Finance 1907 Final Exam

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Most experts advise spending no more than how much of your after-tax income on rent?

33%

Credit report

A credit score is derived from information gathered from a what?

interest

Because the federal government wants taxpayers to own homes, the tax code allows homeowners to deduct what portion of their mortgage payment from their taxable income?

This card uses the same networks as credit cards. You may also find the VISA or MasterCard logo on most of them and you swipe them through the same machine at the store.

Debit Card

Dedictible

Each type of insurance has its own type of __________.

Preparing for a job interview is easy

FALSE

Business only spend money on things that make employees happy

False

Very few people have to take care of an aging parent.

False

What is the NCUA?

National Credit Union Administration

Excise taxes are usually paid on what?

Purchases

credit cards

The length of your older accounts is important. You should use your oldest what once in a while?

false

The less risk presented to the insurance company the higher the premium will be.

poor

The old argument that a tax refund is like having a built-in savings plan is a very __________ argument.

One thing a ____will do is show where the money is spent

budget sheet

Budgeting is a process but it is a very complicated one

false

Generally, anyone planning to replace their car every five years or less may be better off leasing lower-mileage used cars.

false

Money stuffed in a mattress is not subject to the time value of money.

false

your employer will move you along in your career

false

What is a tax from a state or city on the sales of a product or service, generally collected by the retailer?

sales tax

Saving is about how best to accomplish these kinds of goals.

short-term

Savings are used to achieve what?

short-term financial goals

planning

summarized in one word, how do you get the most out of your college education

Compounding is the power of the time value of money.

true

Credit and debt are two of the most crucial means available to achieve personal financial goals.

true

The three W's for career management

what, where, and who

yours

whos responsibility is it to get answers

budget

will show you how money move in and out of the household over a period of time

The average new car depreciates about _______ the very first year.

20%

Your retirement account sends out their annual statement and shows that you initially opened the account with a $5000 deposit. It's grown to $100,000. It also shows an average annual growth rate of 8%. If you're 62 years old now, when was the deposit first made?

38.93 years ago

By understanding taxes, we can begin to understand how much money we have to earn to purchases what we want after taxes have been applied. For example, if we know we are going to earn $100, and our tax rate is 37%, how much do we have left over to purchase what we want?

63

Durable

A __________ power of attorney gives an adult child the same decision making authority for all their parents' financial affairs as a health care proxy does for health care decisions.

cover letter

A good ____ should be brief and concise, and three paragraphs long at most

false

A good way for people to save on insurance is to buy insurance for items they can afford to pay for out of their own pockets.

credit / deduction

A tax _______ is a dollar-for-dollar reduction in tax expense while a tax _________ only reduces the tax expense by the filer's marginal tax bracket.

Joint will

A will that couples can create that stays in place, even after the first person dies, is referred to as what?

To protect children from financial failure parents should do what?

Allow their children to sit with them when they negotiate a car purchase Allow them to know if there is a financial problem in the household and what that will mean to the children Give their child an allowance Establish a will

congress

Although the Internal Revenue Service (IRS) is the federal agency tasked with enforcing the tax code, who is responsible for writing the tax code?

This is a member organization dedicated to helping people aged 50 and older. They focus on all aspects of life for their members, including advocacy in areas, such as Social Security and health care.

American Association of Retired Persons (AARP)

This is the term for fees charged each year that includes management, administrative and 12b-1 costs.

Annual fees

marginal

Any wage earner in the 25% federal marginal tax bracket gets to keep 75 cents of every __________ dollar earned.

True

Anyone can choose not to engage in speculative risk and so it can be avoided.

Interest bearing checking accounts:

Are just like regular checking accounts but they pay interest and may require a minimum balance or they will charge a fee

CareerBuilder.com

As one of the top-visited job search sites in the United States. This website has millions of visitors each month. It powers the career sites of more than 1,000 partners, including 340 newspapers

Expenses

As you become more experienced with your budget, you can begin to set aside money for unanticipated and non monthly

Receiving direct deposit, average daily balance, basic checking, and avoiding ATM fees are all ways to what?

Avoid Checking account fees

This is the legal status granted by a state or federal court when an individual is unable to pay their outstanding dept

Bankruptcy

If you are not yet married, but planning to get married in the near future, when should you begin setting financial goals?

Before the marriage begins

-----

Between your ____ and your network you should not lack for someone to turn for advice of help

loss

Both factors (ability to repay your loan and willingness to use your resources) are important to a lender because money you do not pay back results in a ____ for them.

What is the term for not having enough money in your account to cover the check? It is not only illegal, but it is also costly. Almost all banks and merchants charge a fee when this happens, usually around $35 per occurrence.

Bounced check

shifting

By transferring the financial consequences of risk to another individual or entity, you are managing risk by this method.

as-is

Cars can be sold '__________,' where there is no express or implied warranty.

