FINL 041 Final Exam Review
What percentage of total health care premiums do benefited employees usually pay? A. 16 percent B. 40 percent C. 60 percent D. 56 percent
A. 16 percent
Which of the following people is a thriver? A. Cathy likes to collect DVDs, but when she realized just how much money she was spending each month on movies, she decided that money would do better in a savings account for college. As hard as it was to break the habit, she gave it up and is excited to make more financial goals for herself. B. Cindy has enjoyed her first year of college, but she learned a tough lesson her first semester. She thought that as long as she had checks in her checkbook, she had enough money in her account to keep buying things. Apparently she wasn't paying attention when her dad explained just how her checking account worked. C. Jim knows exactly how much money he makes and keeps his receipts for his parents, who want to track his finances. They have created a budget for him three times now, but Jim doesn't think there's any need for him to have a budget now. He's only seventeen years-old, for heaven's sake. D. After Bobby's parents paid off his credit card debt, Bobby made a plan to only use his credit cards for emergencies. But when his roommate suggested a trip to Mexico over spring break, that was enough of an "emergency" for Bobby to max out another card in a two-week interim.
A. Cathy likes to collect DVDs, but when she realized just how much money she was spending each month on movies, she decided that money would do better in a savings account for college. As hard as it was to break the habit, she gave it up and is excited to make more financial goals for herself.
What is the "Stockdale factor"? A. It's Admiral Stockdale's observation that it takes recognition of reality and hope for the future to survive difficult events. B. It's Admiral Stockdale's opinion that pessimism is the most necessary thing in surviving difficult events. C. It's Admiral Stockdale's opinion that optimism is the most necessary thing in surviving difficult events. D. It's Admiral Stockdale's opinion that finances shouldn't influence state of mind.
A. It's Admiral Stockdale's observation that it takes recognition of reality and hope for the future to survive difficult events.
Who of the following shows an awareness of opportunity costs? A. Jackson packs a lunch everyday instead of buying school lunches. He discovered that he was spending $45 per month just for his lunches. He decided to use that money to buy his own computer instead. B. Carol has worked two summers and hasn't saved any of the money she's earned. She should have used some of it to install a new closet, because all the clothes she's bought with her earnings hardly fit into the one she has. C. Jason decides to use 50 percent of his earnings for a car. His parents tell him he should drive the old Buick in their garage and save his money for college instead. Jason doesn't want to listen; he wants a red, relatively new pickup.
A. Jackson packs a lunch everyday instead of buying school lunches. He discovered that he was spending $45 per month just for his lunches. He decided to use that money to buy his own computer instead.
Which of the following is a good debt-elimination plan? A. Make more than the minimum payment on one credit card and when the balance is paid, roll that payment into another one. B. Cut up your credit cards. C. Cut up all your credit cards but one, and put that one in the freezer. D. Call a credit counselor to negotiate better APRs with your creditors.
A. Make more than the minimum payment on one credit card and when the balance is paid, roll that payment into another one.
Which of the following is a good example of a priority target? A. Mark plans to buy a used car his senior year of high school. He's now a sophomore. B. Kathy wants to go on a road trip to Mexico with her friends next week. She'll just use her new credit card to pay for it. C. Someday, Courtney hopes to live in a townhouse in San Francisco. D. Lindsey is hoping a scholarship will pay for college so that she can spend all the money she's saving on a senior trip with her friends.
A. Mark plans to buy a used car his senior year of high school. He's now a sophomore.
Which of the following individuals seems to have mastered training? A. Michael is excited about his new money management skills. He decides to start reading Money magazine to see if he can build on his financial knowledge. B. Pam has decided that the best T for her is tracking, so she'll just focus on that for the next few months. C. Sandy knows "The Four Ts" well enough that she can track everything in her head without actually having to write anything on paper. D. Rachel used to drink a thirty-two-ounce Diet Coke everyday. She's decided to cut that expense and put $30 per month into a savings account instead.
A. Michael is excited about his new money management skills. He decides to start reading Money magazine to see if he can build on his financial knowledge.
Use the following example for the next three questions "Sandra makes pretty good money working as an assistant manager of a clothing store at the mall. She wants to open her own clothing shop when she graduates and is learning about the business. She makes $1600 every month in wages and commission. She has a car and spends some money on entertainment and clothes. She has researched her dream and knows that she will need $20,000 to start a small scale storefront. Her dad will loan her $10,000 if she can save the rest. She has only saved $600 so far, but she isn't sure what she's spending her money on." Sandra realizes that the money she is spending on her car is draining a lot of her income. Insurance, taxes, and repairs are all large expenses. She realizes that if she doesn't find a way to decrease this expense, she may not be able to open her store for another five years. A. Sandra's dream of opening a store is the opportunity cost of paying for her car. B. Sandra's car is the opportunity cost of her owning her own store. C. Neither the car or the store is an opportunity cost.
A. Sandra's dream of opening a store is the opportunity cost of paying for her car.
Which of the following is a good example of fraud? A. You get an e-mail from eBay asking you to update your account information. Later, over $500 is charged to the credit card you list on eBay, but you haven't visited eBay in months. B. Someone steals your wallet in the mall. You lose $1,000. C. Someone makes copies of your keys while you're at work. Two weeks later they drive off with your car.
A. You get an e-mail from eBay asking you to update your account information. Later, over $500 is charged to the credit card you list on eBay, but you haven't visited eBay in months.
You saw an advertisement for a very cool computer game at more than half off the retail price. When you got to the store to buy the game the salesperson told you they were all out but sold you a game he said was just as good for the same price. When you got home and tried the game, it was nothing like the one you wanted. What should you do first? A. You should return the game to the store tell them that the salesperson misled you about the game and you'd like a raincheck for the game that was supposed to be on sale. B. You should complain about the store and its advertisement to the Better Business Bureau. C. You should write a letter of complaint to the game company. D. You should tell all your friends to never shop at the store.
A. You should return the game to the store tell them that the salesperson misled you about the game and you'd like a raincheck for the game that was supposed to be on sale.
Which of the following would provide somewhat biased information on a company's fiscal status? A. annual report B. prospectus C. stock report D. 10K report
A. annual report
Which of the following marketing strategies is described in the discussion material as one of the most persuasive? A. appeal to emotion B. appeal to authority/celebrity C. appeal to intellect (Hint: Our feelings can make us do wild and crazy things, especially when it comes to spending money.)
