Personal Finance Final Exam
A progressive tax is one that demands a higher percentage of a persons income as it increases
False
A referral always includes a letter of recommendation
False
A regressive tax is one that demands a higher percentage of a person's income as it increases
False
ATM card holder are liable only for the first $50 of unauthorized use if they notify the credit card company within 5 business days after loss or theft of their card
False
An installment loan is also known as an open ended credit
False
Consumer credit is non business credit used by consumers for expenditures including home mortgages
False
Convenience use of a credit card is justified only when the card balance is paid off by the end of the year
False
Credit cannot be used to own expensive products sooner
False
Credit cards allow repeated use of credit as long as equal monthly payment are maintained over a set period of time
False
Financial planning begins by obtaining a good job that allows a person to save enough money to manage
False
Financial planning focuses primarily on spending wisely
False
Financial planning is a single customized plan regarding someones financial affairs
False
Financial planning is only for the rich
False
Financial planning is the process of developing and implementing short term plans to achieve financial objectives
False
If you earn enough extra income to be placed in a higher tax bracket and have a higher marginal tax rate, the new rate will be applied to all your taxable income
False
Interest inventories are the qualities that allow you to perform job related tasks
False
It is not necessary that your values be consistent with your financial and lifestyle goals
False
Needs and wants should both be considered necessities
False
Personal income taxes are paid on ALL of your income
False
Prioritizing wants becomes easier when a product has multiple facets
False
Sellers should not be used as information sources in pre shopping research since they have vested interest in selling you their products and services
False
The balance of a travel and entertainment card must be paid in full within 60 days
False
The final step in career planning is career fields identification
False
The sticker price on a car is usually the final sale price
False
The tax paid on your last dollar of income is called the average tax rate
False
Values are fundamental beliefs regarding what customer goods are worth
False
Values have little impact on financial goals
False
With open ended credit, credit is extended in advance of any transaction, and the borrower must reapply each time credit is desired
False
You should not take a job if the geographic location is not what you want
False
A career provides guidance to help you obtain you goals
True
A cars sticker price is the manufacturers suggested retail price
True
A progressive tax is one that demands a higher percentage of a persons income as it increases
True
All types of open ended credit accounts allow multiple uses without reapplication, but some require that the balance be paid in full each month
True
An increasing number of people are using the internet to shop for big ticket items
True
An unsecured personal loan is a line of credit available on an as needed basis
True
Because the focus is on building the relationship, you can wait until after the proposal to discuss financial issues
True
Buying items that are on sale are only helpful when you use them
True
Buying on impulse not only results in higher spending but also failure to obtain what you really wanted
True
Convenience use of credit is common
True
Credit card blocking is the process by whereby the merchant may notify the credit card issuer to put a hold on your account for the anticipated total amount of the charge
True
Credit cards allow repeated use of credit as long as you make the minimum payment
True
Credit is a term used to describe any situation in which goods, services or money is received in exchange for a promise to repay
True
Each year the tax bracket is adjusted to reduce the effects of inflation
True
Effective career planning will help you identify an employment pathway that will align with your interest and abilities with tasks expected by your employer
True
Family vs. a satisfying career are examples of conflicting values
True
Financial planning begins by observing your own values
True
Four open ended credit accounts, a credit limit is set by the lender and represents the maximum outstanding debt allowed on the account
True
Loans generally require equal payments of a set period of time
True
Most homeowners and renters insurance polices partially cover the liability for the theft of both debit and credit cards
True
New car manufacturers are required to disclose the vehicles overall environmental impact on the vehicles window sticker
True
People can use credit to take advantage of free credit
True
Personal income taxes are paid only on your taxable income
True
Prioritizing wants includes careful consideration of benefits and the cost of various options
True
Service credit is granted to consumers by public utilities, physicians, dentists, and other service providers that do no require full payment when services rendered
True
Service credit normally carries no interest
True
State sales tax is an example of a regressive tax
True
Taking on excessive debts at an early age may compromise your chances of being financially successful
True
Tax planning includes eliminating, reducing, or deferring income taxes to be paid
True
Taxes are defined as compulsory charges imposed by the government on its citizens and their property
True
The IRS is the agency that collects federal income taxes
True
The act of recommending someone to another for possible employment is a job referral
True
The advantage of credit includes protection against rip offs and frauds
True
The amount owed on a debt is called the principle
True
The concept of paying yourself first, saving and investing before you pay expenses, is a characteristic of successful money managers
True
The cost of credit on a yearly basis is known as APR
True
The credit limit on credit card restricts the total cumulative amount of charges that can be made by the borrower over the borrowers lifetime
True
The entire balance on travel and entertainment cards must be repaid within 30 days
True
The key to reducing one tax liability is to reduce taxable income rather than the gross income
True
The most commonly used form of credit by consumers are both loans and credit loans
True
The principles of planned buying are especially useful when you are purchasing automobiles and other big ticket items
True
When shopping for any product, it may help you to review publications on a more specific topic such as PC world, keep in mind that trade magazines accept advertising for the products they report on and may be unbiased towards them
True
Your career goal should be a specific job or field of work
True
Your goal in financial planning is to manage your income and well in such a way that your goals are met in a suitable manner
True