personal finance study guide review

Which of the following is not true in regards to investing in stock? a. A stockholder owns a part of a company. b. Depending upon the current market price, stockholders may pay different prices for the same stock. c. A stockholder may or may not receive a dividend. d. A stockholder will always receive a profit when the stock is sold.

A stockholder will always receive a profit when the stock is sold.

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob's net pay on his paycheck? A. 501.66 B. 363.32 C. 576.92 D. 640

A. 501.66

Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction? a. A brokerage firm b. The New York Stock Exchange c. A real estate agent d. Conner should complete this transaction on his own

A. A brokerage firm

A bond is: a. A type of debt that a company issues to investors for a specified period of time. b. A share of ownership in a company. c. A type of investment that is only offered by depository institutions. d. A type of investment that has the potential for significant fluctuations over a short period of time

A. A type of debt that a company issues to investors for a specified period of time.

The most secure method for an employer to pay employees is to use: A. Direct deposit B. Payroll card C. Printed paycheck D. In-store credit

A. Direct deposit

Steven is considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called: A. employee benefits B.job perks C. work incentives D. competitive hiring practices

A. Employee benefits

Direct Subsidized Stafford Loans offer some features that are different when compared to borrowing money from a bank to pay for college. Which of the following is NOT different between of a Direct Subsidized Stanford Loan and a typical bank loan? A. Interest rates for Stafford loans tend to be higher because the loans are held for a relatively long period of time. B. Stanford Loans have ferment options. C. Stanford Loans typically have a grace period. D. Student families must complete a FAFSA in order to apply for a Stanford Loan.

A. Interest rates for Stafford loans tend to be higher because the loans are held for a relatively long period of time.

Which of the following statements is NOT true? A. Most people have several careers throughout their lifetime. B. Jobs are paid positions. C. People can develop human capital in a variety of ways. D. Transferable skills can be applied to many personal and professional roles

A. Most people have several careers throughout their lifetime

Shannon is reviewing her paystub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount? A. Net income B. Hours and earnings C Employer contributions D. Gross income

A. Net income

Which federal program assists low income families in purchasing nutritious foods? Which federal program assists low income families in purchasing nutritious foods? A. SNAP B. TANF C. Social security D. medicare

A. SNAP

Jose has been challenged by his academic advisor to 'develop some human capital' this school year. Which activity below would be the LEAST effective way to reach that goal? A. Spend additional time playing video games to further develop his eye‐hand coordination. B. Volunteer to pick up trash along the roadsides. C. Attend a workshop on a topic he has little knowledge of. D. Ask his employer if there are any new tasks at work that he might be assigned.

A. Spend additional time playing video games to further develop his eye‐hand coordination.

Steven is considering taking a job with a company that is offering gym memberships, flexible hours, and repayment of education loans, merchandise discounts and childcare. These components of the job offer are called: A. fringe benefits B. job perks C. work incentives D. competitive hiring practices

A. fringe benefits

Jamie is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan? A.He may not be able to obtain a marriage license. B. He could be denied credit cards, car or home loans, or apartment leases. C. His wages may be garnished. D. The bank could refuse to allow him to open a checking account.

A.He may not be able to obtain a marriage license.

The _________ of continuing your education is the money you would have earned if you have worked instead. A. debt-to-income ratio B. Opportunity cost C. Benefit D. Total estimated cost

B. Opportunity cost

Alyssa's childcare provider called to tell her that the provider's young daughter woke up ill and she won't be able to care for Alyssa's son today. Alyssa's friend, who is a stay‐at‐home mother, agrees to care for Alyssa's son today so Alyssa can go to work. Alyssa has utilized: A. Family child care B. Social capitol C. A non-profit organization D. Neighborhood watch

B. Social capitol

The most common relationship between risk and return in investing can be stated as: a. higher risk indicates lower return b. higher risk indicates higher return c. lower risk indicates higher return d. No relationship exists between risk and return

B. higher risk indicates higher return

Which statement is true of government assistance programs? A. Government programs were designed to provide permanent assistance to those in need. B.The ultimate goal of government programs is for individuals to become self-sufficient and independent. C. Government programs were developed to help one specific socio-economic group D. All government program vary from state to state

B.The ultimate goal of government programs is for individuals to become self-sufficient and independent.

