(Unit 6) Identity theft occurs when someone gains unauthorized access to

Your personally identifying information

(Unit 4) FDIC stands for

Federal Deposit Insurance Corporations

(Unit 4) Which of the following is not required for a safe deposit box?

Video proof of what is in the box

(Unit 3) What does it mean to "Pay yourself first"?

Making savings the top priority in your budget

(Unit 1) Which of the following is the best example of a well stated SMART Financial goal

Buy a $2000 laptop computer in a year

(Unit 7) What covers you if you temporarily can't work due to a non working related injury

Short-term disability insurance

can only be used to make withdrawals and deposits at ATMs

(Unit 6) Someone would steal your identity to

Gain access to resources under your name

studbud

Personal Finance Final

210 termsStudBud Administration89 plays

All multiple choice from previous personal Finance tests

Flashcards210 cardsFPractice quizPHost liveL

Questions 210

Answers

1
(Unit 6) Identity theft occurs when someone gains unauthorized access to
Your personally public information
Your facebook
Your Twitter
Your personally identifying information
2
(Unit 5) Which of the following is an example of a charge card?
MasterCard
Discover
Visa
American Express
3
(Unit 4) FDIC stands for
Forward Database Incorporated
Federal Database Insurance Corporations
Federal Deposit Insurance Corporations
Federal Deposit In Corporations
4
(Unit 4) Which of the following is not required for a safe deposit box?
Signature card
Video proof of what is in the box
Account at the bank
Key for the box
5
(Unit 7) Basic health care coverage includes medical, hospital, and surgical costs
False
True
6
(Unit 8)Defined-benefit plans are more common than defined-contribution plans in most companies
False
True
7
(Unit 1) Which of the following is not reliable source for financial assistance
Financial Planner
Seminars
Friends
Parents
8
(Unit 2) A tax that pays medical care for retired persons who receive social security benefits
Medicare tax
FICA
Net Pay
Social security
9
(Unit 8) The legal process of proving a person's will and distributing that person's estate is
Intestate
Probate
Estate planning
Estate transfer
10
(Unit 5) With a rewards program, you can get money back for using your credit card
False
True
11
(Unit 8) A portion of a corporation's profits distributed to stockholders is called a
Gain on Principal
Return on Investment
Dividend
Interest payment
12
(Unit 2) A tax levied as a percentage of the purchase price of goods sold to consumers
Use tax
Sales tax
State tax
Goods tax
13
(Unit 8) Short term goals are those you want to accomplish in the next two to five years
False
True
14
(Unit 8) When investors sell stock that have increased in value, this is an example of
Dollar-cost averaging
Profit taking
Diversification
Systematic investing
15
(Unit 3) What does it mean to "Pay yourself first"?
Making savings the top priority in your budget
None of the above
Treating yourself to a financial splurge once a month
Spending a percent of your money on the things you what now
16
(Unit 4) If a check is not properly endorsed, it may be returned by the bank to the customer
False
True
17
(Unit 4) when a check is cashed, the check is said to be truncated
False
True
18
(Unit 1) Which of the following degrees typically requires more education
Bachelor
Master
Associate
19
(Unit 6) It's not easy to prove that you did not do something
False
True
20
(Unit 8) Which of the following retirement accounts provides tax-free earnings
Roth IRA
Simplified employee pension
Koegh plan
Traditional IRA
21
(Unit 1) Which of the following is the best example of a well stated SMART Financial goal
Buy a $2000 laptop computer in a year
Pay off $1200 credit card balance as soon as possible
Buy a $1500 TV
Buy a two-bedroom home in 4 years
22
(Unit 2) Total Salary or wages earned during a pay period
Net Pay
Take-home pay
Overtime pay
Gross pay
23
(Unit 4) Which of the following is issued by a bank against its own funds?
A third party check
Stop payment
Money order
Cashier's check
24
(Unit 3) What is the first step in preparing a budget?
Estimate Expenses
Plan Savings
Estimate Income
Balancing the budget
25
(Unit 4) Floating a check is writing a check and making deposit later to cover it
False
True
26
(Unit 4) paper money is also known as banknotes
False
True
27
