Personal Finance Final Exam

Calculate the interest for $300.00 at 5% for 2 years.

30

Calculate the interest for $2,000.00 at 3% for 5 years.

300

Calculate the interest for $5,000.00 at 1.5% for 6 months.

37.50

Social Security benefits replace about ________ of an average wage earner's income after retiring. Most financial advisors say retirees need about_______ of their pre-retirement earnings in order to live at a comfortable level.

40% : 70%

Every Social Security dollar collected in taxes goes to a trust fund that pays monthly benefits to retirees and their families and to the disabled and their families. What are the percentages for each group?

85% for retiree benefits and 15% for disability benefits

A 401(k) is what type of plan?

A defined contribution plan

Choose all three possible actions or events that could lead to a market "crash." Please do not guess, as incorrect answers are penalized for this question type.

A time of economic panic or mania, the investing public's lack of confidence, and a severe downturn in equity prices

When financial troubles arise, when is the best time to tackle them?

As early as possible

The Federal Reserve Bank is also known at the ______

FED

Although average salaries for teachers in Georgia are $3,000 less than the salaries for teachers in Hawaii, based on the cost of living index, teachers in Georgia rank 4th in the nation compared to Hawaii, which ranks 50th. What might cause this to happen?

Geography, tourism, climate

What are the four parts of the pie that refers to money? Please do not guess, as incorrect answers are penalized for this question type.

Give, owe, grow, live

When did Social Security go into effect?

In 1935, with the signing of the Social Security Act

The government will make changes throughout your life that affect your personal finance planning. Which of the following is also true?

It is biblically sound to follow those rules and regulations.

Which of the following is NOT a varied expense?

Mortgage payments

________ funds are funds that are managed by a company and include a portfolio of stocks or bonds.

Mutal

You have a goal to make $1 million dollars by your 21st birthday. You hope to win the lottery to achieve this goal, and you don't give it any other thought or direction. Is this a SMART goal?

No

______-sharing plans are plans offered to employees that give them benefits based on the profit the company they work for makes as a result of the product or service they provide.

Profit

Profit: Capital gain: Annual return; Asset: Broker: Stock market

Revenue minus cost; money made on a transaction The profit that comes when an investment is sold for more than the price the investor paid to buy it The profit or loss on an investment over a one-year period Any tangible or intangible item owned by an individual or a firm that has value in an exchange An individual who acts as an intermediary between a buyer and seller, usually charging a commission to execute trades A general term for the organized trading of stocks through exchanges, over-the-counter, and computerized trading venues

Property taxes vary depending on which of the following?

The region and value of your home

Which of the following is true of debt collectors?

They may not harass you, lie, or use unfair practices when they try to collect a debt.

____________________________ are tax-deferred retirement savings and investment plans that offer federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans.

Thrift savings plans

It is illegal for debt collectors to do which of the following?

Use abusive or deceptive practices to collect debt you owe

When it comes to interest rates offered by lenders when purchasing a home, which of the following is true?

You should shop around to determine the best interest rates available.

Before agreeing to lease a home to you, a landlord may review which of the following?

Your credit report

James 1:16-17 says, "Do not be deceived, my beloved brothers. Every good gift and every perfect gift is from ___________."

above

First Thessalonians 5:18 says to "give thanks in ______ circumstances."

all

As technology changes, job opportunities change too. In the 1960s and 1970s, there were television repair shops in every town and city. Now, there are few or none of these shops around. Which of the following factors could have led to this present situation?

all of these

Proverbs 13:22 tells us, "A good man leaves ___________ to his children's children, but the sinner's wealth is laid up for the righteous."

an inheritance

There are some instances when accruing debt is necessary, and it can actually be

beneficial

Choose the three accounts that are considered savings accounts. Please do not guess, as incorrect answers for this question type are penalized.

certificates of deposit, passbook savings account, checking account

Diversification in stocks is a principle of investing which recommends that investors ________________________________.

choose from several investment options, thereby not concentrating their wealth into just one stock or investment

An investment adviser is an investment professional who gives advice to _______ about investing in stocks, bonds, mutual funds, or other assets.

clients

One role of government is to promote __________ among businesses

competition

You must get ______ counseling from a government-approved organization within six months before you file for any bankruptcy relief.

credit

A _______________ is a stock, bond, or other investment.

dividend

What three basic factors do employers look for when hiring people for their company or organization? Choose the three best answers. Please do not guess. as incorrect answers are penalized for this question type.

experience, skills and education

A Certificate of Deposit (CD) is a savings certificate issued by financial institutions in certain minimum denominations and offers _____ interest rates. However, they are restricted by how long they must be left without cashing them in.

higher

what does HOA stand for

homeowners association

If you look at the parable of the talents in Matthew 25:14-30 from an investment standpoint, Jesus talks about investing, bankers, and _______.

interest

What is the price paid to borrow money?

interest

In the parable of the talents, the first two servants used the money to make more money for their master. In other words, they _______ it.

invested

If an employee withdraws money from retirement savings early, the employee could ________________________. Choose the best answer.

lose interest, principal, and tax benefits and may have to pay penalties

A _________ is when a company and its product offerings dominate a sector or industry.

monopoly

Philippians 4:19 says, "And my God will supply every ________ of yours according to his riches in glory in Christ Jesus."

need

Ron Blue is fond of saying the following about setting goals: "If you aim at _________ , you hit it every time!"

nothing

Choose the three people listed below who could receive benefits from Social Security. Please do not guess, as incorrect answers are penalized for this question type.

retired worker, person with a disability who cannot work, a spouse of someone who receives social security benefits

A _______ account is a deposit account issued by a financial institution and earns interest.

savings

Which of the following are options for earning interest income? Choose the four answers that apply. Please do not guess, as incorrect answers are penalized for this question type.s

savings account, money market account, retirement account, stocks

Which of the following are options for earning interest income? Choose the four answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

savings account, retirement account, stocks, money market account

Which three are types of bonds that can earn interest? Please do not guess, as incorrect answers are penalized for this question type.

savings bonds, municipal bonds, corporate bonds

Choose the three practical ways you can plan and prepare for retirement. Please do not guess, as incorrect answers are penalized for this question type.

start saving for retirement when you are younger, participate in your employer's pension or savings plan to save on taxes, evaluate how much income you will need to support you in retirement

Titus 3:1 says, "Remind them to be ________ to rulers and authorities, to be obedient, to be ready for every good work."

submissive

The P/E ratio is a proportion between ____________________.

the cost of a share and the earnings of the stock over a year

According to Ron Blue, the best type of mortgage to get is ________________.

the shortest one with the lowset interest rate

The ________ cost in housing can be included or can be extra. These items include water, electricity, garbage, internet, and cable.

utility

Interest and returns on investments drive __________ and the stock market, and interest also helps individuals plan for retirement and reach financial goals.

wall street

Although the guidelines for submitting offers may differ from state to state, generally, purchasing a home has the same steps. Put the following steps in order of that process.

you submit your offer to your realtor realtor forwards the offer to the seller's representative the seller then decides to accept, reject, or make a counter-offer you sign an offer and you can officially in escrow, which means you are committed to buy the house