Being charged for a __________ account is like having a wallet that charges every time it is opened.

Checking

Some banks offer this basic kind of account that pays no interest but requires no minimum balance.

Checking

What account it not a good idea to keep all of your money for savings?

Checking Accounts

To avoid paying a 10% penalty from a retirement plan people should:

Choose a Roth IRA and only withdraw what they have invested

The steps to resolution of product defects or poor service include:

Contacting the company Reporting lack of satisfactory company response to one of the consumer protection agencies Utilizing mediation or arbitration if available Filing a lawsuit

These financial institutions tend to be less expensive, pay higher interest rates on deposits, and charge lower interest rates on loans. These are three reasons for selecting what type of financial entity?

Credit Unions

Goals

Credit and debt are two of the most crucial means available to achieve personal financial __________.

When using websites for researching the price of a new car, people should be looking for:

Dealer incentives Destination charges Holdbacks

What is the electronic use of money between individuals or between an individual and business that functions like cash without the physical use of the money?

Digital Cash

Most credit unions and many banks offer free checking, especially if you use ________. Being charged for a checking account is like paying rent for your wallet.

Direct deposit

pre-tax

Disability insurance purchased through an employer may allow the premium to be paid in __________ dollars.

To avoid spending more than necessary, while maintaining safety with paper checks, you should do what?

Do not purchase checks from the bank Use carbon checks Avoid custom checks Use a register

What investment option is a managed group of stocks that tracks a particular index, industry, or sector?

ETFs

What should you establish as a good first savings goal?

Emergency Fund

Underwriting

Evaluating how risky you are as a borrower, deciding if, and how much, they will lend the borrower, and determine the interest rate; this is the process lending institutions go through when they are doing what?

risk

Eventually some potential borrowers can get to the point that they present so much ____ that no lender will loan them anything at all.

true

Everybody from advice columnists to counseling experts offer advice on how not to argue about money.

This term is the person designated by the testator to carry out the terms of the will, such as distributing property.

Executor

A will cannot be changed once it is written.

False

All laws, rules, and regulations vary from state to state, but marriage never affords "next-of-kin" status to each spouse.

False

Although it is important to talk about money with your children, it is not important to talk to your parents about money.

False

Banks generally don't charge a fee if the account balance falls below a certain minimum amount any time during the month.

False

Fortunately, money never escalates a conversation into a shouting and yelling match.

False

How to protect loved ones at retirement and death should never be addressed in wills and personal contracts.

False

Long time horizons eliminate the luxury of high investment returns.

False

Parents may pay an unlimited amount for medical or educational expenses for their adult children whether paid to the child or the provider so long as there are receipts.

False

The bottom 10% of U.S. wage earners carries almost 70% of the U.S. tax burden.

False

The old argument that a tax refund is like having a built-in savings plan is a very good argument as there is no better ways to save.

False

The type of investment selected does not need to be linked to time horizon of the financial goal.

False

To decide whether to be saving or investing, simply look at whether it is a bank or a credit union.

False

When saving, money should be kept in a checking account so that it can be easily accessed for its intended purpose.

False

What is the FDIC?

Federal Deposit Insurance Corporation

When it come to taxes; single, head household, married filing jointly, married filing separately, and qualifying widow(er) with dependent child are all a type of what?

Filling Status

spend

Financial success is not about how much people make but how much you spend

invitable

Fires, robberies, windstorms, and diseases are all examples of what?

Financial Services

For many people, traditional banks, such as Citibank or Bank of America, and smaller community banks offer all the __________ that they will need.

To accelerate debt elimination a person could:

Get a part-time job Clip coupons Use tax refunds and pay raises or bonuses towards their first debt Sell their personal belongings they no longer need on Craigslist or eBay

Robert is down on his luck and asks Mae for a $20,000 loan. Mae is quite wealthy and decides to give Robert the $20,000 as a gift rather than a loan. Unfortunately, the amount of the gift is more than the allowable deduction and Mae will be taxed on a portion of the $20,000 that she gives to Robert. On what is Mae being taxed?

Her wealth

When it comes to your spending you need to know two things:

How to live within your means The 'true' cost of your purchases

sellers market

If the average time for a house on the market is less than six months you are probably in what type of market?

Double check Attachment

If you are submitting documents via e-mail, after you confirm attaching the correct file, what should be your final step

Credit card

If you don't have a ______ you should get one. Just make sure you understand how to use them properly first.

answers

If you dont know how something works on campus what should you go find

Multiple-Policy Discount

If you have homeowner's insurance and car insurance with the same company, you should consider requesting a what?

bottom line

If you really want to impress your boss, try acting more like an owner than an employee. One way is to look for any other way you can help increase the

raise

In the long run, proving you can handle different types of credit will ultimately do what to your score and will establish you as a less risky consumer?

