FIN 101

Example(s) of human capital include which of the following? A. Formal education. B. Health. C. Skill development. D. All of these answer choices are correct.

D. All of these answer choices are correct

In order to earn a higher rate of interest on your savings, you must: A. Require that the borrower use collateral to secure the loan. B. Take on more risk. C. Loan your money for a longer period of time. D. Either loan your money for a longer period of time or take on more risk.

D. Either loan your money for a longer period of time or take on more risk

Because of the TVM concepts learned in this topic, you should _________ receiving $1,000 in 1 year if given the opportunity to receive $1,000 in 2 years from today. A. decline B. be indifferent to C. find out more information before D. prefer

D. Prefer

Who is most likely to accumulate more wealth? A. The person who takes a slow-and-steady low-risk approach. B. The person who likes to gamble and play the lottery. C. The person who is willing to take big gambles. D. The person who is willing to take risk after adequate research.

D. The person who is willing to take risk after adequate research

Haley owns a Honda Civic. She is creating her balance sheet and needs to input a value for the car. Which of the following is an indication of the car's fair market value? A. The amount of the loan balance outstanding on the car. B. The price of a similar Civic for sale. C. The price that Haley paid for the car. D. The trade-in value of the car.

D. The trade-in value of the car

Mary uses her credit card frequently. Which of the following is the best strategy to minimize the amount of interest paid when using a credit card? A. Search for and use a credit card with the lowest APR. B. Pay more than the minimum monthly balance each month. C. Search for and use a credit card that compounds interest monthly. D. Pay off the credit card balance monthly.

D. pay off the credit card balance monthly

Roger owns a boat. As he prepares his balance sheet, what value should he use as a liability input for the boat? A. The price of a similar boat if he were buying a boat today. B. The monthly payment on the boat loan. C. The price he paid for the boat. D. The amount remaining on the boat loan.

D. the amount remaining on the boat loan

Which of the following negative financial behaviors will stay on your credit report the longest? Declaring bankruptcy. Being turned down for credit. Making late payments on a credit card. Skipping payments to a merchant.

Declaring bankruptcy.

Your friend Lucia is a procrastinator. How can you best help her overcome this weakness? I.Create deadlines. II.Encourage hyperbolic discounting. III.Strengthen her confirmatory bias.

I Only

Which of the following are potential liabilities associated with business ownership?I.TaxesII.DebtsIII.Lawsuits.II only.I and II only.II and III only.I, II, and III.

I, II, and III

Which of the following elements influence your view of the financial world? I.Your risk tolerance II.How much you believe you control your financial future. III.Knowledge about personal finance topics

I, II, and III

Which of the following events will trigger the creation of a credit report? I.Declaring bankruptcy.II.Taking out a student loan.III.Borrowing money from a company.IV.Marriage or divorce. I and III only. II and III only. I, II, III, and IV. I, II, and III only.

I, II, and III only.

Which of the following refers to the first time privately held stock is made available to the public? Secondary market. Initial public offering (IPO). Primary market. Subsequent public offering.

IPO

If you, as an investor, wanted to guarantee purchasing a stock at a specific price or better, which type of order would you use? A limit order. A market order. A buy stop order. A sell limit order.

a limit order

Which of the following refers to the cost of the insurance? deductible premium transfer risk copayment

premium

Insurance policy owners can list contingent beneficiaries. Contingent beneficiaries:most often are the policy owner and spouse, but not always.are usually family members, business partners, and employers that can show an insurable interest.receive the policy death benefit when the insured dies.will receive the death benefit if the primary beneficiary dies before the policy owner.

will receive the death benefit if the primary beneficiary dies before the policy owner

Which of the following statements is true? When you invest money, you are taxed each year on any capital gains even if you do not sell the asset. You will be taxed each year that you receive a dividend from an investment. Interest earned on an investment is considered to be tax free until you sell the investment. Both when you invest money, you are taxed each year on any capital gains even if you do not sell the asset and you will be taxed each year that you receive a dividend from an investment are correct.

you will be taxed each year that you receive a dividend from an investment

David has a health insurance policy with the following provisions: $515 deductible, $45 copay, and 80/20 coinsurance provision. If David has an accident that costs $3190 in medical expenses, how much will he have to pay out of pocket? $526. $560. $1086. $2630.

