One difference between a charge card and a credity card is that

the full balance on a charge card must be paid each month

Which of the following contracts must be signed to be legally binding?

a contract involving the sale of a farmhouse

Generally, all of the following characteristics are associated with successful entrepreneurs except

holding a master's degree in business

All of the following are wise investment practices except

make your decisions quickly to take advantage of the market

For employees, the Social Security deduction is withheld at the rate of

6.2% of the 1st $117,000 earned

In a balanced budget.

expenses+savings=earnings+borrowing

Subsidied student loans

are guaranteed by the federal government

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Con ED Sem 1 review

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Questions 80

Answers

1
Savings accounts protected by FDIC are protected from loss for up to
$250,000
$1,000,000
$100,000
$500,000
2
A service available to charge customers whereby purchases are not billed until much later than the standard billing time
a line of credit
a secure loan
a leveraged payment plan
deferred billing
3
The person to whom a check is payable is called the
maker
demander
payee
depositor
4
When preparing a budget, you need to focus mostly on your
disposable income
net income
gross income
taxable income
5
A work schedule that fits the normal 40-work week into less than 5 days is called
a compressed workweek
job sharing
flextime
job rotation
6
Maximization of return inthe next five to 10 years is the goal of which investment strategy?
initial investing
speculation
strategic investing
systematic investing
7
The largest source of government revenue in the U.S. is
excise taxes
tariffs
income taxes
Social security taxs
8
Which of the following would be considered an asset?
all of the above are assets
a checking account
a car loan
a credit card account
9
A person or institution that manages property for the benefit of someone else under a special agreement is called a(an)
notary public
trustee
executor
maker
10
This type of risk is caused by the business cycle
industry risk
political risk
market risk
interest-rate risk
11
One difference between a charge card and a credity card is that
charge cards almost have lower credit limits that credit cards
none of the above, there is no difference between the two.
the full balance on a charge card must be paid each month
a charge cards are open-end credity, whereas credit cards are closed
12
A small business owned by a person who also works full-time for an employer is a
venture business
lifestyle business
start-up business
side business
13
Which of the following is a variable expense?
insurance premium
rent
car loan
grocery bill
14
Professional investment planners who are trained to give investment advice based on your goals, age, lifestyle, and more
day traders
certified financial planners
certified public accountants
discount brokers
15
Which of the following contracts must be signed to be legally binding?
an agreement to purchase a $50 mps player
all of the above
a promise that you will feed your neighbor's cat over the weekend
a contract involving the sale of a farmhouse
16
In this kind of audit, the IRS sends a letter to the taxpayer, asking to answer specific questions about the tax return
field audit
correspondence audit
document audit
office audit
17
A computer program that organizes data in columns and rows and can perform calculations using the dat is called a
scheduler
spreadsheet
calculator
database
18
Which of the following is an example of a flat tax?
consumption tax
property tax
sales tax
federal income tax
19
A typical down payment for a house is about ___percent of the purchase price.
30-40
20-30
10-20
5-10
20
Members of this type of union are skilled, semiskilled, or unskilled employees in a particular industry
trade union
industrial union
craft union
public-employee union
21
Which of the following transactions would likely be difficult to make without a credit card?
reserving a hotel room
buying groceries
buying a house
purchasing a car
22
Which part of the check provides a place for you to write the purpose of the check?
the memo line
payee line
the signature line
the routing number
23
Effectively preparing for a job interview would include
preparing a list of likely questions
learning about your prospective employer
all of the above
reviewing your resume
24
In the U.S., the responsibility for filing a tax return rests with the individual. This defines the concept of
the graduated income income tas system
the ability-to-pay principle
pay-as-you-go
Voluntary compliance
25
According to rule of 72, if an investment of $5000 is yielding an average of 6%, it will take___years to acrue to $10000
72
12
6
36
26
Which of the following is typically the first stage of investing?
a put-and-take account
systematic investing
speculation
strategic investing
27
Interest paid on the original principal plus accumulated interest is called
compound interest
value-added interest
Yield
adjustable interest
28
The total dollar amount of all interest and fees you pay for the use of credit is called the
principal
finance charge
balance due
collateral
29
A tax for which the rate stays the same, regardless of income, is called a
proportional tax
regressive tax
sonsumption tax
progressive tax
30
Generally, all of the following characteristics are associated with successful entrepreneurs except
being self- motivated
being trustworthy
holding a master's degree in business
having a friendly disposition
31
a type of incentive pay based on quality of work done or years of service on the job is called a
pension plan
stock option
bonus
profit-sharing plan
32
In most cases, the amount of "take home pay" and employee receives is
equal to net pay plus overtime pay
about 65-70% of gross pay
equal to gross pay
less than gross pay but more than net pay
33
All of the following are wise investment practices except
make your decisions quickly to take advantage of the market
seek good investment advice.
keep good financial records
define your financial goals
34
People who provide information about a job applicants skills, character, and achievements are known as
career coaches
all the above
resources
references
35
Your filing status on tax return is based on
your occupation
your income
your age
your martital status
36
You must file your tax return by this date every year.
june 1
April 15
December 31
January 1
37
Most financial experts recommend that a family have fixed expenses of no more than
50-60% of variable expenses
50-60% of net pay
