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EPF - FINAL EXAM REVIEW Flashcards | StudBud
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EPF - FINAL EXAM REVIEW
EPF - FINAL EXAM REVIEW
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1
What is the primary goal of central banks when it comes to the inflation rate?
To stimulate economic growth
To maintain a low, stable inflation rate
To increase the purchasing power of consumers
To maintain a high, unstable inflation rate
2
Which of the following programs may be funded by excise taxes on tobacco?
Road maintenance
Law enforcement
Education
Healthcare
3
What is a cycle of debt?
A cycle of consistently paying off debt on time
A cycle of accumulating more debt due to high-interest rates and fees
A cycle of never accumulating any debt
A cycle of always having a high credit score
4
Which of the following is typically used to calculate sales tax?
The number of items being purchased
The percentage of the sale price
The color of the item being purchased
The weight of the item being purchased
5
Which payment method can help build credit scores if used responsibly?
Cash
Payment Applications
Credit Cards
Debit Cards
6
Which of the following is a benefit of having insurance in a financial plan?
It eliminates the need for emergency savings
It guarantees a fixed rate of return on investment
It allows for tax-free withdrawals in retirement
It helps protect against unexpected expenses and losses
7
The basic economic problem of scarcity involves...
unlimited wants and limited resources
unlimited incomes and limited spending
unlimited resources and limited wants
unlimited wants and limited money
8
What is the main purpose of networking?
To get a better education
To increase earning potential
To build relationships and exchange resources and opportunities
To improve financial knowledge
9
What is the purpose of pre-tax deductions?
To increase an employee's taxable income
To have no impact on an employee's taxable income
To increase an employee's tax bill
To reduce an employee's taxable income
10
What is the key difference between a recession and a depression?
Recessions have higher levels of unemployment
Depressions are more severe and last longer
Depressions are more common
Recessions last longer
11
What type of post-secondary education typically has the highest expenses?
Community college
Four-year university
Trade school
Online program
12
What are taxes used for by the United States government?
To punish the wealthy
To increase the wealth of the government
To provide for infrastructure and public services
To decrease the wealth of the population
13
How can responsible debt management help individuals?
By decreasing credit scores and limiting access to credit
By limiting investment opportunities
By increasing interest rates and fees
By building credit scores and increasing access to credit
14
What are some of the main goals of government regulation in the marketplace?
To promote overall economic stability and protect businesses
To promote competition and protect consumers
All of the above
To protect property rights and enforce contracts
15
The point on a supply and demand graph where supply meets demand is known as...
Point Squared
Equilibrium
X
The money spot
16
What variables should income and spending plans be uniquely tailored to that change throughout life?
An individual's income
An individual's age and needs
An individual's financial goals
An individual's available resources
17
What is the main goal of reallocating resources in the economy through government policies and programs?
To promote efficiency, equity, and economic growth
To decrease the size of the government
To decrease the wealth of the poor
To increase the wealth of the rich
18
How does a good work-life balance impact life and financial goals?
It allows you to focus on both equally, leading to a more fulfilling life
No impact, as job security and career advancement are more important
It has no impact on quality of life as long as you have high income
It can limit your earning potential, making it harder find happiness
19
What is one drawback of renting?
Need to worry about property taxes
Locked into one location for years
Rent payments are an ongoing expense that does not build equity
Large upfront costs
20
What is the main force of supply and demand?
Profit
Economic System
Competition
Demand
21
How can volunteering your time benefit individuals?
It can provide a source of income
It can improve their job prospects
It can improve their mental and physical health
It can improve their social status
22
What is the first step in establishing financial goals?
Assessing risk tolerance
Researching financial products and services
Setting a specific timeline for achieving goals
Identifying financial needs and wants
23
Which is an example of the Federal Trade Commission (FTC) protecting consumers from deceptive business practices?
Suing a company for falsely advertising their weight loss supplement
Regulating the price of goods and services in the market
Approving the release of a new medication to treat a specific illness
Enforcing stricter regulations on banks and financial institutions
24
How does housing impact your quality of life and financial goals?
It has no impact on your financial goals
It provides opportunities for financial security
It provides a comfortable and safe living environment
It can be a significant financial burden if not managed properly
25
Which is an example of the Food and Drug Administration (FDA) regulating the market to protect public health?
Protecting consumer rights
Regulating financial markets
Enforcing air quality regulations
Approving the release of a new medication
26
Why is a MBA recommended for individuals who want to lead a creative and entrepreneurial lifestyle?
