Personal Finance Final
A state may impose a personal property tax.
True
The current financial position (including net worth) of an individual or family is best presented with the use of a(n):
balance sheet.
The amount of mortgage a person is eligible for would be increased by:
by decreasing the interest rate
Larry Arnold gets a direct loan of money to go on vacation with his family. He will repay the loan over the next twelve months. What type of credit did Larry use?
installment cash credit
To avoid high fees for loans, a person should avoid borrowing from a:
pawnshop
Which one of the following types of coverage would pay for damage to your automobile in an accident for which you were at fault?
collision
A tax ____________ is an amount subtracted directly from the amount of taxes owed.
credit
The interest paid on which type of loan is not tax deductible?
credit card
Savings compounded ____________ would have the highest effective yield.
daily
Installment cash credit is a:
direct loan of money for personal purposes.
If you want to improve your credit score you should:
do everything listed in the other answers.
Estimated quarterly tax payments must be made by people who:
do not have adequate amounts withheld from income.
Changes in income, values, and family situation make it necessary to
evaluate and revise your actions.
Maryellen Epplin worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her taxable income for the year. This represents a tax:
exclusion.
A decrease in net worth could be the result of:
expenses exceeding income for a month.
Payday, cash advance, check advance, and post- dated checks are _________ loans.
expensive
What is the purpose of a cover letter?
express interest in a job
A home file should be used for:
financial records for current needs.
Which one of the following is not covered by renter's insurance?
fire damage to the building's roof
Which one of the following is an advantage of using credit?
funding an emergency expense
Which of the following is considered personal property for home insurance coverage?
furniture
If you put $1,000 in a saving account and make no further deposits, what type of calculation would provide you with the value of the account in 20 years?
future value of a single amount
A debit card:
immediately deducts the cost of your purchase from your bank account.
Using the services of financial institutions will be most evident in your effort to:
implement the financial plan.
Higher prices are likely to result from:
increased spending by consumers without increased production.
The time value of money refers to:
increases in an amount of money as a result of interest.
When preparing her monthly budget, Marge Kent has a total spending allowance of $4,600. Each month she pays $1,200 in rent, $60 for cable television and Internet service, and $240 for her auto loan. What percentage of her budget goes for these fixed expenses?
33 percent
Paul Carter is 43 years old, married and has three children, ages 13, 10 and 5. Which influence on financial planning does this demonstrate?
Adult Life Cycle
What is (are) the signal(s) of potential debt problems?
All of the above are danger signals.
Which one of the following is a professional association that can assist in career planning for a specific career area?
American Marketing Association
One aspect of financial planning is to control your use of credit. Which aspect of financial planning does this deal with?
Borrowing
The risk premium you receive as a saver is based in part on:
C & D above.
If you have a complaint against The First National Bank of Edmond, who should you contact?
Comptroller of the Currency.
Lynn Roy wants to travel after she retires as well as pay off the balance of the loan she has on the home she owns. Which step in the financial planning process does this situation demonstrate?
Developing her financial goals
A question associated with the saving component of financial planning is:
Do you have an adequate emergency fund?
Which one of the following is not included in gross income?
Exclusion
Buying on credit is almost always cheaper than paying cash.
False
College students are not a prime target for credit card issuers.
False
Mike Hansen has adjusted gross income of $28,000. During the year, Mike decided he needed a larger home. He purchased a home on a golf course in the same town as his first home. Mike incurred $7,500 in moving expenses. How much of this can he deduct from adjusted gross income?
$0
Haley Thomas has adjusted gross income of $40,000. She paid $3,600 in property taxes during the year. How much of the tax can she deduct from adjusted gross income?
$3,600
Brett has hired a professional to assess the soundness of the roof, foundation, and building materials of a potential home he is considering. The professional will also be checking other aspects of the home including the plumbing, heating, and cooling systems. Brett is paying for a(an):
inspection
The changing cost of money is referred to as ____________ risk.
interest-rate
Lynn Roy wants to travel around the world. Lynn Roy has several options she can pursue. She can continue to work full time to earn the money she needs for her trip. She can work part time so that she can still earn some money but have the time necessary to complete her trip. She can take full retirement so that she has all the time necessary to complete her trip. Which step in the financial planning process does this scenario demonstrate?