1086

Kimberly invested $120000 into a startup company this year. For the first time, she received a payment from the company for $28800. What was Kimberly's rate of return on her investment? (Round answer to 0 decimal place, e.g. 5275.)22%.24%.34%.There is not enough information to answer this question.

24

Abed carries an average monthly balance of $350 in his checking account. If his bank charges $7.00 per month as a minimum service fee, how much in annual interest must Abed earn to cover the monthly fee? 24.00% 20.00% 2.00% 7.00%

24.00

Which of the following is true if Mary purchases 50 shares of an IPO for $20 per share and sells the shares for $25 each? She will have a $5 dividend per share. She will have a 5 percent capital gain. She will have a $250 capital gain. She will have a 25 percent dividend.

250 gain

Tula has a $5500 credit card balance that she revolves month to month. What is her minimum monthly payment if the credit card company calculates the payment based on 6% of the outstanding balance? $3300. $3960. $33. $330.

330

Kevin earns $7000 per month. His monthly expenses include $920 in rent, $980 in recreational expenses, $400 in food, $460 in auto payments, $270 in gas and maintenance, $750 in student loan repayments, $250 in credit card payments, and $1900 in miscellaneous expenses. What is Kevin's debt to income ratio? 18%. 21%. 38%. 34%.

34

David makes $3490 per month. He pays $800 in taxes, $695 in rent, $440 on food (which includes eating out), $230 for a car payment, $135 in gas and maintenance, and $705 in recreation every month. What is David's surplus or deficit? -128. $128. $0. $485.

485

Assume Laura earns $9.10 per hour. If she receives "time and a half" for any hours worked over 40 per week, how much will Laura earn if she works 50 hours this week? $1390.00. $682.50. $1365.00. $500.50.

500.5

Raul has had a credit card since college. Overall, he has managed his credit history well, although he has occasionally made a late payment on his credit card. Given this information, which of the following FICO scores is Raul likely to receive? 350. 640. 825. 790.

640

William has the following assets and liabilities: Cash:$650Clothes and Furnishing:$6500Car:$19500Investments:$65000Credit Card Bills:$UnresolvedCar Loan:$6500Student Loan:$10800 What is William's current net worth? $73960. $91650. $67200. $17690.

73960

Eric borrows $7100 on January 1 for one year. Interest is calculated annually. He does not have to make any monthly payments, but he has to repay the entire loan plus interest on December 31 of the same year. If the loan has an annual interest rate of 8% what amount will Eric have to repay on December 31? $7668. $7100. $568. $7739.

7668

Lisa, age 28, earns $4410 per month. Every month she saves $400. Additionally, she has $3600 in outstanding credit cards and makes a $300 monthly payment of these cards. What is Lisa's approximate savings ratio? (Round answers to 2 decimal places, e.g. 52.75.) 6.80%. 9.07%. 15.87%. 8.98%.

9.07

Donna is working with a commissioned-based financial planner. The financial planner is recommending that Donna purchase shares in a mutual fund the charges a 9 percent commission. If Donna invests $11000 how much will the advisor be paid?$9900.$891.$99.$990.

990

The difference between a bank and a credit union is as follows: A credit union offers more products and services than a bank. A credit union depositor is known as a member but a bank depositor is simply a customer. A bank shares profits with all depositors whereas a credit union shares earnings with shareholders. A bank depositor is known as a member whereas a credit union depositor is a shareholder.

A credit union depositor is known as a member but a bank depositor is simply a customer.

Which of the following refers to an asset that decreases in value over time? A. Depreciating asset. B. Liability. C. Appreciating asset. D. Liquidity.

A. Depreciating assets

Which of the following people is most likely to be considered financially knowledgeable? A. Michelle, who gives regularly to charity, reads about investing, and is self-confident. B. Jamie, who has low self-confidence, likes to gamble, and rarely tracks news stories online. C. John, who lives day-to-day, is experienced with investing, but sometimes spends more than he earns. D. Todd, who exhibits self-control but is not self-confident or financially experienced.

