little things
UNIT 1
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According to the Monthly Budget worksheet, how does a person determine how much money he or she has available to put in savings? The person divides total expenses by twelve. The person divides total income by twelve. The person subtracts total expenses from total income. The person subtracts variable expenses only from total income.
The person subtracts total expenses from total income.
What is an advantage of credit unions? They are for-profit institutions, and their primary concern is profit. They are nonprofit institutions, and their primary concern is the member. They are for-profit institutions, and their primary concern is mortgages. They are nonprofit institutions, and their primary concern is investment.
They are nonprofit institutions, and their primary concern is the member.
Which best explains product advertising features? advertising that focuses on getting consumers to exclusively buy a specific product advertising that focuses on price information, and any applicable discounts, of a product advertising that focuses on creating appealing images of the product advertising that focuses exclusively on the benefits of the product
advertising that focuses exclusively on the benefits of the product
Comparative advertising includes which of the following criteria? (Select all that apply.) better price cheaper quality additional features increased quantity
better price additional features increased quantity
What type of card is issued by a credit union or bank and allows the user to purchase goods and services electronically by deducting funds directly from his or her checking account? charge card debit card gift card credit card
debit card
Which best defines disposable income? income strictly used for food, clothing, and shelter income available after taxes and other mandatory expenses income used to purchase disposable items income available before taxes and other mandatory expenses
income available after taxes and other mandatory expenses
What is the meaning of the word economics? laws for the people laws for the home laws for the individual laws for the country
laws for the home
How do you benefit from understanding personal finance? (Select all that apply.) becoming qualified to work for the government in the field of economics making quality choices about money by creating and managing a budget being able to complete personal taxes every year without paid assistance comprehending the difference between debit and credit cards
making quality choices about money by creating and managing a budget comprehending the difference between debit and credit cards
What are the four Ps of marketing (also known as the marketing mix)? production, policy, packaging, and planning positioning, preference, purpose, and promise performance, persuade, public, and profit product, price, promotion, and place
product, price, promotion, and place
Which are offered by joining the military after high school? (Select all that apply.) receive training while earning a salary receive an associate's degree (AA) after serving a certain number of years receive tuition assistance after serving a certain number of years receive training guaranteed to prepare a person for civilian life
receive training while earning a salary receive tuition assistance after serving a certain number of years
Read the scenario. Paul is 18 years old and has never had a banking account. He has a job and wants to start saving money to buy a car. What are some important things Paul should consider before opening an account? (Select all that apply.) the types of services he will need whether the financial institution gives rewards for membership whether the financial institution has government oversight his current credit rating
the types of services he will need whether the financial institution has government oversight
Which describes the best use of a checking account? to earn capital gains to earn dividends to accrue interest to access cash
to access cash
Which accurately describe differences between debit and credit cards? (Select all that apply.) Credit cards charge interest, whereas debit cards do not charge interest. Debit cards charge interest after a 30-day grace period, whereas credit cards do not charge interest. Debit cards deduct funds from a person's banking account, whereas credit cards pull money from a predetermined line of credit. Credit cards deduct funds from a person's banking account, whereas debit cards pull money from a predetermined line of credit.
Credit cards charge interest, whereas debit cards do not charge interest. Debit cards deduct funds from a person's banking account, whereas credit cards pull money from a predetermined line of credit.
Read the scenario. George is 22 years old, single, and has just started his first job. He saves 5 percent of his monthly income for retirement. Kirsten is 30 years old and married with two children. She will start saving 6 percent of her income for retirement when she turns 35. Which person will have more money at age 65 if all other factors are the same? Kirsten will because she is adding more money to her savings. Neither will because neither one is not saving enough each month. George will because he is younger and saving for a longer period. Both will because Kirsten will eventually catch up with George.
George will because he is younger and saving for a longer period.
How do individuals benefit from creating a budget? (Select all that apply.) It helps them monitor daily stock performance. It helps them devise a plan to save money. It helps them identify their expenses. It helps them identify their income.
It helps them devise a plan to save money. It helps them identify their expenses. It helps them identify their income.
Read the scenario. Heathcliff is balancing his checkbook. He starts his ledger with the $145 he has in his account. He records $27 spent at the grocery store followed by $58 spent on his cellphone bill. Then, he receives $540 from work. He then spends $54 at a restaurant and $38 at the movies. He deposits a check from his parents for his birthday worth $180. Then, his landlord cashes his check for rent for $600. How much did Heathcliff earn from work and for his birthday? $360 $540 $720 $270
$720
Read the scenario. Heathcliff is balancing his checkbook. He starts his ledger with the $145 he has in his account. He records $27 spent at the grocery store followed by $58 spent on his cellphone bill. Then, he receives $540 from work. He then spends $54 at a restaurant and $38 at the movies. He deposits a check from his parents for his birthday worth $180. Then, his landlord cashes his check for rent for $600. How much did Heathcliff spend at the grocery store and for his cell phone? $85 $145 $180 $58
$85
Which accurately describes a push marketing tactic to help manufacturers sell more products? A manufacturer incorporates social media to increase brand awareness. A manufacturer creates a new television advertising campaign. A manufacturer offers department stores incentives for selling its product. A manufacturer launches a new print advertising campaign in several magazines.
A manufacturer offers department stores incentives for selling its product.
What are typical fees associated with checking accounts from banks without any branches? (Select all that apply.) day-trading fees ATM fees overdraft fees account minimum fees
ATM fees overdraft fees account minimum fees
Jim wrote a check for $30, but he only had $25 in the bank. What is Jim's account balance? It is -$70 to cover the cost of the check and the overdraft fee. It is -$5 to cover the cost of the check until he can deposit more money. It is $25 because the bank will not honor the check. It is $0 to cover part, but not all, of the check.
It is -$70 to cover the cost of the check and the overdraft fee.
What is true of a savings account? It is a low liquidity asset that receives a moderate return in interest. It is an asset that is not very liquid and receives a moderate return in interest. It is an asset that is not liquid and receives a high return on investment. It is a somewhat liquid asset that receives a moderate return in interest.
It is a low liquidity asset that receives a moderate return in interest.
What will happen if you avoid a review of your monthly budget? You will have no record to keep track of where your money is going. You will never know if you have checks in circulation that have not been cashed. You will have additional bills arrive that you were not expecting. You will have more money coming in than you have going out.
You will have no record to keep track of where your money is going.
What is a budget? a plan for spending your money to keep you without money a plan for spending your money to keep your parents happy a plan for spending your money to meet your wants and needs a plan for spending your money to meet the wants and needs of others
a plan for spending your money to meet your wants and needs
Read the scenario. Sally needs to pay her bills this month. Her bills include rent, utilities, groceries, concert tickets, airfare, car insurance, a car rental, and a trip to an urgent care facility. What are Sally's fixed expenses? groceries and the trip to an urgent care facility airfare and the car rental concert tickets and utilities rent and car insurance
rent and car insurance
Which are considered fixed expenses? water, a car payment, rent, and car insurance rent, cable TV, and car insurance gas, rent, and a car payment electricity, rent, gas, and Internet
rent, cable TV, and car insurance