A. appeal to emotion
You would like to put your money in the most secure place possible. Which is that? (Choose all that apply) A. bank B. credit union
A. bank
Which of the following is also called a "no frills" account? A. basic checking account B. interest-bearing checking account C. savings account
A. basic checking account
Which of the following savings methods would earn you the highest interest? A. certificate of deposit B. interest-bearing checking account C. money market account D. none of these E. savings account
A. certificate of deposit
Which of the following is an example of a lending investment? A. corporate bond B. mutual fund C. stock D. hard asset
A. corporate bond
Here you can have a savings account and a checking account. (Choose all that apply) A. credit union B. bank
A. credit union, B. bank
Which of the following is a progressive tax? A. federal income tax B. Medicare tax C. sales tax D. Social Security tax
A. federal income tax
Rich collects baseball cards as a hobby but is convinced that his understanding of the baseball card market will make him a large return on his investment long-term. Which of the following investments works well for Rich? A. hard assets B. bonds C. mutual funds
A. hard assets
If you are a single college student getting your own apartment, you are no longer covered by which type of insurance that your parents have? A. homeowners insurance B. life insurance C. health insurance D. vision insurance
A. homeowners insurance
Tom is new to investing and trading and is unsure how to begin. He's done a little research and has saved some money for his investments, but he doesn't have much and can't afford too much. Where might he go for some advice and trading? A. investment advisor B. discount broker C. full-service broker
A. investment advisor
Jim wants his dad to help him put his college fund somewhere it can actually make him more money than the standard interest earned for a savings account. Which of the following institutions should he visit? A. investment broker B. bank C. loan agency D. credit union (Hint: Which type of investments would give him the greatest return, ensuring him a bulky college fund?)
A. investment broker
Gayle has always been fearful of spending years on life-support in her later years. She wants to assure that no extreme measures are taken to preserve her life. Which of the following should she use to accomplish her desires? A. living will B. will C. living trust
A. living will
You've purchased your first semester's worth of textbooks through a used book company in another state. Which of the following payment methods would work best? A. money order B. cash C. check D. traveler's check
A. money order
Cindy is out on her own making a significant salary for the first time in her life. She's excited to start investing for her future and wants to take a diverse approach—putting her money towards different investments. Which of the following investments would work best for Cindy? A. mutual funds B. stocks C. bonds
A. mutual funds
Which of the following is a good definition of opportunity cost? A. opportunities lost at the expense of certain transactions B. the cost of opportunities you've missed C. the price you pay for your opportunities
A. opportunities lost at the expense of certain transactions
Which of the following best describes training? A. practicing all the key habits to good financial management B. looking at ways you can cut back on your spending C. working with partners to build wealth D. writing down your long-term financial goals
A. practicing all the key habits to good financial management
Which of the following will help you assess your weekly progress? A. review targets B. associate with the best C. broaden your financial knowledge
A. review targets
Emily wants to save money for a band trip she's taking next year. She wants an account where she can easily check her progress. She'll also need to pay some band trip fees in a few months so she needs to be able to withdraw money easily. Which savings method would work best for Emily? A. savings account B. money market account C. interest-bearing checking account
A. savings account
Excessive debt does not contribute to which of the following? A. self-sufficiency B. financial stress C. increased inflation D. family instability
A. self-sufficiency
Use the following example for the next three questions "Sandra makes pretty good money working as an assistant manager of a clothing store at the mall. She wants to open her own clothing shop when she graduates and is learning about the business. She makes $1600 every month in wages and commission. She has a car and spends some money on entertainment and clothes. She has researched her dream and knows that she will need $20,000 to start a small scale storefront. Her dad will loan her $10,000 if she can save the rest. She has only saved $600 so far, but she isn't sure what she's spending her money on." Sandra decides to purchase a bus pass and sell her car. She puts the money from her car sale into bus tokens which are cheaper than buying a new pass every day. She saves $375 per month by taking the bus. She now has enough money to deposit in her store savings account each month to ensure that she will reach her target goal of $10,000 by the end of the year. The opportunity cost of acheiving her savings goal was: A. the car expenses B. the bus expenses C. the car and the bus expenses D. none of these
A. the car expenses
Which of the following is the best definition of investment return? A. the income from an investment B. the difference between rate of inflation and interest earned C. the interest earned from a savings account D. the length of time it takes to make money from an investment
A. the income from an investment
If I save and begin earning interest today, then I am taking advantage of: A. the time value of money B. inflation C. capitalism D. the cost of savings
A. the time value of money
What is the purpose of credit? A. to provide consumers with a convenient way to pay for goods B. to allow consumers to purchase anything they want, whether or not they have money C. to allow consumers to purchase anything they need, whether or not they have money
A. to provide consumers with a convenient way to pay for goods
Jessica just got $300 from her grandmother. She should put the money in her college savings account, but she really wants an expensive dress for the upcoming dance. A. use windfall money to get closer to targets B. use cash C. recognize spending patterns
A. use windfall money to get closer to targets
Whose responsibility is it to ensure that you are not tricked by false or manipulative advertising? A. yours B. the advertisers' C. the Federal Trade Commission's D. the Better Business Bureau's
A. yours
What number represents the cost of living in an average urban city? A. $150.00 B. $100.00 C. $50.00 D. $200.00
B. $100.00
You have a credit card with an 18 percent APR and an ADB excluding new purchases method of calculation. The balance of your last billing cycle was $1,750. What is the finance charge? A. $2.63 B. $26.25 C. $269.50 D. $31.25
B. $26.25
Which of the following would provide the most objective information about a company's fiscal status? A. research report B. 10K report C. annual report
B. 10K report
What percentage of new, small businesses fail within the first year? A. 30 percent B. 50 percent C. 20 percent D. 40 percent
B. 50 percent
What percentage of your income is a good target to aim for when calculating your retirement? A. 50 percent B. 80 percent C. 60 percent D. 70 percent
B. 80 percent
Which of the following is a significant difference between a credit card and a loan? A. A credit card is required to be paid off within a certain time period. B. A loan is required to be paid off within a certain time period. C. A credit card charges interest. D. A loan charges interest.
B. A loan is required to be paid off within a certain time period.
How are money and water similar? A. Both can become stagnate when they are left unused. B. Both can be channeled to accomplish positive things. C. Both can flood your life with happiness.
B. Both can be channeled to accomplish positive things.
Which of the following is true of health care insurance? A. It pays a beneficiary a sum of money upon your death. B. Coverage varies depending upon the insurance plan you choose. C. You can see any physician you choose. D. It includes both eye and dental insurance.
B. Coverage varies depending upon the insurance plan you choose.
Which of the following statements about excessive debt is most correct? A. Excessive debt is not a serious problem if you take responsibility for your choices and make a plan to get out of debt. B. Excessive debt affects everyone in this country because it affects our national economy C. Excessive debt affects a large number of Americans, but if you manage your money well and never max out your charge cards, it won't affect you. D. Excessive debt is more of a problem in developing, third-world countries because people are so poor they have to borrow just to eat.
B. Excessive debt affects everyone in this country because it affects our national economy
Which of the following is a true statement? A. The more money you make, the more stable you are financially. B. Financial success or failure has little to do with how much money you make. C. The less money you make, the more difficult it is to channel money effectively. (Hint: Regardless of how much money a person makes, any income can be managed effectively.)
B. Financial success or failure has little to do with how much money you make.
Read this scenario and then answer the next two questions regarding the scenario. "Ben declared bankruptcy after racking up $21,000 of credit card debt during college. He is relieved to not have creditors calling him anymore. He feels like his troubles are over." Which of the following is least likely to happen as a result of Ben's bankruptcy? A. He might not be able to borrow money at a good rate. B. He won't be able to get credit cards. C. He will have a bankruptcy on his record for the next ten years. D. He might have problems getting a good job.
B. He won't be able to get credit cards.
Which of the following is true of your credit score? A. It can be changed with more attentive tracking. B. It influences how high or low your interest rates will be. C. It can be changed by calling a credit bureau and explaining your situation. D. The lower the score, the better.