A. Michelle, who gives regularly to charity, reads about investing, and is self-confident

Nigel believes that most "rich people" obtained their wealth either through hard work or by investing wisely. Assuming Nigel adopts this same perspective as a guide to his own spending and saving behavior, he is most likely to become: A. more knowledgeable about the financial marketplace over time and increase his personal wealth. B. disillusioned later in life as he nears retirement. C. a consistent purchaser of lottery tickets. D. both disillusioned later in life as he nears retirement and a consistent purchaser of lottery tickets.

A. More knowledgeable about the financial marketplace over time and increase his personal wealth

Someone who strongly agrees with (a) the thought of taking risk is exciting, (b) high returns are more important than safety, and (c) making money in stocks and bonds is based on knowledge is most likely: A. willing to take more financial risk. B. believing in luck and fate. C. feeling that he or she cannot control his or her financial future. D. willing to take no financial risk.

A. Willing to take more financial risk

Someone who feels that investing is too difficult to understand likely: A. has a lower level of financial literacy. B. feels in control of his or her financial situation. C. is positioned to maximize lifetime wealth accumulation goals. D. has a high tolerance for financial risk.

A. has a lower level of financial literacy

Ramos is an aggressive investor and likes to win at everything. He knows that it is impossible to win or beat the averages all of the time, but he wants to try! Given his attitude, Ramos should select what type of investment if his number one goal is to beat the market? Index-based ETF. Actively managed mutual fund. Bond index ETF. Index mutual fund.

Actively managed mutual fund.

When Ann was traveling outside the United States, she found the perfect souvenir. Unfortunately, when she went to make the purchase with her debit card, the transaction was denied. This happened because Ann had only $200 in her account, and the souvenir cost $300. Ann was disappointed and regretted having to pass on her purchase. What could Ann have done before her trip to ensure that she could spend more than what was in her account? Added overdraft protection transfers from her savings account to her checking account. Added fraud protection to her account. Asked her bank to allow a direct debit for international purchases. Traded her debit card for a prepaid card.

Added overdraft protection transfers from her savings account to her checking account.

Which of the following are included in the finance charge for a loan? Interest charged for the loan. Loan origination fees (the cost of creating the loan). Annual loan account fees. All of the answer choices are correct.

All

All of the following statements are true, except: As your debt to income ratio increases, your financial flexibility expands. As your savings ratio increases, your financial flexibility increases. As your debt to income ratio declines, your financial flexibility expands. As your savings ratio declines, your financial flexibility decreases.

As your debt to income ration increases your financial flexibility expands

Jerry recently earned $200 on an investment. Unfortunately, the investment fell in value, and he lost $200. Afterward, Jerry felt miserable. He hated losing the money much more than he enjoyed seeing the investment grow. Jerry's experience is an example of: A. heuristic meditation. B. loss aversion. C. behavioral economics. D. discounting.

B. Loss aversion

Which of the following refers to the "S" in SMART goals? A. Significant. B. Specific. C. Simple. D. Strategic.

B. Specific

Risk is the ______ associated with any physical, social, emotional, environmental, workplace, or financial activity. A. project result. B. uncertainty. C. benefit. D. financial implication.

B. Uncertainty

Swarn is a risk-taker. His core life philosophy is that nothing bad can happen to him. When he thinks back over his life, he can't remember any serious negative events. When he looks ahead, he simply can't imagine a painful loss occurring to him. Swarn likely suffers from a(n): A. future discounting bias. B. optimism bias. C. loss-aversion bias. D. cognitive evaluation bias.

B. optimism bias

Assume a college student is having a hard time getting approved for a credit card. What method can the student use to increase the probability of receiving a credit card? Borrow money from a pawn shop or payday lender to establish credit. Ask a parent to co-sign the credit card application. Open a secured credit card with a lending institution. Both ask a parent to co-sign the credit card application and open a secured credit card with a lending institution.

Both ask a parent to co-sign the credit card application and open a secured credit card with a lending institution.

As a novice investor, Laura is concerned about fees. She has heard stories of investors who have lost thousands of dollars in fees over time. She wants to invest in investments that generally have the lowest fees. Given her desire, Laura should focus on purchasing: Actively managed mutual funds. Index mutual funds. Exchange-traded funds. Both index mutual funds and exchange-traded funds.

Both index mutual funds and exchange-traded funds.

