FINL Self-Checks

Finish this sentence: "People with a bachelor's degree make ________ more over a lifetime than high school graduates." 50% 62% 84% none of the above

84%

People with a bachelor's degree make how much more over a lifetime than high school graduates? 23% 84% 45% 98%

84%

How long will a chapter 7 bankruptcy usually remain on your credit report? five years one year fifteen years ten years

ten years

In 2013, 10% of retail sales were done on the Internet. What is the percentage that experts have predicted will be reached for retail sales in 2017? 25% 60% 75% 30%

60%

Which number would be a valid credit score? 1272 800 50 2.30

800

Correctly finish this sentence: "People with a bachelor's degree make ________ more over a lifetime than high school graduates." 50% 68% 84% none of the above

84%

Jacob, who accumulated some debt when he was in college, wants to eliminate his debt. Now that he is working, he can put $100 extra toward his debt elimination. He owes $450 on his credit card, $1,650 on his car, and $1,500 on his student loan. He determines that paying off his credit card balance first is best since it has the highest APR and that his car loan has the second highest APR. What is the total amount of Jacob's debt when he begins his debt elimination plan? $2,600 $3,500 $3,600 $3,450

$3,600

Use the following information to answer the next two questions. Marshall just started a new job and is excited to be earning income. He is paid monthly, and his salary is $12,000 per year. When he gets his first paycheck, it is for $900, and he thinks there is a mistake. What is Marshall's gross income for the month he got paid? $100 $1,000 $300 $900

$1,000

Sarah's gross pay is $5,000. She had $1,400 taken out of that amount; $1,050 is in taxes and $350 is for savings and retirement funds. Which number corresponds to the amount for deductions? $350 $1,400 $1,050 $5,000

$1,050

Use the following paystub information to answer the next two questions: Charlie's gross pay is $5,000. He had $1,400 taken out of that amount; $1,050 is in taxes and $350 is for savings and retirement funds. Of the money taken out of Charlie's checking account, which number corresponds to the amount for deductions? $1,050 $1,400 $5,000 $350

$1,050

What is the average amount of debt American households carry month to month? $10,000 $20,000 $40,000 $15,000

$15,000

What is the average amount of debt American households carry month to month? $40,000 $20,000 $10,000 $15,000

$15,000

Use the following information to answer the next two questions. Jack has a yearly gross income of $30,000. His total deductions for the year are $7,300 and expenditures are $2,250. What is Jack's net income? $20,450 $22,700 $27,750 none of the above

$20,450

What is the approximate amount of debt that the average college graduate accrues? $40,000 $13,000 $29,000 $35,000

$29,000

Use the following paystub information to answer the next two questions: Charlie's gross pay is $5,000. He had $1,400 taken out of that amount; $1,050 is in taxes and $350 is for savings and retirement funds. Based on the above paystub information, what is Charlie's net income? $1,400 $3,600 $5,000 none of the above

$3,600

Jacob has been paying the minimum of $200 per month on his car loan. Assuming that he has paid off his credit card, what amount will his next payment be toward his car loan? $250 $300 $350 $400

$350

What is the simple interest payment on a $12,000 loan at a 3% interest rate? $120 $3.60 $3,600 $360

$360

Use the following data to determine the amount of interest you would pay on this simple interest loan: Principal Amount, $15,000; Interest Rate, 3%; Monthly Payment, $100; Loan Term, 5 years. $4,500 $45 $500 $450

$450

If you make $10,000 and you are being charged a flat tax of 5%, how much tax will you owe? $5,000 $1,000 $500 none of the above

$500

Chris is twelve years old and has just started mowing lawns for his neighbors. For each lawn he mows, he will receive $15. He has been hired by five neighbors to mow their lawns once a week and another neighbor every other week for the same amount. How much money will Chris have earned at the end of eight weeks? $660 $1000 $435 $825

$660

Use the following information about John's income to answer the next two questions: John's annual taxable income is $9,000; he has a 10% tax rate, and nothing is taken out except taxes. What is John's net income for the year? $8,990 $8,910 $8,100 $8,500

$8,100

Use the following information to answer the next two questions. Jack has a yearly gross income of $30,000. His total deductions for the year are $7,300 and expenditures are $2,250. What are Jack's total deductions and expenditures for the year? $2,250 $5,050 $7,300 $9,550

$9,550

Use the following information about John's income to answer the next two questions: John's annual taxable income is $9,000; he has a 10% tax rate, and nothing is taken out except taxes. What is John's tax deduction for the year? $90 $500 $900 none of the above

$900

According to lesson 4.4, what were the most commonly used website passwords in 2013? a person's first name a person's Social Security number 123456 and password a person's phone number

123456 and password

What percentage of college students declared bankruptcy, according to the article by financial consultant Dave Ramsey? 9% 19% 29% 39%

19%

According to lesson 7.1, most Americans will work in different careers for at least how many years? 30 35 40 45

30

Most Americans will work in different careers for at least how many years? 30 35 40 45

30

According to CBS News, what percentage of American employees feel engaged or inspired at their jobs? 70% 20% 30% 100%

30%

According to CBS News, which percentage of American employees feel engaged or inspired at their jobs? 20% 70% 30% 100%

30%

People in the eighteen-to-twenty-four age bracket spend nearly what percentage of their monthly income just on debt repayment? 25% 10% 30% 20%

30%

Based on the reading, what is the range of credit scores? 1200 to 2000 300 to 800 1.00 to 4.00 100 to 250

300 to 800

What is the actual range for credit scores in the United States? 500-1200 1200-2000 300-850 100-500

300-850

Approximately how many American households or individuals declared chapter 13 bankruptcy in 2009? 350,000 550,000 750,000 150,000

350,000

How long will a bankruptcy usually remain on your credit report? 15 years 10 years 3 years 5 years

10 years

"By 2017, 60% of all U.S. retail sales will involve the Internet in some way." What is the percentage of retail sales made online in 2013? 10% 5% 25% 30%

10%

Which statement applies to life insurance? A basic rule of thumb is that the benefit on your policy should equal seven to ten times the amount of your annual salary. It is illegal not to carry a life insurance policy on yourself. All employers require you to take out a life insurance policy. A basic rule of thumb is that the benefit on your policy should be less than the amount of your annual salary.

A basic rule of thumb is that the benefit on your policy should equal seven to ten times the amount of your annual salary.

Potential impact, prevention plan, contingency plan, and risk are all things to consider when developing which of these? a defined benefits plan a cost-analysis plan a risk management plan all of the above

a risk management plan

Which of these is a necessary consideration when creating a risk management plan? potential impact prevention plan backup plan all of the above

all of the above

What is not the best way to set financial goals? Start setting financial goals when you are young. Put your goals in writing so you can revisit them often. Talk your goals over with others to make sure you are setting the correct goals. Set one goal at a time so you can focus on that goal.

Set one goal at a time so you can focus on that goal.

Which statement about investment strategies is true? Aggressive investment strategies involve high-risk investments. Meek investment strategies involve high-risk investments. Mild investment strategies involve high-risk investments. none of the above

Aggressive investment strategies involve high-risk investments.

If your identity is stolen, what should you do? Contact the three major credit bureaus. Contact the local police department. Contact the Federal Trade Commission. All of the above.

All of the above.

In which situation does it make sense to purchase dental insurance for your children? As a child, you had several cavities each time you went to the dentist. As a teenager, you had braces. As a young adult, your wisdom teeth were impacted. All of the above.

All of the above.

What is the reason that the change in the average life expectancy is significant for Social Security taxes? Because the government has enacted FICA, it insures that people will get payments when they retire. Because more people are living to an older age and, consequently, more people are retiring, the government must pay out more money to those who retire. Because the average life expectancy has changed, the government may not be able to keep up with the payments for people's retirements. All of the above.

All of the above.

Which action is part of making a financial plan? Estimate the costs of your goals. Set time frames for your goals. Reevaluate your goals. All of the above.

All of the above.

Which of the following describes something that is a risk to you? Your direct ancestors suffer from heart disease. You drive a car. You rent an apartment. All of the above.

All of the above.

Which of these steps should you do to protect your identity? Prevent others from seeing your personal information. Shred all financial documents instead of throwing them in the trash. Document all your charges and review your credit card statements each month. All of the above.

All of the above.

Which scenario indicates you should probably add flood insurance to your homeowner's policy? You buy a new home that is nowhere near any ocean. You still do your research and determine this state gets a lot of rain. You buy a new home in a coastal city that you just moved to. You do your research and determine that there is a higher likelihood of flooding and mudslides in coastal towns. You buy a new home in a town where there is a dam. You do your research and determine that this particular dam has broken twice. All of the above.

All of the above.

Which statement is true of credit cards? Credit cards are the number one reason that more than half of all Americans spend more money than they make. Credit card companies target mostly college students. Credit card company interest rates are determined by the Federal Reserve. All of the above.

All of the above.

Which statement is true regarding the annual interest rate? In the 1990s, the annual interest rate was 6%. In the 1980s, the annual interest rate was around 18%. The 2014 rate was 4%. All of the above.

All of the above.

What was the main reason for the stock market crash in the 1920s? Americans had accumulated too much debt. Americans had too much cash to spend. Too many Americans emigrated to other countries. Americans did not invest enough in the stock market.

Americans had accumulated too much debt.

Which statement is true about taxes? An employee needs to complete a 1040EZ tax form so an employer knows how much money to deduct for taxes. An employee needs to fill out a W-4 form every year of work for that company. An employer needs to send out a W-2 form to each employee before January 31 of each year. All of these statements are true.

An employer needs to send out a W-2 form to each employee before January 31 of each year.

What is the purpose for imposing property taxes? The money is used to pay for schools, roads, snow removal, and so on. The money is used to fund housing projects. The money is imposed so property owners can retain ownership of their property for a longer period of time. The money is disbursed among property owners who are in a low-income tax bracket.

The money is used to pay for schools, roads, snow removal, and so on.

Which scenario describes the best alternative when considering financial opportunity costs? Barbara's goal is to drink 64 ounces of water each day. She uses 28 water bottles each week at a cost of $5.00 per week. She decides to purchase a reusable water bottle and refill it with tap water. On November 7, Barbara's mother asks her to stop at the dry cleaners on her way home from school to pick up some cleaning. Her mother lets her know she needs to pick up the cleaning that day in order to get a discount. Barbara determines she does not have enough time to pick up the cleaning on November 7 so decides to wait until November 8, after the discount has expired. Barbara stops each day after school and buys a drink for $2.50. She determines it would be better to buy the drink at lunch instead of after school. Barbara spends $10 every time she goes to a movie. She sees an ad online for purchasing ten movie passes for $8 each. Barbara determines spending $10 is only $2 more each time she goes to the movie so decides not to purchase the pass.

Barbara's goal is to drink 64 ounces of water each day. She uses 28 water bottles each week at a cost of $5.00 per week. She decides to purchase a reusable water bottle and refill it with tap water.

By which date are you required to file your tax returns each year? March 15 January 31 April 15 December 31

April 15

Brian wants to go to college. He has saved the money he needs to get started. A friend approaches Brian and says there is a great opportunity to make $10 per hour at a company that is hiring. Which decision is most likely to negatively affect Brian's upward mobility? Brian decides to pass up the job opportunity and continue his plans with college. Brian checks out the company and decides he will work there for one summer to help add to his savings account for college. Brian decides to take the job opportunity and never returns to school. all of the above

Brian decides to take the job opportunity and never returns to school.

Use the following information to answer the next two questions: Susanne has been asked to the upcoming prom. She needs a dress. She has $75 saved but also needs to buy new shoes to go with the dress. Her options are to purchase a new dress (costs up to $300), wear a dress she already has, buy a used dress, rent a dress (costs about $25), or borrow a dress. Which option is the worst one for Susanne to choose? Wear a dress I already have. Buy a new dress. Rent a dress. Borrow a dress.

Buy a new dress.

Which of these is a reason for getting long-term care insurance? At the age of sixty-five, your grandmother began living with you because she had dementia. At the age of fifty-two, your grandfather got in an automobile accident and broke his leg. At the age of sixty-five, your grandmother had to stay with you for a while because she broke her arm. At the age of fifty-two, your father suffered from brain damage because of a freak accident.

At the age of sixty-five, your grandmother began living with you because she had dementia.

