Personal Finance Dual Credit Exam

The time value of money can be used to estimate future savings with periodic drawing of funds.

Life insurance is critical to protect a family's financial situation in the event that a breadwinner dies.

Retirement fund withdrawals are usually taxed as ________ income.

Of the following statements about a day trader, which is not correct?

Additional types of insurance commonly offered through employers include

Liquidity refers to your ability to cover any long-term cash deficiencies.

Indemnity health plans

Buying a car from a dealer with a set price (a no-haggle dealer) is usually more stress-free and less time consuming.

Kelly deposits $1,000 in her savings account earning 4% per year. How much interest would she earn in a year?

Cash outflows are also called

When money accumulates interest, it is said to be compounding.

In addition to the textbook, websites and financial magazines are good sources for additional help in financial planning

APR means

ATM cards are declining in use because they are expensive, and the machines are becoming more difficult to locate.

Which of the following is an advantage of a PPO compared to an HMO?

Schedule that shows your monthly home payment & amounts applied to principal & interest is called depreciation table.

Buying a home may be the single biggest investment you will ever make.

Most people have all of the information they need immediately available to prepare a budget.

When money earns interest on interest, it is said to be compounding

Knowledge of individual income taxes is crucial to sound financial planning.

Which of the following gross income is not taxable income?

When securing a loan, you should ask for 20% more than you need in order to give yourself financial flexibility

Ex of opportunity cost: cost of tuition while attending college instead of hourly rate earned from being employed

Creditors (person/company to whom money is owed) prefer a ___ amount of capital and ___ collateral in best circumstances

The time value of money concept is hardly ever used in daily financial decisions.

Your credit report can be requested online and should be checked periodically for errors.

Long-term liabilities are debts that will be paid at least three years into the future.

Financial institutions provide home equity loans up to a maximum of 70% of the value of the equity in a home.

A risk-free rate is a return on an investment that is guaranteed for a specified period.

It is a good idea to get and use as many credit cards as possible to build a credit history.

A disadvantage of term life insurance is that

Bonds are certificates representing partial ownership of a firm.

You should select only one financial institution for all of your checking, savings, and investing needs.

An asset money management account combines deposit accounts w/brokerage account & provides a single account statement.

The bodily injury liability coverage of your automobile policy will not pay for

Basic health insurance policies & Medicare won't cover stays in nursing homes or assisted living centers for very long

Insurance companies price their policies to reflect the probability & size of claims

The first step in the home-buying process should be to

Medicare is a government health insurance program that covers people 55+ by providing payments for health care

Present and future value concepts are used to determine the wealth provided by an investment.

The FICA taxes you pay include Social Security and

The major source of cash outflow for most people is the income they receive from employers.

Universal life insurance is same across insurance companies & therefore the most common & popular form of life insurance

The concept of the time value of money is based on

It would be difficult & expensive for an individual investor to benefit from holding all 500 stocks of S & P 500 Index

Even an unsecured personal loan should be backed by collateral

In the past 10 years or so, many employers have shifted from defined-benefit to defined-contribution retirement plans