Under current law, which of the following requests is allowed? A car dealer requests your credit report before taking you on a test drive. Neither the Federal Aviation Administration requests your credit report before issuing you a pilot's license and a car dealer requests your credit report before taking you on a test drive. Both the Federal Aviation Administration requests your credit report before issuing you a pilot's license and a car dealer requests your credit report before taking you on a test drive. The Federal Aviation Administration requests your credit report before issuing you a pilot's license.

Both the Federal Aviation Administration requests your credit report before issuing you a pilot's license and a car dealer requests your credit report before taking you on a test drive.

Under current law, which of the following requests is allowed? Neither the Federal Aviation Administration requests your credit report before issuing you a pilot's license and a car dealer requests your credit report before taking you on a test drive. Both the Federal Aviation Administration requests your credit report before issuing you a pilot's license and a car dealer requests your credit report before taking you on a test drive. The Federal Aviation Administration requests your credit report before issuing you a pilot's license. A car dealer requests your credit report before taking you on a test drive.

Both the Federal Aviation Administration requests your credit report before issuing you a pilot's license and a car dealer requests your credit report before taking you on a test drive.

Assuming Linda has $1900 today, approximately how long will it take Linda to double her money if she can earn a 8% return on her investment? (Round answers to 1 decimal place, e.g. 52.7.) A. 18.2 years. B. 36.4 years. C. 9.0 years. D. 7.2 years.

C. 9.0 years

Which of the following individuals will likely pay the highest rate of interest on borrowed money from a bank? A. Rachel, who is borrowing money to purchase a new car. B. Michelle, who is borrowing money to pay for a home improvement. C. Douglas, who is borrowing money to pay for a vacation. D. Terry who has a stable high-paying job and is borrowing money to purchase a home.

C. Douglas, who is borrowing money to pay for a vacation

It is possible to increase your financial risk tolerance over time. What is the process of risk tolerance change? A. Risk tolerance leads to confidence, which leads to understanding, experience, and increased knowledge. B. Experience leads to understanding, which leads to confidence, knowledge, and an increase in risk tolerance. C. Knowledge leads to confidence, which leads to experience, understanding and an increase in risk tolerance. D. Understanding leads to risk tolerance, which leads to experience, confidence, and increased knowledge.

C. Knowledge leads to confidence, which leads to experience, understanding and an increase in risk tolerance.

To correct inaccurate, fraudulent, or other erroneous information on your credit report, which of the following is the best course of action? Contact the primary national credit bureaus by writing a letter and notifying them of the inaccurate information. File a complaint with the Federal Trade Commission. Contact your creditors and notify them of the error. File a defamation lawsuit against the credit bureau reporting the inaccurate information.

Contact the primary national credit bureaus by writing a letter and notifying them of the inaccurate information.

To correct inaccurate, fraudulent, or other erroneous information on your credit report, which of the following is the best course of action? File a complaint with the Federal Trade Commission. Contact your creditors and notify them of the error. File a defamation lawsuit against the credit bureau reporting the inaccurate information. Contact the primary national credit bureaus by writing a letter and notifying them of the inaccurate information.

Contact the primary national credit bureaus by writing a letter and notifying them of the inaccurate information.

Given a high tolerance for risk and a desire to invest internationally, investment in which type of countries could represent good investment opportunities? Countries with negative GDP growth. Countries with strong GDP growth, oversight, and legal structure. Countries with strong oversight and legal structure. Countries with strong GDP growth.

Countries with strong GDP growth, oversight, and legal structure.

The maximum amount that can be borrowed using a credit card is known as:The Annual Percentage Rate.Credit limit.Minimum payment percentage.Balance and penalty amount.

Credit limit.

Loraine is thinking about her future retirement goals and needs. She has 25 years until retirement. She needs to save quite a bit of money to reach her retirement goal. Unfortunately, Loraine's risk tolerance is low. Given these facts, what the best recommendation for Loraine? A. Obtain a second job to double her savings into low-risk investments. B. Supplement her savings with the use of lottery tickets in the hopes of earning a large windfall. C. Postpone retirement to offset the fact that her tolerance for risk is so low. D. Invest more aggressively knowing that she has time on her side to withstand any temporary setbacks with these riskier investments.

D. Invest more aggressively knowing that she has time on her side to withstand any temporary setbacks with these riskier investments.

