Final Exam

Karim wants to purchase a home similar to an apartment that provides the use of facilities such as a swimming pool, tennis courts, and workout area. He does not want to be responsible for taking care of the lawn, gardens, or maintaining the structure. What can he purchase?

A condominium

Roy and Larissa examine the different types of mortgages available to them. They want to finance their home mortgage for 30 years and prefer having the same payment amount every month so they can plan their long-term budget. What type of mortgage would be best for Roy and Larissa?

Fixed rate mortgage

Medication's that have the same composition as their namebrand counterparts, but are less expensive, are known as _________________.

Generic drugs

Shayna and Thaddeus are leasing a home. Because they do not own the home, they did not purchase insurance. One day their neighbors child fell down the stairs to their basement, broke his arm, and severely cut his head. They are responsible for the child's medical care, but they have no insurance to cover these expenses. What type of insurance should they have purchased for such emergencies?

Renter's insurance

Lucas and you'll have a down payment for a home and have found a home they want to purchase. Which type of financial institution specializes in lending money to consumers to buy homes?

Savings and loan associations

Something one hopes to achieve within the next year is a ___________.

Short term goals

True or False: No one does everything well

True

Yesterday Lorena's neighbor, Debi, told her about the wonderful vacuum cleaner she had purchased from their mutual friend, Don. Lorena called Don and asked if he would come to her house and demonstrate the vacuum cleaner to her. Lorena was so impressed with the vacuum cleaner's versatility and ease of use that she immediately purchased it. She signed the sales contract in her home and agreed to pay for the vacuum cleaner using her credit car. Gary, Lorena's husband, was furious because he felt the vacuum cleaner was just too expensive! So, the next day Lorena called Don and asked him to cancel the agreement. Don was obligated to follow Lorena's wishes according to ________________________.

cooling-off period

Erin lives where the weather is hot and humid. She has a busy schedule that does not give her time to hand wash her clothing, and she can't afford the cost of dry cleaning. What fiber would best suit her needs?

cotton

A person who fills prescriptions for eyewear is an _____________.

optician

A tax on imported goods is a __________________.

tariff

Gabe is a high school senior who has decided to make some decisions about his future. He makes a list of the things he hopes to accomplish in the next ten years. It includes (1) attending a technical school to learn welding, (2) purchasing a used car, (3) getting married, and (4) buying a home. Which of these things are his life-span goals?

1, 3, & 4

A company that specializes in helping people buy or sell stocks and bonds is ___________.

A brokerage firm

Marlon has accumulated $500 in his savings account: however, he is earning only 2.25% simple interest on his savings. He would like to take all or part of his savings and invest in some type of account that would pay him a higher interest rate. Given the amount he has to invest, which of the following would be his best choice?

A certificate of deposit

Under his health insurance plan, each time Elijah visits his doctor he pays $12 regardless of the cost of those services. This is called ________________.

A co-payment

Last year Pilar earned $32,200 before taxes working as a police officer. She also earn $9600 before taxes working part time on the weekends as a security guard. She had no other income during the year. The $41,800 she earned before taxes is known as her ____________ on her income tax return

Adjusted gross income

Which of the following are sources of credit cards? MasterCard, visa, American Express, or all of the above

All of the above

Although she earns a good salary, Susan frequently cannot pay all of her bills. Frustrated, she decides to predict and then record all of her income and spending for one month. This is known as creating a ____________.

Budget worksheet

Which of the following would be considered a life-span goal? A) renting an apartment B) learning to play an interactive video game C) earning a college degree D) buying a new clothing for school

C) earning a college degree

Each month hope receives from her bank her bank statement and the checks that have cleared her checking account in that month. Each of these checks has been stand to show that her bank has paid the check. What are these checks called?

Canceled

A bank's own personal checks signed by a bank employee is a __________.

Cashiers check

Financial institutions that offer memberships to people who share a common bond, such as people in a particular profession, company, or labor union are ________________

Credit unions

Taylor works as a real estate agent and is an extremely busy Young woman. With her schedule it is almost impossible for her to go to her bank to do her banking business. What service can she arrange with her employer and her bank to have her paycheck deposited into her account each Pay period?

Direct deposit

Buildings with rooms that colleges rent to students, usually in large complexes, are _____________.

Dormitories

For five years Saleem and Tanesha have been paying on their home mortgage. Currently, they owe $75,000: however, the current market value of their home is $83,000. The difference between what their home is worth and what they owe on their mortgage is known as ______________.

