or be phased out completely over time, thus affecting our ability to supply our economic needs.

Which of the three "A" words is demonstrated by employees who have a positive outlook, even in challenging situations?

Attitude

Which rule of résumé preparation is most concerned with things such as text spacing and the use of boldfaced or underlined text?

Be consistent.

Which one of the following is least important when deciding how the decision-making process helps people choose a specific career goal?

Career goals are a matter of trial and error. Since none of us can really be sure whether or not we will be satisfied with our career choice, it is always important to have three or four plans.

Which skill are employers seeking when they hire workers who are able to express their ideas both orally and in writing?

Communication

Which statement is most accurate?

Consequences are the natural result of making choices.

When evaluating a career opportunity, which would be the least applicable factors to consider regarding the opportunity?

Courage and creativity

Jane set a goal to save $500 over the next twelve months, but after six months she had saved only $65. What should she do to accomplish the goal?

Decide whether she needs to alter objectives or steps.

Which phrase best defines financial planning?

Deciding how to earn, spend, save, and invest money to enhance quality of life

Which of the following includes all the steps of the decision-making model in the proper order, as discussed in our text?

Define the problem or the decision that must be made, identify the various choices, evaluate choices, make a list of the advantages and disadvantages of each, choose one after evaluating the advantages and disadvantages of each possibility, act on your choice, and then review your decision.

Which best summarizes the first step to take in the decision-making process?

Define the problem.

Which of the following pairs is not among the lifelong skills described in the Lesson 2 commentary?

Demographics and financial success

Which is the best technique to utilize when writing a cover letter?

Describe one's qualifications and request an interview.

Which of the following will most likely not appear on a pay stub?

Discretionary income

Which of the following will normally result in an individual having the least earning power and lowest employment opportunities?

Dropping out of high school

What does it mean if an employer offers a "cafeteria" plan?

Employees can choose the benefits they want.

What is networking?

Establishing relationships and maintaining contact over time

Regarding personal finance, which of the following statements best explains why "even not choosing is a choice"?

Failing to make a choice may allow others to make the choice for you.

Which of the following provides the best financial record-keeping advice?

File all financial information in an organized way, and store the records in a safe place.

Which of the following is not related to good financial planning?

Financial planning reduces the amount of money spent on things we need.

Which of the following is not a potential opportunity to make a first impression when job hunting?

Follow-up letter

In addition to wages, some employers provide their workers perks such as paid vacation and health insurance. What term is used for these perks?

Fringe benefits

Which one of the following statements is a properly written goal, objective/step, and timeline?

Goal: Maintain a 3.5 GPA - Objective/step: Turn in all assignments on time - Timeline: For the next six months

For the typical worker, which of the following amounts would most likely be the largest?

Gross income

Which of the following is the best response to this question: "Tell me about your worst job."

I guess my worst job was working at a restaurant from 10 p.m. to 1 a.m. On school nights, it was hard to wake up the next morning and get to school.

Assuming you have never been employed before, how would you best answer the following question: "How did you get along with your former boss?"

I have never been employed, but I get along really well with my teachers.

Which of the following is the best response to this question: "What are some of your weaknesses?"

I used to be late to school, but now I am getting up earlier because tardiness is not acceptable at school or work.

Which of the following is the best response to this question: "Tell me about yourself."

I worked for a year at RBC Restaurant. I was never late, and I am a very responsible employee.

Which statement best describes the relationship between choices and consequences?

Individuals are free to make choices but cannot necessarily choose consequences.

Why is it beneficial to visualize (think about) your lifestyle now as well as five and ten years down the road?

It gives you a target—a goal—and helps in planning how to reach that goal.

Why is prioritizing an important part of making financial decisions?

It helps one to decide which goals are most important.

Researching careers is a good thing to do. Which response below is not a reason to research careers?

It helps you recognize you can have a high standard of living and dependable employment without education/training beyond high school.