Identifying alternative courses of action
Legislation that requires that loan applicants be given certain information, including an estimate of closing costs, before the closing is known as:
Real Estate Settlement Procedures Act
Which one of the following is a retirement plan that allows a $5,000 annual contribution with tax-free earnings after five years?
Roth IRA
A budget is a specific plan of how a person or family will spend their money.
True
A job tends to have less of a long-term commitment to a field than a career.
True
A personal cash flow statement presents income and outflows of cash for a given time period, such as a month.
True
A tax credit is an amount subtracted directly from the amount of taxes owed.
True
A tax on the value of automobiles, boats, or furniture is referred to as a personal property tax.
True
Advertising is a type of consumer information commonly provided by business organizations.
True
An asset management account combines several financial services for a single fee.
True
Anyone overburdened by credit obligations can phone, write, or visit a Consumer Credit Counseling Service office.
True
Closed-end in credit is used for a specific purpose and involves a specified amount.
True
Consumer credit dates back to colonial times.
True
Continuing career education can be in a formal or an informal setting.
True
Cooperative housing is a form of housing in which the units in a building are owned by a nonprofit organization.
True
Credit life insurance provides for the repayment of the insured loan if the borrower dies.
True
Department stores and gasoline companies are good places to obtain your first credit card.
True
Home improvements may contribute more to the value of the home than the cost of the renovations.
True
Homeowner's insurance refers to coverage also available to condominium owners.
True
If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.
True
In the 5 Cs of credit, character refers to the borrower's attitude toward credit obligations.
True
Installment sales credit is a loan that allows you to receive high-priced items, such as large appliances or furniture.
True
Interest is a periodic charge for the use of credit, or other finance charges.
True
Most of the information in your credit file may be reported for only seven years. If you have declared personal bankruptcy, that fact may be reported for 10 years.
True
Most people select a place of residence based on available financial resources, needs, and lifestyle.
True
One way to gather information about a product is to use an independent testing organization like Consumers Union.
True
Overindulgence of children is a signal of potential debt problems.
True
Personal belongings that have a high value require coverage with a personal property floater.
True
Real-estate property taxes are a major source of revenue for local governments.
True
Which federal law limits a cardholder's liability for unauthorized use of a card to $50?
Truth in Lending Act
Nick Boss has a savings account with $550 in it. He knows that he can withdraw this money whenever he wishes. This would be an example of:
a liquid asset.
Higher interest rates can be caused by:
a lower money supply.
A good example of closed-end credit is:
a mortgage loan.
A ____________ résumé presents a person's education, work experience, and other information in a reverse time-sequence.
chronological
The Form 1040 is most helpful to a person who:
itemizes deductions.
The 25 in 50/100/25 refers to ____________ coverage.
property damage liability
Federal tax-deferred employee benefits are:
taxed at some future time.
A common deduction from a person's paycheck is for:
taxes
Opportunity cost refers to:
what a person gives up by making a choice.
Which of the following is a way to reduce ATM surcharges?
withdraw larger amounts rather than making multiple smaller withdrawals
Natural abilities that people possess are called:
aptitudes
Mathematical abilities, problem-solving skills, and physical dexterity are examples of:
aptitudes.
Determine the rate of return (yield) on a savings account in which you deposited $300.00 and earned $6.00 in interest after one year.
2.00%
Experts suggest that you spend no more than ____________ percent of your net income on credit purchases.
20
A 32-ounce package selling for $1.60 would have a unit price of:
5¢ an ounce.
Most of the information in your credit file may be reported for only ______ years.
7
Jane Calvert is applying for a loan from a bank. The bank knows she owns a house worth $150,000 and a car with a trade-in value of $15,000 as well as other personal assets worth approximately $50,000. Which one of the 5 Cs of credit is the bank looking at?
capital
Interest earnings of $1,600 from a taxable investment for a person in a 28 percent tax bracket would result in after-tax earnings of:
$1,152
Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month. Under the rule of 78s, what is the amount of interest included in her first payment?
$14.77
Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real estate is $108,000, the value of her personal possessions is $62,000 and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $9,500 and the value of her long term liabilities is $68,000. What is Jamie's net worth?
$170,000
Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her liquid assets?
$2,050
Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $300 two years ago and has an expected life of six years. A comparable microwave costs $400 today. What amount will the insurance company pay?
$400
A family spends $40,000 on living expenses. With an annual inflation rate of 3 percent, they can expect to spend approximately _______ in three years.