B. It influences how high or low your interest rates will be.
Choose the best definition of Annual Percentage Rate. A. It's the minimum balance of a monthly bill. B. It's a percentage of the total credit card bill that companies charge for loaning cardholders the money. C. It's the tax credit card companies charge cardholders for their services. D. It's a flat fee that credit card companies charge for giving cardholders access to their credit card.
B. It's a percentage of the total credit card bill that companies charge for loaning cardholders the money.
Which of these individuals is living by the principles of sound financial management? A. Kelsey sets financial goals for herself, but she's not sure when she will actually achieve them. She knows she should put $100 per month away, but she only saves when she has enough money left at the end of the month. B. Jessica makes sure to put money in savings as soon as she gets paid, and she budgets her money. She wants to go to Europe in a year and buy a house in five years. She saves regularly toward her goals and stops spending when she reaches the limits of her spending plan. C. Bridget saves every extra cent she gets for a rainy day She puts all her extra money in her mattress because she doesn't trust banks. She wants to have access to her money when she needs it. D. Janet tries really hard to conserve money. She saves when she can, and hopes that she will have enough to buy a house someday.
B. Jessica makes sure to put money in savings as soon as she gets paid, and she budgets her money. She wants to go to Europe in a year and buy a house in five years. She saves regularly toward her goals and stops spending when she reaches the limits of her spending plan.
Read this scenario and then answer the next three questions regarding the scenario. "Kathy and James have been married for five years. James plans carefully and watches his spending. He would like to be debt free in ten years, including paying off his home, and retire by the time he is fifty-five years-old. These goals are very important to him. He knows how much money he needs to save and invest to accomplish these goals and if they stick to his plan, they can achieve them. Kathy has a hard time sticking to a spending plan and often spends more than the plan allows on impulse purchases. She sometimes opens charge accounts without telling James. She has added $3,000 in credit card debt in the last year and just obtained another card that James doesn't know about. The bills keeping getting more and more expensive and she's having a hard time juggling the payments. She knows James will be upset when he finds out, but tells herself that she will pay off the cards from her own income and James will never need to know." Which of the following statements is true? A. Kathy is a thriver, James is a survivor. B. Kathy is a survivor, James is a thriver. C. James and Kathy are survivors. D. James and Kathy are thrivers.
B. Kathy is a survivor, James is a thriver.
Most adults change careers many times in their lifetime. What can you do to prepare yourself for this? A. You can work so hard that you'll have your choice of career options and you won't have to worry. B. Keep your skills updated and try to stay in a "learning" mode. C. Nothing—you don't know if it will happen or when, so you can't really prepare.
B. Keep your skills updated and try to stay in a "learning" mode.
Which of the following is true? A. The later you start sound money management, the more easily it will come to you. B. Money management principles exist whether or not we use them to our advantage. C. Creditors, educators, advertisers, and parents are all responsible for ensuring that you use your money well. D. The earlier you start sound money management, the more difficult it will be for you to master.
B. Money management principles exist whether or not we use them to our advantage.
Which of the following statements is false? A. Payment plans are usually part of the marketing package. B. Payment plans are not intended to be buying incentives. C. Payment plans enable consumers to buy now and pay later. D. A high-priced item may be more appealing with the option of a payment plan.
B. Payment plans are not intended to be buying incentives.
Jordan wishes to work in technical theater when she graduates from high school. She is taking lots of theater classes and working backstage in many high school and community theater productions. What else could Jordan do now that would be most helpful for preparing for her chosen occupation? A. She can visit lots of colleges with technical theater programs. B. She can develop a career plan. C. She can write letters to directors and stage managers asking for advice.
B. She can develop a career plan.
Read this scenario and then answer the next three questions regarding the scenario. "Kathy and James have been married for five years. James plans carefully and watches his spending. He would like to be debt free in ten years, including paying off his home, and retire by the time he is fifty-five years-old. These goals are very important to him. He knows how much money he needs to save and invest to accomplish these goals and if they stick to his plan, they can achieve them. Kathy has a hard time sticking to a spending plan and often spends more than the plan allows on impulse purchases. She sometimes opens charge accounts without telling James. She has added $3,000 in credit card debt in the last year and just obtained another card that James doesn't know about. The bills keeping getting more and more expensive and she's having a hard time juggling the payments. She knows James will be upset when he finds out, but tells herself that she will pay off the cards from her own income and James will never need to know." Based on what you read in this scenario, what do you think Kathy was like in high school? A. She probably didn't have money problems in high school because she wouldn't have had a lot of credit cards and didn't earn that much money then. B. She probably didn't have good money habits in high school and when she got married she brought her bad habits with her. C. She probably got a lot worse with money after she got married because she had so many more bills as a married person.
B. She probably didn't have good money habits in high school and when she got married she brought her bad habits with her.
Sandra wants to get control of her finances, so the first thing she should do is: A. She should check out other funding sources, maybe another job, for example, so she can achieve her $10,000 savings goal. B. She should create a budget, then monitor her actual expenses so she can adjust her budget realistically. C. She should set aside $900 per month for her dream. If she doesn't start saving, she'll never get it.
B. She should create a budget, then monitor her actual expenses so she can adjust her budget realistically.
Pick the scenario that best represents the most severe consequence of excessive debt. A. Bobby got two credit cards when he first went to college. He maxed them both out by his sophomore year and talked his parents into paying them off. B. The Smith family had five children and over $50,000 of debt. Jack, the father, felt hopeless, and his wife, Jane, was frustrated that he wasn't doing more to resolve their financial problems. They were barely making the minimum payments on their credit cards. The family had stopped going on family vacations because of money worries, and the children could feel the tension between their parents. C. Carolyn got one credit card in college to be used for emergencies and to establish good credit. Every time she charged it, she paid off the balance that same month. D. Jim and Betty were newlyweds and new to money management. After their first year of marriage, they were $5,000 in debt. Recognizing the path they were on, the couple developed a plan to get out of debt in one year, and save enough money for a down payment on a house.
B. The Smith family had five children and over $50,000 of debt. Jack, the father, felt hopeless, and his wife, Jane, was frustrated that he wasn't doing more to resolve their financial problems. They were barely making the minimum payments on their credit cards. The family had stopped going on family vacations because of money worries, and the children could feel the tension between their parents.
Read this scenario and then answer the next three questions regarding the scenario. "Kathy and James have been married for five years. James plans carefully and watches his spending. He would like to be debt free in ten years, including paying off his home, and retire by the time he is fifty-five years-old. These goals are very important to him. He knows how much money he needs to save and invest to accomplish these goals and if they stick to his plan, they can achieve them. Kathy has a hard time sticking to a spending plan and often spends more than the plan allows on impulse purchases. She sometimes opens charge accounts without telling James. She has added $3,000 in credit card debt in the last year and just obtained another card that James doesn't know about. The bills keeping getting more and more expensive and she's having a hard time juggling the payments. She knows James will be upset when he finds out, but tells herself that she will pay off the cards from her own income and James will never need to know." Which statement best describes the future for this couple? A. They will never achieve their financial goals because Kathy is not committed to achieving them. B. They do not have the same financial values and will probably experience conflict in their marriage over financial issues. C. They will accomplish their goals because James handles money well enough to make up for Karen's deficiencies. D. They have excessive debt and are headed for insolvency.
