economics exam
which of the following financial institutions typically have the highest fees?
check cashing and payday loan companies
Which type of bank account typically offers the least (if any) interest?
checking account
when looking for pre-approval on a car loan you should
compare pre-approval offers and select the one that is best for you
when you are deciding what to buy you should
compare the unit price of items similar to the one you want
which payment option could have interest charged to you?
credit card
when filing an insurance claim, the policyholder must pay a _____, which is the amount you owe before insurance will cover the rest of the bill
deductible
this helps you prepare for unexpected expenses
emergency fund
what type of federal funding is free money, but is based on financial need only?
federal grants
which of the following is possible tax or deduction that they may show up on your paycheck?
federal income tax, contributions to retirement savings, and FICA
when setting a budget you should consider
financial goals, current expenses, and income
which of the following is NOT considered part of your benefits package available from your employer?
free technology equipment
The___ is a flexible market that allows you to work short-term, independent jobs.
gig economy
which of the following is a benefit of using a budget?
helps keep track of the money you receive, helps to prioritize your spending, and helps reach short and long term financial goals
which of the following answers lists 4 year colleges from generally the least expensive to most expensive?
in state public university, out-of-state public university, private university
which of the following is NOT a good way to track your spending?
in your head
something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...
insurance
if you get into a car accident, your ______ may increase because you will be considered a riskier for insurance companies to cover
insurance premium
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 account
why is figuring out the unit price (individual item within a group) of something useful when shopping?
it helps you determine the best deal
what are the benefits of attending a local community college?
it is cheaper to earn an Associates degree at a community college and then transfer to a four-year college to finish, you can live at home and save dorm fees while earning an Associates degree, choosing a local community college within closer driving range saves on transportation (all of the above)
why is it important to have insurance?
its important to have insurance so people can protect themselves from losing a lot of money in the event and so individuals can defend against the possibility of financial loss due to unpredictable event (A and B)
insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called..
liability insurance
what should be considered when setting a budget?
needs, wants, and savings
which example shows the advantages 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
which examples shows the advantages 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
going directly to a car dealer for a loan to keep things simple is a..
not a great idea because they typically offer higher interest rates
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
which of the following is NOT a possible tax or deduction that could come out of your paycheck?
overtime
paying only the minimum balance on your credit card can lead to..
paying more interest
which choice or choices best describes the purpose of an emergency fund?
prepares you for unexpected expenses, keeps you from borrowing money from friends and family, and removes the worry about expenses not in the budget
in addition to needs, what should you plan for first when creating a budget?
recurring expenses
buying a home security system is an example of protecting your home against__
risk
which of these additional costs will most likely be the most expensive?
room and board
living at home while enrolled in post secondary school or training can save money on..
room and board but it raises costs for transportation
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
what is one of the best ways to get reliable information about a product?
search online reviews
which of the following statements is true about taxes?
taxes pay for schools/government departments, taxes pay for roads/emergency services, and taxes are often used at the federal,state, and local ,levels
how is an advertisement different from a comment from a regular consumer?
the advertisement is likely one-sided
an insurance premium is...
the amount of money you pay for an insurance policy
what is net pay?
the amount of money you´re paid after all taxes and deductions are taken out of your paycheck
which of the following is true about the Free Application for Federal Student Aid (FAFSA)
the earliest you can submit your FAFSA is October 1st of each year, the form is available online or on paper, states may have different deadlines for applying for state aid (all of the above)
how is a post from a social media influencer different from a comment from a regular consumer?
the influencer is paid to post the product
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
making the choice to spend money on post secondary education pays off in the long run because:
the salary you will earn with a degree will pay back the cost of college over your career
how is having a security system for your home a risk management strategy?
the security system will alert authorities and deter criminals, protecting your valuables and property
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
what is a consequence of not having health insurance?
you must pay all costs for health care and medical emergencies
choose the statement that is true about health insurance
you should always have health insurance, regardless of your circumstances
all of the following are benefits to paying the full balance on your credit card each month EXCEPT:
your credit score can decrease
If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
your financial insitution
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
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
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
textbooks, transportation and room and board are all..
additional costs for attending a college or university
when you are deciding what to buy, you should not...
assume that buying the cheapest item is the smartest choice
healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of____available from your employer.
benefits
which item is important to consider when selecting a credit card?
both APR and fees
credit cards can help____ when paid off on time regularly
build credit history
