Consumer Econ Final Review

Savings accounts protected by the FDIC are protected from loss for up to

A money order can never bounce.

Which of the following is most likely to be an impulse purchase?

Which part of a check provides a place for you to write the purpose of the check

In the United States, businesses & individuals pay income taxes & must file income tax returns

Legally established ownership of property is a

A joint checking account can be opened by two or more people.

Once credit is established, people should plan on at least 8 to 10 credit cards at a time.

A payee is a person who promises to pay the debt of another person.

You must file your tax return by this date every year

Employees who telecommute often do computer-related work, such as data entry or Web design.

A work schedule that fits the normal 40 hour workweek into less that five days is called

A condition that created or increases the likelihood of some loss is called a

A fund where money is held to pay amounts that will come due during the year like property tax

All of the following are wise investment practices except

Never respond to email requests for personal information like your SS#.

Efficiency apartments have less living space than other apartments & more expensive.

Renters must insure their own property as well as their part of the building they rent.

This type of risk includes the cost of another person's losses for injuries at your property.

Paying bills online is generally considered slower and riskier than writing checks.

Never sign a contract until you have read and understood it.

When a check is returned to the bank due to insufficient funds, the check is said to have

Economic risk may result in gain or loss because of changing economic conditions

Which of the following would not be an insurable risk?

You will receive a payback in the form of points for merchandise if your credit account has a

The insurer agrees to assume an identified risk when the policyholder pays a fee called:

With a vehicle's VIN, you can determine all the following except

Most people will probably use either Form 1040EZ or Form 1040A to file their 1st tax return

Locally, taxes provide services such as education, parks, and police, fire, and health depts.

By law, a renter can refuse to allow the landlord into his/her living unit at all times.

Usually, a homebuyer's initial offer is lower than the price for which the house is listed.

Floating a check is illegal in most states

Which of the following would be considered a long term need?

A recent selling price of a similar home in your area is an estimate of the value of your home.

A standard work week is

You are responsible for supplying accurate and complete tax information.

When your earnings exceed your expenses, you have the capacity to take on debt.

Furnished rentals are usually cheaper than unfurnished rentals

Which of the following techniques is not recommended for a serious risk?

A real estate agent will ask a prospective buyer to be pre-qualified for loan first thing.

Signing a rental agreement rather than a lease, landlords can raise the rent anytime.

Life insurance becomes a high priority for people as they enter their retirement years

You can comparison shop for furniture but comparison shopping for credit can ruin credit rating

Before granting you credit, a creditor will check into your past credit performance.

Credit reports are issued by

Generally, people insure the contents of their house for at least 1/2 of the building.

Whether or not to take lower interest rates in exchange for higher discount pts depends on:

A disadvantage of using direct deposit is that your paycheck is only deposited into savings.

Amount of $ payable to a policyholder when discontinuing a life insurance policy is face amt.

When you invest in stocks & bonds, you are helping businesses make & sell new products.

Risk transfer is the process of accepting the consequences of risk.

Typically you can expect your vehicle to require a major engine tune up every 3,000 miles.

Which of the following is the first step most people take to establish a good credit record?

Steph was in an accident that was not her fault so her liability will NOT pay for her damages.

The total dollar amount of all interest and fees you pay for the use of credit is called the

When one person makes an offer and another person changes it, the second person is

When you buy a house, a smaller down payment means a smaller mortgage payment.

Property insurance protects the interests of the mortgage lender as well as the homeowner.

Which of following transactions would NOT likely be difficult to make without a credit card?

The value of most homes appreciates over time.

A common misted is keeping temporary investments too long & not reevaluating them.

You will probably get more $ for your used car if you sell it yourself rather than trade it in.

Credit purchases almost always cost less than cash purchases

As the purchaser, you pay the agents' commission when you buy a home.

Which of the following vehicles would most likely have the highest insurance rate?

It is not possible to protect yourself from the consequences of pure risks.

A used car

Both creditors & debtors have responsibilities to each other.

If you have an auto accident that is your fault & your insurance company has to pay claims,

Under flextime, employees do not need to work a set # of hours per day.

Generally, the higher the deductible, the lower the insurance premium.

Browsers sometimes display a small closed-lock symbol on the bottom of your screen. This means

Real estate agents earn income based on a % of the home sale price, usually between ? percent?

You cannot buy homeowners insurance on a house you do not own.

The best way to buy a car is with cash.

Which of the following is an example of a speculative risk?

Monthly car pay should be no more than _ % of the $ you have left after you pay other expenses.

Self-employed people do not need to pay Social Security or Medicare taxes.

The more often interest is compounded, the greater your interest earnings will be.

You should reconcile your checking account as soon as you receive your bank statement.

Debit card transactions do not need to be recorded in your checkbook register.

The cost of replacing an item regardless of its actual cash value is called

You should negotiate the price for a new car separately from the price of your trade-in.

The person who cashes a check is called the

With CC faud, the credit card holder's liability & the merchant's liability are limited to $50

Before you start shopping for a car, determine how much you can afford to spend

By law, only professional tax preparers may use tax preparation software.

Which of the following would be considered an asset

Overtime pay is not considered when you calculate your gross pay

The greater risk you are willing to take, the greater the potential returns.

In a flexible scheduling arrangement, the core time period is

All of the 5 basic types of auto insurance are purchased together it is known as full coverage

By the 1990s the credit craze had subsided, & Americans began saving vs. what they spent.

By far, the biggest advantage of renting is that tenants have no responsibilities whatsoever.

A person who creates and signs the promissory note and agrees to pay it on a certain date is

Buying insurance is an example of

The widest variety of banking services is provided at a

Which of the following will likely result in lower insurance costs?

The process of negotiating a work contract for union members is called collective bargaining.

Some risks are not serious enough to insure.

Older vehicles that people value as collectors' items & that often increase in value are lemons

A list of valuable things you own, with prices & approx current values is an expense record

Interest paid on the original principal plus accumulated results

An express contract is legally binding, but an implied contract is not.

A scam using online pop-up messages to deceive you into disclosing personal information is

Which type of auto insurance protects your own car against damage from auto accidents?

The 2 elements to consider in budgeting and planning are your income and your expenses.

The premiums for group plans are usually considerably higher than for individual plans.

Insurers cannot predict which specific individuals will suffer losses.

Which of the following is a variable expense

Earnings on principal is called interest.

A legal business that makes high-interest loans based on the value of personal possessions is

Essentially, insurance is a way to enrich policyholders.

A tax _____ is an amount subtracted directly from the tax owed

Making an offer to buy a house, it becomes a binding contract only upon the seller's acceptance

Credit transactions use a practice is to use 360 as the # of days in a year for simple interest

Living in a rental, you must to leave it as you found it. Normal wear & tear is not acceptable.

If a person signs a contract and feels threatened to do so, a genuine agreement doesn't exist.

Which of the following is NOT an example of a creditors' responsibility to a consumer?

A canceled check is one that has been processed by the bank.

For safety, do not carry your PIN in written form; instead, commit it to memory.

Rate x hours worked=

The 5 basic types of auto insurance purchased together is called comprehensive coverage.

The most complete homeowner's policy coverage is called

Payments on a credit account include both principal and interest.

A net worth statement will be useful when you apply for a loan or credit.

Your filing status on your tax return is based on

Credit unions are owned by the board of directors of the banks that established them.

Writing a future date on a check is called postdating.