Equity

True or False: A higher price means that a product has better quality

False

True or False: Both an arbitrator and a mediator have the power to make a decision

False

True or False: Businesses are required by law to supply consumers with accurate information about their products and those of competitors.

False

True or False: More than two-thirds of new cars driven in the U.S. today are leased

False

True or False: Most young people do not qualify to use the simplest of the income tax forms, 1040EZ

False

True or False: When considering an offer on a new car, it is financially better for the buyer to stay close to the invoice.

False

True or False: Your driving record cannot affect your premiums as long as you don't have any accidents

False

True or False: permanent life insurance provides a death benefit but no savings plan

False

True or False: the more often interest is compounded, the less interest you make.

False

By January 31 each year every U.S. employer must provide each of its employees with a summary of his or her earnings and withholdings. Employees then use and enclose a copy of this for with their tax forms in reporting their individual taxes. This form is know as ______________.

Form W-2

The time between billing date and the payment due date, when no interest is charged is the _______________.

Grace period

Octavio often travels on business. While he is traveling he does not like to carry a large amount of cash with him and worries that a store might not take his personal check. What could he use that would provide electronic access to his checking account to make payments at stores, restaurants, etc., by immediately transferring funds from his account to the stores account?

His debit card

Jade received a substantial bonus from her employer at the end of the year. She would like to place her bonus in a U.S. government bond that protects her investment from inflation. Which of the following would be the correct choice?

I savings bonds

On money loaned, banks charge _________.

More interest than what they pay on amounts in savings accounts

Kirk recently opened a checking account with a local bank. The first check he wrote was to Best Buy food Mart for groceries and miscellaneous items in the amount of $43.75. Since Best Buy is the business to watch Kirk wrote the check, Best Buy is considered to be the __________.

Payee

Neil works as a waiter and receives $150 a week in gross income. He earns approximately another $100 a week in tips his combined pretax income is, therefore, $13,000. After exemptions and deductions the figure he uses to calculate his taxes is $5550. This figure is known as neils _________.

Taxable income

Kaley has joined an investment club. The other members of the club have asked her to obtain information on a specific mutual fund. She will need to know how the fund is operated; the funds investing objectives and strategies; in the fees that it charges. What publication will provide her with that information?

The fund's prospectus

Muong is about to graduate from high school. He plans to attend community college in the fall. To help him with some of his expenses, many of his relatives are giving him cash as a graduation present. His aunt, however, I gave him a check for $200. Since Muong Does not have a checking account he will give the check to his mother, Faye, to cash. On the back of the check he signed his name: immediately under his signature he reads, "pay to the order of Fay Nguyen." This type of check is known as ____________.

Third-party check

Which of the following are checks for what you pay in advance and, if they are lost or stolen the company from what you bought these checks will replace them?

Travelers checks

Sports equipment should be bought with a level of quality that matches your level of skill and/or interest

True

T or F: A successful budget requires accurate record keeping

True

T or F: ATM machines enable you to receive a cash advance and add it to your credit card bill

True

T or F: Fixed expenses are the amounts you have already committed to spend

True

T or F: The goals you set affect your family, future family, and community

True

T or F: When first employed, many young people make the mistake of trying to buy too many luxury items

True

True or False: A credit union is a financial institution that serves individuals and businesses with variety of accounts, loans, and other financial services

True

True or False: A follow-up letter should be sent to the employer after an interview

True

True or False: A popular way to transfer money electronically is through an automated teller machine

True

True or False: Fraudulent claims increase the costs of providing insurance protection

True

True or False: High risk vehicles have high insurance premiums

True

True or False: It is preferable that you call the police to investigate any automobile accident in which you are involved

True

True or False: Lawyers who charge a flat rate can give you their price during the first during the first appointment

True

True or False: Many laws have been passed to discourage businesses from polluting the environment

True

True or False: Money Market accounts pay higher interest rates than regular savings accounts do.

True

True or False: Most of the information you need to make rational food decisions is on nutrition labels

True

True or False: One way to eliminate the danger pf salmonella is to bombard food with radiation

True

True or False: Recent surveys show that more than half of all U.S. teenagers think they weigh too much.