An owner

Instead of acting like an employer to impress your boss what should you start acting like that will force you to take more initiative

use

Insurance is one of the few things you will buy and hope to never what?

This federal agency is even powerful enough that they can garnish wages and seize the bank accounts, retirement accounts, house, car, or boat of someone who owes taxes, and sell the property to satisfy their tax debt.

Internal Revenue Service (IRS)

The term for a person who died without having a will.

Interstate

False

Investing in a single asset is taking necessary risk and is compensated by the financial markets.

Ira needs to replace his car. It is nine years old with 168,000 miles on it. The maintenance and repair costs are now as much as a monthly car payment. Ira visited several local car dealerships and each has told him he qualifies for $27,500 car. Should Ira shop for cars at this price since more than one dealership told Ira he can afford a car in this price range?

Ira should review his budget first to determine how much car he can afford

This type of trust cannot be changed or canceled. Because of its permanency, it offers additional tax advantages and is often used for the elderly to transfer property before applying for Medicaid benefits.

Irrevocable trust

Double check

It doesn't take that much work to be really exceptional. Always make sure to do this to your work

When financially planning for taxes, one's primary goal should be to what?

Legally minimize their tax liability

Income

Lenders want to make sure you have the ability to pay back your loan. You may be the most honest person on the planet, have every intention of repaying your loan, and can demonstrate your honesty to the lender. However, if you have no ______, then no lender will lend you money.

In finances, _______ refers to the ability to easily access cash or easily convert an asset to cash.

Liquid

What is the term for an insurance coverage that provides for nursing home, in-home care, and personal or adult day care services for individuals, usually above the age of 65, with chronic illness or disability?

Long term care insurance

Which features generally refer to a credit union when compared to a bank?

Lower fees

During this type of warranty coverage, the owner can take the vehicle to any authorized dealer service center and have repairs made without cost.

Manufacturer warranty

What is the rate of tax placed on each additional dollar of income?

Marginal Tax

What is an index that measures the value of a section of the stock market based on the weighted average of the aggregate values of all the stocks tracked by the particular index?

Market index

As soon as children start learning to say please and thank you, they can begin to learn about __________.

Money

This term is a savings account that generally pays higher interest than a standard savings account and has a higher minimum balance requirement.

Money market account

The key when making a vehicle purchase is not to allow a salesperson to talk you into a what?

More expensive car than you can afford

financial

More recently, however, many other industries have discovered that people with messy _______ lives, as indicated by a poor credit score, tend to lead messy lives. Think of it from the employer's standpoint. If you can't take care of your own money, how can you take care of theirs?

When it comes time to file taxes a person's goal should be to what

Neither owe money nor receive a large refund

risky

Not all debt is bad. However, because economic conditions can change and there is potential for default, all debt is what?

This term describes a medical facility that includes skilled health care, rehabilitation services, and person care 24 hours per day.

Nursing home facility

Lease

Once you settle on a new apartment, it's time to read the extremely long and complex document called the what?

What is the key to teaching your children to be comfortable with money?

Open and Honest Communication

What is a financial product that gives the owner the right, but not the obligation, to buy or sell an underlying security at a set price within a certain time period, regardless of the current market price?

Options

Just as it is important to talk about money with children, it is also very important to talk to __________ about money.

Parents

To improve their credit score people should:

Pay their bills on time Pay down their debt Get a credit card if they do not have one Avoid closing unused credit card accounts

Using the envelope system for budgeting means

People can easier control their spending since they can watch the money danish

Illness

People use insurance to help protect themselves, and the people they care about, from financial loss due to disability, legal liability, property loss, and what other scenario?

What is a tax levied on an individual's personal property by the county or state in which they reside?

Personal Property Tax

Lifestyle forces

Personal finance situations are influenced by variables that lead us to have our own individual goals. These variables are referred to what

In all personal financial decisions, it is a good idea for a person to remember his or her money __________.

Personality

What allows you to designate someone to handle your medical, legal, and financial affairs, using their own judgment?

Power of attorney

What is an agreement that a couple can enter into before getting married, with the purpose to designate ownership of certain assets that will not be divided in the event of a divorce?

Prenuptial Agreement

What is the term for a contractual agreement made by a couple before their marriage in regard to ownership of assets should the marriage dissolve?

Prenuptial Agreement

What is an agreement that a couple can enter into before getting married, with the purpose to designate ownership of certain assets that will not be divided in the event of a divorce?

Prenuptial agreement

Downloadable from the mutual fund's website, what is the term for a document or sales booklet that outlines the fund's objectives, investment strategies, and fees?

Prospectus

When it comes to taxes, the five filing statuses identified by the IRS are single, head household, married filing jointly, married filing separately, and what final filing status?