B. They do not have the same financial values and will probably experience conflict in their marriage over financial issues.
Which of the following is a reward involved with entrepreneurship? A. You are responsible for taxes, insurance policies, and retirement plans. B. You can offer customers a competitive product. C. You invest much of your money into your business with no guarantee of success. D. You manage staff that you may find difficult to work with.
B. You can offer customers a competitive product.
Which of the following is a risk involved with entrepreneurship? A. You can offer customers a competitive product. B. You manage a staff that you may find difficult to work with. C. You work from home in your bunny slippers. D. You can invest all your money in something you're passionate about.
B. You manage a staff that you may find difficult to work with.
Which of the following is a good reason to have money saved? A. You want to go to the movie this weekend. B. You unexpectedly lost your job. C. You need to put gas in the car this week. D. You need to buy groceries this month.
B. You unexpectedly lost your job.
Which of the following is a good definition of entrepreneur? A. a financially knowledgeable individual B. a person who starts his or her own business C. an individual with a lot of education D. a creative individual
B. a person who starts his or her own business
Which of the following is a good example of a fraudulent scam? A. an advertisement that uses manipulative emotional appeals B. an e-mail attempting to get your bank account information under false pretenses C. a business that sells your personal information to other businesses D. none of these
B. an e-mail attempting to get your bank account information under false pretenses
The Bureau of Labor Statistics predicts that the greatest job growth in the next several years will be for jobs requiring at least which degree? A. high school diploma B. associate's degree C. master's degree D. PhD
B. associate's degree
Which group of people do credit card companies most aggressively target? A. newlyweds B. college students C. baby boomers D. the elderly (Hint: Credit card companies are looking to target individuals who haven't yet had much experience managing money.)
B. college students
You are excited to be a member of a financial institution that you actually "own." Okay, not completely. But you're a "member" of this institution, and because it's the place in which you've chosen to put your money, you are actually part owner—along with all the other members. Which of the following does this describe? (Choose all that apply) A. bank B. credit union
B. credit union
What is tracking? A. recording all your check and cash transactions B. gathering and recording your transactions in a way that you can recognize spending patterns C. anticipating future expenses and preparing for them in your budget D. gathering all your receipts
B. gathering and recording your transactions in a way that you can recognize spending patterns
Bob has spent fifteen years in retirement living frugally regardless of his countless assets. He's starting to worry about his children and wants to assure that they would get their inheritance without hassle. Which of the following would Bob need? A. will B. living trust C. living will
B. living trust
Susan would like to assure that all her heirs receive her financial assets without having to go through probate. Which of the following would best accomplish this? A. will B. living trust C. medical power of attorney D. living will
B. living trust
Which of the following is taxable income? A. welfare B. lottery winnings C. tuition scholarship
B. lottery winnings
Read this scenario and then answer the next two questions regarding the scenario. "Ben declared bankruptcy after racking up $21,000 of credit card debt during college. He is relieved to not have creditors calling him anymore. He feels like his troubles are over." What is the best thing Ben could do now? A. apply for a low-rate credit card so he can reestablish credit B. make a spending plan and stick to it C. get a better paying job so he won't have money problems in the future D. never get another credit card
B. make a spending plan and stick to it
Leah's parents have convinced her to begin saving for her college education. She's a freshman in high school and wants to earn as much interest as possible within the next four years (college is expensive these days) and be able to access her money during those four years. Which savings method would work best for Leah? A. certificate of deposit B. money market account C. US government savings bond
B. money market account
How often should your interest be compounded in order to make you the highest return? A. annually B. monthly C. quarterly D. semi-annually
B. monthly
McKay recently attended a city council meeting where he discovered a way for citizens to support the building of a new library. McKay talked to his dad, who told him that it's a great investment that would also contribute to their community. Which of the following investments would help McKay invest in his town? A. stocks B. municipal bonds C. treasury bonds
B. municipal bonds
Justin's father has been out of work for a little over a year. Justin is seventeen and has a full-time summer job to help pay the bills. After cashing his most recent check, he went grocery shopping for his mom. A. priority want B. need C. want
B. need
Betsy does a lot of research when it comes to her investments. She just wants a way to easily initiate trades by herself. Which of the following would work best for Betsy? A. discount broker B. online broker C. full-service broker D. investment advisor
B. online broker
Which of the following strategies enables an investor to enjoy low-risk investing and varying investment types? A. ultraconservative investment strategies B. portfolio diversification C. aggressive investment strategies D. dollar-cost averaging
B. portfolio diversification
Which of the following is the term used for the total cost of insurance? A. co-pay B. premium C. deductible D. claim
B. premium
Which investment type also provides a basic need while you wait for its value to increase? A. stocks B. real estate C. hard assets D. bonds
B. real estate
Sharon is recording all the information from her receipts this week and realizes that she's spent about $35 on beauty products. At this rate she'll spend $140 this month on much of the same. A. distance yourself from impulse buying B. recognize patterns C. use cash
B. recognize patterns
Which of the following is a regressive tax? A. federal income tax B. sales tax C. state income tax
B. sales tax
Which of the following best describes a retirement plan? A. saving money for your future B. saving enough money to live comfortably once you stop working C. spending money in anticipation of future goals
B. saving enough money to live comfortably once you stop working
An earthquake strikes in a small town. Local utilities have been interrupted. The only grocery store sells out of all its bottled water in two hours. Many more people in the town need water and wish to purchase it. A truckload of water comes in and is sold for almost double the normal price. This scenario is an illustration of the economic concept of: A. opportunity costs B. scarcity C. want D. needs
B. scarcity
A person in which of the following life stages would probably pay the most in car insurance? A. elderly B. teenager C. newlywed D. parent
B. teenager
Which of the following best describes the purpose of consumer protection laws? A. to provide consumers with a central location to lodge complaints B. to protect consumers from false advertising, fraudulent businesses, and identity theft C. to protect consumers from identity theft D. to ensure that businesses aren't overcharging for their goods and services
B. to protect consumers from false advertising, fraudulent businesses, and identity theft
You're traveling to London and want a convenient method to securely pay for things while you're there. A. cash B. travelers' check C. check
B. travelers' check
For school this year, Jason wants one of those new backpacks all his friends are getting. His parents remind him that the one they got him last year is still in good shape, was "in style" just one year ago and was fairly expensive. Which of the following best describes this potential purchase? A. need B. want C. priority want
B. want
Karen, a single mom, has a history of cancer in her family. She's afraid that she, like her mother and grandmother, will die of cancer before turning fifty. Her two children are still young and if she should die, she would like her sister, Maxine, to raise them. Which of the following would Karen need? A. living trust B. will C. living will
B. will
Which of the following benefits is mandatory? A. health insurance and retirement B. worker's compensation C. retirement D. health insurance
B. worker's compensation
Who is responsible for ensuring that your retirement plan enables you to live as comfortably as you wish? A. your parents B. you C. your employer D. the government
B. you
How do you know when you've picked the right targets? A. you will feel guilty about all past spending mistakes B. you will get excited about your future C. you will be overwhelmed by your future D. none of these
B. you will get excited about your future
Which of the following is a net worth statement? A. the sum of your priority targets B. your assets minus your liabilities C. the sum of your assets and your budget balance D. the sum of your monthly spending targets
B. your assets minus your liabilities
Through tracking, the following people discovered something about their expenses. Which of the following people needs to adjust his or her spending or saving habits the most? A. $450 income with a $100 ending balance B. $150 car payment with a $250 income C. $100 entertainment budget with $0 savings D. $800 income with $200 savings
C. $100 entertainment budget with $0 savings
You have a credit card with an 18 percent APR. This account uses the ADB including new purchases method of calculation. In the last billing cycle, your balance was $1,750 for the first 11 days in the cycle. Then you charged $500 at an electronics store. There are 31 days in this billing cycle. What is the finance charge for this account? A. $33.75 B. $14.15 C. $31.09 D. $3.11
C. $31.09
Which of the following is the easiest tax form to use when filing federal income tax? A. W-2 form B. W-4 form C. 1040EZ form D. pay stubs from the previous year
C. 1040EZ form
Which of the following best represents scarcity? A. Stores have a large supply of Sunshine Barbies and an almost equal number of consumers. B. Stores have a limited supply of Organic Barbies and a limited number of consumers. C. Although stores have very few Professional Barbies in stock, there are many consumers on a Professional Barbie waiting list. D. Stores have a lot of Stay-at-Home Barbies in stock and not very many consumers.
