Personal Finance Final Exam
How does a consumer know whether a purchase may be a good deal? CHOOSE ALL THAT APPLY
A large percentage of positive customer ratings offer detailed explanations. The item has the most features compared to other similar items.
Which of the following is NOT a common feature of a financial institution?
Access to investment products
Which of the following is true about the Free Application for Federal Student Aid (FAFSA)?
All of the above
Secured loans are less costly than unsecured loans because _________.
All of these are true.
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 of the following is not a need?
Brand new car
Which of the following is NOT a good way to prevent unnecessary spending?
Buy all of your wants at one time.
Which type of bank account is best for everyday transactions?
Checking Account
What will collision insurance cover in the event of an accident?
Damage to your car.
Which of the following helps you prepare for unexpected expenses?
Emergency Fund/Savings Account
Which of the following is a possible tax or deduction that they may show up on your paycheck? CHOOSE ALL THAT APPLY
Federal Income Taxes Contributions to retirement savings FICA
Which of the following is NOT a type of car insurance?
Health
Which of the following is a reason someone should get health insurance?
Health insurance protects you financially from medical emergencies.
What do people purchase as a form of risk management to protect themselves from losing a lot of money inthe event something happens to them or their property?
Insurance
Which of these items is NOT important to consider when selecting a credit card?
The look of the credit card
Dimitri's counselor told him that post-secondary education can be expensive but can pay off in the long run, what does that mean? CHOOSE ALL THAT APPLY
The salary you will earn with a degree will pay back the cost of college over your career. You can get grants and scholarships to pay for post secondary education while you are there. There are less expensive options for obtaining a post secondary education.
How does the government pay for roads, schools, and emergency services?
They are funded through taxes.
Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year.
W-2
When are loans a good option to use?
When paying for higher education
What is NOT a benefit of having a good credit score?
You'll get accepted to better education institutions.
What will happen to your credit score if you do not manage your debt wisely?
Your credit score will go down
If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
Your financial institution
Liability insurance is...
insurance that will pay for injury to another driver and/or damage to their car if you are in an accident.
Wearing a seat belt, not texting when driving, and driving carefully are all examples of...
risk management strategies.
W-4 tax form is used to _____?
tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.
An insurance premium is...
the amount of money you pay for an insurance policy.
Which is a tax-free savings account that can only be used for educational expenses?
A 529 Plan
Which of the following is NOT a benefit of using a budget?
A budget can help you purchase anything you want.
Which savings account will earn you the most money?
One that compounds interest daily.
Which is a positive reason for using a credit card to finance purchases?
Paying it off on time can help build your credit history
Which of the following is NOT a useful strategy when making an informed purchase?
Purchase a product based on a social media influencer.
Why is it important to have insurance? CHOOSE ALL THAT APPLY
So people can protect themselves from losing a lot of money in the event of an unpredictable event or something happens to them or their property. So individuals can defend against the possibility of financial loss due to unpredictable event
When you are deciding what to buy, you should...
compare the unit price of items similar to the one you want.
The gig economy offers ________.
flexible, short-term, and independent jobs.