Qualifying Widow(er) with Dependent Child

What is gain or loss calculated as a percent of original value of an investment beyond the original value of the investment?

Rate of return

The main reason to understand the impact of taxes is to what?

Reach one's financial goals in as short a time as possible

Any time a major life event occurs, a review of your tax situation is in order to avoid the "April 15th surprise." A major life event includes: graduation, marriage, divorce, having a baby, adopting a child, significantly reducing or increasing your income, changing jobs, and what other major life event?

Receiving an Inheritance

Cover letter

Sending just a resume without this when applying for a job makes it likely that the application will be ignored, set aside, or trashed.

Most legally acceptable wills are typewritten (not hand-written), signed by a witness, and what final criteria?

Signed by the person designating their wishes

These funds try to invest in companies that will not cause harm to humans, animals, or the environment.

Socially Responsible Funds

-less/less -more/more

The _______ risk a people present to an insurance company the ______ they will pay for insurance coverage.

Before you step onto a car lot, it's important to determine the real value of the car and what else?

The cost for you to finance and insure the vehicle

Time

The four W's in your job search are relatively easy questions to ask, take this to answer

mortgages

There are three types of __________: fixed-rate, adjustable-rate, and hybrid.

term

There are two basic types of life insurance: __________ and cash value.

Money

There can be a lot of emotional energy in a __________ conversation.

What happens when a person uses a debit card?

They are only using money they have already earned

Level Term Policy

This term describes an insurance premium staying the same amount, not increasing as you get older, throughout the life of the coverage.

probate

This term describes the court process where a will is validated or invalidated.

tax avoidance

This term is certainly legal and is nothing more than utilizing all legitimate and legal methods to reduce your tax obligation to your fair share.

What term describes when an account transfers the assets in the investment account to the designated beneficiary upon your death?

Transfer-on-Death accounts

Any time a major life event occurs a review of one's tax situation is in order to avoid an ÒApril 15th Surprise.Ó

True

Because the value of a new car is higher than its used counterpart, the depreciation is greater in the first few years.

True

Defined benefit retirement plans are virtually extinct in all but some public sector jobs.

True

Excise taxes are very similar to sales taxes but are designated for certain products or industries.

True

Investing in a single asset is taking unnecessary risk; risk that will not be compensated by the financial markets.

True

Just about everything earned, used, spent or done is subject to a tax of some type.

True

One of the easiest ways to begin saving is by setting aside a small amount of each paycheck into some type of savings account each pay period or month.

True

Since taxes are infused into almost everything most people do it is important to understand what effect they have on everyday purchases and decisions.

True

Tax evasion means not paying all taxes that are legally owed, such as not reporting all income or making false claims for ineligible credits or deductions.

True

The first place most people turn to for a loan is a bank or a credit union.

True

There are differences in how each person approaches money.

True

There are so many different types of taxes and so many rules involved that even experienced tax professionals do not know it all.

True

There is not set number of checking accounts that will work for every couple.

True

Understanding the affect taxes have on purchasing decisions is crucial to reaching personal financial goals in as short a time as possible.

True

affect

Understanding the __________ taxes have on purchasing decisions is crucial to reaching personal financial goals in as short a time as possible.

The term for a mortgage loan that is guaranteed by the Department of Veteran's Affairs for active duty military, veterans, and reservists to buy a home.

Veteran's Administration (VA) Loan

Financial

We face many risks. Not fully inclusive, the list includes: disability, illness, death, identity theft, property, liability, and what other form of risk?

Estate planning

What concept is about properly managing your assets while you are alive and transferring them upon your death?

accountant

What do you call a person with a Certified Public Accountancy designation who prepares financial and tax documents, or inspects financial accounts of businesses or individuals?

insurance

What form of protection can help someone, and the people they care about, from financial loss due to disability, illness, legal liability, and property loss?

debt

What helps an economy grow as consumers can spend money on large purchases that keep businesses running and that allows businesses to expand operations to build more items that consumers will buy?

A trust

What is a legal entity where you (the grantor) can transfer ownership of your assets to your beneficiaries?

"Closed-end" credit

What is a loan that is usually attached to a specific item purchased, but is offered by either a retail store or a third-party finance company where you simply borrow a fixed amount that you repay over a specified period of time?

Estate Tax

What is a tax levied on the net value of the estate of a deceased person before distribution to the heirs?

risk

What is it that almost all lenders evaluate of anyone applying for a loan?

Pre-appoval

What is the name of the process potential borrowers go through which includes a mortgage application, a credit check, and a detailed financial check by the lender?

1-2 pages

What is the recommended length of your resume

income tax

What is the tax levied by a government directly on income, especially an annual tax on personal income?