$43,720
Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her investment assets?
$44,050
Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $150,000, $75,000, and $75,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance?
$50,000
Jerrod Dean starts the month with a balance on his credit card of $1,000. On the 10th day of the month, he purchases $200 in clothes with his credit card. On the 15th day of the month he makes a payment on his credit card of $500. The bank charges 1.5 percent interest per month using the adjusted balance method. What would Jerrod's finance charges be for the month?
$7.50
Michelle Duncan wants to know what price home she can afford. Her annual gross income is $45,000. She owes $750 per month on other debts and expects her property taxes and homeowners insurance to cost $250 per month. She knows she can get a 7.5%, 30year mortgage so her mortgage payment factor is 6.99. She expects to make a 20% down payment. What is Michelle's affordable home purchase price? Round your answer to the nearest $100.
$76,000
Natasha and Al received a statement reporting that they paid $8,000 in mortgage interest during the past year. If they are in a 28 percent tax bracket, this deduction may reduce their taxable income by:
$8,000.
Wind damage occurs to your car costing $800 to repair. If you have a $100 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?
$800
This morning, you received a phone call regarding a debt you allegedly owe. If you dispute this debt, you must write to the debt collector and request verification of the obligation. How many days do you have to send this letter?
30
A pawnshop with a monthly interest rate of 2.75 percent would have an annual interest rate of ____ percent. Ignore compounding.
33.00
Regular vehicle maintenance is essential to extending the life of your car. Engine oil should be changed approximately every ____ months or _______ miles.
3; 3,000
Which FICO credit score would represent the least risky borrower?
825
Who financially supports the Consumer Credit Counseling Service?
Community-minded firms and individuals
_________ coverage protects your automobile from risks such as glass breakage, falling objects, vandalism, or damage caused by hitting an animal.
Comprehensive
Which one of the following is a local organization that provides debt counseling services for families and individuals?
Consumer Credit Counseling Service
Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male. Which consumer protection law guarantees her this right?
Equal Credit Opportunity Act
Which federal consumer credit law prohibits credit discrimination based on sex and marital status?
Equal Credit Opportunity Act
Lynn Roy knows that if she continues to work full time, it will be difficult for her to get the time off she needs to be able to travel around the world. However, if she continues to work full time she will more easily earn the money she needs to take her trip and still have money left for her living expenses after she gets back from her trip. Which step in the financial planning process does this scenario demonstrate?
Evaluating her alternatives
Which federal law allows consumers to withhold payment for faulty or defective goods or services (within certain limitations) when purchased with a credit card?
Fair Credit Billing Act
Mike Cook has been receiving calls at work every two hours from a collection company that is trying to collect a past due loan from him. He believes this is harassment and that the collections company is not allowed to do this. Which consumer protection law provides protection from this type of harassment?
Fair Debt Collection Practices Act
The Federal Trade Commission enforces the:
Fair Debt Collection Practices Act.
A limited warranty covers all aspects of the product and does not require the buyer to incur any of the costs for shipping and repairs.
False
A screening interview is reserved for only the finalists in a job search.
False
Both Chapter 7 and Chapter 13 bankruptcy are considered an easy way out of debt.
False
Developing financial goals is the first step in the financial planning process.
False
Economics is the study of using money to achieve financial goals.
False
Financial records that are referred to on a regular basis should be kept in a safe-deposit box.
False
Higher inflation usually results in lower interest rates.
False
Lenders benefit more than borrowers in times of high inflation.
False
Most decisions have only a few alternatives from which to choose.
False
Tax avoidance refers to illegal actions to reduce one's taxes.
False
The Consumer Credit Counseling Service will refinance all of your existing debts for you.
False
The comprehensive form of homeowner's insurance includes coverage for damage due to floods.
False
The consumer credit laws require that an advance notice be given before repossessing a car.
False
The driver classification category is based on automobile style, model, and value of the vehicle.
False
The most basic method of calculating interest is the compound interest calculation.
False
The rule of 78s formula dictates that you pay less interest at the beginning of a loan.
False
With collateral, you will probably pay a higher interest rate on your loan than you would without collateral.
False
You can deduct interest paid on consumer loans for state and federal income tax returns.
False
Your friends and neighbors can get credit information about you.
