Business and Technology Fall Exam SG
Which choice or choices best describes the purpose of an emergency fund?
An emergency fund prepares you for unexpected expenses, it keeps you from borrowing money from friends and family, and it removes the worry about expenses not in the budget.
For most careers, which degree will most likely result in the highest lifetime earnings?
Bachelor's Degree
___________ are good places to look to find your current expenses when building your budget.
Bank and credit statements
In your budgeting process, when should you look at recurring expenses?
Before reviewing your wants
What are possible red flags or signs of a scam when buying a car?
Being told your financing fell through and Charging of excessive fees
Which item is important to consider when selecting a credit card?
Both APR (Annual Percentage Rate) and fees
Which housing option gives you more freedom and more responsibility?
Buying a house.
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.
Choosing a credit card
How would you reconcile your bank account to avoid spending more than you have?
Compare your own records of your spending with your financial institution's records.
Which method of payment actually is a form of borrowing money that needs to be paid back later?
Credit Card
Which payment option can offer additional security like fraud protection?
Credit Card
Which payment option could have interest charged to you?
Credit Card
Which payment option takes money out of your bank immediately?
Debit Card
Bank statements, credit statements, and records of cash expenses help you to estimate your ________.
Expenses
Which of the following is NOT a recommended method to protect you from identity theft?
Expensive specialty locking or monitoring service.
Having a great credit score will make it easier for you to get into a better educational institution.
FALSE
How much you're being paid is the only thing you need to consider when considering a job offer.
FALSE
When considering a job offer, you should only consider how much you're being paid before you accept the offer.
FALSE
All of the following may be a part of your benefits package available from your employer, except:
FICA
There is no relationship between the level of education received and lifetime earnings.
False
Which of the following is a possible tax or deduction that they may show up on your paycheck?
Federal income tax, Contributions to retirement savings, FICA
When setting a budget, you can choose to make room for:
Financial goals, Entertainment expenses, Charitable donations
What budgeting tip(s) would help you to stay on track financially?
Find a friend with similar goals and hold each other accountable
The gig economy offers ________.
Flexible, short-term, and independent jobs.
Which of the following should NOT be considered when setting a current budget?
Future income
Which of the following is a benefit of using a budget?
Helps to keep track of the money you receive, Helps to prioritize your spending, Helps reach short- and long-term financial goals
Why is using a budget beneficial?
Helps to keep track of the money you receive, Helps to prioritize your spending, Helps reach short- and long-term financial goals
What does the W-2 form tell you?
How much you've earned and how much taxes you've paid in the last year.
Which of the following statements is TRUE?
If there is a mistake on your bank account, you should contact your financial institution immediately.
Which of the following is NOT a good way to track your spending?
In your head
What should you do before you use an ATM?
Inspect the ATM and its surroundings to make sure it is safe to use.
Which of the following statements about investing is FALSE?
Investing is a guaranteed way to grow your money.
Which of the following statements about investing is TRUE?
Investing is riskier than putting money in a savings accounts.
Why is figuring out the unit price of something useful when shopping?
It helps you determine the best deal.
Which savings account will earn you the most money?
One that compounds interest daily.
Which savings account will earn you the least money?.
One that earns simple interest monthly.
A _______ is a share of ownership in a company.
Stock
How is an advertisement different from a comment from a regular consumer?
The advertisement is likely one-sided.
What is net pay?
The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
How is a post from a social media influencer different than a comment from a regular consumer?
The influencer is paid to post the product.
Which of these items is NOT important to consider when selecting a credit card?
The look of the credit card
A pack of 24 pencils is more expensive than 12 pencils, but why could buying the 24 pack be the better deal?
The price of each pencil, or the unit price, is actually cheaper in the 24 pack.
Which of the following statements about check cashing companies is TRUE?
They charge high fees.
Which of the following statements about check cashing companies is FALSE?
They charge low fees.
What is NOT true about unexpected expenses?
They do not occur if you have a budget.
Which of the following is NOT true about emergency funds?
They help you prepare for unexpected expenses.
Which of the following is TRUE regarding unexpected expenses?
They should be planned for.
