Independent Living CAP Exam

How does a Ponzi scheme work? A) Consumers bid on products which are being auctioned; they never receive the products or the products are of very poor quality. B) People pay a fee to join and then recruit others who also pay a fee and bring in even more participants. C) Consumers are pressured to accept offers that telemarketers say are only good for a very short time. D) Investors are promised high profits from fake sources; early investors are paid off with funds from later investors.

D) Investors are promised high profits from fake sources; early investors are paid off with funds from later investors.

How can carefully managing your money help you? A) It can simplify borrowing money from others if you have a financial emergency. B) It can allow you to buy whatever you want. C) It can help you maintain a lifestyle beyond your financial resources. D) It can help you meet goals to purchase larger items.

D) It can help you meet goals to purchase larger items.

Which of these shows that you have considered the possible consequences of your decision? A) You let your friends persuade you to ride with someone who doesn't have a driver's license B) You forget to pick up your younger brother after school C) You accept a new job without letting your parents know about it first. D) You talk to your parents about how getting a new job might affect the family.

D) You talk to your parents about how getting a new job might affect the family.

After careful considerations, Eva has decided to spend her savings on a labtop rather than a new clarinet. Now she is shopping online for the laptop. What step of the decision-making process is she in? A) List possible options B) Evaluate pros and cons of each option C) make a choice D) act on the decision.

D) act on the decision.

Eliza receives an e-mail instructing her to send $5 to each of ten people at the top of a list. She should then place her name at the bottom of the list, and in six months, she will receive several thousand dollars. What is this an example of? A) pyramid scheme B) chain letter C) internet fraud D) all of the above

D) all of the above

What is true about thinking positively? A) You will think more positively if you surround yourself with others who think positively. B) Finding humor in everyday life will help you think more positively C) Thinking positively can reduce stress and keep you healthier. D) all of the above

D) all of the above

Which of these factors should you consider when deciding whether to upgrade to the new version of a software package you own? A) your budget B) cost of the new item C) the extent to which you need any new features in this version D) all of the above

D) all of the above

Why is it important to identify the primary problem before you try to determine a solution? A) When there are several issues involved, it can be difficult to recognize the primary problem. B) If you do not, you may get sidetracked by other, smaller issues. C) Problems are often tangled together. D) all of the above

D) all of the above

Why is it important to use credit responsibly? A) to protect yourself from fraud B) to avoid getting into significant credit card debt C) to build a good credit history D) all of the above

D) all of the above

What is the best way to save money? A) by treating it like any other income B) by decreasing your income C) by increasing your fixed expenses D) by treating it like any other expense

D) by treating it like any other expense

What process can you follow to help you make the best choices in specific situations? A) analysis and evaluation process B) rational process C) evaluation process D) decision-making process

D) decision-making process

Natasha works at job where she spends 7 hours a day sitting at a computer. She has begun having jabbing pains in her right wrist. What kind of a drawback of technology is this? A) privacy issue B) job security issue C) buying decision D) health consideration

D) health consideration

Mabel is getting calls and notices from a credit card company that she does not recognize. What is she most likely the victim of? A) mail fraud B) pyramid scheme C) internet fraud D) identity theft

D) identity theft

You want to invest your money in a way that is highly diversified. Which of these investment options would be the best choice? A) CDs B) bonds C) stocks D) mutual funds

D) mutual funds

What is a realistic budget? A) one that is balanced B) one in which you save as much as you spend C) one in which you save as much as you earn D) one that you will actually follow

D) one that you will actually follow

You use the Internet to find out the current balance of your checking account. What kind of banking is this? A) ATM B) debit card C) telephone banking D) online banking

D) online banking

Max was asked to be in charge of the homecoming pep rally, but said no because he realized he simply did not have the time. What was Max trying to avoid? A) procrastinating B) dovetailing C) missing a deadline D) over scheduling

D) over scheduling

Marisa met a boy she likes on a social networking Web site. She gave the boy her name and cell phone number so they could talk with one another. What strategy for using technology is she violating? A) be patient B) Maintain healthy work habits C) Maintain interpersonal relationships D) protect your privacy

D) protect your privacy

Which of these is NOT a factor that influences people's choices? A) society and culture B) the media C) economic factors D) the REASON process

D) the REASON process

As a consumer, you must protect yourself. Help yourself not become a victim by A) Do not believe all claims B) Ask for details in writing C) Ask for the phone number of the company D) Use the internet to educate and protect yourself E) all of the above

E) all of the above

A chain letter is a type of Ponzi scheme.

False

A pyramid scheme generally begins when someone gains access to personal information, such as name, address, date of birth, and Social Security number.

False

Biased information is more likely to be accurate than unbiased information.

False

Consumers have responsibilities, but no rights.