False
____________ goals relate to personal relationships, health, and education.
Intangible-purchase
One aspect of financial planning is to buy stocks, bonds and mutual funds with the potential for long term growth. Which aspect of financial planning does this deal with?
Investing
Which of the following statements about the Legal Aid Society is not true?
It is a for-profit organization.
Some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds. This problem refers to:
Liquidity risk
One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs. Which aspect of financial planning does this deal with?
Managing Risk
Which of the following would be an example of a personal and employment document?
Social Security card
Risk management is an organized strategy for protecting and conserving assets and people.
True
The Consumer Credit Counseling Service counseling is usually free.
True
The Fair Debt Collection Practices Act regulates the ways debt collection agencies do business.
True
The amount of the down payment will affect the amount of the monthly mortgage needed to purchase a home.
True
The credit cardholders who pay off their balances in full each month are known as convenience users.
True
The fairest method of calculating interest is the average daily balance method.
True
The first phase in the buying process involves information gathering.
True
Unit pricing uses a standard unit of measurement to compare prices of packages of different sizes.
True
When imposters take your name, they are committing a crime.
True
When you cosign a loan, you are being asked to guarantee this debt.
True
With closed-end credit, generally the seller holds the title to the merchandise until the payments have been completed.
True
Which federal consumer credit law regulates the advertising of credit terms?
Truth in Lending Act
Which of the following is an effective strategy in times of falling interest rates?
Use short-term loans to take advantage of lower rates when you refinance the loans.
Karen Price has created a financial statement for herself that lists all of the assets she owns as well as the debts she owes. This would be an example of:
a balance sheet.
Which of the following is an opportunity to contact several firms in a short time span? It is often held at local universities or convention centers.
a career fair
Karen is notified by her credit card company that the credit limit on her credit card has just been increased to $10,000. This is one example of a change related to
a line of credit.
Float can be defined as:
a period of time during which no interest is charged.
A budget deficit would result when a person's or family's:
actual expenses are greater than planned expenses.
William Bennett owns a home in Oviedo, Florida. There was a fire in his home and he and his family had to move to a motel until his home could be fixed. What part of his homeowner's insurance policy would cover the cost of the motel?
additional living expenses
Which one of the following factors is used to determine a person's driver classification?
age
Sources for financial planning can be found from:
all of the above
You just received your credit card statement. Which of the following are included on that statement?
all of the above answers
Which of the following is (are) typically considered to be a personal financial record?
all of the answers
Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?
all of the other answers
Cobranded credit cards:
all other answers are all correct
Many taxpayers with high incomes and high amounts of deductions must pay an additional tax referred to as the ________________ tax.
alternative minimum
A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is:
an exemption.
The first step of the financial planning process is to:
analyze your current personal and financial situation.
Comparison of earnings for different savings plans can best be accomplished using the:
annual percentage yield.
Which types of problems are least likely to be covered by a home buyer warranty?
appliance
Earnest money is used:
as evidence of good faith by a homebuyer.
Which one of the following illustrates an insolvent situation?
assets $40,000; liabilities $45,000
Which one of these methods is the fairest of calculating interest?
average daily including purchases method
To determine a person's solvency, which financial document should be consulted?
balance sheet
Which of the following are considered to be personal financial statements?
balance sheet and cash flow statement
A newly married couple is having trouble affording a home. What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?
buy-down
Mike Jacobs is planning to lease an automobile. In an effort to minimize the price of the vehicle being leased, Mike should compare the ____________ at different leasing companies.
capitalized cost
Which one of the following presents a summary of income and outflows for a period of time?
cash flow statement
The borrower's attitude toward his or her credit obligations is called:
character.
Recently, Jim Dahl was on a bus tour in a mountainous area. The bus broke down forcing the group to stay overnight. Group members had to pay for their own hotel bills. Jim believes that the hotel cost for the group should be paid by the tour company. Which legal action would be most appropriate?
class action suit
Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?
coinsurance clause
The Federal Deposit Insurance Corporation provides deposit insurance for:
commercial banks and savings and loan associations.
Warranties are commonly associated with ____________ purchases.
consumer
In recent years, membership in credit unions has:
continued to increase.
The most commonly purchased type of credit insurance is:
credit life insurance.
In a Chapter 7 bankruptcy, a person filing for relief is called a:
debtor.