Amber's academic adviser has asked her to set three academic goals for this semester. These goals are most likely to be accomplished if: a. Amber discusses her goals with her parents. b. Amber lets her friends set her goals. c. Amber writes her goals down. d. Amber thinks about her goals weekly.

C. Amber writes her goals down.

Joanna has arranged to complete a job shadow with a physical therapist to decide if this is a career she wants to pursue. Which of her concerns is she MOST LIKELY to have answered as a result of her job shadow? A. The future outlook for physical therapy jobs B. The amount of money physical therapists earn C. Common tasks and typical daily activities D. Opportunities for advancement in the career

C. Common tasks and typical daily activities

The average cost of basic necessities, such as housing and food for a particular city is call the: A. Standard of living B. Lifestyle C. Cost of living D. Economy of living

C. Cost of living

One's Lifestyle is to their Standard of Living as present is to _? A. Past B. Recent C. Future D. Gift

C. Future

Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer won't be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement below is most likely to be true? A. Hunter will not need to pay taxes on the income from his summer job because the total amount he will earn is under the amount required for federal tax deductions. B. It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so. C. Hunter will need to pay his federal and state taxes on his own since his employer is not paying these required taxes for him. D. Hunter's employer is doing him a favor by offering to pay him in cash. Hunter will potentially earn more by this method of payment

C. Hunter will need to pay his federal and state taxes on his own since his employer is not paying these required taxes for him.

Gross income - deductions= A. Social security B. Medicare C. Net income D. Employee benefits

C. Net income

Sean plans to attend college in 2 years. He and his family have saved some money to help pay for it but he wants to explore ways he can receive money he WON'T need to repay. Which set of options below should he explore? a. Federal Perkins Loans, PLUS and local bank loans B. Federal Student Grants, PLUS Loans, and scholarships C. Pell Grants, Work‐study, and scholarships D. Work‐study, scholarships and PLUS Loans

C. Pell Grants, Work‐study, and scholarships

Julie is a single mother who recently lost her job. She would like to obtain training in the medical field in order to increase her future income and support her two children. In order to do this, she will need help paying some of her expenses while she is going back to school. Which government program might offer her assistance to help with living expenses and job training? A. Earned income tax credit B. Unemployed insurance C. TANF D. Medicare

C. TANF

Sarah learned in her Financial Education class that she needs to consider the Cost of Living when comparing job offers. Which statement is most accurate? A. How much she will spend in moving expenses to re-locate to the city where her new job is. B. The average cost of basic necessities, such as housing and food in the city where her new job is. C. The total value of the benefits package she will be offered in her new job. D. The total amount of her college costs compared to the salary she is being offered in her new job.

C. The total value of the benefits package she will be offered in her new job.

Which of the following statements is true in regards to paying taxes on investments? a. Since investments are considered unearned income, taxes do not have to be paid on earnings. b. Taxes are often owed on profits generated from investments. c. Taxes only have to be paid on employer-sponsored investment accounts. d. Taxes are always paid on investments either when the money is placed in the investment or removed from the investment.

D. A stockholder will always receive a profit when the stock is sold

To be considered for lifelong employment a person must continually maintain their employ ability. Three actions below will help to maintain employ ability. Which one WILL NOT? A. Maintain high standards in honesty, reliability, and punctuality. B. Seek ways to blend your personal and professional images online to enable current and future employers to see that you have a varied and interesting life both in and outside of work. C. Adjust your actions to be appropriate for different situations you find yourself in, because you realize that what is appropriate in social situations is not necessarily appropriate in the work environment. D. Continue to learn by taking classes and striving for continual improvement on the job.