False

Identifying priorities is a waste of time because things change so quickly in life.

False

Information overload can make it easier to make a decision.

False

It is best to try to accomplish all your goals at the same time so that you do not forget about any of them.

False

Leaving unpleasant tasks to the end can sometimes help you avoid procrastination.

False

Most high school students have the same priorities, such as making friends and doing well in sports.

False

Practical problems are often simple, involving several different issues with no clear way to deal with them.

False

The safest way to invest is to put all your money in a single type of investment.

False

What cultural traditions have a strong influence on the choices we make, very few people are influenced by the societal expectations.

False

When you use a credit card, the amount of the purchase is immediately taken out of your account.

False

You should always update to a new version of a product to take advantage of the latest technologies.

False

You can avoid identity theft by doing which of the following? A) secure your mail B) choose creative passwords C) destroy documents D) use secure internet sites E) keep personal information private F) be safe at ATMs G) all of the above

G) all of the above

A key strategy involved in critical thinking is distinguishing fact from opinion.

True

As you get older, your priorities may change.

True

Breaking down long-term goals into short-term goals makes them seem more manageable and attainable.

True

Consumer protection is provided at the federal, state, and local levels by agencies set up to enforce the law.

True

Creating a to-do list helps you to keep track of tasks that need to be accomplished and to make sure you get them done.

True

Every choice has consequences that can be positive, negative, or a combination of both.

True

Good time managers make certain that they include time for relaxation in their schedules.

True

If a consumer has a negative credit rating, he or she is likely to find it difficult to obtain a credit card.

True

If you do not know the difference between your needs and your wants, you may find it difficult to set priorities.

True

In most cases employers withhold, or keep back, income taxes from employees' paychecks and send the money to the government.

True

It is important to set realistic goals so that you do not become overly discouraged and give up.

True

Learning how to say no is one way to avoid over scheduling activities.

True

Learning to manage time and money is an essential part of taking responsibility for your life

True

Managing new technology requires patience and wise consumer choices.

True

Most ATMs allow customers to deposit funds, withdraw cash, check account balances, and transfer money between accounts.

True

One factor that influences the choices you make is your attitude.

True

Plagiarism is illegal because it violates copyright law.

True

The ability to set and meet goals is a basic tool for managing your life.

True

When obtaining information about a product from salespeople, it is important to be aware that they may be more interesting in making a sell than in giving accurate or unbiased information.

True

When trying to determine whether a decision is ethical, a good idea is to ask yourself which choice will have the most positive consequences for the most people.

True

William always spends Sunday evenings with his family, helping make dinner and playing games afterward. What conclusion can you draw? A) William values his relationship with his family. B) William knows how to prioritize his goals. C) William has few friends. D) William does well in school and is planning for college.

A) William values his relationship with his family

Alberto is learning to use a new software package. He is taking his time and learning a few new skills each day. What strategy for using technology is he following? A) be patient B) maintain healthy work habits C) Maintain interpersonal relationships D) protect your privacy

A) be patient

After you have contacted the major credit reporting agencies, all of your account companies, & other creditors, what's the last step when you are a victim of ID theft? A) call the police B) call the FDA C) email the local city D) call the Better Business Bureau

A) call the police

Faxes, e-mail, and voice mail are all examples of what type of technology? A) communication B) transportation C) wireless D) manufacturing

A) communication

If you suspect your identity has been stolen, what should you do FIRST? A) contact the 3 major credit reporting agencies (Equifax, Experian, and TransUnion) B) choose 1 of the major credit reporting agencies C) call the police D) cancel all accounts

A) contact the 3 major credit reporting agencies (Equifax, Experian, and TransUnion)

You must register for the hockey team no later than September 15. What is this an example of? A) deadline B) procrastination C) to-do list D) over scheduling

A) deadline

You want to make certain medical bills for your family are paid in case of an accident or serious illness. What kind of insurance would be the best choice? A) health B) home C) life D) auto

A) health

Secure your home wireless network by A) making it password protected B) only allow close neighbors and friends to use C) leaving it open for all to use D) making it easy to identify by it's router name

A) making it password protected

Annie drinks alcohol at a party because others encourage her to do so. What is this an example of? A) negative peer pressure B) positive peer pressure C) reactive peer pressure D) societal influence

A) negative peer pressure

What word is used to describe technology that is out of date and no longer useful? A) obsolete B) unhealthy C) unreliable D) copyrighted

A) obsolete

When should you update your to-do list? A) on a regular basis B) intermittently C) every morning when you first get up D) annually

A) on a regular basis

How would you describe a resourceful person? A) one who uses creative problem solving to manage resources wisely B) one who has a wide range of skills, such as being good at sports and school C) one who is able to communicate well with others and is a good leader D) one who can develop and categorize short-, medium-, and long-term goals