American Opportunity Credit

What is the term for a partially refundable tax credit for qualified education expenses with a maximum of $2,500 during the first four years of postsecondary education for an eligible student?

Tax Bracket

What is the term for a range of income taxed at a particular rate?

Living will

What is the term for a written statement in which a person expresses their desires for medical treatment when they are incapacitated and no longer able to express informed consent?

Letter of last instruction

What is the term for an informal letter providing extra instructions on the details of a will or regarding issues outside of the will?

Annual Percentage Rate (APR)

What is the term for an interest rate stated on an annual basis which may include fees such as loan origination fees?

disposable income

What is the term for the amount of income left after paying all income taxes and other mandatory expenses, such as housing expenses, transportation expenses, and insurance expenses?

Credit

What is the term that allows people to buy things now instead of having to wait until they have saved enough cash to pay for them?

StartJobs.net

What job site has jobs posted by state and country to quickly see what is available in a particular geographical area? You can also select by college or university. Which will list jobs in or around the city or town where the college is located.

seek assistance

What should you do immediately if you start to get into trouble with your credit cards?

Leadership

What skills are very important to employer in every field? You have a great opportunity to gain experience building these skills while you are in college.

Communication

What skills include both writing and speaking

Federal Estate Tax

What tax is the tax the government charges for your right to transfer your property upon your death?

Living will

What term gives you the same decision-making authority for all your parents' financial affairs, as a healthcare proxy does for healthcare decisions?

Estate planning

What term refers to your ability to make sure your heirs get the maximum use of your assets throughout your lifetime and upon your death?

Fee

What will a broker charge every time you buy or sell a stock, bond, or mutual fund?

the three "W's" for career planning are

Who, what, and why

speculative

With __________ risk there is a chance of loss, but there is also a chance of significant gain.

In real life, time is usually expressed in something other than years, such as quarters, months, weeks, or even days. However, what are rates typically expressed in?

Years (annually)

credit report

Your credit score is derived from information gathered from your what?

renting

__________ offers several advantages over buying a home.

payday

___________ loans are some of the most dangerous and expensive loans available.

Any time a major life event occurs, a review of your tax situation is in order to avoid the "April 15th surprise." A major life event includes: graduation, marriage, divorce, having a baby, significantly reducing or increasing your income, receiving an inheritance, changing jobs, and what other major life event?

adopting a child

The primary __________ of buying a new car is lower maintenance costs and peace of mind.

advantage

A home is both a place to live and what else?

an investment

The future value of a(n) __________ calculates how much a regular series of payments will be worth at some point in the future.

annunity

The present value of what kind of time value of money problem or question allows easy calculation of what a series of regular payments to be received in the future is worth today?

annunity

This is simply the same amount of money invested or paid on a regular schedule, such as weekly, monthly, or annually.

annunity

How long to finance a car is a(n) __________ between needs and the ability to afford the monthly payments.

balence

What is the key to debt and debt levels so you do not put your personal finances at too much risk?

balence

The ease of __________ provided by credit cards makes it very easy to overspend.

borrowing

A good apartment or rented home is one that fits in the __________ ,permits saving toward other financial goals (such as homeownership), and suits individual lifestyles.

budget

A large tax bill can be very damaging to the

budget

By creating one of these forms, you can begin to enjoy your life and your money

budget

Reviewing and updating this each month helps almost everyone become much more aware of where their money goes`

budget sheet

If your income exceeds you are in a

budget surplus

You will use time value of money to make decision such as to purchase a house, decide where to save or invest your money, and to what?

buy a car

budget

changes on a net worth statement are directly affected by changes on the corresponding what

When you receive one of these, you must endorse it by signing your name on the back so that you can deposit it into your account.

check

What is a tax credit given for each dependent child under 17 years of age at the end of the tax year?

child tax credit

The Bureau of Consumer Protection protects consumers​ by:

collecting consumer​ complaints, investigating consumer​ complaints, and sharing information with law enforcement agencies. B. suing on behalf of consumers any company or individuals that break consumer laws or regulations. C. developing and overseeing regulations aimed at maintaining a fair marketplace. D. educating consumers about their rights and businesses about their responsibilities.