(Unit 2) A tax where a higher percentage of income is taken from lower income individuals
Fair
Regressive
Progressive
Flat
28
(Unit 3) Changes can be made to my written spending plan
Only once a month
As many times as needed
Only every six months
Only once a week
29
(Unit 5) Which ADR processes is usually the first approach when resolving a dispute
Negotiation
Voluntary Arbitration
Mediation
Binding arbitration
30
(Unit 1) Someone's goal of investing $200 a month for 6 years is a ______ goal
Long Term
Short term
Intermediate
Impossible
31
(Unit 7) What covers you if you temporarily can't work due to a non working related injury
Workers' compensation
Short-term disability insurance
Basic health care coverage
Long-term disability insurance
32
(Unit 4) Liquidity measures how easily money can be withdrawn
False
True
33
(Unit 4) An ATM Card
Has all the same protections provide with credit cards
can only be used to make withdrawals and deposits at ATMs
Can be used to make purchases
Is the same as a debit card
34
(Unit 5) When defining your spending goal, you should recognize your opportunity cost
False
True
35
(Unit 2) Federal income tax is an example of a
Direct tax
Indirect tax
36
(Unit 7) Which of the following isn't a risk strategy?
Risk Reduction
Risk avoidance
Risk Transfer
Risk assessment
37
(Unit 7) Homeowners insurance does include liability insurance
False
True
38
(Unit 2) A benefit that allows employees to share a portion of the profits of the business
Profit sharing
Cafeteria plan
Benefit pay
Salary
39
(Unit 4) The future value of money is how much you need to deposit today to get in the future
False
True
40
(Unit 5) Those under 21 must have an income or have a cosigner before issued a credit card
False
True
41
(Unit 8) Municipal bonds are issued by state governments
False
True
42
(Unit 7) Disability insurance typically pays 50-60% of your regular pay
False
True
43
(Unit 2) A person you claim on your tax return as a dependent
Child
Spouse
Optional
Exemption
44
(Unit 5) Which of the following is not a common reason for bankruptcy?
Small business failure
Overspending
Losing employment
Low income
45
(Unit 3) Which of the following is considered a fixed expense?
Rent
Scholarship
Groceries
Electric
46
(Unit 1) A long term goal is defined as any goal taking more than two years to complete
True
False
47
(Unit 1) If Supply of a product exceeds demand, Sellers will charge higher prices for a product
False
True
48
(Unit 3) An internet bill would be an example of what?
Variable expense
Want
Value
Fixed Expense
49
(Unit 6) Once your identity is stolen, thieves can use it to
Get arrested
Spend all your money
All of the above
Obtain a driver's license
50
(Unit 3) Rent, car loan payments, insurance and cell phone payments are examples of what?
Fixed Expenses
Variable expenses
Opportunity Costs
Trade-offs
51
(Unit 6) Someone would steal your identity to
Play a joke on you
See what it's like to be someone else
Get back at you for something you did
Gain access to resources under your name
52
(Unit 3) Everyone has the same spending plan if they make the same amount of money
True
False
53
(Unit 6) To get up-to-date information on the latest scams, you can visit
FTC.gov
USA.gov
Fraud.gov
FBI.gov
54
(Unit 3) Which is an example of a flexible or variable expense?
Cellphone
Insurance
Groceries
Rent
55
(Unit 5) Which law entitles you to a free copy of your credit report every 12 months
Fair Credit Billing act
Credit card act
Truth in Lending act
Fair Credit Reporting act
56
(Unit 4) When a check bounces, the person or business that deposited it is charge a fee
False
True
57
(Unit 7) If you rent your residence instead of owning it you don't have to insure it
True
False
58
(Unit 3) Changes to a spending plan is a continual process because finances are always changing
False
True
59
(Unit 4) You Should reconcile your bank statements at least once a year
False
True
60
(Unit 2) A tax where a higher percentage of income is taken from higher income individuals
Regressive
Fair
Flat
Progressive
61
(Unit 5) A common reasons why people file for bankruptcy is excessive medical bills
False
True
62
(Unit 1) Short term goals for teens are usually achieved within then next 3 years
True
False
63
(Unit 8) The emphasis of savings is on
The accumulation of wealth
Growth over time
Safety of principal
Risky investments
64
(Unit 8) Bear markets typically last longer than bull markets