It provides the necessary knowledge and skills to start & manage a business
It trains individuals in engineering and technology
It prepares individuals for a career in writing fiction
It provides training in fine arts and design
27
What is the purpose of allocating funds to each financial goal in creating a spending plan?
To monitor and adjust your spending plan
To prioritize your financial goals based on importance
To determine how much money you have left over for discretionary spending
To create a budget
28
Which of the following typically occurs during a period of economic expansion?
An increase in production and sales
A decrease in production and sales
A rise in the unemployment rate
An increase in the inflation rate
29
What are insurance premiums?
Amounts paid to maintain tax credits
Amounts paid to maintain Social Security benefits
Amounts paid to maintain insurance coverage
Amounts paid to maintain retirement savings
30
What does an increase in Gross Domestic Product typically indicate?
A period of economic expansion
A period of high inflation
A period of economic contraction
A period of unstable economic variation
31
What type of expenses can vary greatly depending on the post-secondary institution?
Transportation
Room and board
The Cost of Books
Personal expenses
32
Which of the following is an example of the Small Business Administration (SBA) providing support for small businesses?
Providing loans to small businesses affected by natural disasters
Enforcing stricter regulations on banks and financial institutions
Investing in large corporations
Regulating the stock market and protecting investors
33
What is one benefit of owning a property?
Lower monthly payments than owning
Flexibility to move to a new location w/o the burden of selling a property
No need to worry about property maintenance and repairs
Build equity over time and generate wealth through property appreciation
34
What factors are considered when calculating the FICO score?
Physical fitness and health history.
Payment history, amounts owed, length of credit history, types of credit
Age, income, and job history
Education level, marital status, and number of children
35
Command Economy Meaning?
one in which someones central authoirty to an item
one in which a central authority decides what goods will be produced
none of the above
one in which someones central authority
36
Which of the following typically corresponds with an increase in the unemployment rate?
A period of economic expansion
A period of stable economic growth
A period of low inflation
A period of economic contraction
37
What is the primary purpose of excise taxes?
To fund specific programs
To tax individuals' wages or salary
To tax the profits of corporations
To tax specific goods or services for specific programs
38
What is a potential drawback of balloon mortgages?
Higher interest rates than other mortgage types
The interest rate can fluctuate over time
Lower monthly payments during the repayment period
Borrower must pay off the remaining balance at the end of repayment period
39
How does trade dependence affect a country's economy in times of economic crisis?
It improves the country's relations with other countries.
It has no impact on the country's economy in times of economic crisis
It makes the country's economy more resilient to economic crisis
It makes the country's economy more vulnerable to economic crisis
40
The economies of varying countries often vary from each other because they have different
languages and cultures
governments
Geography and resources
origins and religions
41
A company has experienced a decline in profitability over the past year. Which is the most likely cause?
Increased demand and higher prices
An increase in the cost of raw materials
Lower demand and lower prices
A natural disaster disrupting the supply chain
42
What affects an individual's desired lifestyle?
All of the above
Education
Career
Income
43
How is the amount of property tax and/or Estate tax determined?
By the size of the property
By the income of the property owner
By the assessed value of the property
By the number of people living in the property
44
Which payment method can be difficult to pay off and can lead to a cycle of debt?
Cash
Payment Applications
Debit Cards
Credit Cards
45
When the price of gasoline goes up, what will the airlines do to continue to earn a profit?
Increase the pay of their employees
Decrease the number of seats on the airplanes
Increase the prices of tickets
Decrease the prices of tickets
46
How can government regulations negatively impact businesses?
By providing additional financial assistance
By increasing profits
By increasing administrative costs and paperwork
By promoting competition
47
What is the tax implication of holding stocks for more than one year under the buy and hold strategy?
Higher tax rates than short-term capital gains taxes
Subject to short-term capital gains taxes
Subject to long-term capital gains taxes, which are lower than short-term
Exempt from capital gains taxes
48
Which of the following organizations may play a role in economic stabilization efforts?
Political parties
Lobbiest
Business organizations
Environmental groups
49
Which financial incentive involves giving employees a % of money based on the value of sales they make?
Commission
Overtime
Piece Rate
Salary
50
What is the function of the opportunity cost ?
To help the government with its debts
To show how much are you earning
To demostrate business profits
To evaluate different investment alterns