While there are literally thousands of investment options to choose from, most of them are very __________.

complicated complex convoluted confusin

The power of __________ is how a small amount of money, such as a one-time deposit of $2,500, grows into a million dollars.

compounding

When given an annual rate, what should you divide by?

compounding frequency

As you start the car buying process, where is it recommend you begin in order to get an unbiased review of the vehicle you are interested in purchasing?

consumer product

A tax __________ reduces taxes owed dollar for dollar.

credit

Before beginning to search for car loans it is a good idea for people to review their __________.

credit report

You should have any mistakes on your what fixed before searching for loans, or they could keep you from being qualified for the loan?

credit report

When purchasing a car, who will try to mix the new car price, trade-in value, and financing such that it is difficult to tell what is the actual sales price of the car?

dealer

Normally a __________ card is linked to a checking account, but it can be linked to a savings account or money market account as well.

debit

There is a big difference between this card and a credit card.

debit

What is normally linked to a checking account, but it can also be linked to a savings account or money market account as well?

debit card

Sticking to a budget can be ______ because it does not simply involve numbers

difficult

For many years, the only way to transfer money was by cash or check. What do we have now which enables you to split a restaurant bill with friends, reimburse your buddy for the concert tickets, or sell your old baseball card collection online.

digital cash transfer app

What is the term for the amount of income left after paying all income taxes and other mandatory expenses, such as housing expenses, transportation expenses, and insurance expenses?

disposable income

When purchasing that new vehicle, the dealer will work tirelessly to get you to make a decision based on your what instead of what is in your best interest?

ego

A basic understanding of how insurance companies work is not important in understanding how to successfully reduce insurance costs while maximizing protection.

false

A career elevator speech is a 20-30 minute summary of who someone is and what they are looking to do

false

A defined benefit retirement plan is one where the employee and employer contribute a defined amount of money to a retirement fund.

false

A will cannot be changed once it is written.

false

Almost always there are lots of chances to impress a potential employer or hiring manager

false

Although it is important to talk about money with children, it is not important to talk to parents about money.

false

Annuity is a just a financial term that means unequal payments at unequal time intervals.

false

Banks use borrowers' money in a money market account to invest in government and corporate investments.

false

Budgeting is the power of the time value of money.

false

Buying a new or used car is the only decision faced in the car buying process.

false

Capacity is one of the five C's of credit and refers to the willingness to pay the debt.

false

Cars cannot be sold as-is.

false

Debt often is one of the least stressful elements of personal finance.

false

Home purchasers do not have to pay taxes at the time of closing when purchasing a home, only by April 15th.

false

Homeownership should be more about making money than having a nice, comfortable, safe place to spend time.

false

In a buyer's market, there is less room for negotiation and the buyer may have to make an offer that is very close to the asking price.

false

Individual retirement accounts (IRA) are better because they are not subject to the same 10% penalty and tax issues as are employer retirement plans.

false

Investing regularly is the power behind the time value of money.

false

It is a good idea for home buyers to use dual agency when choosing a real estate agent.

false

It is not substantially important to be prepared for the next job along the way in a good career path plan.

false

It is not sustainable important to be prepared for the next job along the way in a good career path plan

false

Many people that can do so will choose a bank because banks tend to be less expensive, pay higher interest rates on deposits, and charge lower interest rates on loans than do credit unions.

false

Most experts agree that 15% profit on the sale of a car is fair to both the automobile dealer and the buyer.

false

Most people easily separate their financial life from their personal life

false

Neither the buyer's nor the seller's real estate agent ever split the commission when the house sells.

false

Payment history makes up 45% of a credit score, and includes past due items, how long they are past due, and any delinquencies or judgments that are a result of paying late or simply never paying at all.

false

Quite simply, a car is what gains respect from family and friends.

false

Quite simply, a car is what gains us respect from family and friends.

false

Risk can be managed in only one way.

false

Specific financial goals are always in general terms such as "I plan to retire a millionaire"

false

Talking about money is always the best area of communication in a relationship.

false

Talking about money with parents is always easier than talking about money with children.

false

The four WOs of career management provide a lens through which to view a career plan

false

The option of overdraft protection to protect from having payments rejected or bouncing checks due to lack of funds is no longer available.

false

The present value of a lump sum calculation is used to determine what a given amount of money today will be worth at a certain point in the future.

false

There are so few different types of taxes and so few rules involved that even inexperienced people find it easy to complete their tax returns.

false

There are two types of warranties, express and explicit.

false

There is no difference between a financial calculator and any other calculator.

false

There is only one basic type of life insurance.

false

To answer any time value of money question, at least two of the five pieces of information must be known.

false

Waiting to start investing does not significantly reduce the amount of money available later on.

false

When buying a car it typically is better to make an emotional decision rather than a financial one.

false

When shopping for a new home the last thing most people do is to contact a real estate agent and start looking at homes.

false

You do not need to understand the time value of money or a financial calculator to improve your financial capability as much as possible.

false

a resume is an insignificant document for anyone seeking a job

false

for almost everyone it is easy to separate personal life to financial life.

false

sticking to a budget is easy because it only involves numbers

false

What is an electronic calculator that specifically performs financial calculations such as time value of money?

financial calculator

Understanding the time value of money is fundamental to making good what?

financial decisions

Time value of money is what to our financial system that allows us to borrow, lend, and invest, while expecting a fair return of and on our money?

foundation

Practicing time value of money in Excel and on the calculator will help you to better understand these key time value of money concepts: present value of a lump sum, interest rate of a lump sum, investment time period of a lump sum, and what?

future value of a lump sum

Good financial ______ should be realistic and make sense for each individual

goals

This is the term for the time allowed to pay a credit card balance without incurring any finance or interest charges

grace period

decisions

how careers are managed is one of the biggest financial ______ most people make

variable expenses

include utilities and any other expense you are obligated into where the payment amount may change from month to month.