False
True
65
(Unit 4) A canceled check serves as proof of payment for bills or purchases
True
False
66
(Unit 2) Money Received from sources other than working
Supplemental income
Earned Income
Disposable income
Unearned income
67
(Unit 8) The income you receive from selling stock at a higher price is called a dividend
False
True
68
(Unit 2) A form that all regular employees will receive from their employer, with income info
1099-INT
1098-T
W-2
1040ez
69
(Unit 8) For long term investments, strategic choices are designed to stay ahead of inflation
True
False
70
(Unit 2) Money in the form of check or debit given to those needing assistance
Net Payment
In-kind payments
In-cash payment
Cashiers check
71
(Unit 7) To be eligible for cancer insurance, you
Must be age 65 or older
cannot have a pre-existing cancerous condition
Must purchase major medical coverage
must have been previously diagnosed and treated for cancer
72
(Unit 1) Besides Scholarships, which is not one of the three most common forms of financial aid
Work-Study program
Work and Save
Loans
Grants
73
(Unit 2) The amount of your paycheck after deductions
Gross pay
Salary
Net pay
Wages
74
(Unit 7) Which type of health care plans allow people to manage their own health care dollars?
Preferred provider organization (PPO)
Medicare
Fee-for-service plan
Health Maintenance Organization (HMO)
75
(Unit 8) The purchase of vacant land is often classified as speculative investing
True
False
76
(Unit 1) The S in the acronym SMART for financial goals stands for
Specific
Short-term
Sentimental
Substantive
77
(Unit 5) The FBI oversees the US National Do Not Call Registry
False
True
78
(Unit 2) Withholding tax that pays for old-age, survivors, and disability insurance benefits
State tax
Medicare tax
Federal tax
Social Security tax
79
(Unit 3) The portion of current income not spent on consumption
Spending plan
Value
Variance
Savings
80
(Unit 7) Risk Transfer is also called
Risk reduction
Risk shifting
Risk retention
81
(Unit 4) Savings accounts at banks usually are insured by the FDIC up to a legal limit of $250k
True
False
82
(Unit 7) For Insurance Purposes, what you would pay today to replace an item is
Actual cash value
Replacement cost
Limited cost
Real property value
83
(Unit 5) Implementing buying plan involves all of the following except
Evaluating the purchase
Setting a spending limit
Making a purchase
Comparison Shopping
84
(Unit 5) The minimum payment due and due date must be told on the monthly credit card statement
False
True
85
(Unit 4) Checks that a bank has processed are called
Truncated Checks
Checks in Transit
Certified Checks
Canceled checks
86
(Unit 5) People who try to hide assets from bankruptcy court are committing bankruptcy fraud
True
False
87
(Unit 3) Which of the following items are NOT a benefit of using a spending plan?
Helps individuals meet financial goals
Allows you to track income and expenses
Encourage individuals to spend more money
Helps individuals live within their income
88
(Unit 1) Lifelong learning will help you stay employed and able to earn higher pay or promotion
False
True
89
(Unit 1) Joel has a goal of saving $50 a month for an IPad. What does this goal lack
Specific
Measurable
Attainability
Time
90
(Unit 6) The S in https:// stands for
Strengthen
Safe
Secure
Sound
91
(Unit 5) Most Credit counselors recommend accepting more credit than you need
False
True
92
(Unit 1) Retraining is the process of learning new skills in order to prepare for a new field
True
False
93
(Unit 5) Which of the following is not a type of living habit?
Sleeping late
Vehicle used for transportation
Frequent socializing
Cleanliness
94
(Unit 5) The person who borrows money is called the debtor
True
False
95
(Unit 6) This is when someone tries to steal your information over the phone
Pretexting
Vishing
Skimming
Phishing
96
(Unit 7) Assigned risk pools offer minimum insurance coverage at high cost to poor drivers
False
True
97
(Unit 8) Earned income is your net income before subtracting business expenses
True
False
98
(Unit 1) An unsubsidized loan is a loan that starts charging interest from the time it is made
False
True
99
(Unit 8) A savings account typically pays a low interest rate
False
True
100
(Unit 5) A property manager lives on site and provides repair and supervises safety of the area
True
False
101
(Unit 2) An insurance plan that pays medical and disability benefits to workers injured