Which of the following statements is true about compound growth? A. Only interest experiences compound growth, not other investment gains. B. The full benefits of compound growth are generally realized within 5 to 10 years. C. How long money is set aside does not matter when calculating compound growth. D. The longer you let your money grow, the more it will produce.

D. The longer you let your money grow, the more it will produce

Which of the following is/are reasons why investors might choose to invest in mutual funds? Diversification. Professional management. To pool capital with other investors. Diversification, professional management, and to pool capital with other investors.

Diversification, professional management, and to pool capital with other investors.

Tara's budget shows a projected deficit. What does this mean for Tara? It is impossible to have a deficit so Tara must cut expenses. Either it means that she will need to borrow money to fund the deficit or it means that she will need to sell assets to fund the deficit. It means that she will need to sell assets to fund the deficit. It means that she will need to borrow money to fund the deficit.

Either it means that she will need to borrow money to fund the deficit or it means that she will need to sell assets to fund the deficit

When you own stock in a company, you are: Entitled to earn interest on your investment. Entitled to a share of the firm's profits. Liable for any losses the firm may incur. All of these answer choices are correct.

Entitled to a share of the firm's profits.

Which of the following statements best describes the relationship between credit scores and credit riskiness of borrowers? Credit scores and credit risk are unrelated. Higher credit scores are associated with higher credit risk. Lower credit scores are associated with lower credit risk. Higher credit scores are associated with lower credit risk.

Higher credit scores are associated with lower credit risk.

Which of the following strategies is most likely to increase your confidence about your financial future? I.Saving money on a regular basis. II.Paying down debt as quickly as possible. III.Borrowing money to improve GDP.

I and II only

Which of the following events will trigger the creation of a credit report? I.Declaring bankruptcy.II.Taking out a student loan.III.Borrowing money from a company.IV.Marriage or divorce. II and III only. I, II, and III only. I, II, III, and IV. I and III only.

I, II, and III only.

Yolinda and Wes decide to go into business together as a partnership. As part of their business, they lease a car, with each paying half the monthly expenses. Unfortunately, the business does not make any money. After 2 years, Yolinda decides to leave and take a job with another employer. Wes, on the other hand, decides to make a go of the business. Given this information, which of the following is true? Because Yolinda is no longer involved in the business, she no longer is legally obligated to help pay the car expenses. Because Wes received only half of the company's profits, he is only liable for his share of expenses. Because the partnership is no longer in existence, the car lease is null and void. If Yolinda stops making her share of the car expenses, Wes will be liable for Yolinda's share.

If Yolinda stops making her share of the car expenses, wes will be liable for yolinda's share

Which of the following statements regarding access to individual credit reports is most accurate? Anyone with someone's Social Security number can request that person's credit report under the law. Individuals are not allowed access to their personal credit reports unless they have been denied credit, employment, or insurance as a result of a credit check. Insurance companies can view a customer's credit report when underwriting insurance policies. All employers can request an applicant's credit report without the applicant's knowledge.

Insurance companies can view a customer's credit report when underwriting insurance policies.

Which of the following statements regarding access to individual credit reports is most accurate? Insurance companies can view a customer's credit report when underwriting insurance policies. Individuals are not allowed access to their personal credit reports unless they have been denied credit, employment, or insurance as a result of a credit check. All employers can request an applicant's credit report without the applicant's knowledge. Anyone with someone's Social Security number can request that person's credit report under the law.

Insurance companies can view a customer's credit report when underwriting insurance policies.

Latisha is shopping for a car and an auto loan to purchase the car. All of the following statements are true, except: If Latisha applies for credit at multiple auto lenders for the same amount within the same week, most credit scoring models will treat this as one credit application. All of these answer statements are exceptions. Latisha should avoid shopping for the lowest auto loan interest rate possible, because multiple credit applications will cause her credit score to go lower, leading to a higher interest rate. Latish should shop around at different lenders to find the best loan terms possible for her auto loan.

Latisha should avoid shopping for the lowest auto loan interest rate possible, because multiple credit applications will cause her credit score to go lower, leading to a higher interest rate.

An advantage of investing internationally is: Low correlation between U.S. stocks and international stock which reduces investment risk. Low correlation reduces portfolio returns. The best investments are always overseas. Reduced portfolio volatility and higher returns can be achieved by taking no additional risk.