This term is used for receiving money in exchange for work or through investments.

income

you want to compare your network at the same moment each time. Your objective is to track your net worth and see it _____ over time.

increase

What job site is an aggregate site that pulls job listing from thousands of websites including job boards and more

indeed.com

When purchasing a vehicle, at the very least, what should you have done by a trusted mechanic?

inspection

To determine a comfortable car allowance in the your budget, the two pieces of information needed are monthly payment amount and __________ costs.

insurance

When you're evaluating your investment options, the one that has the highest risk probably pays the highest what?

interest rate

discretionary income

is what is left over to spend after you have paid your necessary expenses including taxes, insurance, and other obligations.

What is the term for listed, or itemized, expenses or contributions you are permitted to deduct from your federal taxable income as calculated on Form 1040, Schedule A?

itemized deductions

For most individuals, what is the most expensive way to own a car over your lifetime?

leasing

In finances, _______ refers to the ability to easily access cash or easily convert an asset to cash.

liquid

Waiting until you are 65 years old for retirement seems like a dozen lifetimes away. The good news is that your money grows to large amounts over what kind of time periods?

longer periods

In time value of money, what is the term for a one-time deposit?

lump sum

What of an annuity time value of money question will let you determine what a series of regular payments to be received in the future is worth today. For example, if you know how much a car payment is, you can determine the amount of the original loan.

lump sum

This is a lifestyle force identifying you as a single, married,widowed, or divorce

marital status

What is the amount for which the vehicle can be sold to another individual?

market value

collegeRecruiter.com

match employers with recent college graduates? it is designed specifically for college students and graduates. You can search for entry level jobs based on your college major or search for internships based on your field of this site

What do some institutions require in your account to avoid monthly service fees?

minimum balance

When considering your home or housing options, what is very important if you are looking to move for a new job where timing is important?

mobility

most bills are due monthly, a personal budget sheet should typically span how long

month

Garbage removal, heat, electricity, gas, or unexpected emergencies can add up and may also fluctuate from month to month. These are just a few examples of a homeowners what?

monthly expenses

The present value of an annuity calculates how much a regular series of payments will be worth at some point in the future.

multiply

When investing, __________ funds provide immediate diversification.

mutual

budget sheet

one thing a _____ will do is show where the money is being spent

Where should you begin reviewing car inventories first before physically visiting any dealer's lot?

online

Most people do a __________ job of making a wise car purchase.

poor

What is the amount of money called that is borrowed or lent and does not include interest? It can refer to the original amount or the amount remaining to be paid.

principal

What is the inspection of a home by a certified home inspector to determine the condition of the home prior to its sale?

property inspection

Although they are convenient, these digital cash transfer apps provide little or no ________ against fraud.

protection

total expenses

reducing how often you dine out is one of the easiest ways to reduce your what

When investing for long-term goals, what kind of fund has restrictions, such as a limit on the amount you can invest, and when and how much you can access?

retirement fund

This type of trust can be revoked, which means you can end the trust or change its terms at any point.

revocable trust

The need for instant gratification can easily lead to a personal debt crisis. What are some people unwilling to do until they can afford an item?

save

What financial tool is about the preservation of your money (safety), especially when it comes to avoiding unnecessary fees and other costs?

savings

Customers should be __________ when choosing a bank and a checking account.

selective

Once a collection agency proves that a debt is legitimate, it is important to __________ between what is actually owed to the lender and all the fees and payment penalties that were added by the collection agency.

separate distinguish differentiate discern

Because Lucy is trying to recover just​ $5,000 from her​ landlord, who she feels ripped her​ off, in most​ jurisdictions, she can sue in​ __________________, which will keep her fees low and can likely be quick.

small claims court

When developing a plan to pay off debt, begin by listing all your loans, the minimum monthly payments, the amounts owed, the interest rates, and the due dates. This is what step on your journey to reducing debt?

step one

Because the federal government takes a significant portion of earned income, the key to spending wisely is to understand the ________ effect on decision making when spending money.

tax

"Impact of inflation; risk and return relationship; impact of long-term investing; and simple investment options are the best" can be described as:

the four most important investing basics

Legally, who has the upper hand based on what is written on the lease, even if you orally agreed to conditions such as no penalty if your payment was a couple of days late?