Medicare
Workers compensation
Disability Insurance
In-Kind payments
102
(Unit 6) This is a form of stealing one's identity in which someone pretends to be someone else
Identity robbery
Stolen Description
Name Robbery
Identity Theft
103
(Unit 5) Which of the following carries the most weight when calculating FICO score?
Amounts owed
Length of credit history
Types of credit used
Payment history
104
(Unit 6) If a company calls and asks for your PIN number, you should give it to them
True
False
105
(Unit 6) You should keep a list of all account numbers and phone numbers in a secure location
False
True
106
(Unit 7) Term insurance is an important part of your temporary life insurance plan
False
True
107
(Unit 2) The simple tax return form for people who don't itemize deductions
W-2
1098-T
1040ez
1040-a
108
(Unit 5) Credit Counseling is a good way to solve debt; however, it is very expensive
False
True
109
(Unit 2) A form used to report taxable income that a worker received during the calendar year
1040
1040ez
W-2
W-4
110
(Unit 8) Which low-risk savings option is not insured by the FDIC
Money market fund
Money market deposit account
Certificate of deposit
Savings account
111
(Unit 3) Money coming in is an example of
Expenses
Net loss
Net gain
Income
112
(Unit 6) Identity theft can happen to anyone regardless of your financial habits
False
True
113
(Unit 6) My identity could be stolen by
Mail, purse, or wallet getting stolen
Attending a financial literacy class
Locking up my social security card
Using cash
114
(Unit 7) Why do you need liability insurance
To cover injuries from a car crash
To cover the other person's car in an accident
To cover your car in an accident
To cover injuries from a car crash
115
(Unit 1) An associate degree will normally lead to less income than a bachelor's degree
True
False
116
(Unit 4) Interest paid only on principal is called
Compound interest
Imputed interest
Simple interest
Interest expense
117
(Unit 7) Which is not a type of basic auto insurance
Collision
Burglary
Liability
Comprehensive
118
(Unit 1) The ability to prepare a spreadsheet is an example of a hard skill
False
True
119
(Unit 4) Which of the following banking activities cannot be done with internet banking?
Transferring money
Monitoring accounts
Paying bills
Withdrawing Cash
120
(Unit 3) Savings provides money for
Expenses in five years
All of the above
Unplanned expenses next year
Emergency Expenses
121
(Unit 2) When a car salesman earns 5% of every sale he makes, that is known as a
Wage
Salary
Tip
Commission
122
(Unit 8) The people who give the capital to a real estate syndicate are called silent partners
False
True
123
(Unit 2) Money and benefits received from local, state, or federal governments
In-kind payments
Transfer payments
Benefit payments
In-cash payments
124
(Unit 7) A disadvantage of belonging to a HMO is their emphasis on preventive care
True
False
125
(Unit 1) The M in the acronym SMART for financial goals stands for
Monetary
Memorable
Motivational
Measurable
126
(Unit 7) Buying insurance to cover financial losses from damaging events is an example of
Risk Transfer
Risk assumption
Risk avoidance
Risk Reduction
127
(Unit 4) All of the following may be required to open a checking account except a
Cashier's check
Minimum deposit
Security Question
Signature card
128
(Unit 4) The payee is the person who is writing the check
True
False
129
(Unit 8) When using dollar-cost averaging, investors do not have to study the stock market
True
False
130
(Unit 6) Identity theft occurs by
Hacking into your computer
All of the above
Someone stealing your wallet
Someone stealing non-shredded paperwork
131
(Unit 4) Which is not one of the key characteristics of money as a form of exchange
Trade
Durability
Divisibility
Store of value
132
(Unit 8) An investment that will not be taxed until a later time is
Nontaxable
Tax deferred
Tax exempt
Tax free
133
(Unit 8) Which of the following is NOT a systematic saving and investing strategy
Day Trading
Dollar cost averaging
Investment tracking
Tax deferred
134
(Unit 3) If your expenses were greater than your income, which would be a smart solution?
Increase Credit card usage
Decrease expenses
Decrease income
Increase Purchases
135
(Unit 3) Giving to a church or charity can be part of my spending plan
False
True
136
(Unit 8) Investing in a franchise is more risky than starting your own business