C. Although stores have very few Professional Barbies in stock, there are many consumers on a Professional Barbie waiting list.
Which of the following is the best to contact if you want to find out information about a local business that you think is unethical? A. The Federal Trade Commission (FTC) and Federal Citizen Information Center B. Federal Trade Commission (FTC) C. Better Business Bureau (BBB) D. Federal Citizen Information Center
C. Better Business Bureau (BBB)
Which of the following is true of credit? A. The more credit you have, the better your credit score. B. Once you make a mistake with your credit card debt, it can never be rectified. C. High-interest credit card debt should be avoided. D. All types of credit should be avoided—the good, the bad, and the ugly.
C. High-interest credit card debt should be avoided.
Which of the following is true of homeowners insurance? A. After you pay for your home you don't have to worry about homeowners insurance anymore. B. Homeowners insurance comes with the loan to buy the house; you don't have to worry about it. C. If you have a mortgage on your home, it is required. D. All homeowner insurance policies are the same.
C. If you have a mortgage on your home, it is required.
Which of the following people is a survivor? A. Justin is a junior in high school with a part-time job and $3,000 in his savings account. He plans to go to Arizona State University and wants to have enough money to pay for the first two years of his tuition. B. Sheila is nineteen years-old and has spent her first year out of high school working full time and going to the local community college. She lives with her parents and is saving the majority of her paychecks. She would like to be a French interpreter someday, and hopes to use her money for a European vacation that would expose her to different cultures. C. Kathy has a high-powered job and is making more money than she ever has before. Her apartment is furnished with the most stylish pieces, but she rarely spends any time there because she's working overtime in attempts to advance in her company. She thinks that if she only made more money, she wouldn't have to worry about all her expenses. D. Ken doesn't make much money. He tracks his expenses and is working toward having more money in his savings account. While he worries about whether or not he could support a family, he doesn't currently feel overwhelmed by his finances and has a plan for his future.
C. Kathy has a high-powered job and is making more money than she ever has before. Her apartment is furnished with the most stylish pieces, but she rarely spends any time there because she's working overtime in attempts to advance in her company. She thinks that if she only made more money, she wouldn't have to worry about all her expenses.
Which of the following is one way to prevent identity theft? A. Keep your home locked at all times. B. Keep your vehicle locked at all times. C. Mail your bills from the post office rather than your home mailbox. D. Always use your mother's maiden name as a password.
C. Mail your bills from the post office rather than your home mailbox.
Which of the following is a good example of a monthly spending target? A. Jack had a car accident last month and has taken his car into the shop for repairs. He's borrowing money from his parents so he doesn't have to use any of his savings. B. Becca wants to buy new school clothes this month and will withdraw money from her savings for a special shopping trip. C. Sam plans to play basketball this fall and will need $200 to pay for new basketball shoes and miscellaneous team supplies. He's working a summer job and will save $75 per month so he has enough money by September. D. Karen is planning a trip to Disneyland with her friends over spring break her senior year. She's now a junior.
C. Sam plans to play basketball this fall and will need $200 to pay for new basketball shoes and miscellaneous team supplies. He's working a summer job and will save $75 per month so he has enough money by September.
Which form contains the information necessary to fill out your tax forms? A. 1040EZ form B. pay stubs from the previous year C. W-2 form D. W-4 form
C. W-2 form
Which of the following is a good example of a pyramid scheme? A. Someone calls on the phone and asks for you to donate money to a charity. It only requires a credit card number with an expiration date. B. You get an e-mail saying that you can make a lot of money just by sending a small investment to other people listed in the e-mail. You only need to forward the e-mail on to ten people who will be asked to do the same. C. You are asked to enroll in a special business that only requires you to enlist new members. You will pay an enrollment fee to someone above you, but the members that you recruit will pay an enrollment fee to you. D. You get an e-mail from a Nigerian resident who has access to millions of dollars that they need to transfer to the U.S. This individual will pay you $5,000,000 just for providing them with your banking account information so they can transfer the money.
C. You are asked to enroll in a special business that only requires you to enlist new members. You will pay an enrollment fee to someone above you, but the members that you recruit will pay an enrollment fee to you.
Jill is a freshman in high school and is serious about saving money for college. She has already saved $300 and is ready to open an account. She plans on using a checking account attached to modest monthly deposits in order to manage her daily transactions. However, she's unsure where to place her college savings. Which of the following options would be best for her to enjoy the highest interest rate on her college savings? A. money market account B. savings account C. certificate of deposit D. interest-bearing checking account
C. certificate of deposit
Which of the following is the term for "assets used to secure a loan"? A. cosigner B. interest C. collateral D. principal
C. collateral
You don't like writing checks, but you want to conveniently use money from your checking account. A. cash B. credit card C. debit card
C. debit card
Which of the following is the term used for the amount that the insured party is responsible to pay, out-of-pocket, before the insurance coverage can be applied? A. co-pay B. premium C. deductible D. claim
C. deductible
Next to an associate's degree, which degree or training will be in the most demand in the job market in the near future? A. work experience plus bachelor's degree B. long-term, on-the-job training C. doctoral degree D. bachelor's degree
C. doctoral degree
How many of the highest-paying occupations require a college degree? A. fifty B. two C. forty-eight
C. forty-eight
Which of the following engenders gratitude and abundance? A. tracking B. trimming C. generosity D. attentiveness
C. generosity
Which of the following should you consider when planning for a career? A. the location of your job B. the cost of living in the job locale C. how much education you'll need D. the kinds of people you'll be working with
C. how much education you'll need
What information do you need in order to create an effective budget? A. bills, spending allowances, daily transactions B. income, daily transactions, balance C. income, bills, spending allowances, balance D. income, bills, balance
C. income, bills, spending allowances, balance
Carolyn saw an advertisement saying that studies showed that ZitBegone worked on four out of five teenagers with acne. She really wants to buy this product because it sounds like it works. Which type of appeal did advertisers use here? A. emotional appeal B. appeal to celebrity or authority C. intellectual appeal D. none of these
C. intellectual appeal
What two things are most crucial to a good financial plan? A. tracking and targeting B. income and expenses C. knowledge of your current financial reality and a vision of your financial future D. the balance of your assets and liabilities
C. knowledge of your current financial reality and a vision of your financial future
You want to buy a car. A. credit card B. check C. loan
C. loan
Kathy wants to become a computer programmer and will be taking special computer classes her junior year in high school. Her family has a computer, but she has four brothers and is only allowed to use the computer for forty-five minutes a day. She is currently trying to persuade her parents to let her buy a computer, but leave it in an open area where they could still monitor her computer use. This would enable her to practice the things she learns in her class, and will provide her with a computer to start her freshman year at college. A. want B. need C. priority want (Hint: Kathy doesn't currently need a computer to survive, but considering her interests, computer programming might turn into an occupation for Kathy.)