50-60% of gross pay
50% of gross pay 60% of net pay, whichever is higher.
38
Management of data storage and retrieval is known as
web mining
data processing
data back-up
data warehousing
39
Which of the following is an example of non-taxable income?
none of the above; all income is taxable
alimony
interest on a bank account
life insurance benefits
40
Your financial position is based on your
income
age
collateral
capital
41
Work study program allow students to earn money by working
all of the above
on campus
from home
at their parents placew of employment
42
For employees, the Social Security deduction is withheld at the rate of
1.45% of all pay earned
6.2% of all pay earned.
6.2% of the 1st $117,000 earned
1.45% of the 1st $117,000 earned
43
An interest-bearing checking account that pays a higher rate of interest that usual account, typically has restricions
standard account
special account
share account
money market account
44
In a balanced budget.
expenses=savings
expenses-savings=gross income
expenses+savings=earnings+borrowing
gross income=disponsable income
45
Which of the following would be considered the lowest risk investment
a stock
an annuity
a corporate bond
real estate
46
the need for credit arose in the United States with the dawn of the
Industrial revolution
American Revolution
Information Age
Great depression
47
Which of the following is organized primarily to lend money for home mortages?
savings and loan association
credit union
full-service bank
brokerage firm
48
When one person makes an offer and another person changes it, the second perosn is
committing fraud
making a counter offer
providing consideration
entering into an agreement
49
A daily newspaper that provides detailed coverage of the business and financial world is
Wall Street Journal
The Economist
Barron's
Kiplinger's Personal Finance
50
Subsidied student loans
are guaranteed by the federal government
are not available for consolidation
do not accrue interest
never need to be paid back
51
The widest variety of banking services is provided at a
savings bank
commercial bank
savings and loan association
credit union
52
Goals that a person anticipates achieving within a few months or years are classified as
short-term goals
secondary goals
primary goals
intermediate goals
53
When you open a checking account, most banks will require you to have an initial deposit of at least
$250
$50
$1000
$500
54
Rate X Hours Worked =
overtime pay
incentive pay
gross pay
net pay
55
Molly buys a phone. She finds 1 for 500. She withdraws 250 from her savings and a loan from her dad. Who is the debtor
Savings account
Cell phone company
Molly
her dad
56
Which of the following would be considered a long-term need?
home ownership
major appliznce purchase
a weekend getaway vacation
car repair
57
All of the following information would be appropriate for inclusion in a resume except
additional qualifications or skills
educational background, high school and post highschool.
work experience, including both paid and unpaid jobs
personal information , age, gender, and maritial statuts
58
Which of the following is least likely to offer service credit?
the telephone company
a dry cleaner
a doctor's office
furniture store
59
Attaining a higher skill level to increase your usefulness to your employer is called
promotion
retraining
lifelong learning
upgrading
60
Darren writes a check to the phone company for $45.60. He should record this amount in his checkbook register in the
payment/debit column
balance column
fee column
deposit/credit column
61
When a check is returned to the payee's bank due to insufficient funds, the check is said to have
floated
bounced
been canceled
been postdated
62
In a flexible-scheduling arrangemet, the core time period is
a crucial time of day when all employees must be working
the time of day when employees get their daily assignments
The startiing time for most employees
the schedule requested most ofter by employees
63
You can authorize your employer to make automatic deductions from your paycheck each period with a(an)
money market deposit
electronic funds transfer plan
direct deposit
payroll savings plan
64
If you are a salaried worker
no deductions will be taken from your paycheck
your overtime pay rate is higher than that of an hourly worker
you will probably be paid twice per year
your gross pay is the same as your salary
65
The use of long-term savings to earn a financial reward is called
investing
diversifying
gambling
speculating
66
A legal business that makes high-interest loans on the value of personel is called a
loan shark
pawnbroker
finance company
fence
67
A standard work week is
32 hours
40 hours
36 hours
44 hours
68
Savings and checking accounts at a credit union are usually called
money market accounts
share accounts
certificates of deposit
passbook accounts
69
A tax___is an amount subtracted directly from the tax owed
deduction
exemption
bracket
credit
70
"Plan B" is the label used to describe what you would do if your job ended and might include
developing networking contacts
getting a part time job
learning new skills
all of the above
71
In the U.S., the power to impose federal taxes rests with
the IRS
the Congress
the Department of Treasury
the President
72
If you go over your credit limit or make your payment late, you will likely be charged a(an)
penalty fee
maintenance fee
annual fee
transaction fee
73
The right, but not obligation, to buy or sell a commodity or stock for a specified price within a specified time is
future
annuity
option
discount bond
74
A check written by a bank on its own funds is called a
Cashier's check
money order
traveler's check
certified check
75
Which of the following benefits are employers required by law to provide?
child care
paid vacations
all of the above
workers compensation
76
A request that a bank not honor a specific check is called a(an)
void request
overdraft order
cancellation request
stop-payment order
77
A check is wirtten to Taylor Ford. On the back of the check, Tim writes Pay to the order of Rod Doe, then signs it
partial endorsement
special endorsement
restrictive endorsement
blank endorsement
78
The knowledge and skills acquired from working in a career field provide a person with
higher wages
secondary goals
seniority for promotion purposes
experience
79
The IRS has the legal right to audit your tax returns and supporting redords for ___years from the dat of filing>
3
5
10
2
80
A person who creates and signs the promissory note and agrees to pay it on a certain date is called the
maker
payee
negotiator
co-signer

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