False
True
137
(Unit 6) A thief could steal your tax refund, with your identity stolen
False
True
138
(Unit 3) Which of the following is not a spending plan category?
Transportation
Couch Change
Emergency Fund
Entertainment
139
(Unit 5) Liquidation Bankruptcy is also called
Chapter 11 bankruptcy
Chapter 13 bankruptcy
Individual debt adjustment
Chapter 7 bankruptcy
140
(Unit 2) A portion of a corporation's profits distributed to stockholders
Stock options
Dividends
Stocks
Benefits
141
(Unit 6) This is when someone tries to steal your information over an email
Phishing
Vishing
Skimming
Pretexing
142
(Unit 5) The process of dividing up your debt into equal payments over a set period of time is
Depreciation
Refinancing
Budgeting
Amorization
143
(Unit 5) All are required to be included in a credit card's disclosure terms except
The annual percentage rate (APR)
An amortization schedule
The minimum finance charge on unpaid balances
Cash advance fees
144
(Unit 5) Being financially responsible means you make payments and honor your commitments
True
False
145
(Unit 5) Landlords are responsible for all of the following except
Monitoring guests
Providing door lock
Repairing roofs
Fixing plumbing problems
146
(Unit 7) Which is not covered under a basic homeowners insurance policy
Fire
Flood
Burglary
Accident on your property
147
(Unit 6) This is a detailed report of your credit history
Card Report
Bank Report
Check Report
Credit Report
148
(Unit 5) Which of the following is a disadvantage of credit?
Overspending
Inconvenience
Decreased purchasing power
Security
149
(Unit 7) An HMO allows employees to set aside money to help pay for medical expenses
False
True
150
(Unit 2) People who work and are paid by the hour earn
Salary
Wages
Dividends
Commisions
151
(Unit 4) Online banks are not subject to the same laws and regulations as traditional banks
False
True
152
(Unit 5) Which of the following is not a recommended method to prevent credit card fraud?
Carry only the cards you need
keep old statements containing account numbers
Don't store your credit card information on a website
Monitor your credit activity online
153
(Unit 2) Government-provided goods and services paid for by taxes
Use tax
Public goods
Private goods
Excise tax
154
(Unit 4) Checks over one year old are not valid for cashing or depositing
True
False
155
(Unit 2) Sales tax paid to a business is an example of a
Indirect tax
Direct tax
156
(Unit 7) Which type of term life insurance has a death benefit that remains the same throughout
Decreasing term
Renewable term
Level-term
Convertible term
157
(Unit 1) Which of the following is not one of the 4 major parts to the business cycle
Trough
Plateau
Peak
Growth
158
(Unit 8) The amount that savings or an investment grows is called the principal
False
True
159
(Unit 7) Homeowners insurance protects a homeowner from fire damage and liability coverage
False
True
160
(Unit 8) Investing in your own home has little risk, while other real estate can be very risky
False
True
161
(Unit 4) If you set aside $1000 at 6 percent interest, how much would you earn after 1 year
$60.00
$0.60
$600.00
$6.00
162
(Unit 2) The lowest pay rate allowed by law is
Wage bracket
Time and a half
Floor wage
Minimum wage
163
(Unit 8) A certificate of deposit is a low-risk, liquid investment
True
False
164
(Unit 6) The FTC recommends getting your free credit score by visiting
FTC.gov
CreditKarma.com
FreeScoreOnline.com
AnnualCreditReport.com
165
(Unit 3) Money going out is an example of
Income
Expenses
Net Gain
Net loss
166
(Unit 5) The balloon payment is often the last loan payment
True
False
167
(Unit 8) An example of market risk is a terrorist attack
False
True
168
(Unit 4) A pin number is a personal identification number
True
False
169
(Unit 5) A car loan typically does not require a down payment from the buyer
False
True
170
(Unit 1) Written communication is always preferable to face to face communication
False
True
171
(Unit 2) People who are self-employed must pay how much of the 6.2% social security tax
3.1%
6.2%
none
12.4%
172
(Unit 5) Which of the following is refundable to the tenant?
Fee for changing the locks
Internet Installation charge
Security deposit
Cleaning fee
173
(Unit 7) Self-insuring is a form of
Risk Transfer
Risk Reduction
Risk assumption
Risk avoidance
174
(Unit 3) A written Spending plan is the best way to manage an allowance