D. Continue to learn by taking classes and striving for continual improvement on the job.

Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students' comments were based on fact while others were based on myths. Which aspect of security at a depository institution is NOT TRUE a. Depository institutions have insurance protection for up to $250,000 per depositor per account type so if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit. b. All money stored at a depository institution is kept safe at all times by numerous security measures. c. Information about depositors and their accounts are kept in secure data storage. d. Depository institutions have insurance protection Depositors can have multiple accounts insured at the same depository institutions as long as each account has no more than $100,000.

D. Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institutions as long as each account has no more than $100,000.

Employment opportunities for Jackie and David are limited, but they both have jobs earning just a bit more than minimum wage. Which federal program will encourage them to file a tax return by offering a financial incentive to them? A. Social security B. TANF C. SNAP D. Earned income tax credit

D. Earned income tax credit

Carson's family has always struggled financially due to his parents' leaving high school before graduating and working lower paying jobs to support the family. His parents don't want him to make the same mistake and are encouraging him to apply for scholarships and any type of student aid he might qualify for. Which application will determine which typed of need‐based aid he will qualify for? A. Perkins Federal Loan Application B. Direct Subsidized Stafford Loan Application C. Federal Work Study Application D. Free Work Study for Federal Student Aid (FAFSA)

D. Free Work Study for Federal Student Aid (FAFSA)

Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City's Cost of Living Index is 100 and Indianapolis' Cost of Living Index is 125, which is true? A. Susan will have more spending power if she moves to Indianapolis. B. Susan will have more spending power if she stays in Kansas City. C. Susan will have the same spending power in Indianapolis as she has in Kansas City. D. There is not enough information to decide.

D. There is not enough information to decide.

Miranda is working to develop a broad base of transferable skills. This means that she: A. Needs to maintain at least a part time job during the school year. B. Use her available hours outside of school for paid employment rather than volunteering. C. Will not have as much time to develop her human capital. D. Will have a set a versatile skill that she can apply to many personal and professional roles.

D. Will have a set a versatile skill that she can apply to many personal and professional roles.

It is recommended that your education loan payments require no more than 10-15% of your estimated starting income. To calculate this amount, students need to calculate the ____________ of their education and training. A. Opportunity cost B. Career pathway C. Benefit D. Debt-to-income ratio

D. debt-to-income ratio

Elliot's stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it: a. increases the risk/return ratio b. limits investors choices to only one or two investment tools c. indicates an investor is a good predictor of the return an investment will have d. decreases risk by investing money in a variety of investment tools

D. decreases risk by investing money in a variety of investment tools

As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely to be? a. An excise tax on the shirt she purchased. b. Property tax on the shirt she purchased. c. Income tax on the shirt she purchased. d. Sales tax on the shirt she purchased.

a. An excise tax on the shirt she purchased.

Mallory has set a career goal of becoming a veterinarian but does not have the money to complete this goal without taking out very large student loans. She decides to attend a 2‐year program in to become a veterinary technician, and then work for 3 years in that field while she saves money for her remaining 2 years of college and veterinary school. Mallory's plan is known as a/an: a. Career pathway b. Opportunity cost c. Debt‐to‐income ratio d. SMART goal

a. Career pathway

Which of the following factors is not influenced by values? a. Everything is influenced by values. b. An individual's daily decisions. c. An Individual's long term decisions. d. An individuals financial decisions.

a. Everything is influenced by values.

Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be TRUE? A. Federal Income Tax, State Income Tax, Social Security and Medicare deductions are all required deductions. Federal Income Tax, State Income Tax, Workers Compensations, and Life Insurance are all required deductions. C. Social Security, Medicare, Life Insurance, and Health Insurance are all required deductions. D. Social Security, Medicare, Federal Income Tax, and Workers Compensation are all required deductions.

a. Federal Income Tax, State Income Tax, Social Security and Medicare deductions are all required deductions

Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be TRUE? a. Federal Income Tax, State Income Tax, Social Security and Medicare deductions are all required deductions. b. Federal Income Tax, State Income Tax, Workers Compensations, and Life Insurance are all required deductions. c. Social Security, Medicare, Life Insurance, and Health Insurance are all required deductions. d. Social Security, Medicare, Federal Income Tax, and Workers Compensation are all required deductions.

a. Federal Income Tax, State Income Tax, Social Security and Medicare deductions are all required deductions.