Which scenario gives the best example of simple interest? Aunt Lucy lends you $1000 which she generously lets you pay back when you graduate from college in four years. She charges you 5% simple interest. The total amount you will pay is $1050. Aunt Lucy lends you $1000 which she requires you to pay back in five months. She charges you 5% simple interest. The total amount you will pay is $1025. Aunt Lucy lends you $1000 which she requires you to pay back in ten months. She charges you 5% simple interest. The total amount you will pay is $1025. Aunt Lucy lends you $1000 which she requires you to pay back in ten months. She charges you 10% simple interest. The total amount you will pay is $900.

Aunt Lucy lends you $1000 which she generously lets you pay back when you graduate from college in four years. She charges you 5% simple interest. The total amount you will pay is $1050.

According to the lesson, what is the average amount of credit card debt American households have accumulated? Between $10,000 and $12,000 Between $15,000 and $16,000 More than $25,000 Less than $5,000

Between $15,000 and $16,000

Which scenario is not an example of scarcity? Caroline sees a dress in the window and Nordstrom and falls in love with it. When she goes to her department to purchase the dress, there isn't one in the color she wants. Caroline wants to buy a hat that she found online, but the product is sold in stores only. Caroline and her family went to the lake to go tubing. Caroline went to Subway to buy sandwiches to pack in a cooler to take with them. She is told to purchase five ham sandwiches and five tuna fish sandwiches, but when she gets to Subway she learns they are all out of tuna fish so she has to buy another kind of sandwich. Caroline wants to go to Baskin Robbins and buy a chocolate chip mint ice cream waffle cone. The waffle cones are all gone so if Caroline wants ice cream she will have to buy a regular cone.

Caroline wants to buy a hat that she found online, but the product is sold in stores only.

Which statement accurately describes consumer protection laws? Consumer protection laws protect consumers only from door-to-door sales people. Consumer protection laws advertise the best places for consumers to purchase products. Consumer protection laws protect consumers from false advertisements, fraudulent businesses, and identity theft. Consumer protection laws help consumers understand how to access their information from the three credit bureaus.

Consumer protection laws protect consumers from false advertisements, fraudulent businesses, and identity theft.

Which option is not the best way to repair your damaged credit? Continue making purchases using a credit card. Pay off your credit cards and loans as soon as possible. Use cash for all your purchases. Refrain from using your credit cards.

Continue making purchases using a credit card.

Which option best describes an estate tax? a tax created to keep individuals from retiring so early a tax imposed when you transfer property before your death a tax imposed when you transfer property after your death none of the above

a tax imposed when you transfer property after your death

Which of these is a defined benefit plan? a voluntary benefit plan a mandatory benefit plan an employee contribution plan all of the above

an employee contribution plan

Finish the following statement: "Wise consumers always try to compare the value of their cost to the value of their ________. pocketbook want decisions benefit

benefit

What is the simple definition of marginal costs and marginal benefits? If you do not have the money to purchase something, don't purchase it. If you do not have the money to purchase something, purchase it with a credit card. If you want something badly and have the money to purchase it, then purchase it. If you have the money to purchase something, purchase it only with a credit card.

If you do not have the money to purchase something, don't purchase it.

Use the following scenario to answer the next two questions. Marianne absolutely loves to quilt. She wants to start a new quilt so decides to go to the fabric store to pick out some cute fabrics. While at the store, she narrows the fabric down to three options. Option 1 costs $12 for six yards of fabric. Option 2 costs $14 for eight yards of fabric. Option 3 costs $16 for ten yards of fabric. What is the best way for Marianne to determine how much each piece of fabric costs per yard? Ask the store clerk. Divide the number of yards by the price of the fabric. Create a chart showing correct measurements of the fabric. Divide the price of the fabric by the number of yards.

Divide the price of the fabric by the number of yards.

Use the following information to answer the next two questions. Lisa has a craving for Nutter Butter peanut butter sandwich cookies. She goes to the store to purchase some, and while she is shopping, she notices that package 1 is a 12-ounce bag for $2.40 and that package 2 is a 6-ounce bag for $1.80. What is the best way to determine how much each package costs per ounce? Divide the number of ounces by the price of the package. Ask a store clerk. Count the number of cookies that are in each package. Divide the price of the package by the number of ounces.

Divide the price of the package by the number of ounces.

The best money-management strategy is which of the following? Keep a list of all your income. Do not spend more money than you can pay back each month. Pay your debts on time to assure loan companies that you're a good risk. Keep a list of all your debt.

Do not spend more money than you can pay back each month.

Setting goals helps with which of the following? maximizing debt minimizing impulse buying minimizing wealth maximizing spending

minimizing impulse buying

What is one of the best things to consider when determining whether to buy something? Does the benefit of this purchase outweigh the cost of this purchase? Is the amount for this purchase something I can borrow easily? Do I have enough money in my wallet to make this purchase? Does the benefit of this purchase match the price you thought it would be?

Does the benefit of this purchase outweigh the cost of this purchase?

What is the best way to describe a Ponzi scheme? a criminal activity scheme a buy now, pay later scheme a get-rich-quick scheme a locational advertising scheme

a get-rich-quick scheme

Which choice is the best definition of scarcity? a limited supply an unlimited supply a somewhat unhealthy economy an abundant supply

a limited supply

Which of the following is not used in the financial planning model introduced in this section? Set forth criteria. Make a decision. Define the problem. Create a savings account.

Create a savings account.

Which statement about investment strategies is not correct? Aggressive investment strategies involve high-risk investments. Moderate investment strategies involve lower risk. Mild investment strategies involve low risk. Creative investment strategies involve the highest risk.

Creative investment strategies involve the highest risk.

Which data matches this range about the amount of life insurance coverage that Crystal should carry: $280,000 to $400,000? Crystal earns $100,000 a year. Crystal earns $400,000 a year. Crystal earns $40,000 a year. Crystal earns $280,000 a year.

Crystal earns $40,000 a year.

Which statement is not true? Depression is when the economy almost comes to a halt. Inflation is when there is a rise in prices that causes money to lose its value. Diversification is when the economy becomes too spread out over a period of time. Recession is when there is a downturn in the economy.

Diversification is when the economy becomes too spread out over a period of time.

What is the correct term to describe an asset that you can quickly convert to cash? a hard asset a fast asset a liquid asset a loose asset

a liquid asset

What is the definition of proportional tax? Each individual or household pays a different percentage based on their income. Each individual or household pays a fixed percentage. Each individual or household pays the same dollar amount as all others pay. all of the above

Each individual or household pays a different percentage based on their income.

What is a common answer teenagers give when asked what they want to be when they grow up? I don't know. I have until later to decide. I'll go with whatever I can do right out of high school. I don't have to worry about that right now.

I don't know.

Which company developed a way to translate a person's credit history into a number system resulting in a credit score? National Credit Society Bureau Division Federal Money Division Fair Isaac Corporation

Fair Isaac Corporation

Which body of government organizations determines the annual interest rate for our country? Federal Department of Revenue State Reserve Federal Reserve Fiscal Agency Services

Federal Reserve

Which body of government organizations determines the annual interest rate for our country? Fiscal Agency Services Federal Reserve State Reserve Federal Department of Revenue

Federal Reserve

Which option relates to this definition: "a US government agency that is tasked with making a fair and competitive marketplace"? consumer protection laws Federal Reserve Better Business Bureau Federal Trade Commission

Federal Trade Commission

Which of these is not one of the three credit bureaus in the business of tracking your credit and providing you with a credit rating? Equifax Experian TransUnion First Trans-Nation

First Trans-Nation

Why is Becky's risk low for losing her vision? Her sister was born blind so the probability of Becky going blind is low. Becky wears glasses so her risk of going blind is low. Her sister has had surgeries to help her see. Becky sits at a computer desk all day so her risk actually isn't low.

Her sister was born blind so the probability of Becky going blind is low.

Which of these is a type of personality quiz to help assess career options? Career Options Quiz Mathews Matrix Holland Codes Personality and Career Assessment

Holland Codes

Ms. Moore is a high school teacher who teaches a career development class. Every year she tries to get her students to seriously consider how to define a career path for themselves. In order to get them thinking, Ms. Moore asks her students what they want to be when they grow up. Which of the following is the most common answer Ms. Moore's students give? It doesn't matter. I don't have to worry about that right now. I have until later to decide. I don't know.

I don't know.

Which of the following is the correct term to describe an asset that you can quickly convert to cash? a liquid asset a fast asset a loose asset a hard asset

a liquid asset

Which statement is false about mutual funds? Growth mutual funds involve start-up or newer companies that are less stable but have the possibility of making more money in the long run. Income mutual funds involve stable penny stocks for businesses that have just opened. Income mutual funds involve stable companies that are well established and secure. None of the above.

Income mutual funds involve stable penny stocks for businesses that have just opened.

Which statement is true of insurance? Insurance is a safeguard that will lessen the risk. Insurance is a safeguard but is only necessary when all risk factors are low. Insurance is a safeguard that will stop the risk. Insurance is a safeguard but is only necessary when all the risk factors are high.

Insurance is a safeguard that will lessen the risk.

We will all have concerns in our lives. Which of the following is true of insurance? Insurance will not only lessen the risk, it will stop the risk. Insurance is only necessary when all risk factors are medium to low. Insurance will lessen the risk; it will not stop the risk. Insurance is only necessary when all the risk factors are high.

Insurance will lessen the risk; it will not stop the risk.

What is the purpose of the Sixteenth Amendment to the Constitution? It gives women the right to vote. It allows Congress to tax citizens. It allows Americans freedom of religion. It abolishes slavery.

It allows Congress to tax citizens.

What purpose does the Federal Reserve have in our economy? It determines the annual interest rate for our country. It determines how much money you should reserve in your savings account each month. It determines why our country is in debt to other countries. none of the above

It determines the annual interest rate for our country.

Which of the following best describes "https://"? It indicates you are shopping on a secure website. It indicates you have found an unusual website. It indicates the website you were trying to find has changed since you last visited. none of the above

It indicates you are shopping on a secure website.

Which is the main reason some people choose to file a chapter 13 bankruptcy? The courts encourage people to file for chapter 13. It is a more conservative approach to bankruptcy. A chapter 13 bankruptcy is not recorded on your credit report. There are no negative consequences to this form of bankruptcy.

It is a more conservative approach to bankruptcy.

What is a good way to make sure a goal is appropriate? It is a want only. It is a need only. It is not expensive. It is attainable.

It is attainable.

Why should you care if others are filing for bankruptcy? It slows down the economy. Most people can't spend the money that they want to. The economy improves. none of the above

It slows down the economy.

By which date are employers required to give employees their W-2 form? April 15 of each year December 31 of each year January 31 of each year none of the above

January 31 of each year

Which scenario gives the best example of liquidity? Jill finds out that her daughter, Susan, borrowed money from a friend to purchase a pair of boots. Jill is upset and tells her daughter to pay back the friend right away. Susan goes to her bank and withdraws money from her savings account and immediately pays back the friend. Jack keeps excellent records of his checking account. However, one day Jack accidentally spent more money than he actually had in his checking account, so he was overdrawn. The bank charged Jack a $35 fee. Jack has to wait for one month until he gets his next paycheck before he can spend additional money. Jill was in a bad accident, and her car was totaled. Although her car insurance company gave her money for the car, she needs another $4,000 to purchase a new car. Jill decides she needs to borrow money from her grandmother to pay for the car. Jack invested his money in a mutual fund. One day his car breaks down and he needs a lot of money to have it repaired, but he does not have the money in his checking or savings account. Jack easily pulls money out of his mutual fund in order to pay for the repair.

Jill finds out that her daughter, Susan, borrowed money from a friend to purchase a pair of boots. Jill is upset and tells her daughter to pay back the friend right away. Susan goes to her bank and withdraws money from her savings account and immediately pays back the friend.

Which scenario is not an accurate example of simple interest? Joe borrows $1000 from his grandmother. He plans on paying the money within five months. Grandma charges him 5% simple interest. The total amount Joe will pay is $1050. Joe borrows $500 from his Uncle Jeff. He plans to pay back the loan within five months. Uncle Jeff charges 5% simple interest. The total amount Joe will pay is $505. Joe borrows $800 from his sister Elizabeth. He plans to pay back the loan within ten months. Elizabeth charges him 5% simple interest. The total amount Joe will pay is $840. Joe borrows $500 from his friend Mike. He plans to pay back the loan within ten months. Mike charges 5% simple interest. The total amount Joe will pay is $525.