True

True or False: Service industries provide services as their product instead of a physical product

True

True or False: The Right to Choose promises consumers that there will be competition

True

True or False: The WIC program provides nutrition education and food for women and young children

True

True or False: The difference in the interest charged by banks on loans and the interest paid on money deposited is the banks income

True

True or False: When you save, you trade spending now for the ability to spend in the future

True

True or False: Your car owner's manual tells you how to operate controls and care for your car

True

True or False: open enrollment means that during a specified time each year, employees may sign up for the employer sponsored health insurance plan

True

Which of the following is not normally part of a basic health insurance plan? Hospitalization, inpatient surgery, vision care, or x-rays

Vision care

Bert is a 25-year-old male who recently lost his job after he was blinded in an accident. What federal program is he qualified for because of his disability and low income?

WIC

The amount of time that a policyholder must wait in order to try treatment for a pre-existing condition treated is the ________________.

Waiting period

Mark has finished his course work at a technical college and is prepared to look for work as a computer maintenance technician. He found a newspaper advertisement for a job for which he feels qualifies. The advertisment states: "Entry-level computer maintenance technician needed to start immediately; apply directly to Celia Navarro, P.O. Box 697, Nashville, Tennessee 45219." What should Mark do to apply? include a cover letter, send his resume, include a list of references, or all of the above.

all of the above

Noella uses her in-line skates to get to and from school. For safety reasons, what should Noella always wear when using these skates? helmet, elbow and knee pads, wrist guards, all of the above

all of the above

Safety equipment is needed when using _________________. bicycles, motorcycles, in-line skates, or all of the above.

all of the above

A written promise to pay a debt by specified date is called a __________.

bond

Binge eating followed by purging through vomiting or use of laxatives is _______________________.

bulimia

The cheapest method of transportation within a city is usually by ___________________.

bus

An economy in which the government tell you what to produce is a description of a ________________.

command economy

Advertisements that are intended to take advantage of consumers by including factually incorrect statements are ________________________.

deceptive advertising

Which of the following does not need to be included on a resume? education and training, ethnic heritage, work experience, or job qualifications

ethnic heritage

Taxes on the sale of tobacco, gasoline, and alcohol are __________.

excise taxes

True or False: The Consumer Bill of Rights was created by an act of congress

false

Brown's Camera Store ran an advertisement offering self-loading 35mm cameras for $49.95. After seeing the advertisement, Andy drover to Brown's intending to purchase the advertised camera. Once there, however, the salesperson told Andy that the advertised camera was out of stock and eventually convinced Andy to buy a more expensive model because the sale model was not really that good anyway. This advertising technique is known as _____________.

fraud

deliberate deception, designed to secure unfair or unlawful gain, is _______________.

fraud

The advertising that provides information that helps you make a good buying decision is called ______________.

informative advertising

Which of the following is the oldest known textile? cotton, wool, silk, or linen

linen

The town of Millwood is a community of 120,000 residents. Two newspapers exist in Millwood, The Millwood Times and The Millwood Post. Whenever new residents move to Millwood, The Millwood Times gives them a free six-month subscription. The owners of The Millwood Post can't afford to make this offer. They believe that The Millwood Times is using this practice to force them out of business. If The Millwood Times continues its practices, it could become a _______________.

monopoly

A specialist trained in the physical, emotional, and social health of children's from birth to young adulthood is a(n) ___________________.

pediatrician

After Dominic was involved in a motorcycle accident, the emergency room physician ordered a set of x-rays taken of his right leg and arm. What type of medical specialist will read and interpret these x-rays for the doctor?

radiologist

Used car parts that have been repaired or restored to working order yo be installed as replacements are _________________.

rebuilt parts

Banks provide a place for you to keep your non-cash items, also known as ____________.

safe deposit box

For average Americans, a car or truck is the ____________ purchase they make.

second most expensive

Which of these statements about member nations of the European Union (EU) is not true? - there are no tariffs on member's goods - they set the same tariff on imports from nonmember nations - they have agreed to cooperate on some political issues - they all use only the euro for currency

they all use only the euro for currency

Which of the following is not a common reason for a country to establish tariffs or quotas to limit its trade?

to reduce its national debt

True or False: An employee should always do the job tasks well even if he or she does not plan to stay with the company

true

True or False: As people pass through the stages in their life cycles they often change their goals

true

True or False: Most people begin their career by accepting an entry-level job within a company

true

True or False: The Equal Employment Opportunity Act of 1964 forbids discrimination by potential employers on the basis of race, age, color, relgion, sex, or national origin.

true

The government-sponsored insurance program designed to provide income for people who have lost their jobs through no fault of their own called _________________.

unemployment compensation