Which of the following is a feature of a certificate of deposit (CD)? a. Funds deposited in a CD are held for a certain length of time. b. Funds deposited in a CD have tiered interest rates. c. Funds deposited in a CD are very liquid. d. Funds deposited in a CD can be accessed via check or debit card.

a. Funds deposited in a CD are held for a certain length of time.

Megan's mother suggested that she was experiencing the consequences of her trade off regarding a decision she made to purchase a dress for prom. Which situation does Megan most likely find herself in for her mother to have made this comment? a. Megan had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she has saved for the prom dress PLUS most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job. b. Megan had shopped at several stores when she found the prom dress of her dreams. She checked online and found a coupon that enabled her to save 30% when she returned to the store to purchase the dress. c. Megan had shopped in several stores and found six prom dresses she liked a lot. She brought 2 friends shopping with her to tell her which one looked best on her. After much deliberation, she chose the dress that was the least expensive of the 3 she liked the best. d. Megan had shopped in the store her mother recommended for her prom dress. She found two dresses she liked a lot. Megan purchased the one that was the most comfortable even though it cost $28 more than the other on

a. Megan had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she has saved for the prom dress PLUS most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job.

Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he EXCLUDE from his presentation because it is not correct? a. Property taxes are assessed at the same rate for all types of property, including homes, land and building, regardless of location or whether they are used for business or personal use. b. Property taxes are usually charged by state and local governments to pay for local schools and other services and expenses incurred by these governments. c. Property taxes are commonly paid on automobiles. This tax usually paid once per year when the automobile is licensed. d. Property tax on homes, land and buildings are usually only paid once or twice each year.

a. Property taxes are assessed at the same rate for all types of property, including homes, land and building, regardless of location or whether they are used for business or personal use.

Kaylee will save her allowance of $25 per month to purchase a $150 mp3 player in six months. This is an example of what type of goal? a. b. Long - term goal. c. Mid - term goal. d. This is no an example of a goal.

a. Short - term goal.

Jenna wants to improve her financial well being. Which of the following would contribute the most to her financial well being? a. Take a personal finance class to learn how to manage her money. b. Pay her grandma back the money she borrowed to take a school trip last year. c. Talk to her friends about how to manage her money better. d. Open another checking account to help her organize her money.

a. Take a personal finance class to learn how to manage her money.

Brett plans to save money toward purchasing a car. His co‐worker is telling him about a Money Market Account he has that offers a tiered interest rate. What is Brett's co‐worker talking about? a. The amount of money he earns depends on the balance, i.e. the higher the account balance the higher the interest rate he would earn. b. The amount of money he earns depends on the number of accounts he has at the depository institution, i.e. the more accounts he has, the higher interest rate he will earn. c. Brett's co‐worker is talking about something that is illegal. A tiered account is promoted by scam artists who trick people into investing money in hopes of earning higher rates over time. d. The rate of interest earned increases over time, i.e. leaving money in the account for 3 months would earn a lower interest rate than leaving money in the account for 12 months

a. The amount of money he earns depends on the balance, i.e. the higher the account balance the higher the interest rate he would earn.

One element of a financial goal is missing in the example below. Which one is it? "I will save $150 each month to go on a vacation in one year." a. Time Bound. b. Specific. c. Attainable. d. Measurable.

a. Time Bound.