the landlord

To answer any time value of money question, at least __________ of the five pieces of information must be known.

three

To answer any time value of money question, you must have at least how many of the five pieces of information?

three

Few people really grasp the concept, but even if you stuffed your money in a mattress, what are you still subject to?

time value of money

You can browse your account every few days to see which online payments have cleared and which have not. Most banks post your what in real time, although some still have a one or two day delay?

transactions

A big advantage to renting is that the home requires little maintenance costs from the renter.

true

A credit card is a huge convenience, but for many people makes it extremely easy to overspend.

true

A full understanding of time value of money and a simple financial calculator greatly improve financial capability.

true

A good first savings goal for most people is to establish an emergency fund.

true

A home buyer that is preapproved for a mortgage from one or more lenders is in a much stronger position to negotiate with potential home sellers.

true

A will is nothing more than a legal document that lets everyone know how and to whom money and other possessions are distributed upon death.

true

According to experts about half of adult children know nothing about their parents' finances, but expect they will have to help their parents financially in the future.

true

All laws, rules, and regulations vary from state to state, but marriage generally affords ?next-of-kin? status to each spouse.

true

Almost everyone can choose how quickly they want to get out of debt.

true

Banks may hold a deposit or check a certain number of days before making the money available to the depositor.

true

Businesses use credit to invest, expand, and hire employees.

true

Charitable donations are a good way for most people to reduce their estate and make sure their favorite charities and foundations are supported after their death.

true

Charitable gift funds let parents make a tax deductible donation in their children's' name.

true

Fair Isaac Corporation (FICO) credit scores are determined from five main pieces of information: payment history, amounts owed, length of credit history, new credit, and types of credit.

true

Generally, anyone planning to replace their car every five years or less may be better off purchasing lower-mileage used cars.

true

How careers are managed is one of the biggest financial decisions most people make

true

How to protect loved ones at retirement and death can be addressed in wills and personal contracts.

true

In order to lure more customers to using their credit card, many credit card companies offer zero percent interest for a short time such as the first six months.

true

Individual retirement accounts (IRA) are better because they are not subject to the same 10% penalty and tax issues as are employer retirement plans.

true

It is easy to distinguish a home buyer's market from a seller's market by looking at the average listing time of homes for sale in the market.

true

It is important to budget for 12 months in advance and not just once a month because vacations. holidays, celebrations, birthdays, and some bills do not occur monthly

true

Most homeowners must obtain a mortgage to buy their homes.

true

Most people do a poor job of making a wise car purchase.

true

Networth is the difference between assets and liabilities or the difference between what is owed and what is own

true

Once a marriage license is signed a couple becomes each other?s closest living relative.

true

One type of overdraft protection banks offer is to automatically deposit a set amount into a checking account when the account is overdrawn.

true

Quite simply, a car is a steel box with wheels that contains about 150,000 miles.

true

Renters do not build equity in their home since they do not own it.

true

Savings accounts work well for emergency funds and other very short-term goals.

true

Some banks charge their customers each time they use their automated teller machine (ATM).

true

Some young couples who come from relatively affluent or even middle class homes expect to buy their first home with the same level of amenities as their parents current home.

true

The more specific financial goals are made, the easier it is to track movement toward achieving them

true

The present value of a lump sum is used to calculate what a future dollar amount is worth today.

true

The question, 'How much money did Grandma put into an account in the beginning?' implies a one-time deposit.

true

There are two options to stop a shortage on a budget sheet, increase income or decrease expenses

true

There are two types of warranties, express and implied.

true

When applying for jobs it is important for people to have a good idea of what they want to do. Because they can look for places that have large contractions of the kinds of jobs they want to do

true

business do not buy things because they like them, but because they can make or save money from them

true

businesses do not buy things because they like them, but because they can make or save money from them

true

good communication means more than the ability to write well or to deliver a good presentation

true

most people are surprised by how much money they spend in certain budget categories, especially dinning out

true

preparing for a job is like cramming for an exam

true

the net worth statement is a snapshot of personal finance at a moment in time

true

Let's define our three classes of earners as lower class, middle class, and what final class?

upper class

This term referred to the things you believe are important in the way you work and live. Beyond what you do, they affect the way you wish to do them as well1

values

Before you occupy the apartment, what should you be sure to do with the landlord or their representative present?

walk-throughs

In TVM, typically you find the following compounding periods (compounding frequency) per year. What does 52 times per year mean?

weekly

The real estate agent who listed the house for sale:

works for and is compensated by the seller

fixed expenses

would include rent, car payment, car insurance, student loan payment, and anything else that is obligated or under contract where the payment is the same each month.

Who is responsible for upgrading yourself to the luxury edition while your in school

you

future income

your budget lets you project what, along with expenses, so that you can align your budget sheet to your S.M.A.R.T.


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