personal finance final exam

Most people in the United States save _____ percent of their income.

0

Assume you intend to borrow $5,000. Which of the following financing terms is the best deal? 5 percent or 4 years 9 percent for 5 years 8 percent for 3 years 9.5 percent for 6 years

5 percent for 4 years

A school or training program may have an official recognition known as _____ that indicates meeting a particular set of standards.

Accreditation

One type of formalized training program that allows you to train while working is called a(n) ____.

Apprenticeship

Car =

Asset

Which of the following is not a source of income? wages salary allowance car payment

Car payment

A _____ is a written order instructing your bank to pay money from your account to another party.

Check

Credit card cash advances using an ATM are a(n) _____ source of funds. cheap costly cost neutral inaccessible

Costly

Which of the following is not an asset? car stock credit card bill jewelry

Credit card bill

The process of combining several small loans into one larger loan that often carries a more favorable interest rate or maturity is known as _____.

Debt consolidation

A resume should contain all of the following information except _____. previous work history education family history skills and training

Family history

Banks have insurance on deposits through the _____.

Federal Deposit Insurance Corporation

The central bank of the United States is called the _____.

Federal reserve

Money that has value because the government says t does is _____.

Fiat money

Installment loans are usually used to buy all of the following except _____. furniture cars boats gas

Gas

A person's income may depend on all of the following except _____. career choice height education training

Height

Pawn shops loan money in exchange for _____.

Holding some collateral such as, jewelry

Loans that allow homeowners to borrow money using the equity in their homes as collateral are _____.

Home equity loans

Which of the following is more likely to be a long-term liability? house payment credit card bill electric bill water bill

House payment

Consumers tend to spend the most money on which category of goods?

Housing

In order to reduce interest rates the Fed will _____ the money supply.

Increase

One way to increase savings is to _____ cash inflows.

Increase

A scholarship would be an example of a cash _____.

Inflow

Which of the following is a key component of risk management? insurance investments cash jewelry

Insurance

The federal tax system is carried out by the _____.

Internal Revenue Service

Past due amount for lunch =

Liabilites

Depository institutions include all of the following except _____. banks credit unions life insurance companies savings banks

Life Insurance Companies

Non-depository institutions include _____.

Life insurance companies

The federal reserve uses _____ to fight inflation and promote economic growth.

Monetary policy

The U.S postal service issues _____ that function similar to cashier's checks.

Money orders

Installment loans typically require the borrower to make payments every _____.

Month

In general, the _____ or training you receive the _____ money you will make.

More, more

Loans taken out to purchase a house are commonly called _____.

Mortgages

A synonym for take-home pay is _____.

Net pay

One new form of lending that provides low-interest loans to most consumers is known as _____. pawnbroking payday lending tax refund lending

None of the above

Cell phone leases are typically for _____.

One year

Banks provide a number of services including all of the following except _____. payday lending safety deposit boxes checking accounts cashier's checks

Payday lending

It is essential that you establish goals that are _____.

Realistic

Cash inflows include all of the following except _____. rent paid salary allowance dividends recieved

Rent paid

A(n) _____ is a written snapshot of an individual's qualifications for a particular job.

Resume

Money collected from individuals and corporations by some branch of the government is known as (a) _____.

Tax

Good record keeping is important for _____.

Tax purposes

A person's credit limit is _____. the maximum amount that may be borrowed irrelevant when making purchases unrelated to her credit history always below $1,000

The maximum amount that may be borrowed

Taxes impact all of the following financial decisions except _____. whether to rent or buy where to live investment options the type of clothing to wear.

The type of clothing to wear

The median home price in the United States for 2010 was _____.

about $222,000

All of the following are important in choosing a career except _____. compensation benefits packages interests gender

gender

Which of the following is not one of the three main categories of credit? installment credit revolving open-end credit layaway credit non-installment credit

layaway credit

The process of planning every aspect of your personal finances is known as _____.

personal financial planning

Cash outflows include all of the following except _____. rent paid salary utilities car payments

salary

All of the following are common identity theft tactics except _____. shoulder surfing pretexting phishing sidewalk patrolling

sidewalk patrolling

Your gross pay will be reduced by _____.

taxes

Good financial planning can help you achieve all of the following goals except _____. winning the lottery buying a car, learning a new skill funding your retirement

winning the lottery

Short-term goals will be accomplished in the next _____.

year

What is not a financial goal? give $100,000 to charity earn a college degree retire with $1,000,000 in assets)

All of the above are financial goals

By law lenders are required to report the interest rate that factors in all of the relevant loan charges. This interest rate is known as the _____.

Annual percentage rate

By law federal tax returns must be filed by what date?

April 15

Cash =

Assets

Clothing =

Assets

Dirt Bike =

Assets

Guitar =

Assets

IBM Stock =

Assets

Mutual Fund =

Assets

Savings Account

Assets

Xbox =

Assets

Your net worth is calculated by summing up the value of your _____ and subtracting your liabilities.