To calculate her net worth Jordyn should use the following formula: a. assets-liabilities= net worth b. assets times liabilities= net worth c. Assets+ liabilities= net worth d. Assets divided by liabilities= net worth

a. assets-liabilities= net worth

Individuals with more formal educational training usually have: a. higher estimated lifetime earnings b. lower personal satisfaction c. greater amounts of leisure time d. more comfortable work environments.

a. higher estimated lifetime earnings

Kylee's Personal Finance class has been discussing the importance of understanding liquidity and she is trying to explain the term to another student. Which statement is most correct description of liquidity? A. how quickly and easily an asset can be converted into cash B. the amount of savings available C. a measurement of how much a person or household owns once all debts have been paid D. the amount of money needed to pay for the necessities and comforts currently enjoyed

a. how quickly and easily an asset can be converted into cash

an example of a transferable skill is a skill: a. used in your job that you acquired through past jobs, volunteering, hobbies, school sports, or other life experiences. b. that can only be used in an individual's job or career. c. that each employer requires you to learn. d. that is learned at one job and is required at other jobs as well.

a. used in your job that you acquired through past jobs, volunteering, hobbies, school sports, or other life experiences.

Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do? a. Apply for mobile banking. That way she can access her money with her smartphone to pay for the tings she needs. The amount she spends would automatically be deducted from her savings account. b. Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account. c. Apply for a credit card. That way she can use the card to purchase things she needs and pay for it when the credit card statement comes from her checking account. d. Request a cashiers check from her depository institution. That way she can spend money from her checking account without risk of an overdraft fee.

b. Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account.

Jacob is wondering how he can improve his intellectual well being. Which of the following would contribute the most to his intellectual well being? a. Go to the gym three times per week. b. Challenge himself by taking on a new project at work. c. Join a local service organization. d. Take a vacation from work.

b. Challenge himself by taking on a new project at work.

Hannah needs a savings tool to help her manage her everyday purchases. The savings tool needs to be very liquid and accessible. Which of the following savings tools should Hannah choose? a. Certificate of deposit b. Checking account c. Money market deposit account d. Any of the above savings tools would help hannah

b. Checking account

Lora is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her: a. salary b. human capital c. family d. interest inventory

b. Human capitol

When taking advantage of the time value of money, which of the following is most likely to result in the largest return? A. Invest a large principal amount of money and then make no additional investments. B. Invest as long as possible and at the highest interest rate possible C. Invest a small amount of money for a short period of time at the highest interest rate possible D. Invest at high interest rate because interest is the only factor that affects returns

b. Invest as long as possible and at the highest interest rate possible

Common fees that may be charged by a depository institution include all except: a. Overdraft fee. b. Late fee. c. ATM Fee. d. Minimum balance fee.

b. Late fee.

Brett is creating a statement of finical position and needs to list his assets. Which of the following should he NOT list as an asset? a. Money in his checking account b. Money in the paycheck he will receive next week c. His hockey equipment d. The market value of his car

b. Money in the paycheck he will receive next week

What statement is TRUE of mutual funds? a. Mutual Funds are speculative investments b. Mutual Funds are diversified investments c. Mutual Funds are a form of real estate investment d. Mutual funds are superior purchasing to a single stock

b. Mutual Funds are diversified investments

The regular schedule that employers pay their employees is called the A. worker's compensation B. pay period C. employee benefits D. employer contributions

b. Pay period

Which of the following statements correctly describes the security level of savings tools? a. Savings tools are not secure because they have a high risk of losing money. b. Savings tools are secure because they are protected by the U.S. government against loss. c. Savings tools are very secure because there are not risks involved with saving or investing. d. None of the above is true. It would be safer to keep the money at home in a shoe box.

b. Savings tools are secure because they are protected by the U.S. government against loss.

Jamie has elected to be paid by direct deposit at her new job. This mean.. A. She will receive her paycheck mailed directly to her each pay period B.She will revive her pay directly into her checking account at her depository institution for each pat period. C. She will receive her pay automatically loaded onto her payroll card at the end of each pay period. D. She will receive her paycheck delivered directly to her at the place of employment at the end of each pay period.

b. She will revive her pay directly into her checking account at her depository institution for each pat period.

Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. She has asked you for advice on which type of account would be best for her. What would be the best adviser for Ariel? a. Check several depository institutions and choose one with a fee, no - interest checking account. That way, when Ariel has saved enough for her computer she can simply write a check to pay for it. b. Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer. c. Look for a credit union that offers share draft account. These secure account designed especially for saving for long - term financial goals. d. Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra security for deposits and can be set up to allow her to withdraw her money when she needs it.

b. Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer.

which statement is not true about payroll taxes? a. Property tax is often charged by states of local governments to pay for local schools b. The property tax rate is set by the federal government to be equal in every state c. The fee paid to license a vehicle in an example of property tax d. Property taxes are most often paid only once or twice each year

b. The property tax rate is set by the federal

Saving tools offered by depository institutions may earn interest. Which of the following statements is not true about interest? a. Interest is the price paid for using someone else's money. b. When earning interest, look for low rates. c. When paying interest, look for low rates. d. The amount of interest earned or paid is determined by the interest rate.

b. When earning interest, look for low rates.

Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. which sentence below would be the best choice? a. Completing your college degree is the best way to prepare for a career b. education pays in higher earnings and lower unemployment rates. c. Human capital and transferable skills result from formal training d. Investing in yourself too early can lead to a lower standard of living

b. education pays in higher earnings and lower unemployment rates.

Taxes that are charged on consumption items such as gasoline, hotel rooms, and airplane tickets are called which kind of taxes? a.Sales b.Excise c. Federal use d. Property

b.Excise

Whitney is shopping with her mom and they are deciding on clothing to purchase. Which scenario BEST represents the purchase of a need? a. Whitney is being inducted into the National Honor Society at her high school. Students have been directed to 'dress nice.' Whitney has a dress she wore to a wedding last year that still fits but her mom thinks she needs a new one to celebrate this occasion. b. Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress 'professionally' for one of the tours. She plans to wear her new jeans and a t-shirt that has the logo of the leadership conference on it. He mother thinks she needs to purchase something more appropriate. c. Whitney has several pairs of jeans in her closet but found some that really fit her well at an excellent price when she and her mom were shopping. Her mom agrees that with these jeans at this price, they need to purchase a pair. d. Whitney will be traveling to Europe with a youth ambassador program this summer. She has been instructed to pack a rain jacket. The rain jacket she already owns does not have a hood since she always uses an umbrella in rainy situations. Her mom believes she needs to purchase a hooded rain jacket because it would be more convenient.

b.Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress 'professionally' for one of the tours. She plans to wear her new jeans and a t-shirt that has the logo of the leadership conference on it. He mother thinks she needs to purchase something more appropriate.

Which statement best reflects the philosophy of the "pay yourself first"? A. An individual should save whatever money is left over after paying monthly bill B. An individual should pay all fixed expenses before paying flexible expenses C. An individual should set aside a predetermined amount of money for spending D. An individual should spend money on the items and activities enjoyed in life before paying any other expenses

c. An individual should set aside a predetermined amount of money for spending

Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin's pay is less than he expected it to be? a. Austin calculated the hours he worked without deducting the hours he spent doing-on-the-job training b. Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job c. Austin neglected to deduct the amount required to pay income and payroll taxes d. Austin's employer made a mistake calculating the number of hours Austin worked during his first pay period

c. Austin neglected to deduct the amount required to pay income and payroll taxes

Erica is an active member of the Silver Cord program at her school. Through this program she commits to completing at least 25 hours of community service each year of high school. Her advisor has encouraged her to explore volunteering with non-profit organizations. Which of the following would qualify as a non-profit? a. An extra-curricular activity in her school b. The local private day care center c. Big Brothers/Big Sisters d. Her elderly neighbor who needs yard work done.

c. Big Brothers/Big Sisters

As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training. Which question is the LEAST IMPORTANT one to consider at this point? A. What kind of training and education do I need and how much will it cost? B. Is there a career pathway available if I continue my education and training? C. Can I get the education and training I need near where I currently live? D. Will a job be available and will I earn enough in my career to pay for the education and training it requires?

c. Can I get the education and training I need near where I live?