Secured loans are less costly than unsecured loans because _________.
They usually have a lower interest rate, They require collateral, They are less risky for the financial institution.
Why is it important to reconcile your bank statements?
To avoid spending more than what is in your account., to detect any errors in your account., to determine if you were charged any fees.
What is NOT a benefit of having a good credit score?
You'll get accepted to better education institutions.
What do you need in order to fill out your 1040?
Your W-2, Your routing and bank account number, A record of any other supplemental income
If there is an issue with your bank statement or account balance, who should you contact to resolve the issue?
Your bank
All of the following are benefits to paying the full balance on your credit card each month EXCEPT:
Your credit score can decrease.
Which of the following should you consider when setting a budget?
Your financial goals, Needs and wants, Savings
If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
Your financial institution
Net pay is NOT ________.
Your gross pay plus any bonuses.
An emergency fund should NOT be used for...
a last-minute school trip.
When you are deciding what to buy, you should not....
assume that buying the cheapest item is the smartest choice.
Credit cards can help _____________ when paid off on time regularly.
build credit history
Unexpected expenses...
can make it hard to stick to your budget, may cause you to be unable to pay necessary bills, should be planned for.
When looking for pre-approval on a car loan you should...
compare pre-approval offers and select the one that is best for you.
Making a good purchasing decision requires __________.
comparing the prices of similar items, reading reviews of the product, waiting until the product is on sale, if possible
An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...
emergency fund spending.
When setting a budget, you should consider...
financial goals, current expenses, and income.
When looking for pre-approval on a car loan you should NOT...
get a loan from the car dealer directly to keep things simple.
The W-2 form is a form that tells you _______.
how much taxes you've paid in the last year based on how much you've earned.
The 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.
When you start a new job, you fill out a W-4 form to _________.
to determine how much federal income tax your employer should withhold from your paychecks.
The envelope method, notebook and pencil, and online software are all methods of ______.
tracking your spending
The price of a single item within a group of items is known as the ______________ of the item.
unit price
When are loans a good option to use?
When paying for higher education
What is a benefit of having a good credit score?
When you need a loan, you'll have more loan offers to pick from.
Which payment option is not accepted online?
Cash
Which of the following financial institutions typically have the highest fees?
Check cashing and payday loan companies
What should you do before you approach an ATM?
Check for any suspicious people lurking nearby.
Which type of bank account is best for everyday transactions?
Checking Account
Savings accounts typically offer more interest than what type of account?
Checking account
Which type of bank account typically offers the least (if any) interest?
Checking account
Which forms of payment is linked to a bank account which limits the amount of money you can spend to balance in your account?
Checks & debit cards
Which of the following is NOT an advantage of owning a car?
Drive unlimited number of miles
This helps you prepare for unexpected expenses.
Emergency fund
Which of the following statements about savings accounts is FALSE?
Savings accounts allow an unlimited amount of withdrawals each month.
Which of the following statements about savings accounts is FALSE?
Savings accounts don't usually pay interest on the money you deposit.
Which of the following statements about savings accounts is FALSE?
Savings accounts don't usually require a minimum balance.
What do taxes pay for?
Schools, government departments, roads, and emergency services
What is one of the best ways to get reliable information about a product?
Search online reviews
Which of the following is NOT an advantage of owning a car?
Smaller down and monthly payments than leasing a car.
Which example shows an advantages of owning a car over leasing one?
Smaller monthly payments and good warranty to cover repairs.
Which of the following is a way to track your spending?
Spreadsheet budget, Envelope method, An app
What option will NOT be available if you are behind on loan payments?
You can ask to get out of your loan.
Which is NOT a positive reason for using a credit card to finance purchases?
You will get charged high interest.
What will happen to your credit score if you do not manage your debt wisely?
Your credit score will go down
What do you NOT need in order to fill out your 1040?
Your employer benefits documentation
When making a large purchase, you should avoid everything EXCEPT _______________________
a price that fits comfortably in your budget.
When you are deciding what to buy, you should...
compare the unit price of items similar to the one you want.
The ___________ is a flexible market that allows you to work short-term, independent jobs.
gig economy
Going directly to a car dealer for a loan to keep things simple is a...
not great because they typically offer higher interest rates.
