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Duplicate of Are You Ready? WISE TEST FINAL REVIEW DAY 1
Duplicate of Are You Ready? WISE TEST FINAL REVIEW DAY 1
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Financial Literacy Semester Final Review #finance #financialliteracy #semesterexam #financereview
Flashcards
100 cards
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Questions
100
Answers
1
The average repayment period for a student loan is:
20 years
10 years
15 years
5 years
2
A ______ plan allows for employees to defer compensation on a before-tax basis for investment.
401b
401k
403k
403b
3
Percentage of Americans living paycheck to paycheck:
70
40
50
4
A long-term rental agreement on a car; a form of secured long-term debt.
lease
loan
5
a system by which good and services are produced and distributed
economy
assets
6
The purpose of insurance is for:
develop a savings plan
all of the above
provide investment opportunity
transfer of financial risk
7
Developing a fin plan, 1st assess current financial situation - income, assets & liabilities.
True
False
8
The Federal Reserve Bank is responsible for printing paper currency.
True
False
9
_________ is a tax-free transfer of cash or other property from one retirement plan to another.
Annual
FICA
Rollover
Overturn
10
When a company hires you, you will fill out a ? form - how much tax should be w/h from paycheck
W-4
W-2
1040EZ
1040
11
You must establish credit in order to buy a house.
True
False
12
A fee paid by a borrower to the lender for the use of borrowed money
bills
interest
13
What is paycheck garnishment?
A legal procedure debt problems of individuals & businesses
court-order, lender takes monies owed directly frm paycheck
Process of taking something back for failure to make payment
not this one
14
Which of the following best explains why students should learn about personal finance?
Learning fin eliminate fin mistakes & promote huge fin bens
finance skills are better learned thru trial & error
highly complex and require a great deal of time to learn.
help you achieve a profitable career
15
A form that is completed annually by current & prospective college students determines fin aid
FOS
FAFSA
16
To match your bank statement with your checkbook.
cash flow plan
reconcile
17
A document reporting business financial performance & resources is called a ___________.
monopoly
cash management
financial statement
budgeting
18
The number one cause of divorce in North America is stress & disagreements over money.
True
False
19
A credit score is intended to measure:
the amount of money you have in the bank
risk of your not repaying debt
your financial resources
your income level
20
Why was the use of credit uncommon prior to 1917?
borrowing money was generally not socially acceptable
all of the above
lending money to others was not profitable
law prevented lenders from charging high interest rates
21
Since you are a teenager, what you do now will have little effect on your financial future
False
True
22
A card issued by a bank that allows users to finance a purchase.
debit card
credit card
23
Which of the following steps is the First Foundation?
Pay cash for college
Save a $500 emergency fund
Build wealth and give
Pay cash for car
24
All of the decisions and activities of an individual or family regarding their money
Currency
Personal Finance
25
The five steps to financial success.
Five Foundations
five money myths
26
When a single company or group owns all or nearly all of the market for a given type of product
majority
monopoly
duopoly
oligopoly
27
Traits or qualities that represent an individual's highest priorities etc.
core values
rules
28
A decrease or loss in value.
inflation
depreciation
29
A period of temp economic decline during which trade and industrial activity are reduced
market economy
recession
30
Early work experiences prior to your career job really have no benefit other than small income.
True
False
31
A written budget, if followed, removes _______ from your finances.
guilt
management by crisis
all of the above
overspending
32
Learning the lang. of money is not important bc you can depend on others to manage your money
True
False
33
What is the difference between gross pay and net pay?
gross and net are the same
gross pay describes your pay after deductions
none of these
net pay describes your pay after deductions
34
Discussing important financial matters with household members can reduce conflict.
True
False
35
The IRS is the federal government agency responsible for:
writing tax laws
keeping the unemployment rate low
tax collection and tax law enforcement
filling out your tax forms
36
Your monthly budget should include:
Variable Expenses
All of the Above
Fixed Expenses
Discretionary Expenses
37
When applying for a job, you should:
follow up with the employer
Present yourself well
provide a resume & cover letter
all of the above
38
At your age, a fully funded emergency fund should be:
$500
$300
$400
$1000
39
Most americans today are wealthy and will have financial security when they retire.
True
False
40
If you value security, you are more likely to:
make impulse buys
spend money
save money
all of the above
41
Setting up automatic account transfers is the easiest way to build your savings for emerg. fund
True
False
42
Which of the following cities is not the home of a Federal Reserve Bank?
St. Louis
Philadelphia
New York
Orlando
43
A written cash flow plan.
budget
personal finance
44
The process of communicating the value of a product or service to customers
product positioning
marketing
45
An unbiassed examination & evaluation of the financial statements of an organization
inspection
assessment
audit
examination
46
An amount of money you pay to help cover a portion of your medical costs.
co-payment
annuity
47
if attend a comm col. for 1st 2yrs, work with advisor to insure classes transfer to 4yr school
False
True
48
Which of the following is a consequence of overdrawing your checking account?
Stress from money mismanagement
All of the above
Overdraft fee from your bank
Bounced check fee from the store
49
Your own record of all your transactions
check register
account statement
50
When developing financial plan, you should assess your current financial situation.
False
True
51
Everyone should have the same financial plan. One person's budget is sufficient for everyone.