Joe borrows $500 from his Uncle Jeff. He plans to pay back the loan within five months. Uncle Jeff charges 5% simple interest. The total amount Joe will pay is $505.

Which scenario is an example of inflation? John will need to purchase gas for his car in a couple of days. He drives by the gas station and notices the price of the gas is $3.19 per gallon. By the time he gets to the gas station to purchase the gas two days later, the price of the gas is $3.19 per gallon. John will need to purchase gas for his car in a couple of days. He drives by the gas station and notices the price of the gas is $3.19 per gallon. By the time he gets to the gas station to purchase the gas two days later, the price of the gas is $3.39 per gallon. John will need to purchase gas for his car in a couple of days. He drives by the gas station and notices the price of the gas is $3.19 per gallon. By the time he gets to the gas station to purchase the gas two days later, the price of the gas is $3.09 per gallon. none of the above

John will need to purchase gas for his car in a couple of days. He drives by the gas station and notices the price of the gas is $3.19 per gallon. By the time he gets to the gas station to purchase the gas two days later, the price of the gas is $3.39 per gallon.

Which option is not something to do in order to protect your identity? Request a copy of your credit report at least once a year. Shred all important documents. Keep your PIN written down in your wallet in case you forget the number when you are using your debt card. Make sure you receive and review your credit card statements each month.

Keep your PIN written down in your wallet in case you forget the number when you are using your debt card.

What should consumers not do when they are offered credit that they did not solicit? Look to see who is making the offer to see if it is a credible company. Look to see how to sign up and do so before the offer expires. Look to see whether there is a grace period before penalties are imposed. Look to see if/where there are hidden fees.

Look to see how to sign up and do so before the offer expires.

Pick the scenario that best represents the most positive financial outcome. Tracey attends a private college where tuition is rather expensive. Before attending, she works at a part-time job and is able to save up enough money to pay for her books and supplies. However, she still has to figure out a way to pay for the expensive tuition, room, and board. She qualifies for a student loan, so she takes out the maximum amount possible, which exceeds the amount she actually needs. Kevin and Jackie have incurred over $60,000 in credit card debt, have a house payment that is $1,595 a month, and own two cars. Their combined income is $55,000 a year. Thirty percent of their income is being spent to pay for their home (house payment and utility bills), and another 30% is being spent toward debt payments. However, they are able to pay more on their credit card payments than the minimum amount due. Brett and Wendy are newlyweds that have accumulated loans totaling $5,000 for their wedding and honeymoon costs. They have a plan to pay off those loans in one year and another plan to save for a down payment on a new car. Madeline has one credit card with a $500 maximum limit. Using her credit card will help her establish a good credit rating to show loan institutions that she is financially responsible. She does not pay any financial costs because she pays the entire amount she borrowed on that card each month so she does not incur interest. When the time comes that she desires to purchase a car, she will be a good candidate to receive a loan.

Madeline has one credit card with a $500 maximum limit. Using her credit card will help her establish a good credit rating to show loan institutions that she is financially responsible. She does not pay any financial costs because she pays the entire amount she borrowed on that card each month so she does not incur interest. When the time comes that she desires to purchase a car, she will be a good candidate to receive a loan.

What is one of the best ways to gauge whether a goal is appropriate? Make sure it is what you want. Make sure it is attainable. Make sure it is a need. Make sure it is not expensive.

Make sure it is attainable.

Which scenario gives a good example of insider trading? Fred has stock in a well-known start-up company that a friend started. The company has a difficult time getting off the ground, so Fred decides this is not a good investment and sells his stock. Eventually, the company does very well and its stock increase in value so that when other investors sell their stock they make a lot of money. Mary has stock in a well-known company that provides accounting services. She has a friend who works as a secretary at the firm. Much to Mary's surprise, she learns while watching the news that the company is in trouble for mismanagement of funds and its stock has lost most of its value. Mary loses money on her investment. Mark has stock in a well-known company. Mark has a friend who works for the company and the friend tells Mark that the company's stock is going to decrease in value because some of the company leadership is under investigation for unethical practices. Mark sells his stock before the general public knows about the company's problems. all of the above

Mark has stock in a well-known company. Mark has a friend who works for the company and the friend tells Mark that the company's stock is going to decrease in value because some of the company leadership is under investigation for unethical practices. Mark sells his stock before the general public knows about the company's problems.

Mary stops by the store every day after school to buy her family cookies for dessert. She spends $7 for one dozen mini chocolate chip cookies. Which of the following is the best alternative for Mary when considering financial opportunity costs? Mary continues to buy the cookies every day even though she knows she is spending too much money. She feels she doesn't have the time to make cookies for dessert. Mary calculates that it would cost her $2.50 to make one dozen cookies at home, but she doesn't feel like she has the time to make cookies at home. Mary calculates that it would cost her $2.50 to make one dozen cookies at home and decides to make one dozen cookies each day after school so her family can have cookies for dessert each day. Mary determines that if she bakes seven dozen cookies each Saturday, she will save on electricity so that the cookies will actually cost $2.25 per dozen. She decides to make seven dozen chocolate chip cookies each Saturday so her family can eat one dozen a day for dessert each day.

Mary determines that if she bakes seven dozen cookies each Saturday, she will save on electricity so that the cookies will actually cost $2.25 per dozen. She decides to make seven dozen chocolate chip cookies each Saturday so her family can eat one dozen a day for dessert each day.

If you start saving $100 a month starting at age 25, how much money could you have when you retire at 60? around $48,000 a little over $300,000 a little less than $300,000 none of the above

a little over $300,000

Pick the scenario that best represents the most positive financial outcome. Brett and Wendy are newlyweds who have accumulated loans totaling $5,000 for their wedding and honeymoon costs. They have a plan to pay off those loans in one year and another plan to save for a down payment on a new car. Matilda has one credit card with a $500 maximum limit. Using her credit card will help her establish a good credit rating to show loan institutions that she is financially responsible. She does not pay any financial costs because she pays the entire amount she borrowed on that card each month so she does not incur interest. When the time comes that she desires to purchase a car, she will be a good candidate to receive a loan. Together, Susie and Mark make $84,000 and have incurred over $100,000 in credit card debt. Their monthly expenses total $6,500, so they determine they can pay a little bit more than the minimum payment toward their debt. Karen attends a private college where tuition is rather expensive. Before attending, she works at a part-time job and is able to save up enough money to pay for her books and supplies. However, she still has to figure out a way to pay for the expensive tuition, room, and board. She qualifies for a student loan so she takes out the maximum amount possible which exceeds the amount she actually needs.

Matilda has one credit card with a $500 maximum limit. Using her credit card will help her establish a good credit rating to show loan institutions that she is financially responsible. She does not pay any financial costs because she pays the entire amount she borrowed on that card each month so she does not incur interest. When the time comes that she desires to purchase a car, she will be a good candidate to receive a loan.

If you start saving $100 a month starting at age twenty-five, how much money could you have when you retire at sixty? a little over $100,000 a little over $200,000 a little over $300,000 a little over $400,000

a little over $300,000

How did the use of credit cards begin? One evening in the 1950s,a New York businessman, Frank McNamara, was mortified when he realized he had invited friends to dine out and he had left his wallet at home. He wanted to give the restaurant some sort of guarantee that even though he could not pay his bill at that time he would pay his bill in the future. A few months later, he returned and purchased his meal with a cardboard credit card called the Diner's Club Card. One morning in the 1960s when a gentleman from Los Angeles went to put gas in his car, he realized he did not have any money in his pocket to pay. He tried talking the gas station owner to allow him to get gas and then pay later. One evening in the 1960s, a gentleman from New York City was selling items from door to door, but many of the people could not pay for the products he was selling. He wanted to invent a system whereby he could sell them the items but have them pay later. One evening in the 1950s when a Boston businessman, Frank McNamara, went to the supermarket, he realized he did not have enough money with him to pay the entire amount owed. He wanted to invent a system whereby he could get the groceries at the time he was there and then pay later.

One evening in the 1950s,a New York businessman, Frank McNamara, was mortified when he realized he had invited friends to dine out and he had left his wallet at home. He wanted to give the restaurant some sort of guarantee that even though he could not pay his bill at that time he would pay his bill in the future. A few months later, he returned and purchased his meal with a cardboard credit card called the Diner's Club Card.

Use the following scenario to answer the next two questions. Marianne absolutely loves to quilt. She wants to start a new quilt so decides to go to the fabric store to pick out some cute fabrics. While at the store, she narrows the fabric down to three options. Option 1 costs $12 for six yards of fabric. Option 2 costs $14 for eight yards of fabric. Option 3 costs $16 for ten yards of fabric. Assuming that Marianne can use any of the yardages, which option is the best choice? Option 1 Option 2 Option 3 none of the above

Option 3

Which of these is not a true statement that we discussed in lesson 7.3? Decisions determine destiny. Our destiny depends upon what culture we were born into. With every choice come good and bad consequences. We are free to choose, but we are not free to choose the consequences.

Our destiny depends upon what culture we were born into.

How many people filed for chapter 13 bankruptcy in 2009? Over 350,000 550,000 750,000 none of the above

Over 350,000

Use the following information to answer the next two questions. Lisa has a craving for Nutter Butter peanut butter sandwich cookies. She goes to the store to purchase some, and while she is shopping, she notices that package 1 is a 12-ounce bag for $2.40 and that package 2 is a 6-ounce bag for $1.80. What is the cost per ounce of each package? Package 1 is $0.20 per ounce and package 2 is $0.30 per ounce. Package 1 is $2.40 per ounce and package 2 is $1.80 per ounce. Package 1 is $0.30 per ounce and package 2 is $0.20 per ounce. none of the above

Package 1 is $0.20 per ounce and package 2 is $0.30 per ounce.

Which of these is not an influence on financial behavior that we discussed in this section? cultural influences emotional influences neighborhood influences societal influences

neighborhood influences

Which scenario gives the best example of a secured loan? Patty decides to sell some bedroom furniture that she doesn't want any more on Craigslist. A neighbor down the street sees the ad, loves the furniture, and buys it with a check. Patty determines she needs a bigger bag for all the items she carries around at school. Coincidentally, her best friend doesn't want the bag she has anymore and Patty loves it. Patty's friend also loves Patty's bag, so the friends make a trade. Patty wants to purchase some concert tickets from a friend, but she doesn't have the money. The friend said he will let her have the tickets but wants Patty to agree to give him her Rolex, which is of comparable value to the tickets, in case she doesn't pay. Patty wants to purchase some shoes from a store, but she doesn't have any cash with her. She pays for the shoes with her debit card.

Patty wants to purchase some concert tickets from a friend, but she doesn't have the money. The friend said he will let her have the tickets but wants Patty to agree to give him her Rolex, which is of comparable value to the tickets, in case she doesn't pay.

Which option is not a good way to reduce credit card balances? Reduce the amount you purchase on credit. Pay the entire amount due each time you make a purchase. Limit yourself to only paying with cards when you have the money in your account to pay. Pay only part of the amount due each time you make a purchase.

Pay only part of the amount due each time you make a purchase.

What is the best way to reduce credit card balances? Pay the entire amount due each time you make a purchase. Pay part of the amount due each time you make a purchase. Pay the minimum monthly amount due on the credit card. Pay the entire amount you purchase on credit once every two months.

Pay the entire amount due each time you make a purchase.

Which of these is the best way to build a good credit history? Paying back the lenders who gave you the credit and paying it in cash. Borrowing money and then paying back the entire amount owed to lender, even if it is late. Paying back the lenders who gave you the credit and paying it on time. Borrowing money and then not being able to pay the lender back.

Paying back the lenders who gave you the credit and paying it on time.

Which of the following wouldn't be a disadvantage of paying with cash? Paying in cash keeps you from overspending. Keeping track of cash is often difficult. Carrying a lot of cash can be dangerous. Cash does not transfer electronically.

Paying in cash keeps you from overspending.

Which of these is not a type of investment? savings bonds real estate growth funds Ponzi schemes

Ponzi schemes

Which of these is not a strategy companies use to get consumers to purchase their products? Look at where to locate the product for best exposure. Look at consumer expectations. Project what sales will be. Notice how the influence of others affects consumers.