C. priority want
After considering your advice, Karen has decided to look into getting some health insurance for herself and her two young children. She's decided that the possibility of her getting hurt or sick is too great not to get some insurance coverage. Which of the following best represents this decision-making process? A. financial advisement B. comparison of insurance plans C. risk analysis and management D. comparison of health care costs
C. risk analysis and management
Which of the following shows all the necessary steps, in their proper order, of accomplishing financial goals? A. do, see, get B. see, get, do C. see, do, get D. get, do, see
C. see, do, get
Which of the following best describes targeting? A. monitoring your daily transactions B. cutting back on your spending in order to prepare for your future C. setting short-term and long-term financial goals D. training yourself to manage your finances
C. setting short-term and long-term financial goals
Which of the following describes a retirement plan in which your contributions are deducted before taxes? A. defined benefit plan B. Social Security C. tax-sheltered retirement plan
C. tax-sheltered retirement plan
Which of the following is a method of adhering to your budget? A. Microsoft Excel B. budgeting software C. the envelope system D. tracking
C. the envelope system
How long does it take to own a habit? A. three years B. three days C. three weeks
C. three weeks
Which of the following best describes net income? A. total amount deducted from the gross income B. amount deducted for federal income tax C. total income after deductions D. total income before deductions
C. total income after deductions
Jordan loves going shopping with her friends. She's been working a part-time job this summer and has saved over $500. She and her friends have scheduled a shopping marathon and Jordan plans to spend all her money on high-end makeup. She can hardly wait. A. need B. priority want C. want
C. want
Josh has a collection of video games and needs one more to complete his collection of seventy-five games. He's promised his parents he won't buy any more after that. A. priority want B. need C. want (Hint: Josh may think he needs this video game, but he could easily survive without it.)
C. want
Who is most responsible for your financial future? A. your parents B. your teachers C. you D. all of the these (Hint: While others can provide tremendous support in helping you properly manage your money, who is ultimately responsible for your financial future?)
C. you
The average American family has how much credit card debt? A. $7,000 B. $3,000 C. $20,000 D. $10,000
D. $10,000
Which of the following is true of education? A. Once you receive a degree, you no longer have to worry about it. B. An associate's degree is the most valuable degree you can get. C. The occupations that are expected to experience faster-than-average growth do not involve education beyond high school. D. A nation's wealth and the education level of its citizens are directly related.
D. A nation's wealth and the education level of its citizens are directly related.
Which of the following individuals seems to have mastered trimming? A. Gordon spends $5 per day on fast food. Since school got out, he sometimes spends $8 per day eating out. B. Stacy saves 10 percent of her net income in a money market account. C. Jennifer collects all of her receipts and records them every week in a spreadsheet. D. Bobby is trying to better manage his spending and, after seeing how much money he spends renting video games, he has decided to limit himself to $10 per month instead of the $50 per month he was spending.
D. Bobby is trying to better manage his spending and, after seeing how much money he spends renting video games, he has decided to limit himself to $10 per month instead of the $50 per month he was spending.
Which of the following is true of the Abuse Prevention and Consumer Protection Act of 2005? A. Bankruptcy is now easier for people to declare. B. Most individuals will be able to retain all their property after declaring bankruptcy. C. Bankruptcy now remains on a credit report for longer than previously required. D. Individuals are now required to be involved in some form of government-approved credit counseling before declaring bankruptcy.
D. Individuals are now required to be involved in some form of government-approved credit counseling before declaring bankruptcy.
Which of the following is a good example of dollar-cost averaging? A. Fred is addicted to high-risk investing. He regularly participates in day trading, where he buys and sells stock for hours at a time in anticipation of catching his short-lived investments on the upswing. B. Stephanie has been working at her new job for two years and has saved $10,000 in her savings account. She's decided with that much money she can begin investing for a higher return. Her father is an investment broker and has suggested that she invest in diverse investments of varying risk. C. Kimber has been swept away on the investment wave. She's extremely interested in watching market trends, and her experience as a business major has helped her anticipate when the value of a stock might rise or fall. D. Jason is busy, but wants to invest regularly in the stock market. He's been studying one particular company that he would like to buy stock in, but he doesn't want to be a slave to market trends. He decides to invest $200 every month in this company, regardless of how much the shares cost.
D. Jason is busy, but wants to invest regularly in the stock market. He's been studying one particular company that he would like to buy stock in, but he doesn't want to be a slave to market trends. He decides to invest $200 every month in this company, regardless of how much the shares cost.
Let's say you can only encourage one of the following to get life insurance. Who needs it most? A. Gayle, an elderly woman with a living will. B. Jack, a seventeen-year-old who has been in two car accidents already. C. Mark, a single friend with a new, salaried job. D. Karen, a single mother of two young children.
D. Karen, a single mother of two young children.
Which of the following is a good example of limited financial resources affecting decisions? A. Kathy's family is wealthy and she will be going to the college of her choice, depending, that is, on whether or not she's accepted. B. John has saved enough money for the first two years of his dream school so that he doesn't have to stress about tuition if he's accepted. C. While Max's family doesn't make much money, he has been awarded a scholarship for the first year at the college of his choice. D. Mark has only been working for one year and won't be able to save enough money for the school of his choice. He'll be attending a community college instead.
D. Mark has only been working for one year and won't be able to save enough money for the school of his choice. He'll be attending a community college instead.
Jack is eighteen years old, works a steady job, tracks his expenses carefully, and is saving for his target goal. He wants to save enough to put a good down payment on a car, and establish good credit, so that he can get a good interest rate when the time comes. Jack is buying a new pair of pants. As he goes to check out, the clerk cheerfully asks "Do you want to open a charge account and save 10 percent today?" Jack says yes. Did Jack make a bad financial decision? A. Yes, if he doesn't pay off his balance in the same month, the interest he pays for the pants will be more than the 10 percent in savings. B. Yes, because it is always better to pay with cash. C. No, because if he pays it off the same month, he saved 10 percent. D. No, because if he pays it off in the same month, he'll build good credit for his car loan and save 10 percent on his pants purchase.
D. No, because if he pays it off in the same month, he'll build good credit for his car loan and save 10 percent on his pants purchase.
