Which of the following would impact your credit score more than other things?

Paying your bills on time (analyzing your payment history).

Which one is a FULLY correct answer when considering a home loan?

Length of loan, amount to be borrowed, interest rate.

Why would a person need to fill in a W4 tax form?

A person gets a job and the employer requires this form.

You buy a home for $300,00 with a $50,000 down payment at 3.5% for 30 years. This means:

You will finance $250,000 at 3.5% for 30 years.

Typically, what is good and bad about a 15 year mortgage compared to a 20 or 30 year mortgage?

Good: lower interest payments. Bad: higher monthly payments.

What is most correct about the 50-30-20?

You should spend 50% of your money on needs.

Which of the following is NOT true about credit scores?

It will make it easier to buy goods with cash.

True or False: Stocks have no absolute value.

True. It is based on people buying or selling stocks.

What was one reason for the crash of the stock market in 1929?

People speculated that stock prices would continue to rise.

What does someone need to open a bank account?

A minimum of two pieces of identification.

Investing in stocks can be considered a good idea because

Generally, stocks increase in value over the long term.

Which of the following is true about keeping money in banks?

Your money is insured by the FDIC

How are CDs different from a checking or savings account?

CDs have penalties if you withdraw money before the designated time.

Economic report: "jobless numbers were up with fewer homes being built." What's a good stock to invest in for short run?

Any inexpensive, "budget" store.

Which of the following is usually NOT included in a monthly mortgage payment?

Home Owners Association taxes and fees.

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Whitwam Personal Finance

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Questions 21

Answers

1
Which of the following would impact your credit score more than other things?
Paying your bills on time (analyzing your payment history).
Income to debt ratio.
Amount of money your borrowed.
Length of credit history.
2
What determines how much you pay in taxes?
Your income and deductions.
Your income.
Your deductions, income, and assets.
Your income, deductions, assets, and number of dependents.
3
Which one is a FULLY correct answer when considering a home loan?
Length of loan, size of home, total cost of loan.
Location of bank, total cost of loan, increase in future home price.
Length of loan, amount to be borrowed, interest rate.
Interest rate, cost of loan, potential increase in future value of home.
4
Money in a traditional IRA is pre-tax where money in Roth IRA has already been taxed.
True
False
5
Why would a person need to fill in a W4 tax form?
This is the form to tally your total income prior to filing with the IRS.
A person is making a donation and needs deductions for their taxes.
This is the form you file with the IRS when you do your taxes.
A person gets a job and the employer requires this form.
6
You buy a home for $300,00 with a $50,000 down payment at 3.5% for 30 years. This means:
You will finance $250,000 at 3.5% for 30 years.
You will finance $300,000 at 3.5% for 30 years.
You will finance $350,000 at 3.5% for 30 years.
You will finance $300,000 and get paid back $50,000 at the end of your loan
7
Typically, what is good and bad about a 15 year mortgage compared to a 20 or 30 year mortgage?
There is no real difference between a 15, 20, and 30 year mortgage.
Good: lower monthly payments. Bad: higher interest payments.
Good: high interest payments. Bad: low principal.
Good: lower interest payments. Bad: higher monthly payments.
8
Which of the following is the best example of a progressive tax?
Sales Tax
User fee (entrance fees to parks or fees for crossing a bridge)
Income Tax
Gasoline Tax
9
What is most correct about the 50-30-20?
You should spend 50% of your money on needs.
It states that you should save 30% of your money.
If you spend more than 30% on wants then spend less than 20% on needs.
It is a plan on how to save your money?
10
Only individual investors may buy stock and become an owner in a company.
True
False
11
Which of the following is NOT true about credit scores?
It will allow you to borrow money at a lower rate.
It will help you get future loans.
It will make it easier to get a credit card.
It will make it easier to buy goods with cash.
12
True or False: Stocks have no absolute value.
False. It is based on rate of return.
True. The value is based on other investment indexes such as the NASDAQ.
True. It is based on people buying or selling stocks.
False. It depends on the net-worth of a company.
13
What is important when making a budget?
All of the above are true.
Be realistic/accurate about how much money you make.
Understand that there will be unforeseen costs.
Set aside a portion of your income for savings.
14
What was one reason for the crash of the stock market in 1929?
There was too little foreign investment in the stock market.
Banks weren't loaning out money to investors.
People speculated that stock prices would continue to rise.
The stock market investing was overly regulated.
15
What does someone need to open a bank account?
One piece of identification and one letter of recommendation.
A minimum of two pieces of identification.
A minimum of one piece of identification.
Two pieces of identification and one letter of recommendation.
16
Investing in stocks can be considered a good idea because
Stocks always outperform other investment opportunities.
You are guaranteed a 5% return on your investment.
Stocks are regulated by the federal government making investing safe.
Generally, stocks increase in value over the long term.
17
Which of the following is true about keeping money in banks?
Banks often offer competitive (good) interest rates on checking accounts.
Banks will insure your deposits in their bank.
A debit card is needed for financial transactions and banks provide them.
Your money is insured by the FDIC
18
How are CDs different from a checking or savings account?
CDs are the same as checking and savings accounts.
CDs have no minimum amount required to be in this investment.
CDs have penalties if you withdraw money before the designated time.
CDs offered lower interest rates than savings and checking accounts.
19
Economic report: "jobless numbers were up with fewer homes being built." What's a good stock to invest in for short run?
Apple and other tech companies
Any inexpensive, "budget" store.
Home furnishing stores.
Home construction/equipment sector
20
Which of the following is NOT a sector of the stock market?
Transportation
Health Care
Energy
Real Estate
21
Which of the following is usually NOT included in a monthly mortgage payment?
Property taxes made to the local government.
Interest payment.
Home Owners Association taxes and fees.
Mortgage insurance.

Whitwam Personal Finance Flashcards | StudBud