A) one who uses creative problem solving to manage resources wisely

When working in a factory, you may get paid by the amount of product you produce. What is this called? A) piecework B) commission C) salary D) wage

A) piecework

What is a grace period? A) time period during which payment can be made without incurring any finance charges B) maximum amount of credit that a creditor will give you C) an incentive, or reward, for using a particular credit card, such as getting frequent flyer miles D) annual fee for having a specific credit card

A) time period during which payment can be made without incurring any finance charges

Which of these is an example of a health care technology? A) ultrasound B) clothes dryer C) global positioning system D) smoke detector

A) ultrasound

Which of these is an example of a short-term goal? A) Going to a technical school after high school. B) Buying a present for your mother's birthday tomorrow C) Joining the swim team next year D) Owning a home by the time you are thirty.

B) Buying a present for your mother's birthday tomorrow

What type of goals are often tied to specific dates over which a person has no control. A) Finite Goals B) Fixed Goals C) Flexible Goals D) Resource Goals

B) Fixed Goals

You want to use data from a university research project you found on the Web. What should you do? A) Only summarize the project's results because it is illegal to use the actual data. B) Give credit to the project by citing it in your report. C) Look for the data elsewhere. D) E-mail the head of the research project and ask for permission to use the data.

B) Give credit to the project by citing it in your report.

When Jared has to make a decision, he acts as soon as he realizes something must be done and does not let fear of making the wrong decision stand in his way. How do you describe Jared? A) He has low self-esteem B) He is proactive C) He is reactive D) He always makes ethical decisions

B) He is proactive

You decide which of your goals are most important to you and work on those first. What is this process called? A) Being Creative B) Prioritizing C) Being Flexible D) Creating a Contingency Plan

B) Prioritizing

Which of these is not a good way to protect your identity? A) Change your passwords frequently. B) Provide personal information over the phone. C) Keep items with personal information locked away. D) Destroy financial documents by shredding them.

B) Provide personal information over the phone.

When might it be most useful to have a contingency plan? A) You have two assignments due on the same day and are not sure which one to complete first. B) You are in charge of a family ski trip, but the ski slopes are closed because the weather is unusually warm C) You want to learn to play golf, even though you have no experience in that sport. D) Your mom wants you to help with supper, but you want to play a video game.

B) You are in charge of a family ski trip, but the ski slopes are closed because the weather is unusually warm

What is a likely result of over scheduling? A) You complete your to-do list in record time. B) You feel overwhelmed and stressed out. C) You learn to budget your money more effectively. B) Your level of confidence and self-esteem increases.

B) You feel overwhelmed and stressed out.

How would you define the term "finance charge"? A) amount of money your stocks and bonds earn for you B) any interest charges and additional fees, such as late charges, on a credit card C) information that companies can obtain from an individual's credit report D) compound interest you get on money in a savings account

B) any interest charges and additional fees, such as late charges, on a credit card

Which of these is an example of a flexible expense? A) car insurance B) birthday gift for a friend C) internet connection D) rent

B) birthday gift for a friend

Which of these is an example of a personal productivity technology? A) ultrasound B) clothes dryer C) global positioning system D) smoke detector

B) clothes dryer

Harry sells vehicles for a car dealership. He is paid based on the total cost of the vehicles he sells. What is this payment called? A) gross pay B) commission C) insurance D) deduction

B) commission

What do you call interest that is calculated both on the money in the account plus the interest you have previously earned? A) simple interest B) compound interest C) invested interest D) mutual fund interest

B) compound interest

When you receive money, goods, or services now and promise to pay for them in the future. A) debit B) credit C) cash loan D) finance charge

B) credit

Identity theft is just one example of fraud. What is fraud? A) deceitful language B) deceitful language for personal gain C) lying to your family members about your credit card use D) stealing

B) deceitful language for personal gain

Jim cooks chili for lunch on Saturday. While the hamburger is cooking, he dices the tomato. What time-saving strategy is he using? A) overscheduling B) dove tailing C) setting high goals D) budgeting

B) dove tailing

Rita works on an assembly line in a factory. Lately, she has been hearing that the company is going to purchase a robot to do her job. What kind of a drawback of technology is this? A) privacy issue B) job security issue C) buying decision D) health consideration

B) job security issue

Which of these is an example of a fixed expense? A) ski trip B) monthly phone bill C) jewelry D) dance tickets

B) monthly phone bill

Identity Theft can happen by all of these EXCEPT A) stealing your wallet or purse with your personal information B) protecting all passwords as best as you can C) watch over your shoulder at an ATM machine D) hack into your social media accounts and steal person information

B) protecting all passwords as best as you can

You get a phone call asking you to subscribe to a news magazine. What is this an example of? A) Ponzi scheme B) telemarketing C) internet fraud D) identity theft

B) telemarketing

What is meant by the term "balanced budget"? A) total income is less than total expenses B) total income is equal to total expenses C) savings are greater than total expenses D) savings are less than total expenses

B) total income is equal to total expenses

You are anxious to avoid time traps. What time-tested strategy would probably be helpful? A) Organize your time as you go along. B) Always completely finish one task before starting another one. C) Be realistic about what you can accomplish. D) Always stick to your schedule, even when unexpected events occur.

