Monhollen Economics Final
A mutual fund is _________
A type of investment that invests in a mix of different types of investments
Which of the following is NOT a common feature of a financial institution
Access to investment advice
What should you NOT use a loan to purchase
Airline tickets to your dream vacation
Where should you look to find your current expenses when building your budget
Bank and credit statements
All of the following are true about health insurance except:
Being young and healthy means you can skip out on health insurance
Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer
Benefits
Which item is important to consider when selecting a credit card
Both APR and fees
Credit cards can help _____________ when paid off on time regularly
Build credit history
What is NOT a good way to prevent unnecessary spending
Buy all of your wants at one time
Which of the following financial institutions typically have the highest fees
Check cashing and payday loan companies
Savings accounts typically offer more interest than what type of account
Checking account
Which forms of payment is linked to a bank account which limits the amount of money you can spend to balance in your account
Checks & debit cards
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____
Choosing a credit card
Insurance that covers damage to your car from an accident is called
Collision insurance
Making a good purchasing decision requires __________
Comparing the prices of similar items, reading reviews of the product and waiting until the product is on sale, if possible
Which method of payment actually is a form of borrowing money that needs to be paid back later
Credit Card
What will collision insurance cover in the event of an accident
Damage to your car
When filing an insurance claim, the policy holder must pay a________________, which is the amount you owe before insurance will cover the rest of the bill
Deductible
What type of federal funding is free money, but is based on financial need only
Federal grants
Which of the following is a possible tax or deduction that they may show up on your paycheck
Federal income tax, contributions to retirement savings and FICA
Federally-funded grants require the student to
Have financial need only
Andrew doesn't want to spend a lot of money on student loans, and does not qualify for grants, What is his best option for affording a Bachelor's Degree
He can attend the local community college whose courses transfer to the public four-year college
Which of the following is a benefit of using a budget
Helps to keep track of the money you receive, to prioritize your spending, reach short- and long-term financial goals
12 What does the W-2 form tell you
How much you've earned and how much taxes you've paid in the last year
Which of the following is NOT a good way to track your spending
In your head
What should you do before you use an ATM
Inspect the ATM and its surroundings to make sure it is safe to use
Liability insurance is
Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident
Microeconomics
Is the study of individuals and business decision
Everyone interested in post-secondary education should complete the Free Application for Federal Student Aid (FAFSA) because
It allows you to be eligible for federal student aid and other scholarships and grants
Which fact supports the idea that renting is a good option for living in a place for a short period of time
Landlords take care of most maintenance
Investing is best for ________
Long-term financial goals, like paying for retirement
Looks at the decisions of countries and governments
Macroeconomics
To maintain a good credit score you must ______
Manage your debt wisely
What is the best reason for why someone would want to lease a house instead of buy one
They are planning on living there for a short period of time
Secured loans are less costly than unsecured loans because _________
They usually have a lower interest rate, require collateral and are less risky for the financial institution
What is the purpose of the W-4 form
To inform your employer of how much federal income tax to withhold from your paychecks
Why should you purchase insurance
To prevent financial burden in the case of an accident, theft, or another event
Generally, the more education you receive, the higher your lifetime earnings will be
True
What is a consequence of not having health insurance
You must pay all costs for health care and medical emergencies
Choose the statement that is true about health insurance
You should always have health insurance, regardless of your circumstances
Which is NOT a positive reason for using a credit card to finance purchases
You will get charged high interest
What do you need in order to fill out your 1040
Your W-2, routing and bank account number and a record of any other supplemental income
An insurance premium is
The amount of money you pay for an insurance policy
What is net pay
The amount of money you're paid after all taxes and deductions are taken out of your paycheck
The fact that you are more likely to earn more money over your lifetime with a post secondary degree means
The cost of a post-secondary degree is worth it
Which example shows an advantages of owning a car over leasing one
No restrictions on the number of miles to drive and the ability to customize, or make changes to the car
Which is a positive reason for using a credit card to finance purchases
Paying it off on time can help build your credit history
Recommended methods to protect yourself from identity theft and fraud include_______
Placing a credit freeze with the credit bureaus
In addition to needs, what should you plan for first when creating a budget
Recurring expenses
13 What do taxes pay for
Schools, government departments, roads and emergency services
A _______ is a share of ownership in a company
Stock
How is an advertisement different from a comment from a regular consumer
The advertisement is likely one-sided