For January, Bethany DeWeese had cash inflows of $4,200 and cash outflows of $4,750, resulting in a
deficit of $550.
Checking accounts are frequently referred to as ____________ deposits.
demand
In the career planning process, after identifying specific job opportunities, a person should:
develop a résumé and cover letter.
Changes in the cost of living are:
different in various geographic areas.
The purpose of a household inventory is to:
document owned property.
Which one of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums?
driver classification
A is a building that contains exactly two separate homes.
duplex
Which one of these statements correctly applies to a Roth IRA?
earnings on the account are tax-free after five years
Changes in the demand for goods and services are an example of a(n) ____________ influence on the job market.
economic
Blake Edwards has done some research and has discovered that economists believe interest rates will rise significantly over the next two years. Blake believes that this will lead to fewer homes being sold and fewer jobs in the banking and mortgage industries. This is an example of __________________ influencing jobs in the future.
economic conditions
Jason Liang has gotten three job offers. He is now looking at the benefits packages of all three to see what he likes and doesn't like. Which step in the career planning process is Jason completing?
evaluate financial and other factors of positions offered.
Jennifer Rogers needs a loan to purchase a new car. She knows the creditor must:
evaluate her on the same basis as applicants who are male
Negligence refers to:
failure to take ordinary and reasonable care.
Emily is trying to decide whether to lease or buy a car. Which one of the following is not a factor necessary in making the comparison?
gasoline costs
The purpose of an informational interview is to:
gather information about a firm or for career planning.
Which one of the following is not an element of corporate culture?
government regulations
Higher consumer prices are likely to be accompanied by:
higher interest rates.
The purpose of the development section of a cover letter is to:
highlight background that qualifies the applicant for a specific job.
Sean Carter needs to store monthly statements from his bank, his credit card company and from his savings and loan. Where is the most appropriate place for Sean to store this information?
home file cabinet
Hector Ramirez has decided he needs a new car so that he has reliable transportation to work. He is getting recommendations from his friends as to what might be a good car to purchase. He is also looking at the Consumer Reports magazine to determine what they recommend as a safe, low maintenance car and he has searched some web sites on the internet as well. What step in the purchasing process is Hector carrying out?
information gathering
A few months ago, you sent a certified letter to a debt collector and requested verification of a debt the collector says you owe. You know the letter was received by the collector but you have received no response to your request. Today, you received a letter threatening court action. What should you do?
insist that communications about the debt cease
Jennifer Garner purchases a sofa, love seat and reclining chair for her family room and will make payments of $65 per month for the next twenty-four months. What type of credit did Jennifer use?
installment sales credit
Kyle Burroughs has purchased a suit and has interviewed with three companies through the career placement center at his university. He was surprised by some of the questions asked and does not feel he answered them well. He has developed some answers that he feels are better answers and better reflects his abilities and aptitudes. Which step in the career planning process has Kyle completed?
interview for specific positions and assess the interview performance.
In a Chapter 7 bankruptcy, debtor:
is required to draw up a petition listing all assets and liabilities.
Which of the following would be an advantage of leasing a vehicle?
lease payments are likely to be lower than loan payments
Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks.
liability
What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?
liability
The ability to convert financial resources into usable cash with ease is referred to as:
liquidity
The most commonly considered factor when selecting a home is the:
location of the home.
As Jean Tyler plans to set aside funds for her young children's college education, she is setting a(n) ____________ goal.
long-term
Stored value (or gift) cards:
may be eroded by fees and eventually expire
A common criticism of including a career objective on a résumé is that it:
may be too vague.
The process of resolving consumer complaints with the use of a third party whose recommendations are non-binding is called:
mediation.
A VA-guaranteed loan program provides assistance to:
military veterans.
Which type of home is most apt to depreciate in value?
mobile home
Which of the following would be considered a long-term liability?
mortgage
The value of items owned minus the amounts owed to others equals:
net worth.
Which of the following is the process of making and using contacts in the business world for obtaining and updating career information and job possibilities?
networking
While you are resolving a billing dispute, a creditor may:
not threaten your credit rating.
What does it mean to sublet an apartment?
obtain another tenant to complete a lease period
Alex Bates goes on Jeopardy and earns $875,000 in winnings. What type of income is this?
other Income
Steve Black has two children. He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together. Which one of the answers best explains Gary's spending?
overindulgence of children
A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:
owe $375.