Project what sales will be.

Use the following information to answer the next three questions: Martha wants to purchase new curtains for her bedroom. She needs four panels and has $20 to spend. She finds exactly what she wants at Target. The options are to purchase four panels today for $30, wait for two weeks until four panels will cost $20 on sale, or purchase four panels online for $20 and pay $10 for shipping. Which option would be the WORST one for Martha to choose because it would be an impulse purchase? Purchase the curtains today at Target. Purchase the curtains online today. Wait for two weeks until the curtains go on sale. None of the above.

Purchase the curtains today at Target.

Which statement is correct? Recession is when there is a downturn in the economy. Recession is when the economy becomes better. Inflation is when there is a rise in prices and so people can make more purchases. Depression is when the economy becomes better.

Recession is when there is a downturn in the economy.

Use the following information to answer the next two questions: Susanne has been asked to the upcoming prom. She needs a dress. She has $75 saved but also needs to buy new shoes to go with the dress. Her options are to purchase a new dress (costs up to $300), wear a dress she already has, buy a used dress, rent a dress (costs about $25), or borrow a dress. Which option is the best one for Susanne to choose? Borrow a dress. Wear a dress I already have. Rent a dress. Buy a used dress.

Rent a dress.

Which group will not have to pay federal income taxes? elderly Americans whose taxable income is less than $30,000 a year any American who makes less than $40,000 a married couple filing jointly that makes less than $10,000 none of the above

a married couple filing jointly that makes less than $10,000

Which amendment to the Constitution requires that you pay taxes? Twenty-seventh Amendment Ninth Amendment Sixteenth Amendment First Amendment

Sixteenth Amendment

Which statement is not true? Some states in the country do not impose sales tax. Some states in the country do not impose federal income tax. Some states in the country do not impose a state income tax. all of the above

Some states in the country do not impose federal income tax.

Which of these is the best way to describe how the economy affects your personal finances? When the economy is good, you lose more money by spending more money. Interest rates determined by the economy have no effect on what you spend. You have to reevaluate your financial goals so that you can keep and save all your money. Spending money helps the economy, but when interest rates are higher you are not able to spend as much.

Spending money helps the economy, but when interest rates are higher you are not able to spend as much.

Which statement is true about college students? Statistically, college graduates make more money than non-graduates. High school graduates usually make just as much as a college graduate. All of the above.

Statistically, college graduates make more money than non-graduates.

Which scenario best shows how scarcity works? Susie wants to buy a new dress. She goes into Forever 21 and sees several of the same dress but there are none in her size. Susie wants to purchase a beach bike while she is in Park City. After searching several stores, she is able to pick a bike she wants from many options. Susie wants to buy a particular watch that she found online, but the product is sold in stores only. Susie wants to buy a new dress. She goes into Forever 21 and sees several of the same dress in her size.

Susie wants to buy a new dress. She goes into Forever 21 and sees several of the same dress but there are none in her size.

Which of the following is the best definition of "if you fail to plan, you plan to fail"? Making a plan to fail is extremely important. Taking control of your plan determines how much you will fail. Making a plan not to fail is extremely important. Taking control of your finances now no matter how much money you make is extremely important.

Taking control of your finances now no matter how much money you make is extremely important.

Which of the following is an example of "good debt"? a loan for a luxury car a vacation package a mortgage for buying a home a payday loan

a mortgage for buying a home

In which situation would a luxury tax be imposed? The LA Lakers franchise wants to keep its star player. In order to entice him to stay, it will need to pay him a salary which exceeds the limit of salaries for professional basketball players. The High Society Organization wants to purchase several fur coats, which are considered to be a luxury, to auction off at its upcoming gala. John inherited a large sum of money from his grandfather who was extremely wealthy and who recently passed away. The Denver Nuggets franchise wants to keep its star player who makes well below the salary cap for professional basketball players.

The LA Lakers franchise wants to keep its star player. In order to entice him to stay, it will need to pay him a salary which exceeds the limit of salaries for professional basketball players.

Which statement best applies to life insurance? The benefit on your policy should be less than the amount of your annual salary. It is illegal not to carry a life insurance policy on yourself. All employers require you to take out a life insurance policy. The benefit on your policy should equal 7 to 10 times the amount of your annual salary.

The benefit on your policy should equal 7 to 10 times the amount of your annual salary.

Which statement applies to life insurance? All employers require you to take out a life insurance policy. The benefit on your policy should equal seven to ten times the amount of your annual salary. It is illegal not to carry a life insurance policy on yourself. The benefit on your policy should be less than the amount of your annual salary.

The benefit on your policy should equal seven to ten times the amount of your annual salary.

Which option is not true, based on the following scenario? When you were young, you always had cavities when you went to the dentist, as a teenager you had braces, as a young adult your wisdom teeth were impacted, and as an adult you have had several root canal. You should seriously consider the risks and benefits associated with dental insurance for your children. The risk of your children having the same problems is probably very low. The risk of your children having the same problems is probably very high. The benefit of dental insurance for your children outweighs the cost in this case.

The risk of your children having the same problems is probably very low.

Why can credit unions usually offer higher rates on savings accounts? They have more insurance than banks. They charge more service fees than banks usually do. They are not in the business of making money because every member is an owner of the company. They are too small to offer large business loans.

They are not in the business of making money because every member is an owner of the company.

Which of the following is not an advantage of debit cards? They will help you to be better prepared to use credit cards. They are a less risky way to learn about financial matters. They will help you to avoid overspending. They will help you establish credit for future big-ticket items.

They will help you establish credit for future big-ticket items.

According to the lesson, the average American household has accumulated how much credit card debt? below $10,000 between $10,000 and $12,000 between $15,000 and $16,000 more than $20,000

between $15,000 and $16,000

Which investment is most affected by inflation? stocks money market funds hard asset collections none of the above

stocks

What is the main purpose for a Chapter 7 bankruptcy? to make sure your creditors know you have no money to start over with your finances To liquidate your assets and pay your debts. to easily get out of debt

To liquidate your assets and pay your debts.

Which option is the best example of a value incentive? the ALS ice bucket challenge sale prices on cereal at the supermarket being able to test drive a new car purchasing something and then getting a rebate

the ALS ice bucket challenge

Which of these is an accurate statement about the effect of inflation? Inflation has no effect on the economy. When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually decrease. Inflation has no effect on interest rates. When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually increase.

When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually increase.

Which of these is the best statement about inflation? When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually decrease. Inflation has no effect on the economy. Inflation has no effect on interest rates. When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually increase.

When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually increase.

Which statement is true of inflation? When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually increase. Inflation will allow homes to be sold at a lower price. When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually decrease. Inflation has no effect on interest rates.

When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually increase.

Which of the following is the best way to describe how the economy affects your personal finances? You have to budget more money for your purchases so that the economy will turn around. When the economy is good, you lose more money by spending more money. When interest rates are higher, you are not able to spend as much and spending helps the economy. You have to reevaluate your financial goals so that you can keep you can save all your money.

When interest rates are higher, you are not able to spend as much and spending helps the economy.

Which of these is the best example of "good debt"? an equity line to remodel your home a mortgage for buying a home a car loan so you have a specific car to drive on weekends only a loan for furnishings for your new home

a mortgage for buying a home

What is something you should ask when considering whether to invest in a company? Are there elderly who work in the company? Who runs the company? How does the company recruit its employees? None of these questions should be asked.

Who runs the company?

When considering whether to invest in a particular company, which of the following is something you probably do not need to consider? Who runs the company? Does the company have a solid earnings history? What are the company's competitors? Why did the owners go into this particular business?

Why did the owners go into this particular business?

Which of the following is not a consideration mentioned by moneycrashers.com when determining what is wise in your financial planning? Wise people are happy. Wise people are disciplined. Wise people learn from their mistakes. Wise people are patient.

Wise people are happy.

Which of the following is not a consideration mentioned by moneycrashers.com when determining what is wise in your financial planning? Wise people know their priorities. Wise people learn how other people spend their money. Wise people learn from their mistakes. Wise people don't live beyond their means.

Wise people learn how other people spend their money.

A Chapter 7 bankruptcy involves which of the following? You get a fresh start on your finances. You get to keep all your assets. Your bankruptcy is recorded on your credit report for twelve years. none of the above

You get a fresh start on your finances.

In which of the following situations does it make sense to purchase a lower coverage of health insurance? Your neighbor has skin cancer. Your best friend has breast cancer. You have seven older siblings without any genetic illnesses. Your father died in a mine accident.

You have seven older siblings without any genetic illnesses.

Which of these is the best example of an emotional influence when determining your financial behavior? You need a new pair of shoes, so you find a pair you like at a good price. You need a new pair of shoes but can't afford anything right now, so you wait until you have enough money to purchase some. You want a new pair of shoes really badly, but you already have all the shoes you need. You want a new pair of shoes, so you review what you already have and what you can afford.

You want a new pair of shoes really badly, but you already have all the shoes you need.

What is something that you must have in order to survive? a want a goal a budget a need

a need

Potential impact, prevention plan, contingency plan, and risk are all things to consider for which type of plan? a defined benefits plan a cost-analysis plan a risk management plan all of the above

a risk management plan

Which scenario is an accurate example of simple interest? Your aunt lends you $1000 to help pay for college tuition. She doesn't require you to pay it back until after you graduate. She charges you 5% simple interest. The total amount you will pay is $1050. Your brother lends you $1000, which he requires you to pay back in five months. He charges you 5% simple interest. The total amount you will pay is $1025. Your sister lends you $1000, which she requires you to pay back in ten months. She charges you 10% simple interest. The total amount you will pay is $950. Your best friend lends you $1000, which she requires you to pay back in ten months with no interest.

Your aunt lends you $1000 to help pay for college tuition. She doesn't require you to pay it back until after you graduate. She charges you 5% simple interest. The total amount you will pay is $1050.

Which statement does not apply to Form W-2? Your employer must provide you with this no later than by January 31 each year. You will need this form when completing your yearly tax return. Your employer must provide you this form no later than April 15 each year. All of the above.

Your employer must provide you this form no later than April 15 each year.

In which situation does it make sense to purchase a higher coverage of health insurance? Your grandmother on your mother's side died of a heart attack. Your grandmother on your father's side lost her belongings in a barn fire. Your grandfather on your mother's side died in a car accident. Your grandfather on your father's side lost his life by drowning in a nearby lake.

Your grandmother on your mother's side died of a heart attack.

What is the biggest disadvantage to investing in a certificate of deposit? You will yield higher interest rates on your savings account. They are short-term savings accounts. Your money is not readily available. none of the above

Your money is not readily available.

In which situation does it make sense to purchase a higher coverage of health insurance? Your neighbor has breast cancer. Your employer has breast cancer. Your sister has breast cancer. Your best friend has breast cancer.

Your sister has breast cancer.