Low correlation between U.S. stocks and international stock which reduces investment risk.

Which of the following best describes an index mutual fund? Mutual funds managed based on a pre-set ratio of stocks and bonds. Passively managed funds designed to mimic a specific market. Mutual funds that attempt to earn rates of return that exceed the return of the market. Mutual funds managed based on a person's anticipated year of retirement.

Passively managed funds designed to mimic a specific market.

Nedra uses her debit card on a daily basis. The last time she used it was the evening before at a restaurant. This morning, she noticed that the card was missing. How long does she have to report the card as lost to have 100% protection against fraudulent use? She has 2 days from the date of the last authorized use. She has 30 days from the date of the last authorized use. She has 2 days from the date she determined the card was lost. She must report the card immediately before any unauthorized withdrawals are made.

She must report the card immediately before any unauthorized withdrawals are made.

Diversification refers to: Allocating your money among stocks and bonds from firms operating in a single industry. Spreading your money among a small number of investments in hopes of maximizing the returns of those with high returns. Spreading your money among various investments to reduce the impact of losses on a few investments. Allocating your money among stocks, bonds, and commodities in a strategic way to anticipate changes in the markets.

Spreading your money among various investments to reduce the impact of losses on a few investments.

What should installment loan lenders disclose to credit applicants? The interest rate expressed as an annual percentage rate (APR), only. The finance charge expressed in dollars, only. The interest rate (as an APR) and the finance charge (in dollars). Neither the interest rate (as an APR) nor the finance charge (in dollars).

The interest rate (as an APR) and the finance charge (in dollars).

The FICO score has been the standard model for developing credit scores for many years; however, new credit-scoring models are being developed. In relation to this, which of the following statements is true?Multiple credit-scoring models make it much more difficult to improve credit scores.The same good credit behaviors, such as on-time payments and low debt-to-credit ratios, will lead to good credit scores regardless of the credit-scoring model.Multiple credit-scoring models make it more difficult for individuals that have never had credit to receive a loan for the first time.Because of multiple credit-scoring models, consumers have a difficult time knowing which behaviors matter most when trying to improve credit scores.

The same good credit behaviors, such as on-time payments and low debt-to-credit ratios, will lead to good credit scores regardless of the credit-scoring model.

The three primary national credit bureaus are: TransUnion, Equifax, and Experian. Experian, Sallie Mae, and TransUnion. Fair Isaac, Equifax, and Experian. FICO, Equifax, and Sallie Mae.

TransUnion, Equifax, and Experian.

Which of the following statements is true regarding credit cards? If you pay off a credit card balance early, you will pay a penalty APR. You may not pay off a credit card balance unless you receive approval from the credit card company. You must make more than the monthly minimum payment to pay off a credit card balance over a short period of time. You may pay off a credit card balance at any time without penalty.

You may pay off a credit card balance at any time without penalty.

What will likely happen if Terry Ann fails to make a payment on her secured credit card? The bank or credit union will deduct any fees directly from Terry Ann's account. The bank or credit union will deduct the payment directly from Terry Ann's account. All of the answer choices are correct. The bank or credit union may cancel the card.

all

How does risk affect insurance premiums? As risk increases premiums increase. Risk doesn't affect premiums. As risk decreases premiums increase. As risk increases premiums decrease.

as risk increases, premiums increase

Which of the following refers to the person who receives the policy death benefit when the insured dies? Policy owner. Insured. Beneficiary. Insurable interest.

beneficiary

Rodriguez would like to start his own business making jewelry. If he opens his business as a sole proprietor, in which of the following events would he be personally liable?If a customer lost a ring that he made.If a customer sued him for using lead in a child's ring.If his jewelry company failed to pay a debt.Both if a customer sued him for using lead in a child's ring and if his jewelry company failed to pay a debt.

both if a customer sued him for using lead in a child's ring and if his jewelry company failed to pay a debt

Which is the most liquid asset? Savings in a bank account. Investments in bonds. Money held in stocks. Cash in your wallet.

cash in your wallet

Which of the following refers to a legal structure that is separate from the owners of the business? Corporation. General partnership. Limited partnership. Sole proprietorship.