Assets

Your net worth is the difference between your _____.

Assets and liabilities

For tax purposes, if you sell an asset for more than you paid for it, you will have what is called a(n) _____.

Capital gain

Gross income includes all of the following except _____. tips child support payments received wages game show winnings

Child support payments recieved

Sometimes a creditor may ask for a _____ to sign the loan documents. This person promises to repay the loan if the borrower defaults

Cosigner

The fraction of an item's cost that a consumer pays up front is called the _____. down payment loan amount equity conversion liability

Down payment

Which of the following is a reason that merchants accept credit cards? decrease sales volume encourages more purchases saves the merchant money

Encourages more purchases

Which of the following is not one of the three primary credit bureaus? Equifax Federal Credit Bureau Transunion Experian

Federal Credit Bureau

Students with "exceptional" financial need may be eligible for subsidized loans known as _____, which carry very low interest rates and have longer grace periods than other subsidized student loans.

Federal Perkins loans

Information on career options can be found on the internet in books through field trips from all these sources

From all these sources

Which of the following is not a reason to rent a home instead of buying one? if rent is cheaper if you intend to live in the area for only a few months if you are not familiar with the local real estate market if there are tax advantages to renting

If there are tax advantages to renting

Credit is advantageous because _____.

It helps us make large purchases sooner than we could if using cash

$20 you owe a friend =

Liabilities

A loan from your parents =

Liabilities

Car Note =

Liability

Credit Card Bill =

Liability

Which of the following is not a tool for monitoring your finances? personal balance sheet budget liability cash flow statement

Liability

Risk is defined as _____.

Likelihood of loss

Which of the following is not an advantage of using credit cards? keeps you from having to carry cash or checks makes it easier to carry a low interest balance no interest charges accrue is balance is pid in full every cycle.

Makes it easier to carry a low interest balance

Which sector of the economy will likely experience the slowest job growth?

Manufacturing

Which of the following levels of education would typically result in the highest income? associate's degree bachelor's degree master's degree some college, no degree

Master's degree

Credit reports contain all of the following except _____. records of late payment history of default medical records bankruptcy history

Medical records

If you buy land that increases in value your _____ will increase as long as your debt remains the same or declines.

Net worth

Pretexting that occurs online is known as _____. skimming phishing shoulder surfing sidewalk patrolling

Phishing

In general, the higher the risk of a particular investment the higher the potential ______. debt return liquidity record keeping

Return

All financial goals should be periodically evaluated and _____ if necessary. revised abandoned thrown away eliminated

Revised

Credit cards are _____.

Revolving open-end credit

Payroll taxes can include all of the following except _____. state income tax sales tax federal income tax FICA

Sales tax

Which of the following is not an expense? rent savings lunch expenditures money spent on gas

Savings

People should begin planning for retirement at age _____.

20

Credit card grace periods are typically _____.

20 to 30 days

Personal loans usually mature in _____.

24 to 72 months

Non-installment credit is typically _____ in duration.

30 days or less

If your total debt is $4,500 and the value of your assets is $9,100 then your debt-to-asset ratio is equal to

49.40 percent

Long-term goals take at least _____ year(s) to complete.

5

An official document ir record of an individual meeting with some standard of training or knowledge is known as _____.

A Certification

Which of the following is not a component if a financial plan? a plan to manage risk a plan to pay utility bills a plan for investing a plan for retirement

A plan to pay utility bills

Personal loans are typically used for large purchases such as _____. cars boats motorcycles

All of the above

Which of the following is a type of college savings plan created by the government to encourage people to save for their children's and grandchildren's education? bond savings alternatives stock plans section 529 plans IRS college funds

Section 529 plans

A(n) _____ loan has some asset pledged against it as collateral.

Secured

Which of the following is not a possible filing status used when filing your federal income tax return. single head of household siblings filing jointly married filing separate return

Siblings filing jointly

Shares of ownership in a company are represented by _____.

Stocks

The most common investments include _____. stocks and bonds stamp collections rare automobiles oil paintings

Stocks and bonds

A(n) _____ formally reports your tax information to the federal government.

Tax return

When making a career choice you should include all of the following except _____. eduction or personal training personal interests expected salary uniform required

Uniform required

Sabrina decided she wants to save $300,000 by the time she turns 25. She currently makes $100 a week and will turn age 18 next month. This is an example of a(n) _____ goal. realistic unrealistic achievable short-term

Unrealistic

Which of the following statements is not an example of the disadvantages of credit? credit makes it easy to borrow too much money credit makes unwise purchases too easy using credit properly helps establish good credit history some credit carries extremely high-interest rates

Using credit properly helps establish good credit history

Liquid assets are those possessions that can be readily and easily converted to _____.

cash

In general, the _____ education and training you get, the _____ you will earn in your lifetime,

more, more