If an interviewer asks "What are your weaknesses?" your response can help you critique your abilities as well as help the interviewer decide your value as an employee. Which of the following statements is false?

It is best to use words that strongly and vividly outline the weakness in detail so that the interviewer knows you are honest.

From an economic Which is the most direct consequence of the lack of a governmental water conservation plan? of view, which term best describes the water in this scenario?

Limited resources

Which of the following is an example of a required payroll deduction?

Medicare tax

When preparing a résumé, which is the best way to organize the names of one's former employers?

Most recent to least recent.

Jeremiah works outdoors in Alaska. He recently purchased a warm, waterproof jacket that will protect him while he works in subzero winter temperatures. Which term best categorizes Jeremiah's jacket?

Need

Which of the following is not a benefit that employees could reasonably expect from an employer?

No federal income tax

Which information is not commonly found on a pay stub?

Number of dependents

How can establishing objectives help people reach the financial goals they have set?

Objectives divide goals into smaller pieces.

Nathaniel spent $85 on a new pair of dress shoes. Which term best describes the things he gave up when he used the money for new shoes rather than for some other purpose?

Opportunity costs

A consumer electronics company has contracted with a company in another country to assemble its products. This situation best illustrates which factor affecting the type and quantity of job opportunities?

Outsourcing

When deciding whether to accept a job, you may need to consider the hidden costs associated with the position. Which of the following is an example of a hidden cost?

Parking garage fees

Which phrase most accurately describes gross pay?

Pay before taxes and deductions have been withheld

Which is an example of a social responsibility as defined in the Lesson 4 Commentary?

Paying income taxes

Which is the most direct consequence of the lack of a governmental water conservation plan?

People use water only for essential purposes during a drought.

According to the seven-step career-planning process, which is the next step after a person has selected a career she wishes to pursue?

Plan steps to reach the goal.

Which of the following is usually not part of one's preparations after being selected for a job interview?

Polishing the application

Which of the following is not a component of personal financial planning?

Predicting success based on an individual's socioeconomic background

Which of the following best illustrates the "be accurate" rule for résumé preparation?

Presenting truthful information about previous employment

Which of the following is the best foundation for successful money management and goal achievement?

Prioritize how you will allocate your money; distinguish between needs and wants. Plan to save and do it as regularly as you pay other bills. Prepare and maintain a written budget, which includes goals, steps, and timelines. Keep a record of current income, expenses, and savings as well as future potential income, expenses, and savings.

Which of the following would not be considered a "cost" of earning money?

Profit sharing

Which one of the following statements is false regarding the importance of goals, objectives/steps, and timelines as they relate to personal finance?

Properly stated goals, objectives/steps, and timelines are an important part of personal finance only if they are never altered or changed.

Janet is on her way to a job interview. She is wearing a navy blue business suit with a white blouse and black, closed-toe shoes. Her long hair is pulled back neatly. Large, dangling red earrings and five ruby rings nicely match her bright red lipstick. She forgot to put on her favorite perfume before leaving the house. Which aspect of Janet's self-presentation today would be most problematic for her in an interview?

Quantity of jewelry

Which of the following is the best way to respond this question: "Is there anything you would like to say to close the interview?"

Restate whether you want the job, and briefly outline your positive job-related assets. Be positive and enthusiastic.

Which one of the statements below is the best example of an objective/step for accomplishing the following goal? Goal: Earn at least a B in Personal Finance.

Review all Personal Finance lessons previously assigned at least four times a week

Which step in the decision-making process helps individuals learn from mistakes?

Review the decision.

In the decision-making model discussed in our text, which one of the following does not apply to reviewing the decision?

Reviewing the decision is part of listing advantages and disadvantages of the different choices available.

Which one of the following statements is a retirement goal?

Save a minimum of 1.5 million dollars

Which of the following is a properly written goal?

