(Unit 7) Why do you need liability insurance

To cover injuries from a car crash

(Unit 4) FDIC stands for

Federal Deposit Insurance Corporations

(Unit 6) Someone would steal your identity to

Gain access to resources under your name

(Unit 5) Which of the following is not a recommended method to prevent credit card fraud?

keep old statements containing account numbers

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

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