Which type of fund falls into the category of a defined contribution plan? a pension fund an emergency savings fund an insurance fund a 401(k) fund

a 401(k) fund

Which of the following describes the Federal Trade Commission? a non-profit organization designed to keep track of consumer complaints about businesses a US government agency that is tasked with making a fair and competitive marketplace a U.S. government department that determines the interest rates for purchases a federal group of laws mandating that businesses are competitive in the marketplace

a US government agency that is tasked with making a fair and competitive marketplace

Glen wants to purchase some stock. He calls Larry, who he pays for services, about investments he wants to make. Larry advises Glen so that Glen can make wise investment decisions. Larry is an example of which type of servicer? a diversifier a broker a liquidator none of the above

a broker

Paying your mortgage late and having it be unacceptable and looked down upon is an example of which type of influence? an emotional influence a societal influence an economic influence a cultural influence

a cultural influence

Which option matches this definition: "a plan where the employee contributes some or all of the funds and decides how to invest the money"? a defined contribution plan a mandatory contribution plan a defined benefit plan all of the above

a defined contribution plan

What is the definition of "identity theft"? a term used to create a personal biography for your English class a term used when someone wrongfully obtains another person's personal data by fraud or deception a term used for legally changing your name a term used to mean that someone has stolen an object with your name on it from your house

a term used when someone wrongfully obtains another person's personal data by fraud or deception

What is the definition of the term FICO? a way to determine the ratio of loans to payments that you have a way to keep credit scores all at the same level a way to translate a person's credit history into a number system resulting in a credit score a way to calculate the interest on a loan

a way to translate a person's credit history into a number system resulting in a credit score

Based on the reading of this unit, which statement is true? Statistically, college graduates make more money than non-graduates during their lifetimes. It is not entirely necessary to have a post-secondary education, but it is important to have a career. all of the above none of the above

all of the above

Companies need to give full disclosure about which of the following? how long it will take you to pay off the amount borrowed any fees associated with the transaction the type of interest rate you will be charged all of the above

all of the above

What is not the best way to solve your financial problems? spending less than you earn earning money creating a budget accumulating debt

accumulating debt

Going into debt can be caused by which of the following? spending more money than you make buying big ticket items without planning on how to pay for them taking money from your savings to pay for your grocery items all of the above

all of the above

Good money management is important for which of the following reasons: learning how to make wise financial decisions understanding that loans cost more money than the amount actually borrowed being able to invest in a savings account all of the above

all of the above

Good money management is important for which of the following reasons? learning how to make wise financial decisions understanding that loans cost more money than the amount actually borrowed being able to invest in a savings account all of the above

all of the above

Healthcare costs, inflationary rates, and housing are all things you should consider when planning for which event? retirement at what age you should stop working when you no longer have income from your employment all of the above

all of the above

If a company does not care about your credit rating to determine if you are likely going to pay back their loan, which of the following is true? The company wants to loan you the money so they can just earn money on the interest. The company will likely charge a much higher interest rate so they can make more money. Even though a consumer with a bad credit rating can purchase something, the company is probably taking advantage of their situation. all of the above

all of the above

Keeping a good budget and saving money are good examples of which of the following? wise financial planning good money management financial literacy all of the above

all of the above

Keeping a good budget and saving money is a good example of which of the following? investing in your future wise ways to spend money good financial planning all of the above

all of the above

Margret needs to purchase some new shoes, but she only has a certain amount to spend. She finds three stores with the options she seeks. Which of the items below should Margret consider when looking at her different options? the sizes available on the day of the sale the designs available on the day of the sale the cost when compared to the other two options all of the above

all of the above

Of the organizations we spoke about in this unit, which of these should you contact if your identity is stolen? the three major credit bureaus the local police department the Federal Trade Commission all of the above

all of the above

Paul wants to purchase a brand new truck. He has to take out a loan from the truck company in order to pay. He will be making payments of $550 a month. If at any time he is unable to pay, the truck company can take Paul's truck from him. Which of the following is the best term for this scenario? repossession secured loan all of the above

all of the above

Sam has been saving his money to purchase a new computer. He believes he has $781.70 in his checking account, but when he uses his debit card to buy the computer, the transaction won't go through. Which of these could be a reason for this problem? Sam had actually not saved enough money. Sam made some errors in his calculations, and he had less money in his account than he thought. Sam made some errors in his entries, and he had less money in his account than he thought. all of the above

all of the above

The Occupational Outlook Handbook allows you to select occupations by which factors? average pay entry-level education on-the-job training all of the above

all of the above

Understanding and implementing sound money-management principles contributes to which of the following? financial success staying out of debt distinguishing needs from wants all of the above

all of the above

What are things you should know about when considering retirement? healthcare costs inflationary rates employee contribution plans all of the above

all of the above

What is a good description of marginal costs and marginal benefits? There is a marginal factor to each financial decision. There is a cost and a benefit to every financial decision. all of the above none of the above

all of the above

What is a good example of noninstallment credit? 30 days same as cash 30 days free interest 90 days same as cash all of the above

all of the above

What is a good way to repair damaged credit? Use cash for all your purchases. Pay off your credit cards and loans as soon as possible. Refrain from using your credit cards. all of the above

all of the above

What is an important factor to consider for job satisfaction? job criteria financial issues work culture all of the above

all of the above

What is an important financial issue to consider as you are choosing a career? average starting salary benefits and incentives stability and economic security all of the above

all of the above

What is an important goal to include for developing a written career plan? education and training income skill development all of the above

all of the above

What type of information is offered by the YourFreeCareerTest quiz (careertest.com)? various career-related tasks level of interest in specific tasks possible careers related to tasks all of the above

all of the above

When considering whether to invest in a particular company, what is something you should ask? Does the company have a solid earnings history? What are the company's competitors? Who runs the company? all of the above

all of the above

When discussing financial protection, which of the following can consumers turn to for help? Better Business Bureau Federal Trade Commission consumer protection laws all of the above

all of the above

Which career issues will have an impact on your finances? average starting salary benefits and incentives stability and economic security all of the above

all of the above

Which of these is a high-risk investment? high-yield bonds short-term investments all of the above none of the above

all of the above

Which choice is a good description of deception? when a doctor claims he can cure your diabetes even though he knows he can't when a lender offers a good interest rate and then immediately raises the rate when an individual promises to pay off your bill without any intention to do so all of the above

all of the above

Which consideration is mentioned by moneycrashers.com when determining what is wise in your financial planning? Wise people learn from their mistakes. Wise people know their priorities. Wise people learn personal finance. all of the above

all of the above

Which description applies to "debt consolidation"? a debt assistance plan that allows you to pay off loans more quickly a debt assistance plan that combines multiple debts, loans or payments a debt assistance plan that usually lowers your interest all of the above

all of the above

Which factor should you consider when thinking about your future income? previous experience gender interests and personality type all of the above

all of the above

Which factor should you consider when thinking of purchasing a house? the amount of your monthly mortgage payment the cost of the utilities the cost of the furniture all of the above

all of the above

Which factors will affect your future income? life roles gender previous experiences all of the above

all of the above

Which factors will affect your future income? social and economic conditions interests and personality type skills and abilities all of the above

all of the above

Which form is necessary to either you or your employer in preparing your taxes? W-4 W-2 1040 or 1040EZ all of the above

all of the above

Which insurance coverage is important? automobile life disability all of the above

all of the above

Which job satisfaction factors are important as you consider career choices? financial issues work culture work/life balance all of the above

all of the above

Which methods are good ways to save money? set goals and stay healthy record expenses and take advantage of a company's triple plays keep a good budget and save wisely all of the above

all of the above

Which of the following are different kinds of income? passive income earned income taxable income all of the above

all of the above

Which of the following describes a type of defined contribution plan? a plan where employers sometimes match the amount the employee pays in a plan where the employee contributes some or all of the funds and decides how to invest the money all of the above none of the above

all of the above

Which of the following financial groups is subject to financial consequences? those with a high amount of debt those who are unaware of how interest works those who don't take the time to learn about money all of the above

all of the above

Which of the following is a contributor to going into debt? spending more money than you make buying big ticket items without planning on how to pay for them taking money from your savings to pay for your grocery items all of the above

all of the above

Which of the following is a good reason for avoiding quick loans? higher fees higher interest rates difficulty paying back all of the above

all of the above

Which of the following is a key component of financial literacy? being aware of your needs and wants being educated about credit and debt knowing how to make a financial plan all of the above

all of the above

Which of the following is an important consideration when applying for a student loan? whether it is a federal or private loan whether your personal information is secure whether you can meet the lending requirements all of the above

all of the above

Which of the following is included in the list of five skills needed in the workplace? being a team player being adaptable all of the above none of the above

all of the above

Which of the following is true about a budget? It will allow you to purchase those things you deem important. It allows you to save for future goals. It helps you avoid going into debt. all of the above

all of the above

Which of the following should you make goals for? income and budgeting spending and savings investing all of the above

all of the above

Which of the following statements is true regarding the annual interest rate? In the 1990s, the annual interest rate was 6%. In the 1980s, the annual interest rate was around 18%. In 2014, the annual interest rate was 4%. all of the above

all of the above

Which of these are considered to be wise investment choices? mutual funds hard assets stocks and bonds all of the above

all of the above

Which of these are good workplace skills to have? active listening skills leadership skills strong communication skills all of the above

all of the above

Which of these are types of income? net and passive earned and unearned gross and taxable all of the above

all of the above

Which of these is a consideration mentioned by moneycrashers.com when determining what is wise in your financial planning? Wise people take calculated risks. Wise people are disciplined. Wise people are patient. all of the above

all of the above

Which of these is a factor in determining your credit score? payment history amounts owed length of credit history all of the above

all of the above

Which of these is a good example of a positive incentive? contests lower interest rates all of the above none of the above

all of the above

Which of these is a good reason to learn money management skills? to make wise financial decisions to make better decisions about what purchases you make to know how to make realistic budgets all of the above

all of the above

Which of these is an example of a company's location strategy? Nordstrom placing all of its cosmetics in the center of the store so you have to walk through it to get to the escalator Target putting its Halloween candy and costumes by the toy aisle JC Penney having its customer service counters at the very back of the store so you have to walk through the whole store to find it all of the above

all of the above

Which of these is an example of income? money earned from a part-time job money won at a poker game money received as a gift all of the above

all of the above

Which of these is considered to be a perk? a fitness center at work daycare provided by the employer massages all of the above

all of the above

Which of these is something we discussed in this lesson relating to financial protection? Federal Trade Commission Better Business Bureau consumer protection laws all of the above

all of the above

Which of these should you carry insurance coverage on? life automobile disability all of the above

all of the above

Which of these would be considered a company perk? a fitness center at work daycare provided by the employer massages provided at work all of the above

all of the above

Which of these would contribute to going into debt? spending more money than you make buying big ticket items without planning on how to pay for them taking money from your savings to pay for your grocery items all of the above

all of the above

Which one of the following is part of the step-by-step process in making a financial plan? estimate the costs of your goals set time frames for your goals reevaluate your goals all of the above

all of the above

Which option indicates you are shopping on a secure website? https:// a padlock icon that is locked all of the above none of the above

all of the above

Which option is a good way to protect your identity? Request a copy of your credit report at least once a year. Never write your PIN on any of your credit or debit cards. Shred all important documents. all of the above

all of the above

Which option is a high-risk investment? high-yield bonds short-term investments all of the above none of the above

all of the above

Which option is an example of an incentive? offers made by stores to encourage consumers to make certain choices about their purchases offers made by teachers to encourage students to make certain choices to get additional points consequences stated by parents to encourage children to do certain chores around the house all of the above

all of the above

Which option is something you should consider when shopping for a loan? the interest rate the type of loan where you are going to get the loan all of the above

all of the above

Which option should consumers consider when they are offered credit when they did not ask for it (for example, offers in the mail)? whether there is a variable rate where there are hidden fees, service fees, and any other small print who is making the offer to see if it is a credible company all of the above

all of the above

Which options are considered to be cultural influences? the concept of paying your bills on time or late the family culture you live in the language you use when discussing finances all of the above

all of the above

Which sales taxes are you probably paying when you purchase gasoline? federal taxes state taxes local taxes all of the above

all of the above

Which scenario indicates you should probably add fire insurance to your homeowner's policy? You live in an area where homes are often evacuated because of wildfires. You live in near the coast in city where fire danger is very high during certain times of the year. all of the above none of the above

all of the above

Which situation applies to when you should use money management principles? in high school in college when you get married all of the above

all of the above

Which situation describes something where there is risk to you? your direct ancestors suffer from heart disease you drive a car all of the above none of the above

all of the above

Which statement applies to automobile insurance? There are over six million car accidents a year in the United States. The average property damage cost of a car accident in 2012 was $8,900. all of the above none of the above

all of the above

Which statement applies to automobile insurance? There are over six million car accidents a year in the United States. The average property damage cost of a car accident in 2012 was $8,900. all of the above none of the above

all of the above

Which statement is correct about taxes? An employee needs to complete a W-4 so an employer knows how much money to deduct for taxes. An employer needs to provide a W-2 to the employee each year. An employee needs to use the W-2 to complete the 1040EZ. all of the above

all of the above

Which statement is true about mutual funds? Growth mutual funds involve start-up or newer companies and are less stable, but they have the possibility of making more money in the long run. Income mutual funds involve stable companies who have been in business for a long time and are more stable, but they can provide a steady stream of income. all of the above none of the above

all of the above

Which statement is true about savings bonds? Only the U.S. Department of the Treasury can redeem a savings bond. Only the person whose name is on the bond can have it redeemed. all of the above none of the above

