Personal Finance (Midterm Exam Review)
For 2018, single people receive a standard deduction of what?
$12,000
Private Mortgage Insurance (PMI) is usually required if the down payment is less than what percentage of the purchase price of the home?
20%
What are the two choices available in declaring personal bankruptcy?
7 and 13
Most of the information on your credit file may be reported for how many years?
7 years
What is a spending plan that outlines how you will spend available income?
Budget
What are the five C's of credit
Character, Capital, capacity, collateral, conditions
What kind of resume presents a person's education, work experience, and other information in order of the most recent item first?
Chronological
Mortgage loans, automobile loans, and personal loans are examples of what type of credit?
Close-ended credit
What is an arrangement to receive cash, goods, or services now and pay for them in the future?
Credit
When used effectively, what can help you have more and enjoy more?
Credit
What represents amounts owed to others that must be paid within the next year?
Debts
What is the largest fixed expense associated with a new automobile?
Depreciation
What degree would most likely lead to the most earning over an individual's working career?
Doctoral degree
What is a building that contains exactly two housing units?
Duplex
What is the study of how wealth is created and distributed?
Economics
What are the three credit bureaus?
Equifax, Experian, TransUnion
What type of tax is imposed on specific goods and services, such as gasoline and cigarettes, at the time of purchase?
Excise tax
What is the total dollar amount you pay to use credit?
Finance charge
What represent free money that does not need to be repaid?
Grants and Scholarships
Do higher or lower FICO credit score represent the least risky borrower?
Higher
What is an employment position that is obtained mainly to earn money.
Job
The ability to readily convert financial resources into cash without loss of value is referred to as what?
Liquidity
A person's what is the difference between the value of the items owned and the amounts owed to others?
Net Worth
Using a bank credit card is an example of what?
Open-ended credit
What is the most popular form of housing?
Single family dwelling
What is the use of illegal actions to reduce one's taxes?
Tax evasion
An increasing number of bankruptcy filers are what?
Well-educated, middle-class, baby boomers
What is a borrower's financial ability to meet credit obligation?
capacity
What are the two basic types of credit?
close-ended, open-ended
If you (answer) a loan, the creditor can collect this debt from you without first trying to collect from the borrower?
default
The education section of a resume should include what?
degree, school attended, year graduated
Which type of debt would not be forgiven in a straight bankruptcy?
education loans, child support, debts from malicious acts
What is the principal purpose of taxes?
fund government activities
A budget deficit would result when a person's or family's actual spending is greater than or less than planned spending?
greater
Renting would be most appropriate for people who:
have limited funds currently available
What household payments would be considered a variable expense?
household maintenance, resource expenses
What is the purpose of a cover letter?
introduce, demonstrate interest, draw attention, motivate reader
Name a disadvantage of leasing an automobile?
it costs more than the equivalent loan
What refers to cash and items of value that can be easily converted to cash?
liquid assets
What refers to what a person gives up when making a choice?
opportunity cost
What is the purpose of a security deposit when renting?
pays for any damage done by the current renter
Who would qualify for the "head of household" filing status for federal income taxes?
people who are unmarried and have at least one dependent
What should you do to avoid identity theft?
sign cards, shop safely online, keep cards in a safe place
What does a cash flow statement reports for a person or family?
spending and income
What are examples of social factors that would influence a consumer's buying decision?
trends, fads, popularity
Liabilities are amounts representing what?
unpaid debts
