Personal Finance

Question 28 A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes by: $10. $28. $14. $50. $35

$50.

Most of the information in your credit file may be reported for only ______ years. 7 9 11 13 15

7

A CD that offers a higher rate for every six months you invest in it is: A bump-up CD An indexed CD A callable CD A global CD A promotional CD

A bump-up CD

_______________________ is correspondence you send to a company to indicate your interest in a position and to obtain an interview. It is generally accompanied by your resume. Networking An internship A career fair A cover letter None of the above

A cover letter

A CD that attempts to attract savers with gifts or special rates is: A bump-up CD An indexed CD A callable CD A global CD A promotional CD

A promotional CD

_________________________ is a benefit on which you pay no taxes. Networking Vesting A tax deferred benefit A tax exempt benefit None of the above

A tax exempt benefit

John Garic has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow. What type of goal would this be for John? Consumable-products goal Durable-products goal Intangible goal Intermediate goal Long term goal

Durable-products goal

Which federal credit law sets the procedure for promptly correcting billing mistakes? Fair Debt Collection Practices Act Equal Credit Opportunity Act Fair Credit Billing Act Fair Credit Reporting Act Truth in Lending Act

Fair Credit Billing Act

Kathy Stumbaugh has determined that the value of her assets is $46,000 and that the value of her debts is $32,000. The difference between these two is. $14,000. This calculation would be an example of: Money management An opportunity cost A balance sheet A liquid asset Net worth

Net worth

Haley Hight has adjusted gross income of $40,000. She paid $3600 in property taxes during the year. How much of this can she deduct from adjustable gross income? $3600 $3000 $1800 $0 None of the above

None of the above

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5Cs of lending? character capacity collateral capital conditions

character

Warranties are commonly associated with ____________ purchases. investment insurance credit financial service consumer

consumer

In the career planning process, after identifying specific job opportunities, a person should: assess interests, abilities, and goals. develop a résumé and cover letter. evaluate job offers. plan for career growth. evaluate the job market.

develop a résumé and cover letter

The study of how wealth is created and distributed is: financial planning opportunity cost. inflation. economics a market economy

economics.

Joan Zemke expects interest rates to decline over the next few months. To maximize her earnings she should use a(n): regular savings account interest-bearing checking account five-year certificate of deposit. six-month certificate of deposit money market fund

five-year certificate of deposit

Improvements in a person's financial position are the result of: increased liabilities reductions in earnings increased savings and investments increased purchases on credit lower amounts deposited in savings

increased savings and investments

____________ goals relate to personal relationships, health, and education. Short-term Consumable-product intangible-purchase Intermediate

intangible-purchase

The changing cost of money is referred to as ____________ risk. interest-rate inflation economic trade-off personal

interest-rate

A common deduction from a person's paycheck is for: interest. Correct taxes. rent. unemployment. liabilities.

liabilities.

For an entry-level position, a person's résumé is likely to be ____________ one page. two pages. three pages. four pages. five or more pages depending on experiences

one page.

Which of the following are considered to be personal financial statements? Budget and credit card statements Balance sheet and cash flow statement Checkbook and budget Tax returns Bank statement and savings passbook

Balance sheet and cash flow statement

The payment items that should be budgeted first are: variable expenses. investment funds. fixed expenses. unplanned living expenses

fixed expenses

The main purpose of taxes is to: generate revenue for funding government programs reduce the chances of inflation. create jobs discourage use of certain goods and services decrease competition from foreign companies

generate revenue for funding government programs

The "head of household" filing status is for people who are: recently divorced. the surviving spouse. not living with a spouse and have dependent children. married but only one spouse has income. married and each spouse makes about the same income

not living with a spouse and have dependent children.

To avoid high fees for loans, a person should not borrow from a: credit union. savings and loan association. pawnshop. commercial bank. mutual savings bank.

pawnshop.

Perseverance in a job search refers to: obtaining necessary training. flexibility in willingness to accept a position. persistence in the process of obtaining employment. strong communication skills. researching a career field.

persistence in the process of obtaining employment.

If your credit application is denied, you: can sue the credit rating agency. can file a complaint against the merchant. don't have any rights provided by law. are entitled to know the specific reason you were denied credit. can reapply for credit after 30 days.

are entitled to know the specific reason you were denied credit.