all of the above

Why do consumers have to be careful about credit card purchases? overspending high interest rates service fees charged all of the above

all of the above

Which option is not a common defined contribution plan? a 401(k) retirement fund an IRA retirement fund an emergency savings account all of the above

an emergency savings account

What is the correct definition of "variable rate"? an interest rate that is higher for one credit card than it is for other credit cards you have an APR that varies when the interest rate is low an interest rate that is going to change with the health of the economy an APR that is lower for one credit card than it is on the other credit cards you have

an interest rate that is going to change with the health of the economy

What is the definition of "variable rate"? an APR that varies when the interest rate is low an APR that will change based on a consumer's income an interest rate that is going to change with the health of the economy an interest rate that will change based on a consumer's income

an interest rate that is going to change with the health of the economy

Which of the following is the definition of APR? American percentage rate annual procurement rate annual percentage rate annual interest rate

annual percentage rate

What is the correct amount of money for you to make each month in order to start making wise financial decisions? $20 every week $5,000 every 6 months $5,000 every month any amount that you make when you start to earn money

any amount that you make when you start to earn money

Check all the options that best describe the following advertisement. If the advertisement's validity or integrity appears questionable, select "be careful" as well. *AD - Socceraid* appeal to emotion be careful appeal to intellect appeal to authority/celebrity`

appeal to emotion be careful appeal to authority/celebrity

Check all the options that best describe the following advertisement. If the advertisement's validity or integrity appears questionable, select "be careful" as well. *AD - The Best Mouthwash* appeal to emotion be careful appeal to intellect appeal to authority/celebrity

appeal to emotion be careful appeal to authority/celebrity

Check all the options that best describe the following advertisement. If the advertisement's validity or integrity appears questionable, select "be careful" as well. *AD - Fat Begone* appeal to emotion be careful appeal to intellect appeal to authority/celebrity

appeal to emotion be careful appeal to intellect

What was the average college debt of graduating seniors in 2012? under $10,000 approximately $24,000 approximately $29,000 over $40,000

approximately $29,000

In 1935, people usually did not live to be over the age of 61. By 2012, life expectancy was which of the following? around 85 years old around 78 years old around 65 years old around 70 years old

around 78 years old

Which of the following is the best time to plan for retirement? when you are in your twenties or thirties as soon as possible when you graduate from college when you are in your forties or fifties

as soon as possible

What is the best way to define a "liquid asset"? assets necessary as collateral for other purchases assets required when you want to open a savings account assets that you are able to quickly convert to cash assets that can increase in value easily

assets that you are able to quickly convert to cash

Which option is not a type of savings account discussed in this lesson? money market account mutual funds certificate of deposit at-home savings

at-home savings

All states require that you carry some form of what type of insurance? renters insurance automobile insurance flood insurance life insurance

automobile insurance

In most states, it is illegal not to carry which type of insurance? flood insurance automobile insurance life insurance renter's insurance

automobile insurance

What is the method for calculating your finance charge on credit card balances? consolidation balance (CB) variable rate balance (VRB) end-of-month balance (EOB) average daily balance (ADB)

average daily balance (ADB)

Which of the following is used when calculating the finance charge on most credit card balances? average daily balance (ADB) variable rate spending (VRS) consolidation balance (CB) none of the above

average daily balance (ADB)

Crystal wants to purchase life insurance so that if she has an untimely death while her children are young, they will be able to survive for a while. Crystal makes $40,000 a year. What amount of coverage should Crystal carry? no more than $200,000 no less than $500,000 between $280,000 and $400,000 between $40,000 and $100,000

between $280,000 and $400,000

Check all the options that best describe the following advertisement. If the advertisement's validity or integrity appears questionable, select "be careful" as well. *AD - Bogie's Burgers* appeal to emotion be careful appeal to intellect appeal to authority/celebrity

be careful appeal to intellect

If you can distinguish between your wants and your needs, financial security will ________. definitely be achieved be much easier to achieve be difficult to achieve none of these

be much easier to achieve

Use the following scenario to answer the next two questions. Becky's father had a heart attack when he was forty-nine and then died from a second heart attack when he was fifty-eight. One of her sisters died from a heart attack at the age of forty-six. Her mother died at sixty-six from a rare cancer. Two of her sisters have type 2 diabetes. Although her oldest sister has extremely high blood pressure, Becky has very low blood pressure. Her paternal grandmother and grandfather each died in their sleep from natural causes at ages eighty-six and ninety-four respectively. Her maternal grandfather died from cancer. Her maternal grandmother suffered from several strokes as she got older also had Alzheimer's. Becky has been diagnosed with clinical depression. She is fifty-six years old and has two grown children who have their own families. Based on Becky's family health history, why is the probability low for getting high blood pressure? because she and her sister are too far apart in age because Becky has very low blood pressure because heart disease is not an issue for Becky because Becky's sister does not eat properly

because Becky has very low blood pressure

Use the following information to answer the next two questions. Marshall just started a new job and is excited to be earning income. He is paid monthly, and his salary is $12,000 per year. When he gets his first paycheck, it is for $900, and he thinks there is a mistake. What is the most likely reason Marshall's check was only $900? because he had to pay back a loan to his employer because he had money deducted for an insurance payment because his gross amount was reduced to his net amount because of tax deductions none of the above

because his gross amount was reduced to his net amount because of tax deductions

Which of the following is the best key component of financial literacy? trying to earn more money to alleviate financial concerns being knowledgeable about credit and debt having the financial freedom to buy what you want, when you want it knowing how much interest is charged on a loan

being knowledgeable about credit and debt

Which option relates to not having a good credit history? paying back the lenders who gave you the credit and paying it in cash having a good credit rating borrowing money and then not being able to pay back the lender paying off your loan balances every time you make a credit card purchase

borrowing money and then not being able to pay back the lender

A chapter 11 bankruptcy is filed by which of the following? families none of the above businesses individuals

businesses

What is a good way to invest your money? by diversifying by liquidating all of the above none of the above

by diversifying

Which of the following is the best way to invest your money? by diversifying by liquidating all of the above none of the above

by diversifying

The Kansas City Royals franchise has lost its pitcher due to a bad injury. It wants to hire an additional pitcher, but in order to attract the person it desires, it will have to pay the new pitcher a salary that exceeds the salary cap imposed on professional baseball teams. The franchise decides to go ahead and hire the new pitcher. The franchise is subject to which tax? property tax inheritance tax estate tax luxury tax

luxury tax

large objects

collections of a huge number of objects

The American Bankruptcy Institute reveals that 19% of the people who filed for bankruptcy last year were which of the following? retired individuals married couples in their twenties the elderly college students

college students

Which of the following is the best way to finish this sentence: "With every choice ________." comes good or bad consequences we cannot change our minds there is a right or wrong answer comes what we want

comes good or bad consequences

Which of the following is the most important skill needed in the workplace, according to almost all employers? flexibility communication creativity adaptability

communication

Which type of interest matches this definition: "interest that creditors add each year based on what your principal balance is"? simple interest compound interest variable interest all of the above

compound interest

Which of these are laws that protect consumers from false advertisements, fraudulent businesses, and identity theft? laws for credit bureaus laws that protect consumers only from door-to-door sales people. consumer protection laws consumer advocate laws

consumer protection laws

What is the correct term for "what consumers will pay for using credit from a lender, often referred to as interest payments"? cost comparison marginal cost cost of credit opportunity cost

cost of credit

What will the bank or credit union do if you do not have enough funds in your account to pay for a purchase that you just made? transfer money from your parents' account to cover the amount close your checking account cover the amount but charge you a service fee cover the amount and then close your checking account

cover the amount but charge you a service fee

Which term refers to money that a lender lets you use and allows you to pay back in the future? types of loans credit budget consolidation

credit

Which term refers to money that a lender will let you use (usually for a fee) and allows you to pay back in the future? incentive budget consolidation credit

credit

Which form of money is best to use when shopping online? credit card debit card checking account (using routing number and account number) all of the above

credit card

Which of the following best describes installment closed-end credit? credit where the consumer only has to repay a portion of the money borrowed credit that is based on a consumer's age credit that is only given when a customer has an above-average FICO score credit for a defined time period and amount, repaid in equal installments

credit for a defined time period and amount repaid in equal installments

Which of the following best describes installment closed-end credit? credit where the consumer only has to repay a portion of the money borrowed credit that is based on a consumer's age credit that is only given when a customer has an above-average FICO score credit that is used for a defined time period (such as 10 years) and amount (such as $10,000) with repayments made in equal installments

credit that is used for a defined time period (such as 10 years) and amount (such as $10,000) with repayments made in equal installments

Service fees are usually less expensive in which of the following? credit card companies banks brokers credit unions

credit unions

The financial planning model is helpful when doing which of the following? determining how much money to put into your savings account each paycheck making a financial decision determining if something is a societal influence making a budget

making a financial decision

Which method is not intended to help you know whether you are keeping good track of your credit? paying your bills on time avoiding bankruptcy completing loan applications accurately making charitable contributions

making charitable contributions

Which of the following payment tools is the most accepted but does not require any interest payments? checking account credit card loan debit card

debit card

Which of the following payment tools do the majority of merchants prefer? debit cards checks travelers' checks none of the above

debit cards

What is the term used for a debt assistance plan that allows you to pay off loans more quickly? credit care assistance debt refurbishing collections assistance debt consolidation

debt consolidation

A company's statement that indicates it can cure cancer without medical support is an example of which of the following? framing expectations deception altruism

deception

A company's statement that indicates they can cure cancer without medical support is an example of which of the following? expectations altruism framing deception

deception

Which term matches this definition: "an amount taken from your gross pay that is required by the state and/or federal government"? expenditure voluntary employee benefits perk deduction

deduction

Which of these is a type of employee contribution plan? defined benefit plan mandatory benefit plan voluntary benefit plan all of the above

defined benefit plan

The Federal Reserve does which of the following? determines how much to tax on goods sold determines the annual interest rate for our country determines what tax bracket you are in determines the maximum amount a person can save

determines the annual interest rate for our country

Which of the following is the best way to limit spending? differentiating between needs and wants setting goals that define your wants spending money only once a week none of the above

differentiating between needs and wants

Which option is a type of scheme that is not a "get-rich-quick" scheme that we discussed in this unit? gifting scheme identity scheme Ponzi scheme pyramid scheme

identity scheme

What are the three influences on financial behavior that we discussed in unit 3? cultural, emotional, and religious societal, cultural, and familial emotional, cultural, and educational emotional, cultural, and societal

emotional, cultural, and societal

Use the following scenario to answer the next two questions. Becky's father had a heart attack when he was forty-nine and then died from a second heart attack when he was fifty-eight. One of her sisters died from a heart attack at the age of forty-six. Her mother died at sixty-six from a rare cancer. Two of her sisters have type 2 diabetes. Although her oldest sister has extremely high blood pressure, Becky has very low blood pressure. Her paternal grandmother and grandfather each died in their sleep from natural causes at ages eighty-six and ninety-four respectively. Her maternal grandfather died from cancer. Her maternal grandmother suffered from several strokes as she got older also had Alzheimer's. Becky has been diagnosed with clinical depression. She is fifty-six years old and has two grown children who have their own families. Based on Becky's family health history, which issue should Becky be concerned about? heart disease everything except high blood pressure stroke mental illness only

everything except high blood pressure

Which password would be best to use for online accounts? fF2#495$ 123456 password your phone number

fF2#495$

Use the following scenario to answer the next two questions: Jacob, who accumulated some debt when he was in college, wants to eliminate his debt as soon as possible. Now that he is working, he can put $100 extra per month toward his debt elimination. He determines that paying off his credit card balance of $450 first is best since it has the highest APR and that his car loan has the second highest APR. Jacob has been paying $50 per month on his credit card balance. If he adds the extra amount each month, how long will it take him to eliminate this debt? (Don't forget the interest on his APR!) two months three months four months five months

four months

Consumers use many strategies to get consumers to purchase their products. Which of the following contains a term that is not a strategy we discussed in this unit? consumer expectations and habits location and influence of others framing and disposability altruism and branding

framing and disposability

Which option is not an example of "good debt"? auto loans, particularly if the vehicle is essential to doing business student loans to pay for a college education furnishing a new home mortgages to buy a home