Save a minimum of 8 percent of disposable income each month in retirement funds

The use of water for decorative landscaping or to fill swimming pools best illustrates which of the following?

Scarcity

Which best describes the meaning of the phrase "self-esteem is dimensional"?

Self-esteem includes our feelings about numerous characteristics.

Which statement best describes how high school students should plan for their short-term and long-term financial goals?

Setting and achieving both short- and long- term goals now can lead to successful long-term planning.

Job interviewers sometimes ask applicants if they have ever worked with someone they had problems with or did not like. Which of the following statements is false?

Since there may be someone you do not like and someone who does not like you in the work place, employers want to hire workers who will always tell their supervisors about all personal disagreements.

Which payroll tax is sometimes called OASDI or FICA?

Social Security

Which consideration is not an aspect of the self-inventory component of the career-planning process?

Socioeconomic status—how much money we have

Which is not a lifelong strategy for reaching financial goals?

Spend all income to maintain a lifestyle.

Which of the following sets contains an action word that would not highlight positive job experiences and achievements?

Taught, reprimanded, developed.

Which of the following best describes why we cannot always use a decision-making model to effectively plan the best course of action.

The decision-making model is not suitable for making sudden emergency decisions.

Which one of the following statements does not apply to the economic principle of scarcity?

The economic principle of scarcity is not a factor for extremely wealthy people because they have unlimited resources and limited wants.

Which of the following is the best explanation of an objective/step? (In our text, objective and step mean the same thing.)

The objective/step must be realistic, specific, and/or measurable and explains exactly what you will do to reach the goal.

When is the best time to send a post-interview follow-up letter to a potential employer?

The same day as the interview, or the day after

Which of the following is not a characteristic that goals should possess?

They should be as abstract as possible so that they can be adapted as time passes.

Which statement concerning job applications is incorrect?

They should be filled out after a job interview.

Which phrase best describes our aptitudes?

Things we are capable of learning to do.

Goal setting includes the goal itself, objectives/steps, and timelines. Which of the following statements is the best explanation of a timeline?

Timelines describe when you want to reach either the goal or the objective/step. Timelines are normally stated in weeks, months, years, and decades.

Trevor is a senior in high school who has set several goals. Which of the following is the best example of one of his long-term goals?

To become a family practice physician

For which purpose do new employees fill out a W-4 Form?

To determine the amount of federal income tax to be withheld

Which of the following is not a reason to organize and store one's financial records?

To increase one's gross pay

Which one of the following statements is a properly written goal that might be achieved during the retirement years?

Travel to three foreign countries each year

If a worker earns a salary, how are earnings for the pay period determined?

Use a predetermined amount of pay regardless of the hours worked.

Which of the following provides the best advice for preparing a résumé?

Use bold, italicized, and underlined text to emphasize key points.

Imaging is an important part of career planning because it helps us to

Visualize what we want to be.

Which annual form listing the amount of taxable income for the year must employers provide to regular hourly and salaried employees?

W-2

Naomi lives in Miami, Florida. On a recent trip to the mall, she couldn't resist purchasing a new bathing suit that was on sale. She now has bathing suits in numerous styles and colors. Which term best categorizes the bathing suit she just bought?

Want

Which statement best describes the economic principle of scarcity?

We have limited resources and unlimited wants.

How is the concept "masks off" related to self-esteem?

We need to see our true selves honestly and objectively.

When determining how much federal income tax is to be withheld from their paychecks, what do workers claim for themselves and each person for whom they have financial responsibility?

Withholding allowances

Which statement is not true in deciding where to live (location) and in choosing a career?

Workers with steady employment can afford to live anywhere.

Which of the following incorrectly matches a pay period and its number of occurrences in a year?

biweekly: 24 per year

What best defines discretionary income?

income left over after taxes and living expenses are paid

Which personal finance term is best applied to items such as food, clothing, and shelter?

needs

Which term most closely mimics the term opportunity cost?

trade-off