The use of legitimate methods to reduce one's taxes is tax ____________. evasion avoidance exemptions deferred techniques reductions

avoidance

Billy Freniere has gone to the career placement center at his university. He has taken both an interests test and a personality test and has found careers where his interests and personality are well suited. Which step in the career planning process is Billy completing? Assess and research personal goals and abilities Evaluate the employment market to identify specific employment opportunities Develop a resume and cover letter to apply for specific positions Interview for specific positions and assess the interview performance Evaluate financial and other factors of positions offered

Assess and research personal goals and abilities

One aspect of financial planning is to control your use of credit. Which aspect of financial planning does this deal with? Borrowing Spending Managing Risk Investing Retirement and Estate Planning

Borrowing

What should you do if your identity is stolen? Contact the fraud departments of each of the 3 major credit bureaus. Ignore it and hope that it will go away. Throw away all records dealing with the problem Keep your bank accounts and credit card accounts open for one year. All of the above.

Contact the fraud departments of each of the 3 major credit bureaus.

Checking accounts are frequently referred to as ____________ deposits. common time current loan demand

demand

Jennifer Rodr needs a loan to purchase a new car. She knows the creditor must: Ask about how many children she plans on having Consider whether she has a telephone in her own name Evaluate her on the same basis as applicants who are male Require her husband to cosign the loan Ask about her birth control methods

Evaluate her on the same basis as applicants who are male

Lynn Roy knows that if she continues to work full time, it will be difficult for her to get the time off she needs to be able to travel around the world. However, if she continues to work full time she will more easily earn the money she needs to take her trip and still have money left for her living expenses after she gets back from her trip. Which step in the financial planning process does this scenario demonstrate? Determining her current financial situation Developing her financial goals Identifying alternative courses of action Evaluating her alternatives Implementing her financial plan

Evaluating her alternatives

A ______________________ allows a taxpayer to put pre-tax dollars into an employer-sponsored program to cover medical and child care costs. Tax credit Tax deduction Flexible spending account Tax deferred investment None of the above

Flexible spending account

Maryann Lawrence wants to get a loan in just her name. She knows the creditor cannot: Refuse her credit if she is creditworthy Consider income from her part time job Consider the payment history of all her joint accounts Consider alimony payments she receives from her ex-husband Consider child support payments she receive from her ex-husband

Refuse her credit if she is creditworthy

When an individual makes a purchase without considering the financial consequences of that purchase, they are ignoring the _____________________aspect of financial planning. Borrowing Risk Management Spending Retirement and Estate Planning Obtaining

Spending

If you have a complaint against The First National Bank of Edmond, who should you contact? National Credit Union Association. The Federal Home Union Association. The Federal Reserve National Credit Union Association. The Federal Home Union Association. The Federal Reserve The Comptroller of the Currency None of the above None of the above

The Comptroller of the Currency

Tara Guest wants to gain some needed experience so when she is ready to start a career she has some things to offer a company. She has decided to help the Edmond Historical Society run their booths that explain the part Edmond played in the Oklahoma Land Run for Edmond school children. Which of the following employment experience strategies is she pursuing? Part-Time Employment Volunteer Work Internship Campus Project None of the above

Volunteer Work

Which of the following savings plans is not covered by federal deposit insurance? a passbook account at a savings and loan a regular checking account at a commercial bank a money market account at a commercial bank a money market fund at an investment account a certificate of deposit at a commercial bank

a money market fund at an investment account

The first step of the financial planning process is to: implement the financial plan. analyze your current personal and financial situation. evaluate and revise your actions create a financial plan of action

analyze your current personal and financial situation

The abilities to work well with numbers, possess problem-solving skills, and have physical dexterity are examples of: interests. survival skills. aptitudes. occupational attitudes. on-the-job training

aptitudes.

What type of tax is imposed on the value of an individual's property at the time of his or her death? inheritance excise gift personal property estate

estate

A commitment to a profession that requires continued training and offers a clear path for occupational growth is a(n): apprenticeship. job. internship. career. cooperative employment experience.

career

Revolving check credit is a: credit arrangement that has no extra costs. prearranged loan for a specified amount that you can use by writing a special check. credit arrangement that has no specific repayment plan. synonym for installment cash credit. synonym for single lump-sum credit.

prearranged loan for a specified amount that you can use by writing a special check.

For a dependent to qualify as an exemption, he or she must be married. be under age 16. be registered in school. receive more than one half of his or her support from the taxpayer. be a relative.

receive more than one half of his or her support from the taxpayer.

A __________________ endorsement is especially useful when you are depositing checks. blank restrictive common special documented

restrictive

The uncertainty associated with decision making is referred to as: opportunity cost. selection of alternatives. financial goals. personal values. risk.

risk.

Which of the following is an example of opportunity cost? renting an apartment near school saving money instead of taking a vacation setting aside money for paying income tax purchasing automobile insurance using a personal computer for financial planning

saving money instead of taking a vacation

The education section of a résumé should include names of instructors. course titles and numbers. grades received. schools attended.

schools attended.