False
True
52
Percentage of college students that graduate with student loans:
30
90
66
25
53
Car repairs are a ________ expense.
intermittent
discretionary
variable
fixed
54
After an interview you should be patient and wait for the employer to contact you.
True
False
55
Which of the following is not a reason credit is marketed heavily to consumers in the US?
There is strong consumer demand for big-ticket items.
Credit laws are relaxed.
The credit industry has become extremely profitable.
The use of credit is not socially accepted in the U.S.
56
The knowledge and skill set necessary to be an informed consumer & manage finances effectively
budgeting
financial literacy
57
A spur-of-the-moment, unplanned decision to buy a product or service.
buyer's remorse
impulse buy
58
Expensive houses and new cars are true indication of wealth.
False
True
59
When it comes to managing money, success is about ________% knowledge and ________% behavior.
50;50
60;40
80;20
20;80
60
Life insurance policy for a specific period of time is called:
Level
Term
Whole Life
Universal
61
Which of the following is NOT one of the Five Foundations?
Build wealth and give
Save a $500 emergency fund
Build your credit
Pay cash for your car
62
Which of the following is not a need?
Utilities
Food
Eating out
Housing
63
When married couples do not share goals & values in how they manage money which can occur:
Stress
Divorce
Conflict
All of the Above
64
Groceries are a ______ expense.
variable
fixed
discretionary
intermittent
65
Means "love of humanity"
philanthropy
caregiver
66
Statements
best
describes how Americans are being outsmarted by banks and other lenders?
Credit is marketed so well that we desire to have it...
Buying things on credit has become acceptable in our culture
We are driven by consumerism.
We are taught that we can buy happiness.
67
When it comes to personal fin, the math is easy. What's challenging is managing your ________.
friends
behavior
bank account
income
68
Online bill pay allows your to make payments to whomever you wish w/o having to write a check
True
False
69
The Federal Reserve System has _______ Governors and ______ Reserve Banks.
7;9
7;12
9;12
12;12
70
Occurs when money is withdrawn from a bank account and the available balance goes below 0
reconcile
overdraft
71
Which of the following statements
best
explains why income alone does not determine wealth?
Income alone does determine a person's wealth.
Only people who are natural savers can become wealthy.
Investing only factor that contributes to wealth building.
money does not dictate person spending & saving habits
72
Amount your must pay before you begin receiving any benefits from your insurance company.
deductible
income
73
The total estimated student loan debt outstanding (unpaid) is over:
$7 trillion
$1 trillion
$1 billion
$10 thousand
74
A form of financial aid that does not need to be repaid; awarded academic, athletic, other
grant
scholarship
75
A detailed report of an individual's credit history.
cash flow statement
credit report
76
You need to have a credit card to rent a car or check into a hotel.
True
False
77
The Fifth Foundation is Build Wealth and _______.
Save
Keep it all for yourself
Stay out of debt
Give
78
Percentage of Americans living paycheck to paycheck:
50
40
70
25
79
Which of the following is the most cost-effective option for purchasing a home?
with 100% down; if that not option get no more than a 15yrs
30yr mortgage so u get the lowest possible payments.
Get a 15-year mortgage with a 5% down payment.
Get a 30-year mortgage with a 20% down payment.
80
Non-essential expenses.
discretionary
intermittent
81
A form of federal or state financial aid that does not need to be repaid
Scholarship
Grant
82
The amount of stuff a person has is directly related to contentment and happiness.
True
False
83
The quality or state of being responsible, liable, or answerable.
accountability
honesty
84
Reduction in the gross amount on which a tax is calculated
tax deduction
tax expense
85
These may be free or low-cost; found online, at community colleges, through gov. funded program
certifications
associate's degree
86
Great Depression, New Deal policymakers mortgage & consumer lending that convinced banks that:
Consumer credit was not a profitable industry
not compete w/loan sharks in the in consumer lending
Consumers would not be willing to use credit
Consumer credit could be profitable
87
The day that income tax filings are due in the U.S.
June 15
January 1
April 15
December 1
88
Usually a professional trainer serves as the course instructor, combines hands-on & classroom
on-the-job training
associate's degree
89
Money set aside and left alone for a "rainy day."
emergency fund
savings
90
A debt evidenced by a "note," specifies the principal amount, interest rate, & date or repay
loan
bank fee
91
A four-year degree is necessary regardless of which career you're entering.
True
False
92
The government relies on taxes to:
burden the public w/ extra responsibility
remind citizens of the gov. powers
all of the above
pay for services (roads, edu, social service)
93
Allows students to learn basic professional skills in two years or less; typically cuts gen ed
trade school
self-education
94
The gov. agency responsible for regulating the stock market.
Federal Reserve
Securities Exchange Commission
95
Which of the following is
not
a credit myth?
You have "arrived" financially once u get credit
Debt is a tool and should be used to create prosperity.
Borrowing money can hv serious consequences & prevent wealth
The lottery and other forms of gambling will make you rich.
96
Rent is a _______ expense.
variable
discretionary
fixed
intermittent
97
An obligation of repayment owed by one party to a second party.
debt
ownership
98
Anything handed down from the past; something that someone has achieved that cont. after gone
antique
legacy
99
Communication, teamwork, and consistency are all important elements in handling family finances
False
True
100
Feeling regret or concern after making a large purchase.
consumerism
buyer's remorse