Which of the following is true of state income tax? A. It helps fund Social Security. B. It helps fund some federal government operations. C. It is a regressive tax. D. Not all states require it.
D. Not all states require it.
Karen has worked all through high school. She has earned over $25,000, but has never saved anything. She has an old, inexpensive car and she spends her money as soon as she earns it. Her boss just told her that she'll never be promoted if she doesn't get into college and work on her degree. She's checked out the costs of attending a local university, community college, and business college. She will have to save $1,000 each month for a year to even begin at the community college. What is impacting Karen's choices? A. She needs to get a better-paying job. B. She doesn't earn enough money to go to college. C. She spent too much on her car. D. She has limited financial resources due to poor money management.
D. She has limited financial resources due to poor money management.
What does FICA fund? A. federal government operations and services B. state operations and services C. unemployment insurance D. Social Security and Medicare
D. Social Security and Medicare
Which of the following is true of our values? A. They are unchangeable. B. We should change our values so they better reflect our transactions. C. They do not influence our financial choices. D. They influence our target priorities.
D. They influence our target priorities.
How do tracking and targeting work together? A. Tracking helps us to determine what our targets should be. B. Tracking encourages pessimism and targeting encourages optimism. C. Tracking enables us to add up all the expenses for our targets. D. Tracking helps us monitor the present, while targeting helps us prepare for our future.
D. Tracking helps us monitor the present, while targeting helps us prepare for our future.
If your employer doesn't pay you appropriately, what should you do first? A. You should file a complaint with the Better Business Bureau B. You should ignore it. They won't believe you anyway. C. You should file a complaint with the National Labor Relations Board. D. You should talk to the payroll manager or direct supervisor and point out the error.
D. You should talk to the payroll manager or direct supervisor and point out the error.
A career plan includes which of the following? A. a plan for appropriate education B. a plan for saving and investing C. a plan for skill development D. all of these
D. all of these
Fred is buying some jeans in a department store when an expensive pair of sunglasses catches his eye. He has enough cash in his wallet to buy the glasses, but that would leave him without money for lunch. He's thinking about using his new credit card instead. A. use cash B. distance yourself from impulse buying C. remember your targets D. all of these
D. all of these
Which of the following are consumer responsibilities when using credit? A. shopping for the best APR B. reading the terms of agreement C. making on-time, monthly payments D. all of these
D. all of these
Which of the following best describes one of the factors that motivates our wants? A. peer pressure B. emotional appeals C. intellectual appeals D. all of these
D. all of these
Which of the following is considered income? A. wages B. interest earned from a savings account C. large gift of money D. all of these
D. all of these
Which of the following is true of a mission statement? A. It can help you save more money. B. It can help you accomplish your priority targets. C. It can help you trim your spending. D. all of these
D. all of these
Which of these is cash equivalent? A. high-risk investment B. bond C. stock D. an investment with liquidity
D. an investment with liquidity
Which insurance needs are teenagers most likely to have to take care of on their own? A. dental insurance B. health insurance C. life insurance D. auto insurance
D. auto insurance
Bob wants to put his money in a savings account, but he wants to ensure that he's put it in the safest place possible. Where should Bob go? A. loan agency B. credit union C. investment broker D. bank (Hint: Banks are federally insured. However, many credit unions are also insured, so Bob would be wise to shop around and see which financial institution serves his purposes.)
D. bank
Which of the following best describes an impulse buy? A. a fast shopping trip B. purchasing a product that fulfills an immediate need C. purchasing a product that appeals to your intellect D. buying those little Tic Tacs (not on your shopping list) right by the check-out counter
D. buying those little Tic Tacs (not on your shopping list) right by the check-out counter
Which of the following values would best help Teressa accomplish her priority target of establishing a shelter for needy women in Africa? A. self-sufficiency B. education C. independence D. charity
D. charity
Which of the following payment methods might actually end up costing you more than what you originally paid for your purchase? A. traveler's check B. debit card C. check D. credit card
D. credit card
Lenders are interested in your: A. student loan B. APR C. academic record D. credit score
D. credit score
Which of the following does not belong in your financial plan? A. insurance plan B. net worth statement C. budget D. daily receipts
D. daily receipts
Which of the following is a retirement account your employer contributes to according to the amount of time you've spent in his or her employment and the salary you've earned? A. Social Security B. defined contribution plan C. IRA D. defined benefit plan
D. defined benefit plan
Which of the following might you rely on for investment trading and estate planning? A. discount broker B. investment advisor C. online broker D. full-service broker
D. full-service broker
Which of the following is a result of credit abuse? A. lower APRs B. lower minimum payments C. higher credit rating D. higher APRs
D. higher APRs
Which of the following is not one of the fastest growing jobs in the nation? A. education B. health care C. mathematics D. insurance
D. insurance
Which of the following describes the plan that helps you assess potential risk and then prepare for it? A. net worth statement B. retirement plan C. savings and investment plan D. insurance plan
D. insurance plan
Benjamin has decided, in his first year of graduate school, that a condo would be a good investment. Where should he go to get the money to pay for it? A. credit union B. bank C. investment broker D. loan agency
D. loan agency
Kathy is interested in working with a financial institution she can feel a part of. She'd also like to earn the highest interest rate possible while paying the least in fees. Where should she go? A. investment broker B. credit union C. bank D. loan agency
D. loan agency
Which of the following best describes trimming? A. writing down your long-term financial goals B. recording all of your daily transactions C. working with partners to build wealth D. looking at ways you can adjust your spending
D. looking at ways you can adjust your spending
Which of the following best describes estate planning? A. setting up a trust in which you can deposit financial assets for your beneficiaries B. naming the legal guardian of your children in case of your death C. giving someone else permission to make medical decisions in your behalf D. planning how your assets will be allocated upon your death
D. planning how your assets will be allocated upon your death
Which of the following describes a thriver? A. feels stressed thinking about money B. uses credit as a way to satisfy immediate wants C. has never considered better uses for income D. sees money as an ally
D. sees money as an ally
How long will a bankruptcy remain on your credit report? A. two years B. five years C. seven years D. ten years
D. ten years
Which of the following items is unnecessary to track? A. amount B. date C. type D. time
D. time
The four Ts, in order, are: A. train, trim, track, target B. trail, track, target, train C. track, track, track, track D. track, target, trim, train
D. track, target, trim, train
Which of the following will not be found in your credit card's terms of agreement? A. payment penalties B. interest calculation method C. APR D. your credit rating
D. your credit rating
True or False: A budget only tells you how much you can spend.
False
True or False: A claim is the amount your insurance company will pay toward your bills.
False
True or False: A defined benefit plan is funded by the employee.
False
True or False: A good idea is all it takes for a business to boom.
False
True or False: A large percentage of employees feel retirement plans are the most important benefit.
False
True or False: After you've read the promotional information for a credit card, it's unnecessary to closely read your terms of agreement.
False
True or False: Aggressive investing is always a good way to get rich quick.
False
True or False: All costs are created equal. Eating at a restaurant or eating peanut butter and jelly sandwiches both cost something. It's impossible to evaluate whether or not one cost is better than another.
False
True or False: An advertisement that uses research to persuade you to buy their product is using an emotional appeal.
False
True or False: As a member of your bank, you enjoy higher interest rates.