Which of the following is NOT a benefit of using a budget?
A budget can help you purchase anything you want.
Not managing your debt wisely can result in ________.
A decrease in your credit score
What could be a good option available to you if you are behind on loan payments?
A financial institution may offer for you to pay a little now and pay the rest after your next pay day.
What is the gig economy?
A flexible market that allows you to work short-term, independent jobs.
Which of the following is NOT a feature that makes a secured loan less costly than an unsecured loan?
A high interest rate
Using a loan could help with the purchase of which of the following?
A house
How does a consumer know whether a purchase may be a good deal?
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 be a warning sign of a scam when buying a car or other big purchases?
A price that fits comfortably in your budget
A stock is ________.
A share of ownership in a company.
Which of the following statements about stocks is TRUE?
A stock is a share of ownership in a company.
A mutual fund is _________.
A type of investment that invests in a mix of different types of investments.
Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.
Benefits
What is NOT a good way to prevent unnecessary spending?
Buy all of your wants at one time.
The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called________.
Net pay
Which example shows an advantage of owning a car over leasing one?
No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.
Recommended methods to protect yourself from identity theft and fraud include_______.
Placing a credit freeze with the credit bureaus.
Which of the following is NOT a useful strategy when making an informed purchase?
Purchase a product based on a social media influencer.
Which of the following statements is true about taxes?
Taxes pay for schools and government departments, they pay for roads and emergency services, Taxes are often used at the federal, state, and local levels.
How does the government pay for roads, schools, and emergency services?
They are funded through taxes.
What is the best reason for why someone would want to lease a house instead of buy one?
They are planning on living there for a short period of time.
What is the best reason for why someone would want to lease a house instead of buying one?
They are planning on living there for a short period of time.
What is the purpose of the W-4 form?
To inform your employer of how much federal income tax to withhold from your paychecks.
Generally, the more education you receive, the higher your lifetime earnings will be.
True
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
Where should you look to find your current expenses when building your budget?
bank and credit statements
The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.
it requires collateral.
Investing is best for ________.
long-term financial goals, like paying for retirement.
To maintain a good credit score you must ______.
manage your debt wisely.
Paying only the minimum balance on your credit card can lead to...
paying more interest.
Charitable donations, entertainment expenses, and financial goals are all examples of
things to consider when creating a budget.
Leasing a car may be a better option than buying a car if...
you don't plan on having it for long and don't want to worry about regular maintenance.
What should you NOT use a loan to purchase?
Airline tickets to your dream vacation
Benefits to paying the full balance of your credit card each month include:
Increasing your credit score
What should you do before you withdraw money from the ATM?
Inspect the ATM to make sure it wasn't tampered with.
How can you avoid spending more than what is in your bank account?
Keep your own records to compare with your financial institution's records.
Which fact supports the idea that renting is a good option for living in a place for a short period of time?
Leases are generally for a month or a year.
In addition to needs, what should you plan for first when creating a budget?
Recurring expenses
How can you ensure you don't go over your budget?
Round up your expense estimates to add a buffer
Which of the following is NOT a possible tax or deduction that could show up on your paycheck?
Sales tax
Which of the following is NOT a common feature of a financial institution?
Access to investment products, Investment trading, Access to investment advice
Your financial institution can't help you if there is a mistake on your bank account statement.
False
Which of the following is NOT a possible tax or deduction that could come out of your paycheck?
Overtime pay
Which of the following is NOT considered part of your benefits package available from your employer?
Paid time off
Which is a positive reason for using a credit card to finance purchases?
Paying it off on time can help build your credit history
What is FALSE about expenses?
Recurring expenses don't need to be planned for because they rarely happen, they can never be stopped, and they should be planned for after looking at your wants.
Which of the following will help you protect yourself from identity theft and fraud?
Regularly monitor your credit report, Contact lenders and credit bureaus to address incorrect information, Freeze your credit.
Which of the following expenses would be a good reason to spend money from an emergency fund?
Repair your laptop that you use for homework.
A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.
TRUE
When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer.
TRUE