True
False
175
(Unit 1) Values are a key factor in the creation of financial goals
False
True
176
(Unit 4) The purpose of a signature card is for depositing money into your account
True
False
177
(Unit 5) A rental agreement is also called a month to month agreement
False
True
178
(Unit 3) My Spending plan must remain the same for an entire year
True
False
179
(Unit 7) Which type of permanent life insurance pays fixed premiums as long as it is in effect
Whole-life
Variable life
Universal life
Limited-pay life
180
(Unit 6) People who don't have a credit card or borrow money are not at risk for identity theft
False
True
181
(Unit 1) Oral communication of new hires is a number one complaint amongst job employers today
False
True
182
(Unit 6) Where is the most common place individuals get heir purses stolen in our community
Out of their car
Olive Garden
Target
Walmart
183
(Unit 7) Disability Insurance typically pays 70 to 80 percent of your regular pay
False
True
184
(Unit 7) Money in a permanent life insurance policy that you will get if you cancel your policy
Cash Value
Canceled Policy Claim
None of the above
Insurance Cancellation Pay-out
185
(Unit 8) A savings account is considered to be a risk free investment
True
False
186
(Unit 2) Money available to spend or save after taxes have been paid
Gross income
Taxable income
Disposable income
Spending income
187
(Unit 8) Tax deferral allows your investment to grow for years without being taxed
True
False
188
(Unit 4) Overdraft Protection helps you avoid
Monthly service fees
Non sufficient funds fee
ATM fees
Inactive account fees
189
(Unit 4) Which of the following endorsements would include the instructions "For deposit only"
Blank
Special
Restrictive
Full
190
(Unit 4) A third party check can easily be cashed or deposited into any account
True
False
191
(Unit 7) You shouldn't assume the risk for large expenses and should for smaller costs
False
True
192
(Unit 2) Payments made indirectly on a person's behalf or paid in a form other than money
In-kind payments
Optional payments
Cash Payments
Money order
193
(Unit 8) Which is an example of indirect investing using a third party trustee*****
Participating in a real estate syndicate
Using an angel investor to form a business venture
Investing in rental property
Investing in a franchise
194
(Unit 8) Which is an example of a low risk investment
Bond
Mutual fund
Collectibles
All investments are medium to high risk
195
(Unit 5) Which of the following is not a major credit bureau?
Experian
Transunion
Fair Isaac and Company
Equifax
196
(Unit 7) Personal risk is losing something of
A lot of money
Personal value
Your property
197
(Unit 8) You should start planning for retirement when you begin your first career
False
True
198
(Unit 2) A tax charged on the purchase of specific goods and services
Exemptions
Property tax
Use Tax
Excise Tax
199
(Unit 7) Driving without a spare tire will usually lead to financial risk
True
False
200
(Unit 2) A tax charged on the use, storage, or consumption of a good purchased in another state
Out-of-state tax
Use tax
Goods tax
Excise tax
201
(Unit 7) What's the first step in risk assessment
Avoid your risks
Determine what impact it has on you
Identify potential risk
202
(Unit 8) which type of mutual fund aims to produce steady and reliable dividend and interest
Growth fund
Global fund
Balanced fund
Income fund
203
(Unit 7) How do you shift your financial losses to the insurance company?
Risk retention
Paying insurance premium
Risk transfer
204
(Unit 7) What type of risk is this... driving while under the influence
Personal
Financial Loss
Financial Rersources
205
(Unit 4) The Formula for simple interest is
I = p*r*t
I = p (n+1)
I = (2*n*f)/(P(n+1))
I = 2*n*f
206
(Unit 3) Spending plans should be discussed with your parents
True
False
207
(Unit 4) Using rule of 72, if you invest money at 10% interest, how long until it doubles?
5 years
6 years
8.5 years
7.2 years
208
(Unit 6) Before Throwing away old documents, you should
Just throw them out
white out any personal information
cross out any personal information
Shred them
209
(Unit 2) In a Flat tax system, everyone would pay
No taxes
A flat fee
The same dollar amount
The same percentage amount
210
(Unit 2) Which item is not likely to be taxed to modify behavior
Alcohol
iPhones
Tobacco
Gasoline

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