Earnings from a limited partnership would be an example of ____________ income.
passive
Which one of these situations creates negative amortization?
paying less than the monthly interest on a mortgage
Neil Guest writes a check to pay for day care for his son. What type of financial service is Neil using?
payment service
Tim Bridges owns a bass fishing boat. His state imposes an annual 3.25 percent tax on the current value of this boat. What type of tax is this most likely to be?
personal property tax
A high tech scam that uses spam or pop-up messages to deceive you into revealing your credit card number, bank account information, social security number, passwords, or other sensitive information is called:
phishing
What is prepaid interest charged by a mortgage company called?
points
Jennifer Garland is purchasing a home that was assembled in a factory and then moved to the living site. What type of housing is Jennifer purchasing?
prefabricated home
Nick Rodr owns a home in Edmond, Oklahoma and pays $665 per year in insurance on the home. The $665 is an example of a:
premium.
What is the rate that commercial banks charge large corporations for loans called?
prime
Kenton Greer wants to locate employment positions presently available in his career area. This information would be best obtained:
professional contacts.
Hermione Granger borrowed her best friend's car and was in an accident. She was at fault. The car was totaled. What part of Hermione's automobile insurance policy would cover the damage to her friend's car?
property damage liability
The purpose of financial responsibility laws is to:
protect the public from financial losses due to auto accidents.
The purpose of an assigned risk pool is to:
provide insurance for poor drivers.
Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.
rating territory
An expense that would be included in the itemized deductions of a taxpayer is:
real estate property taxes.
For a dependent to qualify as an exemption, he or she must:
receive more than one half of his or her support from the taxpayer.
The face value of a Series EE U. S. Savings Bond refers to the:
redemption value at maturity
The purpose of a screening interview is to:
reduce the number of applicants for a job.
Larry Foster has bought a car with front and side airbags and antilock brakes. How is Larry managing his risk?
reduction
Maryann Lawrence wants to get a loan in just her name. She knows the creditor cannot:
refuse her credit if she is creditworthy
Pam McNally is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to:
resolve consumer complaints.
The purpose of small claims court is to:
resolve minor consumer complaints.
The purpose of a rate cap with an adjustable rate mortgage is to:
restrict the amount by which the interest rate can increase.
Most consumer complaints are resolved by:
returning to the place of purchase.
Which of the following would increase the risk of a loan?
rising consumer prices
Jerry Allison needs to store the title to his car and his house. Where is the most appropriate place for Jerry to store this information?
safe deposit box
An interview designed to reduce the number of candidates for a position to a workable size is a(n) ____________ interview.
screening
Which one of the following is important to do to help avoid credit card fraud?
sign your card as soon as you get it
Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?
single lump sum credit
Greg Rossman likes to play golf. This would be an example of a(n) _________ factor that influences his purchasing decision.
social
Which form of homeowner's policy provides coverage for the most risks?
special
Craig Brown owns a home in San Francisco, California. There is a major earthquake and his house is damaged by the earthquake. What type of insurance would he have to have to cover this loss?
specialized coverage
Which one of the following items is a set amount of income on which no taxes are paid?
standard deduction
The items produced for a single retail chain are commonly sold under a ____________ brand.
store
The Sears Kenmore dishwasher is an example of a:
store brand.
Tax-deferred retirement plans are a type of:
tax shelter.
As a result of the recently passed Health Care and Education Reconciliation Act, federal student loans come directly from:
the U.S. Department of Education.
The 100 in 100/300/50 refers to:
the limit for bodily injury claims that can be paid to one person.
A common opportunity cost associated with renting is interest lost on money spent for:
the security deposit.
Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?
time spent comparing prices
Which of the following is an example of a closing cost?
title insurance
Opportunity costs refer to:
trade-offs associated with financial decisions.
Tim Gleason has set up a legal agreement that allows the First State Bank of Orlando to manage funds set aside for his daughter's college education. What type of financial service is Tim using?
trust service
Impulse buying refers to:
unplanned purchasing.
Which one of the following is most apt to qualify as an itemized deduction?
unreimbursed job-related travel expenses
A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others. This is known as:
vicarious liability.
Tara Guest wants to gain some needed experience so when she is ready to start a career she has something to offer a company. She has decided to help the Edmond Historical Society present programs to local school children. Which of the following employment experience strategies is she pursuing?
volunteer work