corporation

Which of the following negative financial behaviors will stay on your credit report the longest? Skipping payments to a merchant. Being turned down for credit. Declaring bankruptcy. Making late payments on a credit card.

declaring bankruptcy

The amount you must pay before your insurance company makes a payment on a claim is called the: deductible. loss waiver. collision waiver. premium.

deductible

The number-one determinant of someone's health is _____________________, followed by _____________. health behavior; genetic disposition. genetic disposition; medical care. social circumstances; environmental exposures. medical care; health behavior.

health behavior; genetic disposition

One purpose of a budget is to: see how money is spent, track changes in asset values, and identify changes in liabilities. determine increases and decreases in liabilities. track the change in value of assets. help you see where you are spending money on a regular basis.

help you see where you are spending money on a regular basis

Volatility refers to: the maximum expected loss someone can expect over time. how wildly returns fluctuate over time. how liquid an investment becomes over time. the degree to which purchasing power is lost due to inflation.

how wildly returns fluctuate over time.

Jorge opened a no-cost checking account at a local bank last month. He was surprised when he was charged several service fees. Under federal law, which of the following service fees is allowed in a no-cost checking account? Withdrawal fee. Inactive account fee. Service charge for excessive transactions. Money transfer fee.

inactive account fee

All of the following are examples of earned income except:interest received from a savings account. a year-end bonus received from an employer. wages from a job. commissions earned on the sale of product or services.

interest received from a savings account

Someone who takes risks with his/her money by buying assets or shares in a company in hopes of receiving unearned income in the form of dividends is called a(n): investor. banker. lender. borrower

investor

Which of the following shields the personal assets of the owner(s) from the liabilities of the business? Limited partnership. Limited liability partnership. General partnership. Limited liability company.

limited liability company

A mutual fund's expense ratio is a: back end sales load paid when a mutual fund is sold measurement of the total management fees and expenses charged to the mutual fund quarterly. one-time commission paid to an investment salesperson when the mutual fund is purchased or sold. measure of the total management fees and expenses charged to the mutual fund annually.

measure of the total management fees and expenses charged to the mutual fund annually.

TVM calculations should be used when the following three things are part of a financial goal. Risk, money, and insurance. Money, time, and interest. Human capital, social capital, and budgeting. Risk preference, risk tolerance, and budgeting.

money, time, interest

Financial educators often recommend that individuals should: Plan to use government benefits as an important source of income prior to retirement. Plan to use government benefits as an emergency source of income. Never accept government benefits. Both plan to use government benefits as an important source of income prior to retirement and plan to use government benefits as an emergency source of income are correct.

plan to use government benefits as an emergency source of income

Which of the following terms best represents the amount of money that is borrowed, and which must be repaid? Promotional fee. Loan repayment cost. Principal. Interest.

principal

A deficit in a budget means you are: earning more than you are spending. saving more than what you are spending. saving more than what you are earning. spending more than you are earning.

spending more than you are earning

Which of the following refers to ownership in a company? Individual retirement account (IRA). Certificate of deposit. Stock. Bond.

stock

Which of the following statements regarding term-life insurance is INCORRECT? Level term is purchased for periods ranging from 5 to 30 or more years. Term-life insurance is much less expensive than cash-value life insurance. Term-life insurance is intended to provide lifetime insurance protection. Annual renewable term needs to be purchased yearly.

term-life insurance is intended to provide lifetime insurance protection

If Nicole buys health insurance, she is effectively: retaining the costs associated with health risks. avoiding the fact that she might become ill in the future. transferring the risk of high health-related expenses to an insurance company. accepting the risks associated with major medical expenses.

transferring the risk of high health-related expenses to an insurance company

Which of the following insurance products allows for investments in mutual funds and the possibility to skip future premium payments? Variable universal life insurance. Whole life insurance. Variable life insurance. Universal life insurance.

variable universal life insurance

All of the following statements regarding credit inquiries are true, except: hard credit inquiries generally have a negative impact on credit scores, but soft credit inquiries generally have no effect. soft credit inquiries generally do not affect credit scores. when an individual requests his or her own credit report, it is considered a hard inquiry. hard credit inquiries generally have a negative impact on credit scores.

when an individual requests his or her own credit report, it is considered a hard inquiry.