False
True or False: Bankruptcy is an easy way to get a fresh financial start with limited consequences.
False
True or False: Budgeting software is always the best way to manage your finances.
False
True or False: Compound interest is when you add all the interest you've earned together.
False
True or False: Consumer protection laws protect advertisers from unfair competition in the marketplace.
False
True or False: Cost of living index is a list of prices the government publishes monthly.
False
True or False: Credit abuse warning signs include inflation, financial stress, and family instability.
False
True or False: FICA funds worker's compensation insurance.
False
True or False: Federal income taxes are a type of regressive tax.
False
True or False: Federal income taxes fund federal and state-run operations.
False
True or False: Generosity can get out of hand and needs to be "trimmed."
False
True or False: Good money management has a lot to do with the size of a person's paycheck.
False
True or False: Health insurance is a mandatory benefit.
False
True or False: If I can find a way to earn more money, my financial problems will be solved.
False
True or False: If a friend or family member gives you investment information, you've acquired the necessary knowledge before investing your money.
False
True or False: If you default on your home mortgage loan, your cosigner will be required to make payments and can take possession of your home.
False
True or False: If you were purchasing a $60 pair of jeans from a department store that you couldn't afford this month but would pay back next month, installment closed-end credit would be the most fitting type of credit to use.
False
True or False: In order to really capitalize on the time value of money, you should wait and save when inflation stops.
False
True or False: It's only important to learn how to manage your money when you begin your first full-time job.
False
True or False: Life insurance includes coverage for medical expenses.
False
True or False: Moderate investors are willing to risk a lot with the hopes of yielding a higher return in the distant future.
False
True or False: More money will always solve financial problems.
False
True or False: Most credit card companies offer non-installment credit.
False
True or False: Only those individuals with excessive debt are subject to the difficult consequences.
False
True or False: Payroll tax is a fee charged for processing your paycheck.
False
True or False: Pre-tax deductions determine how much federal and state tax is withheld from your paycheck.
False
True or False: Priority targets are mainly for adults who need to prepare for retirement.
False
True or False: Saving 5 percent of your income will fund your priority targets.
False
True or False: Scarcity describes an economic phenomenon when both supply and demand are high.
False
True or False: Short-term investments are for the faint of investment heart (people who are worried about losing money).
False
True or False: Stephen Covey said that recognizing our vision empowers us to say "yes."
False
True or False: Targeting enables individuals to prepare for wealth.
False
True or False: The BankAmericard was the first credit card.
False
True or False: The Federal Trade Commission is just another name for the Better Business Bureau.
False
True or False: The amount of money you save for your priority target is called a monthly spending allowance.
False
True or False: The consequences of bankruptcy last only two years.
False
True or False: The deductible is the amount you pay for your insurance policy.
False
True or False: The street sweeper and meter reader methods are the only effective ways to track.
False
True or False: There is only one step involved in tracking. It is to gather your daily transactions.
False
True or False: There's nothing you can do to improve your credit rating.
False
True or False: Those working in an occupation requiring the use of technology are the only individuals who need to continually improve their skills and build on their knowledge.
False
True or False: Thrivers don't think much about their money.
False
True or False: Trimming involves drastic course corrections in order to steer you to your priority targets.
False
True or False: When inflation goes up, the buying power of your current salary also goes up.
False
True or False: When you assess risk you are deciding whether or not you think an insurance company will actually pay for your claims.
False
True or False: When you have excessive debt that you're afraid you can't handle, you should either declare bankruptcy or meet with a credit counselor.
False
True or False: When you have health insurance you can go to any health care professional you choose.
False
True or False: You can live quite comfortably on Social Security alone.
False
True or False: You can never trust a product endorsed by a celebrity.
False
True or False: You only need to keep track of cash transactions.
False
True or False: You should always keep your Social Security card in your wallet.
False
True or False: You should plan for $80,000 for each year of your retirement, no matter your income level.
False
True or False: You should put 5 percent of your net income in savings.
False
True or False: You shouldn't start worrying about retirement until you're at least thirty-five years old.
False
True or False: You've heard that prices are expected to rise 3 percent this year. Your savings account is currently earning 5 percent. You should stop saving money to avoid losing your money's buying power.
False
True or False: A defined contribution plan allows you to roll-over your balance should you leave your current job.
True
True or False: A good way to protect your identity is to shred mail that contains personal information before throwing it in the garbage.
True
True or False: A job bonus is considered income.
True
True or False: A large gift of money is considered income.
True
True or False: A long-term financial goal is called a priority target.
True
True or False: Changes in the types of employment require workers to continually train and participate in lifelong learning.
True
True or False: Convenience is one of the reasons consumers use credit.
True
True or False: Dental plans often have an annual cap on the cost of claims.
True
True or False: Everyone seems to want the Financial Literacy: Money Matters video game. However, most stores assumed it wouldn't be very popular so they ordered a modest supply. Now they have people on waiting lists for when the new order of the video game will come in. This scenario is a good representation of scarcity.
True
True or False: Excessive debt is a cause of divorce.
True
True or False: Food and shelter are good examples of needs.
True
True or False: If we don't choose well now, our choices in the future might not be as good.
True
True or False: In a pyramid scheme, usually only those at the very top of the pyramid make money.
True
True or False: In the end, making minimum payments on a credit card will lengthen the life of that credit card debt and cost you more in finance charges than if you had devised a payment plan.
True
True or False: Inflation is a consequence of excessive debt.
True
True or False: Insurance can cost you much more money than what might be necessary.
True
True or False: It's important to evaluate the educational requirements, skill development, and income potential of the career of your choice.
True
True or False: Low-risk investments have liquidity.
True
True or False: Not all income is taxable by the IRS.
True
True or False: Opportunity costs are the opportunities you give up for various transactions.
True
True or False: People with limited resources may go without their needs.
True
True or False: People with more money usually have more options when it comes to making financial choices.
True
True or False: Recognizing your life's vision enables you to better focus on your priority targets and limit unnecessary spending.
True
True or False: Seeing, or envisioning, is a key element in successfully accomplishing a goal.
True
True or False: Social Security taxes are a type of regressive tax.
True
True or False: Survivors often don't track how their money is spent.
True
True or False: Teaming is another good T habit.
True
True or False: The ADB excluding new purchase is the most favorable method for consumers.
True
True or False: The greatest job growth in the U.S. over the next several years will occur in the professional and service areas.
True
True or False: The higher your credit score is, the more likely you are to receive a lower APR.
True
True or False: The money you get for selling your car is considered income.
True
True or False: Tracking is an important part of a financial plan.
True
True or False: Training also includes broadening your financial knowledge.
True
True or False: Values often determine our priority targets.
True
True or False: Wealth creates privilege. This wealth obligates us to see how we can reach out to help others.
True
True or False: When you're self-employed, you lose the health insurance associated with most full-time professions.
True
True or False: You should plan for fifteen to twenty years of retirement.
True
True or False: You should try to contribute 10 percent of your net income to charity.
True
True or False: You've been invited to a party by a friend. While you don't know the guest of honor, you have been asked to bring a "gift" of $250. Your friend tells you that eventually you'll be the guest of honor and will make ten times your original gift. You should not go to the party.
True