furnishing a new home

Which of the following best describes sound financial literacy? gaining knowledge about how to handle your finances keeping track of all your income constant worry about your financial future learning how to maximize your debt

gaining knowledge about how to handle your finances

What is an opportunity cost? giving up something you could purchase for a different alternative finding an opportunity to purchase to something the opportunity you have to make a decision about purchasing something none of the above

giving up something you could purchase for a different alternative

Which of these is not included on the list of the other 20 skills necessary in the workplace? good people skills good judgment good location patience with others

good location

Of the following options, which three are social influences to financial behavior? health care, housing, and food consumption health care, housing, and energy use health care, energy use, and food consumption food consumption, housing, and energy use

health care, housing, and energy use

Use the following information to answer the next three questions: Martha wants to purchase new curtains for her bedroom. She needs four panels and has $20 to spend. She finds exactly what she wants at Target. The options are to purchase four panels today for $30, wait for two weeks until four panels will cost $20 on sale, or purchase four panels online for $20 and pay $10 for shipping. Of the following options, which three are social influences to financial behavior? health care, housing, and food consumption health care, energy use, and food consumption health care, housing, and energy use food consumption, housing, and energy use

health care, housing, and energy use

Which of these is not a type of savings account discussed in lesson 6.1? individual retirement accounts high yield checking accounts certificates of deposit mutual funds

high yield checking accounts

Which of the following is an example of a negative incentive? discount mailers free tacos if the professional baseball team in your city wins monthly sales higher interest rates

higher interest rates

Which option indicates that you have a secure connection when you are purchasing something online? www. .org http:// https://

https://

Which of the following is not a "get-rich-quick" scheme discussed in this lesson? Ponzi scheme identity scheme pyramid scheme gifting scheme

identity scheme

Use the following information to answer the next three questions: Martha wants to purchase new curtains for her bedroom. She needs four panels and has $20 to spend. She finds exactly what she wants at Target. The options are to purchase four panels today for $30, wait for two weeks until four panels will cost $20 on sale, or purchase four panels online for $20 and pay $10 for shipping. Which situation would be best for Martha? if the curtains were on sale for $5 per panel at Target today and there are plenty of panels if the curtains were on sale for $5 per panel at Target today but there are only three panels if the online curtains did not have any postage if the curtains were on sale for $3 in two weeks but there is not a big supply of them today

if the curtains were on sale for $5 per panel at Target today and there are plenty of panels

Some companies charge penalties for which of the following reasons? if you pay your entire loan off early if you make a monthly payment three days early if you pay with cash rather than a check if you pay more than you owe on the entire loan

if you pay your entire loan off early

Which of the following is the best place for your money? somewhere safe in your house in a bank or a credit union in your wallet or purse invested in education

in a bank or a credit union

Diane wants to purchase a dress to wear at her son's wedding. She shops around and finds a dress she loves for $45.90. She does not have the money with her to buy the dress, so she has to return to the store at a later time. When she finally does return to the store, the dress has increased in price to $55.43.This is an example of which of the following? inflation diversification deflation all of these

inflation

Angela has information that the value of her company's stock is going down soon, so she sells her stock before it happens. This is an example of ________. insider trading inflation liquidity budgeting

insider trading

Miguel has information that his company is going to file for bankruptcy. He calls all of his relatives so that they can sell their shares of stock in the company before this happens. This is an example of which of the following? insider trading liquidity poor investing diversification

insider trading

We will all have concerns in our lives. Which term means "a safeguard that will lessen risk"? risk insurance calculation none of the above

insurance

Which term best matches this definition: "a lump sum to get protection against an incident of a large magnitude"? risk insurance probability financial management

insurance

Which term matches this definition: "the amount of money you have agreed to pay the insurance company for their coverage (usually divided into a monthly cost)"? insurance claim insurance deductible insurance premium all of the above

insurance premium

Which term matches this definition: "the amount of money you have agreed to pay the insurance company for their coverage, usually divided into a monthly cost"? insurance claim insurance deductible insurance premium all of the above

insurance premium

The best definition of "compounded interest" is which of the following? interest you earn from using a check account at a credit union interest that creditors add each year based on what your principal balance is interest you earn from using a checking account at a bank a flat fee creditors will charge you to borrow their money

interest that creditors add each year based on what your principal balance is

What is the definition of diversification? investing your money in a start-up company in order to fund the company investing in one company at a time in order to put all your money in one place investing in several different companies so if one fails you still have investments in other companies creating investments you can give to other investors.

investing in several different companies so if one fails you still have investments in other companies

Which of the following is the best definition of diversification? creating investments that you can give to other investors investing in several different companies so if one fails you still have investments in other companies investing in one company at a time in order to put all your money in one place none of the above

investing in several different companies so if one fails you still have investments in other companies

What is a good definition of diversification? creating investments that you can give to other investors investing in several different companies so if one fails, you still have investments in other companies investing in one company at a time in order to put all your money in one place none of the above

investing in several different companies so if one fails, you still have investments in other companies

What is the best definition of financial literacy? understanding the reasons for saving money knowing how to earn the most amount of money you can knowing about money understanding how money is manufactured

knowing about money

Which of the following would be the best steps in creating a budget? knowing your exact income and knowing your expenses knowing your needs and knowing your wants meeting your goals and establishing retirement none of the above

knowing your exact income and knowing your expenses

Which of these is not an example of a positive incentive? coupons lower interest rates late fees contests

late fees

Pedro was in a car accident and his car was totaled. Although his car insurance company gives him money for the car, he needs another $2000 to purchase a new car. Pedro withdraws $2000 from his savings account so he can purchase the new car. This is an example of which of the following?

liquidation

Rachel is in a bad accident, and her car is totaled. Although her car insurance company gives her money for the car, she needs another $4,000 to purchase a new car. Rachel withdraws $4,000 from her savings account so she can purchase the new car. This is an example of ________. certification liquidation diversification valuation

liquidation

Which of these is a low-risk investment? short-term investments a pyramid scheme that your uncle guarantees will make you money high-yield bonds long-term mutual funds

long-term mutual funds

If you pay your loan payment during the grace period, which of the following will occur? You will have to pay one extra payment at the end of your loan. You will be extended more credit. You will incur additional fees on your loan. none of the above

none of the above

Which of these can you claim as a dependent on your W-4 form without any restrictions? your children the elderly yourself none of the above

none of the above

Which insurance coverage is not important for protecting yourself? health homeowner's disability none of these, because all are important

none of these, because all are important

Which option is not an example of an incentive? consequences stated by parents to encourage children to do certain chores around the house offers made by friends to make a trade when the items being traded are identical in every way offers made by stores to encourage consumers to make certain choices about their purchases offers made by teachers to encourage students to make certain choices to get additional points

offers made by friends to make a trade when the items being traded are identical in every way

What is the correct term for "giving up something you could purchase for a different alternative"? marginal cost projected cost opportunity cost cost of credit

opportunity cost

Shanequa absolutely loves to play tennis. She wants her new husband to get involved in the sport she loves, so she has decided to buy them each a new racquet. They go to two sports stores to pick out some racquets. While at the stores, they narrow their choice down to two options. Option 1: The price for racquets at this store is $100 for both but they are on sale for 10% off. Option 2: This store has racquets identical to the ones at the first store. At this store they are $75 for the first racquet and 50% off for the second racquet. Which is the best option for Shanequa to choose? option 2 because each racquet will cost $56.25 option 2 because each racquet will only cost $37.50 option 1 because they will save money not going back to the first store option 1 because each racquet will cost $45

option 1 because each racquet will cost $45

Which of the following is not a key component of financial literacy? examining your income and expenses paying the minimum amount due on your credit cards each month establishing a budget setting goals

paying the minimum amount due on your credit cards each month

Sam needs to go to the bookstore to purchase a book for his financial literacy course. The cost of the book is $45. In which two columns would the $45 amount be entered? deposit and balance payment amount and deposit payment amount and balance none of the above

payment amount and balance

Consumers need to be vigilant in making sure that lenders don't have hidden fees. This is known in the contract as ________. methods of interest payment penalties grace period none of the above

payment penalties

What is the best definition of a broker? persons who get paid to give financial advice about investment options and who are the go-between between the investor and the companies those individuals who market the company's products those individuals who determine what interest rates should be the people working for companies where no money will be made

persons who get paid to give financial advice about investment options and who are the go-between between the investor and the companies

What is the definition of location strategy? placing a product where consumers are most likely to see it and be enticed to purchase it advertising a product in the consumer ads that are sent out each week providing consumers coupons for a product placing a product behind the customer service area in a supermarket

placing a product where consumers are most likely to see it and be enticed to purchase it

Which method is currently used in America to calculate federal income taxes? regressive tax progressive tax proportional tax all of the above

progressive tax

Which method is currently used in America to calculate federal taxes? regressive tax progressive tax proportional tax none of the above

progressive tax

Which term best matches this definition: "each individual or household pays a fixed percentage"? proportional (flat) tax regressive tax progressive tax none of the above

proportional (flat) tax

Which of these is probably the biggest emotional influence in determining your financial behavior? how your family spends money really wanting something that you don't need your budget the amount of money you have saved

really wanting something that you don't need

Which term best matches this definition: "everyone, regardless of income level, pays the same dollar amount"? proportional (or flat) tax regressive tax progressive tax none of the above

regressive tax

Which term matches this definition: "a tax where everyone pays the same amount regardless of income"? regressive tax progressive tax proportional tax none of the above

regressive tax

Healthcare costs, inflationary rates, and housing are all things you should consider when planning for which situation? retirement a long hospital stay life insurance disability insurance

retirement

Which of these is not one of the three types of credit discussed in lesson 5.4? installment closed-end credit revolving open-end credit noninstallment credit revolving credit score credit

revolving credit score credit

Which statement is true of penny stocks? stocks that have a low risk of losing money if invested wisely stocks that have a high risk of losing money because the companies are brand new stocks that cost less money but will make money in the end if invested wisely stocks that usually cost more money but will make money in the end if invested wisely

stocks that have a high risk of losing money because the companies are brand new

Kim's father died of a heart attack when he was 45. Her mother was diagnosed with early onset Alzheimer's when she was 50. Her oldest sister lost her left leg from cancer two years ago. Based on Kim's family health history, which of the following best matches her risk of heart disease and cancer? risk of heart disease is high; risk of cancer is high risk of heart disease is low; risk of cancer is low risk of heart disease is low; risk of cancer is high risk of heart disease is high; risk of cancer is low

risk of heart disease is high; risk of cancer is high

Use the following information and the risk management plan to answer the next two questions. Becky's father died of lung cancer when he was forty-five. Her mother died of heart disease when she was fifty. Becky's youngest sister has been blind from birth. Based on Becky's family health history, what is her risk of heart disease and cancer? risk of heart disease is low; risk of cancer is high risk of heart disease is high; risk of cancer is high risk of heart disease is low; risk of cancer is low risk of heart disease is high; risk of cancer is low

risk of heart disease is high; risk of cancer is high

Some states in the country do not impose which type of tax? sales tax federal income tax Social Security tax all of the above

sales tax

Which of these is a low-risk investment? stock in a start-up company growth funds savings bonds real estate

savings bonds

Which option is not a high-risk investment? savings bonds real estate growth funds stock in a start-up company

savings bonds

The term "a limited supply" describes which of the following? demand scarcity surplus opportunity cost

scarcity

What is the correct term for the following situation: Freddie and his family are on their way to Disneyland. They decide to stop on the way and get some food since food is so expensive in the park. Freddie stops at Jimmy John's to purchase five turkey and avocado sandwiches. He is told that they only have enough avocado for two of the sandwiches, so three people will have to go without. relativity scarcity variety none of the above

scarcity

What are the two types of personal loans we discussed in lesson 5.6? weighted and unweighted secured and unsecured closed-ended and open-ended short-term and long-term

secured and unsecured

Paul wants to purchase a lawn mower from a friend but doesn't have the money. The friend generously says he will let Paul have the lawn mower on credit but wants Paul to agree to give him his power saw if he can't pay back the loan. What is the correct term for this scenario? compound interest secured loan variable rates debt consolidation

secured loan

Excessive debt does not contribute to which of the following? possible bankruptcy family instability increased health and stress self-sufficiency

self-sufficiency

What is the correct sequence for using budgeting tools? set goals, follow up, and make a plan make a plan, set goals, and follow up set goals, make a plan, and follow up none of the above