In order to make an informed career decision, a high school student will want to: A. Commit to a profession that requires a college degree B. Chose a career that offers the amount of money desired C. Develop personal goals, complete a career assessment, and research careers D. Choose a training program that will guarantee employment after the course work is completed

c. Develop personal goals, complete a career assessment, and research careers

Dylan is preparing a presentation about saving and the presentation rubric says that he must include an explanation of compounding interest. Which of the following statements would be the best one to include in his presentation to show that he understands compounding interest? A. Interest earned on the principle investment B. Any form of interest earned from savings or investing C. Earning interest on interest D. The effect has on the total return on investment

c. Earning interest on interest

Diana has faced the fact that she and her family need to explore assistance programs they might qualify for during the time she must be off work following an accident. How might she and her family locate an appropriate program? A. Call the social securtiy administration B. Contact her local bank C. Go to www.govbenefits.gov D. Inquire at the local food panrty

c. Go to www.govbenefits.gov

Mark and Susan, a recently married couple with full - time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set? a.Short - term. b. Intermediate. c. Long - term. d. Unrealistic.

c. Long - term.

Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier? a. Maggie, because her income minus her net worth is a smaller amount than Samantha's b. Samantha, because her net worth is higher than Samantha c. Maggie, because her net worth is higher than Samantha d. Samantha, because her annual income is higher than maggies

c. Maggie, because her net worth is higher than Samantha

. In relation to the other options, how liquid is a savings account? a. More liquid than cash b. Less liquid than mutual funds c. More liquid than a Certificate of Deposit d. More liquid than a checking account

c. More liquid than a Certificate of Deposit

When Rob graduated from college he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the US, Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. Rob's parents asked him what employee benefits his employer was providing. Which would be considered A. Monthly salary B. Location within walking distance of his apartment C. Paid sick leave D. Travel options

c. Paid sick leave

Which statement is true about payroll taxes? a. Payroll taxes are paid on both earned and unearned income b. Payroll taxes fund different operations and programs of the federal government c. Payroll taxes fund the social security and Medicare programs d. The amount of tax paid depends on many different factors but increases as income increases

c. Payroll taxes fund the social security and Medicare programs

Due to unexpected circumstances, Ariel is temporarily receiving income from a government assistance program. The funds she receives through the government program are most likely funded by: A. Small fees proportional to income of clients B. Fees that are charged to some, but not all, clients using the program C. Taxes at at he local, state, and federal levels D. Donations from large corporations

c. Taxes at the local, state, and federal levels

When Rob graduated from college he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the US, Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. Answer the following questions about Rob and his job: When Rob compared the Cost of Living Index for the city he currently lives in with the city where the other job was located, the index for his city was 106 and the index for the other city was Which statement is most likely to be TRUE? A. Rob chose his current job because the Cost of Living Index indicated that it would be cheaper to live in his current city that it would have been in the other city. B. Rob chose his current job for reasons other than a lower cost of living.• C. The cost of re-locating to the other city increased the cost of living there so Rob chose to live in his current city. D. Even though the job in the other city offered a higher salary, it wasn't enough to make up the difference for that city's higher cost of living.

c. The cost of re-locating to the other city increased the cost of living there so Rob chose to live in his current city.

Erica wants her class project to reflect her values. Which items would be best to include? a. Things that she intends to acquire, do, reach or accomplish in the near or distant future. b. Things that are necessary or essential for life and survival. c. Things that reflect her fundamental beliefs about what is worthwhile and important to her. d. Things that are unnecessary but desired which increase the quality of her life.

c. Things that reflect her fundamental beliefs about what is worthwhile and important to her.

Which of the following is a feature of a money market deposit account? A. No minimum balance requirements B. Unlimited transactions every month C. Tiered interest rates D. The money must remain in the account for a specific period of time

c. Tiered interest rates

Carter wants to participate in an activity that will improve his well being. Which of the following activities would contribute the most to his well being? a. An activity his friends like to participate in. b. An activity that doesn't cost much money. c. An activity that his teacher suggested to him. d. An activity that makes him loose track of time.

c. an activity that his teacher suggested to him.