C) Be realistic about what you can accomplish.

What is the best way to protect yourself from Internet fraud? A) Respond to any e-mails that say you can get rich quick by sending only a small amount of money B) Report any suspicious e-mails to the Better Business Bureau. C) Delete any unsolicited e-mails. D) Check with the Federal Trade Commission to see whether the company sending an unsolicited e-mails is legitimate.

C) Delete any unsolicited e-mails.

What agency collects federal income tax? A) Medicare B) FICA C) IRS D) W-2

C) IRS

What is the primary advantage of dovetailing? A) It can help you spend your money more wisely. B) It can encourage you to relax and refresh yourself during leisure time. C) It can help you save time. D) It can help you establish your priorities.

C) It can help you save time.

What are the four steps in the management process, in their correct order? A) Organizing, Implementing, Assessing, Evaluating B) Organizing, Implementing, Evaluating, Assessing C) Planning, Organizing, Implementing, Evaluating D) Assessing, Planning, Evaluating, Implementing

C) Planning, Organizing, Implementing, Evaluating

Internet fraud can include A) Ponzi schemes B) telemarketing calls C) chain letters and pyramid schemes D) deleting unknown emails

C) chain letters and pyramid schemes

Which of these is an example of a transportation technology? A) ultrasound B) clothes dryer C) global positioning system D) smoke detector

C) global positioning system

The total amount of money you earn, BUT not how much your receive A) net pay B) salary C) gross pay D) wage

C) gross pay

You are a mother who wants to make certain that your children's financial needs are met in case you dies unexpectedly. What kind of insurance would be the best choice? A) health B) home C) life D) auto

C) life

What is not a benefit of technology? A) better health care B) faster communication C) longer daylight hours D) more personal productivity

C) longer daylight hours

What kind of resources are shop tools, a lawn mower, and a sewing machine? A) community resources B) human resources C) material resources D) natural resources

C) material resources

Which of these is an example of income? A) money you place in savings B) money you spend on movies C) money from your allowance or paycheck D) money you give to your brother

C) money from your allowance or paycheck

If your budget is not balanced, what is the most reasonable way to balance it? A) increase the amount of your savings B) reduce the amount of your fixed expenses C) reduce the amount of your flexible expenses D) reduce your income

C) reduce the amount of your flexible expenses

Which of these is not a characteristic of a practical problem? A) complexity B) ethical choices C) simple resolution D) unique circumstances

C) simple resolution

What is Identity Theft? A) using someone else's credit cards B) telemarketing for future consumers C) the illegal use of an individual's personal information for fraudulent purposes. D) the use of a person's individual personal information with permission

C) the illegal use of an individual's personal information for fraudulent purposes.

You have applied for a credit card at a department store. What is the store likely to check when determining whether to issue you a card? A) your savings account balance B) whether you own any stocks or bonds C) your credit report D) whether you pay federal income taxes

C) your credit report

When you prioritize your goals, which of these items should you consider? A) Your Stage in Life B) Your Values C) Your Interests D) All of the Above

D) All of the Above

What is it called when you put a plan into action? A) Evaluating the plan B) Identifying the plan C) Prioritizing the plan D) Implementing the plan

D) Implementing the plan

What kind of resources are schools, libraries, hospitals, and parks? A) Community resources B) Human resources C) Material resources D) Natural resources

A) Community resources

Which of these skills is required to be a good manager? A) Creative thinking B) Limited thinking C) Linear thinking D) Short-term thinking

A) Creative thinking

Which of the following is a good basic rule for investing? A) Diversify and balance your investments. B) Invest in companies that are relatively unknown and unproven. C) Start investing as soon as possible, even if you need to let debts accumulate. D) all of the above

A) Diversify and balance your investments.

When buying something online, what should you determine before giving credit card information? A) Is this a secure site? B) Is this a company site? C) Is this a copyrighted site? D) Has this site been in existence for at least 5 years?

A) Is this a secure site?

What is one of the impacts of technology? A) It helps people live more comfortably. B) It requires people to do more physical labor. C) It decreases the amount of leisure time people have. D) all of the above

A) It helps people live more comfortably.