set goals, make a plan, and follow up

What is the proper order for making a budget? set goals, follow-up, and make a plan make a plan, set goals, and follow-up set goals, make a plan, and follow-up none of the above

set goals, make a plan, and follow-up

Investing in mutual funds, hard assets, stocks, or bonds means you have made which type of investments? short-term investments long-term investments wise investments none of the above

short-term investments

In most states, it is illegal not to carry automobile insurance. What is the reason for this? so that if you cause an accident, the person you run into will be protected so that if someone runs into you, they will be able to pay for their own damages so that if you cause an accident, the person you run into will have no need to carry automobile insurance so that if someone runs into you, they will have no responsibility to help you with your damages

so that if you cause an accident, the person you run into will be protected

Which of the following is the best reason for writing down your goals? so you can constantly review and revise them in order to make them a reality so others can see what your goals are in order to help you so you will have enough money for retirement to make sure you can keep them the way they are and never change them

so you can constantly review and revise them in order to make them a reality

Which of the following is the best definition of a need? something that helps you pay your bills something you must have in order to survive something you take for granted something you want in order to improve your lifestyle

something you must have in order to survive

What is the definition of a "want"? something you would like to have but have to purchase on credit something you would like to have but can survive without something you would like to have and something you must have something you would like to have as long as it doesn't cost too much

something you would like to have but can survive without

Which of the following is the best definition of a want? something you would like to have as long as it doesn't cost too much something you would like to have but can survive without something you would like to have and something you must have something you would like to have but have to purchase on credit

something you would like to have but can survive without

Which of these is an accurate statement about preferred stock? stock that usually costs more money but will make money in the end if invested wisely stock that has a high risk of losing money if invested wisely stock that has a high risk of making money if invested wisely stock that costs less money but will make money in the end if invested wisely

stock that usually costs more money but will make money in the end if invested wisely

Which of these is an accurate statement about preferred stock? stock that has a high risk of making money if invested wisely stock that usually costs more money but will make money in the end if invested wisely stock that costs less money but will make money in the end if invested wisely stock that has a high risk of losing money if invested wisely

stock that usually costs more money but will make money in the end if invested wisely

Which investment is least likely to withstand the effects of inflation? stocks money market funds hard asset collections all of the above

stocks

Which of these is an accurate example of a value incentive? collecting stickers you get with your receipts so you can get free products taking advantage of all-night shopping on Black Friday (the day after Thanksgiving) paying a sales price for a product at one store when another store has the same product for regular price the American Heart Association collection drive

the American Heart Association collection drive

Which amendment to the Constitution allows Congress to tax Americans? the Nineteenth Amendment the Sixteenth Amendment the Thirteenth Amendment the First Amendment

the Sixteenth Amendment

Which of these is the best definition of "net income"? the amount earned after any taxes and other deductions are taken out the amount earned before any taxes or deductions are taken out the amount after mandatory deductions are taken out the amount earned after exemptions are taken out

the amount earned after any taxes and other deductions are taken out

What is the definition of net income? the amount earned after any taxes or other deductions are taken out the amount earned after voluntary deductions are taken out the amount earned before any taxes or deductions are taken out the amount after mandatory deductions are taken out

the amount earned after any taxes or other deductions are taken out

What is the definition of gross income? the amount earned after voluntary deductions are taken out the amount earned after any taxes or other deductions are taken out the amount after mandatory deductions are taken out the amount earned before any taxes or deductions are taken out

the amount earned before any taxes or deductions are taken out

Define budget. how much money I want to spend the amount of money available for spending that is based on a plan of how it will be spent a plan to make all my wants come true none of the above

the amount of money available for spending that is based on a plan of how it will be spent

Which of the following best describes the significance of this figure: "$15,000"? the average monthly income of Americans the amount Americans pay into savings accounts each year the total college students spend on tuition the average amount of debt Americans carry on their credit cards

the average amount of debt Americans carry on their credit cards

Of the organizations mentioned in this lesson, which of the following is it not necessary to contact regarding identify theft? the Federal Trade Commission the city utility company the three major credit bureaus the local police department

the city utility company

What mechanism helped to restore America's confidence in the American banking system after the Great Depression? Americans saving their money under their mattresses World War II the Stock Market Crash of 1929 the federal government starting the FDIC

the federal government starting the FDIC

Which of the following is the definition of a regressive tax? the government charges the same amount of tax from each taxpayer, irrespective of income. everyone, regardless of income level, pays the same percentage for taxes. the more money you make, the more taxes you pay. none of the above

the government charges the same amount of tax from each taxpayer, irrespective of income.

What is the correct definition of compound interest? the interest multiplied by the entire amount of the loan and then spread out over the term of the loan the amount a borrower is charged when a loan is not paid on time the amount a lender charges when a loan is paid off early the interest added at the end of each term, so you pay much more than for simple interest

the interest added at the end of each term, so you pay much more than for simple interest

What is the best definition of an average daily balance (ADB)? the method for calculating compound interest on credit card balances the method for calculating consolidation payments for your credit card balances the method for calculating your finance charge on credit card balances the method for calculating your interest rate on credit card balances

the method for calculating your finance charge on credit card balances

What is the definition of credit? the money that a lender will let you use (usually for a fee) and allow you to pay back in the future the money that lenders will pay you to borrow their money the fee you pay in order to borrow money from a lender the money you make each month to pay off your bills

the money that a lender will let you use (usually for a fee) and allow you to pay back in the future

Use the following information to answer the next two questions. Nancy has a $12,500 debt from making impulsive purchases and from her student loan from college. She has two credit cards—one with a balance of $3,000 that has an APR of 10% and one with a balance of $4,500 with an APR of 8%. Her student loan balance is $5,000 and that APR is 4%. She just got a raise of $500 a month that she decides to put toward a debt elimination plan. Of her three debts, which is the best one for Nancy to pay off first? the one with the highest APR the one with the lowest APR both highest and lowest at the same time none of the above

the one with the highest APR

Use the following information to answer the next two questions. Nancy has a $12,500 debt from making impulsive purchases and from her student loan from college. She has two credit cards—one with a balance of $3,000 that has an APR of 10% and one with a balance of $4,500 with an APR of 8%. Her student loan balance is $5,000 and that APR is 4%. She just got a raise of $500 a month that she decides to put toward a debt elimination plan. Of her three debts, which is the best one for Nancy to pay off last? the one with the highest APR the one with the lowest APR the one with the second-highest APR none of the above

the one with the lowest APR

What is the best description of upward mobility? the opportunity to determine your career path the opportunity to gain more complex and increased responsibilities resulting in a higher income the need to start out with a good income the need to start out with favorable responsibilities

the opportunity to gain more complex and increased responsibilities resulting in a higher income

Define debt. the ability to pay with cash the state of owing money to someone or something income the ability to pay toward your monthly expenses

the state of owing money to someone or something

Which of these is not an example of a positive incentive? rebates lower interest rates contests threats

threats

When is the best time to start learning money management principles? throughout your lifetime, to be ready to implement when you have money to manage in high school once you are married so you and your spouse can plan together in college

throughout your lifetime, to be ready to implement when you have money to manage

Why was the FICA law enacted? to create a fund for employees' Social Security taxes that the employee will get back once retired to create a fund from which employees can pay their insurance premiums to create a fund to ensure that all American citizens will receive health benefits none of the above

to create a fund for employees' Social Security taxes that the employee will get back once retired

Which of the following is the best reason for why Medicare was enacted? to create a savings fund from which employees receive medical insurance when they retire to create a fund to ensure that all American citizens will receive some savings when they retire to create a fund for employees' Social Security taxes that the employee will get back once retired all of the above

to create a savings fund from which employees receive medical insurance when they retire

What is the best way to invest your money? to diversify your investments to invest in one solid company to invest in a start-up company none of the above

to diversify your investments

What is the best purpose for keeping track of your money? to know when you need to start learning about financial literacy to make sure you do not spend more than you earn to stay aware of what your parents earn to understand why people have to have jobs

to make sure you do not spend more than you earn

What is the purpose for imposing property taxes? to maintain property values to create revenue for housing projects to pay for schools, roads, and snow removal to pay for parking spaces surrounding one's property

to pay for schools, roads, and snow removal

Why do states require homeowners to pay property taxes? to pay for schools, roads, snow removal, etc. to increase property values to create revenue for housing projects to pay for parking spaces surrounding one's property

to pay for schools, roads, snow removal, etc.

What is the purpose of the Consumer Credit Protection Act? to protect consumers from purchasing things from stores who are not licensed to sell goods to protect consumers from fraudulent credit companies to protect consumers from paying too much interest for the money they borrow to protect consumers when they have a credit card stolen

to protect consumers from fraudulent credit companies

Which of these describes the purpose of the Consumer Credit Protection Act? to protect consumers from paying too much interest for the money they borrow to protect consumers from purchasing things from stores who are not licensed to sell goods to protect consumers when they have a credit card stolen to protect consumers from fraudulent credit companies

to protect consumers from fraudulent credit companies

Filing bankruptcy should not be an option until all other possibilities have been explored, especially working things out with creditors and finding ways to pay back debts. true false

true

True or false: Only the person whose name is on the savings bond can have it redeemed. true false

true

Which of the following contributes to making sound financial decisions? making purchases using credit filing for bankruptcy wondering how to manage money understanding financial literacy

understanding financial literacy

Which term best matches this definition: "the opportunity to gain increased and more complex responsibilities resulting in a higher income"? mobility accountability upward accountability upward mobility

upward mobility

What is the definition of marginal cost? scarcity value of sacrifice additional benefit none of the above

value of sacrifice

What is the best way to describe a consumer's "cost of credit"? what consumers will pay for using credit from a lender, often referred to as interest payments the amount consumers pay for completing a loan application, often referred to as an administrative fee the cost lenders charge for having a consumer choose them as a lender, often referred to as an option fee the cost consumers will pay for a company to look up their credit score, often referred to as a credit check fee

what consumers will pay for using credit from a lender, often referred to as interest payments

What is the best way to describe a consumer's "cost of credit"? what consumers will pay for using credit from a lender, often referred to as interest payments the cost lender's charge for having a consumer choose them as a lender, often referred to as an option fee the cost consumers will pay for a company to look up their credit score, often referred to as a credit check fee the amount consumers pay for completing a loan application, often referred to as an administrative fee

what consumers will pay for using credit from a lender, often referred to as interest payments

When developing a career plan, which of these is not an important consideration? interests and personality type what others expect you to do social and economic conditions all of the above

what others expect you to do

Which of these is the best definition of opportunity cost? paying the cost of the thing you have the opportunity to purchase what you would have done if you didn't make the choice that you did the opportunity you have to make a decision about purchasing something what you would have done if you had an endless supply of money

what you would have done if you didn't make the choice that you did

Which of these is a negative incentive? when someone explains that if you do a certain thing they will reward you when someone threatens to take something away from you if you do something you should not be doing when someone says they are going to take something of yours so they can repair it when someone entices you with something that is either a financial incentive or a value incentive

when someone threatens to take something away from you if you do something you should not be doing

Which situation is a negative incentive? when someone threatens to take something away from you if you do something you should not be doing when someone threatens to tickle you because you love to be tickled when someone explains that if you do a certain thing they will take you to a movie when someone entices you with something that is either a financial incentive or a value incentive

when someone threatens to take something away from you if you do something you should not be doing

When is the best time to start learning about money management? when you are young when you start earning money when you are in college when you are in high school

when you are young

When is the best time to apply for a credit card? when you are eighteen years old when you have enough income to pay your debts when your parents can make your payments when you need the money

when you have enough income to pay your debts

When is the best time to start budgeting your money? when you want to start saving for retirement after you've graduated from college when you start making money when you make $5,000 a year

when you start making money

Which of these is not a factor in determining your credit score? if your payments for loans are on time where you live the amounts owed on loans if you have had late payments on any loans

where you live

Which option reflects who should be responsible for your finances? the Federal Reserve the American welfare system you your bank or credit union

you

Who is in charge of your financial future? you your credit union your bank your parent(s)

you

Who should be most responsible for your finances? your educators you financial institutions your parents

you

When developing a career plan, which of the following is not something you should necessarily consider? your previous experiences your driving record your skills and abilities your likes and dislikes

your driving record