Who is medicare designed to help? a. Low income families b. Single parents c. senior citizens d. Children of unemployed

c. senior citizens

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob's gross pay on his paycheck? A. 501.66 B. 320 C. 576.92 D. 640

d. 640

which of the following is likely to have the least influence on an individuals values? a. Media. b. Family. c. Religious affiliations. d. Grade average.

d. Grade average.

Shannon is reviewing her pay stub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount? A. Net Income B. Hours and Earnings C. Employer Contributions D. Gross Income

d. Gross income

Ian has been shopping for a different vehicle for the past several months. He needs something reliable and would really like something with a nice sound system. He and his parents have talked about how much he can afford and he plans to stay within the price guidelines he and his family have set. Ian was analyzing the opportunity cost of a trade off regarding which car to purchase. Which situation best represents what he might be thinking through. a. Ian is comparing new vehicles at two car dealerships. He was able to find nearly identical cars at nearly identical prices. One dealership is 20 miles away and the other dealership is 30 miles away. b. Ian has found two different cars at a local dealership that meets his needs. The first car has a better sound system than the other. The second car has 20,000 fewer miles on it. c. Ian has been shopping for a vehicle online. He finds something that would meet his needs being sold by an individual near him. He would be able to purchase this car for less than he would have paid for a comparable vehicle at a car dealership. d. Ian's older brother is trading vehicles and offers to sell Ian his used vehicle. The vehicle would meet Ian's needs and he knew the service history of the vehicle was excellent.

d. Ian's older brother is trading vehicles and offers to sell Ian his used vehicle. The vehicle would meet Ian's needs and he knew the service history of the vehicle was excellent.

To increase his net worth, Jackson could: a. Increase his liabilities b. Decrease his assets c. Increase his market value d. Increase his assets

d. Increase his assets

Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set? a. When his financial goals have been established. b. When his money management plan has established high well being. c. When he is 70 years old. d. Never- it is an ongoing process.

d. Never- it is an ongoing process.

David made a mistake in his checking account record-keeping and spent $10 more than he has deposited in his account. As a result, he can expect to be charged a(n): a. ATM Fee. b. Contact Fee. c. Safe deposit fee. d. Overdraft fee.

d. Overdraft fee.

Career assessment help to identify: A. The job an individual should have if he/she wants high well-being B. Positions available in a particular occupation C. Fastest and slowest growing careers in a particular D. Possible career areas related to one's interests

d. Possible career areas related to one's interests

Medicare is provided by the Federal Government for individuals in specified circumstances. In which of the situations below would the individual most likely be receiving Medicare funds? a. Jim is a 37 year old man who lost his job and is unable to afford health insurance for himself or his children. b. Ivan is 60 years old and was injured at work. His employer needs to provide temporary income for him. c. Rachel is a seventeen year old high school student who is pregnant and needs assistance with her medical expenses. d. Rosie is 67 years old and in need of a health insurance program.

d. Rosie is 67 years old and in need of a health insurance program.

Alisa is looking for an investment that is structured to have tax benefits. She should look for information on: a. Tax rated bonds b. Speculative investments c. Index funds d. Tax-advantage investments

d. Tax advantage investments

Which of the following statements about our interactions with money is NOT considered to be true? a.You are responsible for your present self and your future self. b.Your present self impacts your future self. c.You are better off in a community than by yourself. d. Investments increase risk and reduces your ability to cope with risk and uncertainty.

d. investments increase risk and reduces your ability to cope with risk and uncertainty.

When a goal has been set to save $100.00 a month for an emergency fund of $2000.00 giving up food from the vending machine to achieve that goal is the: A. Opportunity cost B. Interest C. Specific part of the SMART goal D. Trade-off

d. trade-off